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OntarioPassed44th Parliament, 1st Session

Bill 40 explained in plain English

Protect Ontario by Securing Affordable Energy for Generations Act, 2025

Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Ontario Legislature
Legislature / Parliament
Legislative Assembly of Ontario
Session
44th Parliament, 1st Session
Bill number
Bill 40
Full title
Protect Ontario by Securing Affordable Energy for Generations Act, 2025
Current status
Passed
Latest event
Royal Assent received
Last updated
Dec 11, 2025

Official Legislative Assembly of Ontario snapshot for 44th Parliament, 1st Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.

Chamber
Legislative Assembly of Ontario
Current Stage
Royal Assent received
Latest Activity
Dec 11, 2025
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

Bill 40 amends Ontario energy and utilities laws to support economic growth, develop a hydrogen market, enable specified large electricity-consuming facilities to connect to the grid subject to new regulatory conditions, remove municipal referendum requirements for utility franchises, and add economic growth as an objective for Ontario's energy regulator.

What It Means

Bill 40 makes changes to Ontario's electricity, energy, and utilities laws to support economic growth and attract energy-intensive industries. The bill does several key things: It adds "supporting economic growth" as an objective for Ontario's electricity system and the Ontario Energy Board (the regulator). It also adds a new goal to develop a hydrogen market and economy in Ontario for low-carbon hydrogen applications. The bill creates new rules for "specified load facilities"—mainly data centres and other large electricity users that would withdraw significant power. These facilities can be connected to the electricity grid only if they meet specific conditions that regulations will set out. These conditions may relate to economic development, job creation, or other matters. Regulations will define what counts as a data centre and set thresholds for electricity demand. The bill removes the requirement that municipal voters approve by-law decisions about granting utilities the right to use municipal roads. Municipalities will now only need to pass a by-law, without requiring a referendum. This also applies to decisions about extending or renewing gas distribution rights. The bill expands the Ontario Energy Board's authority to approve transmission line projects to include supporting economic growth as a public interest factor. It allows the Board to consider additional reports and documents prescribed by regulation when deciding such applications. The bill allows the Ontario government to make payments directly to electricity transmitters from public funds, and requires the Ontario Energy Board to reduce rates to reflect any such payments made. The bill also makes changes related to procurement restrictions for gas and electricity utilities if a separate bill (Bill 5) receives Royal Assent. Those changes would create special accounts where utilities can track costs of meeting procurement origin requirements. Most changes come into force when Bill 40 receives Royal Assent (December 11, 2025). One provision (about certain regulation-making detail) comes into force on a date to be set by government order.

