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Home My WebLink AboutPD-125-90 ;�" r••, TOWN OF NEWCASTLE € �. iILL 170 .GPA REPORT File # Res. # — t') By-Law # METING: General Purpose and Administration Committee DATE: April 2, 1990 REPORT #: PD- 125-90 FILE #: SL&JECT: BILL 170 - AN ACT TO REVISE SEVERAL ACTS RELATED TO AGGREGATE RESOURCES FILE: PLN 21. 1 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD- 125-90 be received for information. 1. BACKGROUND 1. 1 Bill 170, entitled 'An Act to revise several Acts related to Aggregate Resources ' , received Royal Assent on June 20, 1989 and was proclaimed in force on January 1, 1990 . The new Act replaces other legislation related to aggregate resources, most notably the Pits and Quarries Control Act. 1.2 The highlights of the new legislation are as follows: greater municipal input on applications and Ministerial actions related to aggregate extraction operations; stronger provisions related to the rehabilitation of 599 10 REPORT NO. : PD-125 -90 PAGE 2 excavated sites and the minimization of the adverse social and environmental impacts of mineral aggregate extraction; financial compensation for municipalities affected by aggregate extraction operations. 1. 3 On December 19, 1988, Council adopted a resolution indicating support for Bill 170 . 2. MUNICIPAL INPUT 2 . 1 Bill 170 entitles upper-tier and local municipalities to receive notice of and to provide comments to the Ministry of Natural Resources on all new licence applications, and on other matters such as proposed changes to licensed operations, transfers of licences and abandoned pit rehabilitation. 2 .2 In addition, each licensed pit or quarry will be subject to an annual review by the Ministry to determine compliance with the legislation, the site plan and the conditions of the licence. Municipal comments will be considered as part of the review. With every fourth annual review, the Ministry will request a municipality to provide comments on each licensed pit or quarry within its boundaries. 3. APPLICABILITY OF MUNICIPAL DOCUMENTS 3. 1 As with previous legislation, municipalities retain full control over the location of licensed pits and quarries through the municipal planning process . The Ministry may issue a licence only if the location of the site complies with all relevant zoning by-laws . 599 11 REPORT NO. : PD-1-2 5 -9 0 PAGE 3 3 .2 Bill 170 does allow the Ministry to issue a wayside permit whether or not the location of the site complies with all relevant zoning by-laws . However, the legislation further specifies that no wayside permit shall be issued for a site zoned and developed for residential use or zoned as an area having particular environmental sensitivity. 4. MUNICIPAL AGGREGATE EXTRACTION OPERATIONS 4 . 1 Bill 170 also affects the Town of Newcastle as an owner/operator of licensed and wayside pits . 4 .2 The Town currently owns and operates one aggregate extraction site which was licensed under the Pits and Quarries Control Act. This pit is located in Part of Lot 16, Concession 2, former Township of Clarke. As required by the new legislation, the Town submitted an application for a replacement licence for this pit prior to the March 31, 1990 deadline. The Town does not currently own or operate any wayside pits . 4 . 3 The Town will be required to comply with the more stringent application requirements of the new legislation with respect to the establishment of any new licensed aggregate extraction operations or wayside pits . The applications must be accompanied by site plans providing details in respect of existing features, extraction operations, and rehabilitation plans . The level of detail required varies with the type of application. A Class 'A' Licence (ie. greater than 20,000 tonnes extraction per year) requires the greatest detail. A Class 'A' Licence Application must also be accompanied by a report providing information in respect of such matters as the suitability of rehabilitation plans, social and economic 599 12' REPORT NO. : PD-125 -90 PAGE 4 impacts, and the main haulage routes and proposed truck volumes. 4 .4 Public Notice must also be provided in respect of an application for an aggregate extraction licence, with provision for referral of an application to the Ontario Municipal Board upon receipt of an objection. 4 .5 The Town will also be required to comply with the more stringent requirements of the new legislation regarding the rehabilitation of excavated sites . As with the Pits and Quarries Control Act, Bill 170 requires every holder of a licence or wayside permit to maintain on deposit with the Province, security for the rehabilitation of the pit, with all or part of the security forfeited to cover the costs of any rehabilitation performed by the Province. This levy is currently 8 cents per tonne of aggregate extracted in the previous year in the case of a licensed pit and, for a wayside pit 8 cents per tonne of aggregate authorized to be extracted. 4 . 6 Unlike the previous legislation, Bill 170 specifically requires every licensee to perform progressive and final rehabilitation. Holders of a wayside permit will be required to operate and rehabilitate the site so as to minimize the inconvenience to the public . With both licensed and wayside pits, the security deposit is refundable upon proof of final rehabilitation being submitted. 5. PRODUCTION LEVY 5 . 1 Bill 170 requires every licensee, including municipalities, to pay to the Province an annual licence fee in an amount 599 1 S REPORT NO. : PD-125 -90 PAGE 5 equal to the licence application fee or a 'rate per tonne extracted' fee, whichever is greater. Every applicant for a wayside permit, again including municipalities is also required, before the permit is issued, to pay to the Province a prescribed permit fee or a fee based on the maximum amount to be extracted. 5 .2 The revenues generated from this annual production fee are to be distributed on the basis of a formula prescribed by the regulations that accompany the Act. These regulations currently provide for an annual production levy of 6 cents per tonne of aggregate actually extracted, with 4 cents of this to be disbursed to the area municipality. The levy is to be based on production for the calendar year beginning in 1990. In this regard, the Town will receive its first disbursement in 1991. 5 .3 For the purposes of example only, 2,399,252 tonnes of aggregate was extracted in the Town in 1989, which would generate $95,970 . 00 in revenue for the Town. However, the pits and quarries in the Town were licensed to extract 9,930,000 tonnes in 1989 . Actual production was only 24% of the maximum permitted. The revenues which would accrue to the Town from the production levy could therefore vary substantially from year to year. 5 . 4 The municipal portion of the annual production fee is intended to compensate municipalities and their residents for the inconveniences associated with aggregate production. Bill 170 allows for the regulations to specify the purposes for which the money must be used. However, at the present time, the regulations do not impose any restrictions on municipalities on how they use their share of the revenue. 599 14 REPORT NO. : PD- 125-90 PAGE 6 5 . 5 One of the most significant and quantifiable impacts resulting from aggregate extraction activity is the deterioration of the Town roads which the aggregate haulers use. In this regard, it would be appropriate for the Public Works Department to review the most desireable use for the revenues resulting from the annual production levy. 6. SUMMARY 6 . 1 Bill 170 addresses many of the inadequacies of previous legislation related to aggregate extraction, by allowing for greater municipal involvement in the review of aggregate extraction operations . The new Act also imposes more stringent requirements with respect to the rehabilitation of excavated sites and the minimization of social and environmental impacts . As the operator of extraction operations however, the Town will also be subject to these requirements . The Town will begin to receive revenue from the annual production levy in 1991. The most appropriate use for this revenue should be reviewed. Respectfully submitted, Recommended for presentation to the Committee Fra in Wu, M.C. I .P. Lawrence . Kotseff Director of Planning Chief A nistrative and Development Officer JAS*DC*FW*df *Attach 22 March 1990 599 15