Water Efficiency for Businesses

Industrial Water Rate Program

The City of Toronto's Industrial Wate Rate (also called the Block 2 water rate) is designed to support the growth of businesses using water for processing purposes and to encourage water conservation.

Is my company eligible for the water rate reduction?

To qualify for the industrial water rate, customers must meet the following criteria:

  • Consume more than 5,000 cubic metres of water annually;
  • Fall within the industrial property tax class;
  • Be in full compliance with the Toronto's Sewers Bylaw (Municipal Code Chapter 681-Sewers);
  • Submit a comprehensive water conservation plan to the satisfaction of the General Manager, Toronto Water.

How can the industrial water rate benefit my company?

Customers are charged the general water rate on the first 5,000m3 of water use. Water use over that amount is eligible for a rate reduction of 30%.

For example, in 2017, an industrial customer consuming 100,000m3 per year will save $103,255.50 

General Consumer

100,000 x $3.6225/m3

= $362,250

Industrial Water Rate Consumer

5,000* x $3.6225/m3
+ 95,000 x $2.5356/m3
= $258,994.50

*The general water rate is charged on the first 5,000m3 for all customers.

What do I have to do to receive the water rate reduction?

Step 1: Contact the City by phone or email to express interest in the Industrial Water Rate. 
Step 2:

The City will confirm that you meet the following eligibility criteria:

  • Your company consumes more than more than 5,000 cubic metres of water annually
  • Your company's property tax classification is 'industrial'*
  • Your company does not have any outstanding Sewers Bylaw Notices of Violation and/or outstanding Pollution Prevention Plans

*Note: If your company is assessed as a “mixed” tax class (with a portion rated as industrial and a portion rated as commercial), please refer to the question: "What if my company is classed as “mixed” industrial and commercial?"

Step 3: If you meet the above eligibility criteria, you must prepare and submit a water conservation plan for approval. Should the plan be approved, the Industrial Water Rate will be applied to your account, effective the date that you submitted your water conservation plan. Templates for the water conservation plan are available online.
Step 4:

After the initial application, an annual water conservation progress report must be filed by July 1 of each year to continue to be eligible for the block 2 water rate.

What if my company is classed as “mixed” industrial and commercial?

If only a portion of your property is assessed as industrial by the Municipal Property Assessment Corporation, a key requirement of the industrial water rate is that a separate meter must be installed to isolate the industrial flow.

Many facilities have multiple City meters on-site, which may already isolate industrial flow. If this is the case for your facility, you must advise Toronto Water of all meter numbers and identify which meter(s) isolates industrial flow. We will arrange for a site visit to confirm which City meter isolates the industrial flow. Once this has been confirmed, you are eligible for the industrial water rate (provided your facility is in compliance with the Sewers Bylaw, and a water conservation plan has been submitted and approved).

If your facility does not have an existing City meter that isolates industrial flow, a new meter must be purchased. To purchase a meter, please contact our office to obtain a Mixed User‚ Meter Information Form. Once the form is complete and the meter is installed, the City will conduct a site visit to verify the industrial flow is isolated, and you will then be eligible for the industrial water rate (provided your facility is in compliance with the Sewers Bylaw, and a water conservation plan has been submitted and approved).

If you feel that sub-metering is not feasible for your facility, a technical submission demonstrating why a sub-meter cannot be installed must be submitted along with your water conservation plan.

What do I need to know about compliance with the City’s Sewers Bylaw?

If your company receives a written Notice of Violation (NOV) issued under the Sewers Bylaw for example for any parameter exceedances in the Sewers Bylaw, it can impact your company's eligibility to receive the discounted water rate.

The first NOV of the calendar year will not be acted upon for the purpose of losing the industrial water rate if you have responded to the NOV and rectified the non compliance. If your company receives two NOVs in a calendar year, the City's Environmental Monitoring and Protection Unit will arrange to meet with your company and discuss what actions have been undertaken to achieve compliance and what can be done to further comply with the City's Sewer Bylaw. If your company continues to demonstrate non compliance, your company will lose the discounted water rate from the date of the second NOV. Eligibility to receive the discounted water rate can be re-established when the City determines compliance has been achieved. For sanitary and storm sewer discharges, this means the City re-samples and the sample results demonstrate compliance. The City may consider a compliance plan agreement in certain circumstances. Three NOVs with the Sewers Bylaw within one year will result in loss of eligibility for the discounted water rate and can only be re-established after the company maintains compliance for one full year (12 consecutive months).

Please note that the following non-compliance issues will cause a company to be automatically removed from the industrial water rate until compliance is demonstrated:

  • Failing to provide a spill report within 5 days
  • If a company is under prosecution
  • Failing to submit a P2 plan, related updates, or a revised plan

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