What This Bill Does
  • Amends the Electricity Act, 1998 to add 'supporting economic growth in a manner consistent with the policies of the Government of Ontario' as a purpose of Ontario's electricity system
  • Amends the Electricity Act, 1998 to add facilitating development of a hydrogen market and economy in Ontario as a purpose
  • Adds a new section 28.1 to the Electricity Act, 1998 that prohibits transmitters and distributors from connecting or reconnecting 'specified load facilities' (primarily data centres and large industrial users) unless specified connection requirements set by regulation are met
  • Authorizes regulations under the Electricity Act to define 'specified load facilities' based on criteria including electricity demand thresholds, geographic location, and other factors
  • Authorizes regulations to set specific connection requirements and processes for specified load facilities, which may include conditions related to economic development and job creation
  • Amends the Electricity Act, 1998 to allow regulations to specify certain payments to generators, distributors, and the Financial Corporation that would not be counted when adjusting charges to market participants and consumers, and instead be paid from government appropriations
  • Adds a new objective to the Ontario Energy Board that it must regulate electricity in a manner supporting economic growth consistent with government policies
  • Amends the Ontario Energy Board Act, 1998 to add 'supporting economic growth in a manner consistent with the policies of the Government of Ontario' to factors the Board may consider when deciding whether to grant leave for electricity transmission or distribution lines
  • Requires the Ontario Energy Board to consider reports, documents, or other information prescribed by regulation when deciding applications for transmission or distribution line construction
  • Adds section 78.3 to the Ontario Energy Board Act, 1998 permitting the Minister to make payments to electricity transmitters from government appropriations and requiring the Board to reduce rates to reflect such payments
  • Adds section 13.1 to the Ontario Energy Board Act, 1998 authorizing the Board's chief executive officer to issue internal policies on hearing procedures and timelines
  • Makes section 28.1 of the Electricity Act, 1998 an enforceable provision under the Ontario Energy Board Act, 1998
  • Provides that non-discriminatory access conditions in transmitter and distributor licences are subject to connection restrictions in section 28.1 of the Electricity Act, 1998
  • Provides that section 28.1 of the Electricity Act, 1998 and regulations made under it prevail over Ontario Energy Board orders, codes, or licences in case of conflict
  • Amends the Municipal Franchises Act to remove the requirement that municipal voters assent to by-laws granting public utility franchises, replacing this with a requirement that municipalities simply pass a by-law
  • Amends the Municipal Franchises Act to expand the Ontario Energy Board's authority to approve applications to renew or extend gas distribution rights to include authority to construct, extend, or add to works, not only to operate them
  • Amends the Public Utilities Act consequentially to reflect removal of municipal elector assent requirements
  • Repeals subsection 5(2) of Schedule 1 to the Fixing the Hydro Mess Act, 2019
  • If Bill 5 receives Royal Assent, amends procurement restriction provisions in the Ontario Energy Board Act, 1998 regarding gas transmitters, distributors, and storage companies to permit deferral or variance accounts to track compliance costs
Who Is Affected
  • Ontario electricity consumers and ratepayers, whose rates may be affected by government payments to transmitters and by funding mechanisms for specified load facilities
  • Data centres and other large electricity-consuming industrial facilities that meet the definition of 'specified load facilities' and will need to meet specified connection requirements to access the grid
  • Electricity transmitters and distributors, who must apply connection restrictions to specified load facilities and will have their non-discriminatory access requirements limited accordingly
  • The Independent Electricity System Operator (IESO), whose objects now include supporting economic growth
  • The Ontario Energy Board, which gains new objectives regarding economic growth and new procedures and factors to consider
  • Gas distributors, gas transmitters, and storage companies, which are subject to amended procurement restrictions if Bill 5 receives Royal Assent
  • Municipalities, which no longer need to hold referendums to approve by-laws granting public utility franchises
  • Utility companies seeking to renew or extend gas distribution franchises, which now have expanded authority through the Ontario Energy Board
  • The Ontario government and Legislature, which must appropriate funds if the Minister chooses to make payments to transmitters
  • Gas and electricity licensees (under Ontario Energy Board Act provisions), which would be affected by amended procurement restrictions and deferral account provisions if Bill 5 receives Royal Assent
Rights, Duties, Or Obligations
  • Transmitters and distributors must not connect or reconnect specified load facilities unless specified connection requirements set by regulation are met
  • Transmitters and distributors must follow prescribed processes and take prescribed actions if specified connection requirements are not fulfilled or breached after connection
  • The Ontario Energy Board must reduce electricity rates approved or fixed for transmitters to reflect any government payments made to those transmitters under new section 78.3
  • The Ontario Energy Board must consider supporting economic growth as a factor when deciding whether to grant leave for electricity transmission or distribution line construction
  • The Ontario Energy Board must consider prescribed reports, documents, or other information when deciding transmission/distribution line applications
  • Non-discriminatory access conditions in transmitter and distributor licences are subject to restrictions in section 28.1 of the Electricity Act, 1998
  • Regulations may specify conditions, requirements, limitations, and approvals for connecting specified load facilities, including criteria related to economic development and job creation
  • Municipalities may grant utility franchises through by-law only—they no longer need municipal voter assent
  • The Minister may make discretionary payments to electricity transmitters from government appropriations (if any are available for this purpose)
  • Gas transmitters, distributors, and storage companies may establish deferral or variance accounts to track costs of complying with procurement restrictions (if Bill 5 receives Royal Assent)
Important Dates
  • Royal Assent received: December 11, 2025
  • Schedule 1 (Electricity Act amendments) comes into force: December 11, 2025, except subsection 8(3) which comes into force on a day to be named by order of the Lieutenant Governor in Council
  • Schedule 2 (Municipal Franchises Act amendments) comes into force: December 11, 2025
  • Schedule 3 (Ontario Energy Board Act, 1998 amendments) comes into force: December 11, 2025
  • Section 28.1 of the Electricity Act, 1998 does not apply to specified load facilities for which a connection request was submitted before June 3, 2025
  • Transitional rule: Ontario Energy Board applications made under section 9 or 10 of the Municipal Franchises Act before Schedule 2 comes into force shall be continued and disposed of under the amended Act
Financial Or Tax Impacts
  • The Ontario government may spend public money on payments to electricity transmitters, though amounts and timing are discretionary and dependent on government appropriations
  • Electricity rates for consumers may increase or decrease depending on whether government makes payments to transmitters and how those payments are reflected in rate-setting
  • Electricity rates must be reduced to the extent the Ontario government makes payments to transmitters
  • Utilities complying with procurement restrictions (if Bill 5 passes) may incur additional costs, which can be tracked in deferral or variance accounts and potentially recovered through rates
Enforcement Or Penalties
  • The bill text does not specify penalties or enforcement mechanisms for non-compliance. Section 28.1 of the Electricity Act, 1998 requires transmitters and distributors to follow prescribed processes if specified connection requirements are not fulfilled or breached, but the specific actions and any penalties are to be prescribed by regulation.
  • Section 28.1 is made an enforceable provision under the Ontario Energy Board Act, 1998, meaning the Board has authority to enforce it, but the bill does not detail enforcement procedures
  • The bill does not specify enforcement mechanisms for compliance with policies issued by the Ontario Energy Board's chief executive officer, though it notes that non-compliance does not affect the validity of actions taken
Uncertainties Or Limits
  • The specific definition of 'data centre' will be set by future regulation, not in the bill itself
  • The specific criteria for identifying 'specified load facilities' beyond data centres are to be prescribed by regulation and are not defined in the bill
  • The exact electricity demand thresholds that trigger 'specified load facility' status are not specified in the bill and will be set by regulation
  • The specific 'specified connection requirements' and processes for compliance are not detailed in the bill and will be prescribed by regulation
  • When and how the government will make payments to transmitters under section 78.3 is not specified—it is discretionary and dependent on legislative appropriation
  • Subsection 8(3) of Schedule 1 (related to regulation-making detail) comes into force on a date to be named by order, meaning its commencement is uncertain
  • The bill text does not clarify how 'economic growth' should be defined or measured as an objective, leaving interpretation to the Ontario Energy Board and government
  • The bill does not specify how the Ontario Energy Board should balance the new economic growth objective with its existing objectives (affordability, accessibility, safety, conservation, etc.)
  • Changes to procurement restrictions apply only if Bill 5 (Protect Ontario by Unleashing our Economy Act, 2025) receives Royal Assent—the bill is conditional on that separate legislation
  • The bill does not specify costs or budgetary implications of implementing the new connection requirements and regulatory regime for specified load facilities
  • The transitional rule in section 28.1(6) excludes facilities with connection requests submitted before June 3, 2025, but it is unclear whether all such requests would be processed under old rules or partially under new rules
Laws Or Regulations Affected
Electricity Act, 1998
amended

The Act's stated purposes now include supporting economic growth and developing a hydrogen market. The Independent Electricity System Operator's objects now include supporting economic growth. A new section 28.1 is added creating connection requirements for specified load facilities like data centres. Regulations can now specify certain payments that do not count as charges to market participants. The Ontario Energy Board must consider reports and documents when deciding transmission/distribution applications.

Source: Schedule 1, sections 1-9

Ontario Energy Board Act, 1998
amended

The Board's objectives now include regulating electricity to support economic growth consistent with government policies. A new section 13.1 authorizes the Board's CEO to issue internal policies on hearing procedures. Section 28.1 of the Electricity Act becomes an enforceable provision. Non-discriminatory access conditions are subject to connection restrictions for specified load facilities. The Minister may make payments to transmitters from public funds, which must reduce rates. Spent transitional provisions are repealed.

Source: Schedule 3, sections 1-11

Municipal Franchises Act
amended

Removes requirement that municipal voters assent to by-laws granting public utility franchises—municipalities now only need to pass a by-law. Expands the Ontario Energy Board's authority to approve applications to construct, extend, or add to gas distribution works, not only to operate them. Removes all references to municipal elector assent throughout the Act.

Source: Schedule 2, sections 1-7

Public Utilities Act
amended

A consequential amendment removes language requiring municipal elector assent in relation to public utility matters.

Source: Schedule 2, section 8

Fixing the Hydro Mess Act, 2019
amended

Repeals subsection 5(2) of Schedule 1, which previously imposed certain requirements or limitations (the specific effect is not detailed in the bill text).

Source: Schedule 1, section 9

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Process Snapshot

Step 1
First reading
Jun 3, 2025
Step 2
Second reading
Dec 3, 2025
Step 3
Committee review
Dec 3, 2025
Step 4
Third reading
Dec 8, 2025
Step 5
Royal assent
Dec 11, 2025

Vote Summary

Yes
69
No
37
Abstain
0
Absent / Other
0
Final recorded vote
Dec 8, 2025
106 representative positions are recorded in this official snapshot for this vote.
Sponsor
Stephen Lecce
Progressive Conservative Party of Ontario | King—Vaughan
Jurisdiction
Ontario Legislature

Representative Voting Breakdown

Vote badges include text labels so the table stays readable for everyone, even without color cues alone.

RepresentativeRoleRidingPartyVoteNotes
MPPBrampton WestProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPWindsor—TecumsehProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPEssexProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough—AgincourtProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPAlgoma—ManitoulinProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPRenfrew—Nipissing—PembrokeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMarkham—UnionvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPCambridgeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSimcoe—GreyProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPPeterborough—KawarthaProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNewmarket—AuroraProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—MaltonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPOakville North—BurlingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPCarletonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBarrie—InnisfilProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPYork—SimcoeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNorthumberland—Peterborough SouthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBarrie—Springwater—Oro-MedonteProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPOxfordProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPTimminsProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton NorthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPParry Sound—MuskokaProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSimcoe NorthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPThunder Bay—AtikokanProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHaliburton—Kawartha Lakes—BrockProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHuron—BruceProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPVaughan—WoodbridgeProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPAurora—Oak Ridges—Richmond HillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPYork CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga CentreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHamilton East—Stoney CreekProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—StreetsvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPStormont—Dundas—South GlengarryProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMarkham—StouffvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrampton SouthProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPElgin—Middlesex—LondonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNiagara WestProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPWillowdaleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPOakvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPKing—VaughanProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPLeeds—Grenville—Thousand Islands and Rideau LakesProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPDufferin—CaledonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPDurhamProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPChatham-Kent—LeamingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPNipissingProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPScarborough—Rouge ParkProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMiltonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPKitchener South—HespelerProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPLanark—Frontenac—KingstonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPWellington—Halton HillsProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPThornhillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMarkham—ThornhillProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPPerth—WellingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPEglinton—LawrenceProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPYork South—WestonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHamilton MountainProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBurlingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBruce—Grey—Owen SoundProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPHastings—Lennox and AddingtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPSarnia—LambtonProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—LakeshoreProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga—Erin MillsProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPMississauga East—CooksvilleProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPGlengarry—Prescott—RussellProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPLambton—Kent—MiddlesexProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBay of QuinteProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPBrantford—BrantProgressive Conservative Party of OntarioYesRecorded without an additional note.
MPPDon Valley EastOntario Liberal PartyNoRecorded without an additional note.
MPPKitchener CentreGreen Party of OntarioNoRecorded without an additional note.
MPPParkdale—High ParkNew Democratic Party of OntarioNoRecorded without an additional note.
MPPHaldimand—NorfolkIndependentNoRecorded without an additional note.
MPPWaterlooNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOttawa CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOttawa West—NepeanNew Democratic Party of OntarioNoRecorded without an additional note.
MPPSpadina—Fort YorkNew Democratic Party of OntarioNoRecorded without an additional note.
MPPScarborough SouthwestNew Democratic Party of OntarioNoRecorded without an additional note.
MPPNickel BeltNew Democratic Party of OntarioNoRecorded without an additional note.
MPPMushkegowuk—James BayNew Democratic Party of OntarioNoRecorded without an additional note.
MPPSudburyNew Democratic Party of OntarioNoRecorded without an additional note.
MPPSt. CatharinesNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOshawaNew Democratic Party of OntarioNoRecorded without an additional note.
MPPUniversity—RosedaleNew Democratic Party of OntarioNoRecorded without an additional note.
MPPTimiskaming—CochraneNew Democratic Party of OntarioNoRecorded without an additional note.
MPPDon Valley NorthOntario Liberal PartyNoRecorded without an additional note.
MPPKanata—CarletonOntario Liberal PartyNoRecorded without an additional note.
MPPToronto CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPEtobicoke—LakeshoreOntario Liberal PartyNoRecorded without an additional note.
MPPWindsor WestNew Democratic Party of OntarioNoRecorded without an additional note.
MPPThunder Bay—Superior NorthNew Democratic Party of OntarioNoRecorded without an additional note.
MPPOttawa—VanierOntario Liberal PartyNoRecorded without an additional note.
MPPDavenportNew Democratic Party of OntarioNoRecorded without an additional note.
MPPBeaches—East YorkOntario Liberal PartyNoRecorded without an additional note.
MPPGuelphGreen Party of OntarioNoRecorded without an additional note.
MPPLondon WestNew Democratic Party of OntarioNoRecorded without an additional note.
MPPToronto—DanforthNew Democratic Party of OntarioNoRecorded without an additional note.
MPPAjaxOntario Liberal PartyNoRecorded without an additional note.
MPPDon Valley WestOntario Liberal PartyNoRecorded without an additional note.
MPPOrléansOntario Liberal PartyNoRecorded without an additional note.
MPPKingston and the IslandsOntario Liberal PartyNoRecorded without an additional note.
MPPLondon North CentreNew Democratic Party of OntarioNoRecorded without an additional note.
MPPLondon—FanshaweNew Democratic Party of OntarioNoRecorded without an additional note.
MPPHumber River—Black CreekNew Democratic Party of OntarioNoRecorded without an additional note.
MPPNepeanOntario Liberal PartyNoRecorded without an additional note.
MPPNiagara FallsNew Democratic Party of OntarioNoRecorded without an additional note.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced