REPORT Meeting Date: February 28,201 3 Regional Council
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1 REPORT Meeting Date: February 28,201 3 Regional Council DATE: January 24,201 3 REPORT TITLE: ENERGY AND ENVIRONMENT SUSTAINABILITY STRATEGY FROM: R. Kent Gillespie, Commissioner of Employee and Business Services RECOMMENDATION That the Region of Peel's Enabling Strategy for energy conservation and greenhouse gas reduction as outlined in the report of the Commissioner of Employee and Business Services, dated January 24, 2013, titled "Energy and Environment Sustainability Strategy", be adopted; And further, that the Energy and Environment Sustainability Strategy replace the Energy Management Plan, adopted by Regional Council in measures. DISCUSSION I. Background The Integrated Planning Framework (IPF) is used by Regional staff to guide the development and integration of strategic and operational plans for all Regional programs and services. When plans have been developed they are presented to Regional Council for adoption where appropriate. IPF guided the development and adoption of the Region's Strategic Plan and is the framework under which many departmental program plans are being developed or reviewed. One of the key aspects of IPF is the development of Enabling
2 mn-c\-2- January 24, ENERGY AND ENVIRONMENT SUSTAINABILITY STRATEGY Strategies for shared services that support program plans across several departments. This report deals with the Enabling Strategy related to energy conservation and procurement. As part of the 2010 to 2014 Strategic Plan, Regional Council adopted several Term of Council Priorities. One of these priorities was to reduce greenhouse gas emissions to mitigate the impacts associated with climate change. The Region of Peel is one of the largest consumers of energy in the Region of Peel and as such is a contributor to the production of greenhouse gases through the generation and consumption of energy. A significant part of the Region's response to this Term of Council Priority is the creation and adoption of the Energy and Environment Sustainability Strategy as an Enabling Strategy. The Energy and Environment Sustainability Strategy has its roots in the Region of Peel's first Energy Management Plan (EMP) adopted by Regional Council in It set the foundation for integrating strong energy management principles into corporate practices. Since the inception of the EMP significant savings and cost avoidance with respect to energy procurement has been achieved, however, energy management at the Region of Peel has evolved significantly. As a leader in the field of energy management, the Corporation has recognized the need to further embed sustainable practices in departmental programs and capital plans. 2. Proposed Direction a) The Energy and Environment Sustainability Strategy The Energy and Environment.Sustainability Strategy (EESS) sets out three significant goals for the Corporation - to reduce greenhouse gas emissions, ensure sustainable energy procurement and comply with energy laws and regulations (see EESS Appendix I). The EESS will enable the Regional Corporation to enhance environmental and economic resiliency, mitigate risk and contribute to overall energy sustainability. The strategy will guide the Regional Corporation towards achieving its corporate goal of reducing energy related greenhouse gas (GHG) emissions to 80 per cent below the 1990 levels by 2050, as outlined in the Term of Council Priorities. Encouraging energy conservation and GHG emission reduction for external organizations in the Region of Peel is important; however emphasis and priority of the EESS will be directed at reducing energy demand and greenhouse gas emissions in the operations of Regional Departments. b) Energy Conservation and Demand Management Plan (ECDMP) One of the actions under the EESS is the development of an Energy Conservation and Demand Management Plan (ECDMP). The ECDMP is also a requirement of Ontario Regulation I under the Green Energy Act which requires all public agencies to report on its annual energy consumption (natural gas and electricity) and corporate greenhouse gas emissions. The ECDMP has been incorporated in to the EESS to ensure that the Region of Peel is successful in capturing and documenting the Corporation's energy use and greenhouse gas emissions, as well as the measures to mitigate or reduce such use or emissions. This information will have a dual purpose of meeting the reporting requirements to the Ministry as well as for the Term of Council Priority. The ECDMP reporting requirements have a five year planning horizon, building on the initial ECDMP report due in Working through a layered approach, year over year,
3 ma- C\ -3- January 24,2013 ENERGY AND ENVIRONMENT SUSTAINABlLlJY STRATEGY the Region of Peel will report on information about the previous, current and proposed measures for conserving and reducing the amount of energy consumed in carrying out Regional operations. The report will also include the estimated costs and savings for proposed measures as well as the goals and objectives (targets) for conserving and reducing energy consumption for the Corporation. In order to capture and document the required information for the ECDMP, the Energy and Environment Management team will work collaboratively with Departmental groups to develop work plans and activities that will integrate with various Regional program plans and will be in alignment with the program's goals and objectives. Projects and opportunities identified through this process that support the initiative to reduce energy demand and GHG emissions will become part of departmental program plans. Financial implications to complete energy projects will be identified through departmental budget submissions to Regional Council. The ECDMP will be reported to Regional Council before being submitted to the Ministry. The Energy and Environment Sustainability Strategy provides an enabling framework that will guide the Region of Peel towards achieving the Term of Council Priority to reduce greenhouse gas emissions to 80 per cent below the 1990 levels by The strategy identifies the goals and the required actions that will result in plans, projects and initiatives to reduce corporate greenhouse gas emissions, ensure sustainable energy procurement and maintain 'regulatory compliance with Ontario Regulation The Energy and Environment Sustainability Strategy outlines the development and implementation of an Energy Conservation and Demand Management Plan for the Region of Peel to capture and document energy demand and greenhouse gas emission reduction measures. Approval of the Energy and Environment Sustainability Strategy will allow the Region of Peel to continue its leadership role in energy and environment management and continue on a path towards achieving overall energy sustainability. R. Kent Gillespie Commissioner of Employee and Business Services Approved for Submission: D. ~zwarc,chief Administrative Officer For further information regarding this report, please contact Steve Hall at extension 4207 or via at steve. hall@peelregion. ca c. Legislative Services
4 Appendix B 1 I Region of Pee Energy and Env ronment ty Strategy A Vision for SusfainabBe Energy Use
5 Table of Contents Introduction... 3 Goals and Actions... 4 Action Plans... 8 Corporate Energy Conservation and Demand Management Plan (C-ECDMP) Program Energy Conservation and Demand Management Plan (P-ECDMP) P-ECDMP and C-ECDMP Process Appendix 1: ECDMP Process Map... 13
6 introduction With more than half of the world's population living in urban areas, municipalities are uniquely positioned to leverage their skill base and financial resources to assume a leadership role in energy management an? the reduction of greenhouse gas (GHG) emissions. By individually and collectively embracing the goal of energy sustainability, municipalities can significantly lessen the rate and impact of global climate change, ease the eventual transition to a low-carbon economy and reduce the risks associated with volatile budgeting for energy needs. In 2006, the Region of Peel's first "Energy Management Plan" (EMP) set the foundation for integrating strong energy management principals into corporate practices. Since the inception of the EMP, energy management at the Region of Peel has evolved significantly. As a leader in the field of energy management, the Corporation has recognized the need to further embed sustainable practices in departmental programs and capital plans by taking a more structured and collaborative approach. The Energy and Environment Sustainability Strategy (EESS) will guide the Region of Peel towards achieving its corporate goal of reducing energy related GHG emissions to 80% below the 1990 levels by 2050, as outlined in the Term of Council Priorities. The Strategy builds on past successes and is intended to advance energy and environment management to the next level throughout the Corporation. The EESS provides and enabling framework for the Region of Peel to set meaningful energy sustainability objectives and establishes and action oriented plan to achieve its goals and targets. The Region of Peel is working to ensure that Peel is a "safe, healthy, prosperous, sustainable and inclusive community that protects its quality of life for generations to come" by taking direct responsibility for reducing its corporate GHG emissions and making energy sustainability a priority. ' Toronto and Region Conservation Authority. (2010). Climate Change Mitigation: A Strategic Approach for Cities. p.2.
7 Region of Peel Vision "Peel is a safe, healthy, prosperous, sustainable and inclusive community that,protects its quality of life." Region of Peel Mission "The Region of Peel serves our community through progressive leadership, education', advocacy, collaboration and public service excellence." Energy and Environment Sustainability Strategy Mandate: The Energy and Environment Sustainability Strategy will enable the Region of Peel to enhance environmental and economic resiliency, mitigate risk and contribute to overall energy sustainability. Goalls and Actions The Strategic Plan adopted by the Council of The Regional Municipality of Peel sets the direction for Regional programs and services in achieving the Vision statement that "Peel is a safe, healthy, prosperous, sustainable and inclusive community that protects its quality of life". Through the Integrated Planning Framework, Regional programs and services have developed longer term program plans to achieve measurable outcomes for the community that are aligned with the Strategic Plan. In addition to the program plans, enabling strategies have been developed that integrate with and support multiple program plans. The Energy and Environment Sustainability Strategy (EESS) is such an enabling strategy that will guide the Region of Peel to the long term goal of achieving overall energy sustainability. Sustainability requires us to meet our own needs without compromising the ability of future generations to meet their own needs. Sustainability is improving the quality of human life while living within the carrying capacity of supporting eco-systems. To do this requires us to reconsider our environmental, economic, social and cultural imperatives within the principle of sustainability. The EESS has three interrelated goals: o Reduce greenhouse gas emissions to 80% below 1990 levels o Ensure sustainable energy procurement o Ensure regulatory compliance 4 Energy and Environment Sustainability Strategy
8 Greenhouse gases (GHG's) include carbon dioxide, methane and other gaseous compounds that block the dissipation on heat in the upper atmosphere and so act like a glass greenhouse trapping heat in the earth's atmosphere leading to climate change, sometimes referred to as "global warming1'. The production of GHG's is largely the result of burning fossil fuels such as coal, oil, natural gas, gasoline and diesel fuels to derive useful energy for the production of electricity and to power vehicles and equipment. GHG's can also be created through other activities such as livestock agriculture and waste disposal at landfill sites. The actions that the Region of Peel will undertake to reduce GHG emissions include: Create and maintain a GHG inventory for the Regional Corporation that identifies and quantifies the production of GHGs, directly and indirectly, in the course of Regional operations Energy and Environment Sustainability Strategy
9 The Regional Corporation is one of the largest purchasers of electricity in the Region of Peel which is primarily used for driving pumps to treat and deliver safe drinking water. The Region also purchases large amounts on natural gas for heating facilities. Liquid fuels are purchased to power the extensive fleet of vehicles and equipment used in Regional services. Using the sustainability principles, environmental, social, economic and cultural considerations come into play when procuring energy. Environmental considerations include the procurement of energy from renewable sources as opposed to fossil fuels. Economic considerations involve not only the fiscal capacity to purchase energy from renewable sources but also the reduction of risks associated with volatile energy markets. Social and cultural considerations involve the role that the Region of Peel plays in being a leader and influencer with business and industry to achieve sustainable energy choices. The actions that the Region of Peel will undertake to ensure sustainable energy procurement include: 6 Energy and Environment Sustainability Strategy
10 Municipalities are subject to many different types of regulations and regulatory compliance is an integral part of many programs and services. Regulations that pertain more directly to the activities of municipalities with respect to energy include regulations under the Green Energy Act, 2009 requiring energy conservation and demand management plans and provisions under the Municipal Act that authorize the use of commodity price hedging agreements that are an exception to the prohibition placed on municipalities from purchasing securities. Other regulations may have less direct application but must be considered. The actions that the Region of Peel will undertake to ensure regulatory compliance will include: w and report on legislative and regulatory changes as they advocacy positions where ap eglon s strategic goals and objectives e to seek change that is consistent with o Implement appropriates policies, procedu practices that will achieve compliance 7 Energy and Environment Sustainability Strategy
11 Action Plans GOAL ONE I ACTION PLAN: 1.1 Create and maintain a GHG inventory for the Regional Corporation that identifies and quantifies the production of GHGs, directly and indirectly, in the course of Regional operations. The Region of Peel is working collaboratively with an external consultant to establish a GHG inventory for the community as well as the Regional Corporation, including the City of Mississauga, City of Brampton and Town of Caledon. The GHG inventory will also forecast for regional growth as well as climate change scenarios relevant to Peel. It will account for direct and indirect GHG emissions produced in Peel. GHG inventories have been completed setting the baseline at 2006 for the community level and 2010 for the corporate level and will be used to measure GHG emission reductions targets equivalent to 80% below 1990 levels. Going forward, staff will continue to survey Regional operations in order to quantify, directly and indirectly, the production of GHGs while managing the GHG inventory. Measurement and verification processes will be formalized to ensure that energy related initiativeslprojects are performing to yield the expected GHG reductions. This data will serve as an input in to the inventory to ensure that the overall GHG inventory is accurate and reflective of the Corporation's emissions. The Energy and Environment Management section along with Integrated Planning will continue to work together in managing the GHG inventory. 1.2 Develop and implement Energy Conservation and Demand Management Plans (ECDMP) for significant energy dependent Regional services and programs: including water and wastewater operations, municipal solid waste collection and disposal, residential and non-residential facilities, fleet and transportation services. Under the 2006 Energy Management Plan, the Region of Peel has undertaken several initiatives to reduce energy consumption, demonstrate options for the use of energy from renewable resources and improve the metering and monitoring of energy consumption. These initiatives include: Successfully implemented an Energy Management Software used to track and retain all energy data for the Regional Corporation Management of the Corporation's procurement strategy, preparation of the energy budget and energy forecasting Completion of the I00 Building Energy Audit Development of design guideline and standards for new buildings and retrofitting of existing buildings Implementation of Building Automation Systems and demand response practices Interval metering installations at larger facilities tracking real time energy data Installation of 253 solar domestic hot water collectors at five Regional facilities Installation of 11 0 kw of available electrical solar photovoltaic generation capacity at eight Regional facilities Installations of geothermal heat pump systems at 10 Peel, Peel Art Gallery, Museum and Archives (PAMA), Tomken Reporting Ambulance Station and Peel's group homes
12 In keeping with the lntegrated Planning approach to enabling services, under the EESS, the emphasis will be on the development of specific Energy Conservation and Demand Management Plans (ECDMP) that will be integrated with program plans for specific Regional services and programs. Each ECDMP will clearly describe the current state with respect to the subject Regional service or program. Targets for reduction in demand and alternative energy sources will be identified. The ECDMP will set out a detailed plan that will identify and prioritize the projects and initiatives that will achieve the targets, together with estimates of cost for each and an analysis of the overall impact on Regional financial sustainability. The ECDMP will be fully compliant with any legislative requirements. The ECDMP will be presented to Regional Council for endorsement. It is important to note however that as with all plans, the ECDMP will be reviewed and updated on a regular basis that is consistent with the Region's lntegrated Planning Framework. 1.3 Investigate opportunities to collaborate with business, industry and the community to develop innovative approaches to energy sustainability. There are many examples of collaborative approaches to the more sustainable use of energy, such as district heating and cooling and energy from waste facilities. Opportunities for collaboration will be identified and recommendations will be presented as part of the development of the ECDMP. 1.4 Develop and implement education and outreach plans that will support the achievement of the Goals of this strategy. The Region of Peel has been a leader in education and outreach in the community through the annual Energy Matters Summit which has now been running for eight years. The Regional Corporation continues to position itself as a leader in energy and environment management by participating in various education and awareness events and initiatives. This approach will help build staff awareness and engagement throughout the organization while encouraging a culture of conservation and sustainability in the workplace. It will help staff become more informed, aware and motivated to participate in conservation programs. The Region of Peel actively supports and participates in the following initiatives: Energy Matters Summit People Power Challenge 0 Earth Hour Power Pledge These initiatives are meant to inform, challenge and give practical advice on how staff can develop a permanent culture of conservation and sustainability in the.workplace. 1.5 Report GHG reduction outcomes Staff will report to Regional Council on at least an annual basis and more often as may be appropriate, on the progress that has been made through the implementation of the ECDMP and any other initiatives that have helped the Region of Peel to progress toward achieving the GHG targets. This will include absolute reductions as well as reductions achieved by more efficient use of energy and the use of energy from renewable resources. As growth occurs in the Region of Peel, there will be an increase in the volume of services required by the residents and businesses in Peel. Therefore the total amount of energy needed to deliver services will increase. However, targets will be established and measured in respect of appropriate "units of service" which will reflect the success of the ECDMP.
13 GOAL TWO I ACTION PLAN: 2.1 Develop and implement procurement plans and practices for electricity, natural gas and liquid fuels that reduce exposure to volatile energy prices, achieve manageable energy costs while increasing the opportunity to purchase energy from renewable resources. The procurement of energylfossil fuels presents several opportunities for energy conservation. Currently, electricity and natural gas are procured in a market that requires approaches that include "hedging contracts" for forecast base needs over a longer term period as well as shorter term contracts that allow acquisitions of energy to meet seasonal and other variable needs. The Region of Peel currently procures liquid fuels for fleet vehicles, equipment and standby power generation through a cooperative purchasing group with the area municipalities. Procurement of energylfossil fuels is highly dependent upon the accuracy of forecast need. This requires an effective metering and monitoring system and energy needs forecasting processes. The Region's procurement strategies are designed primarily for the purpose of reducing exposure to volatile energy prices and achieve manageable energy costs. The purchase of energy from renewable sources has not been a focus of these practices as in many cases there are greater costs associated with these energy sources. The current policies and practices will be reviewed to ensure that the financial objectives will continue to be addressed but in addition a sustainability lens will be applied to address the environmental, social and cultural considerations. Options and recommendations will be developed for consideration by Regional Council that are aligned with the overall goal of sustainable energy procurement. 2.2 Report on energy procurements including costs, environmental impacts and the use of energy from renewable resources. At the same time as staff will be reporting GHG reduction outcomes, Council will receive reports on energy procurements, environmental impacts and the use of energy from renewable resources. 2.3 Provide commentary on green procurement alternatives with reference to Ontario's supply mix and energy from renewable sources As part of the energy procurement report, staff in consultation with program areas will provide a range of green energy alternatives for Regional Council's consideration. This information will provide options to purchase green energy that will help in working towards achieving GHG emission reduction targets. Details such as the cost per kilowatt for renewable energy and the GHG reductions associated with the volume of energy purchased will be included as well as various purchase option scenarios. This information will serve as another option to reduce the ROP's greenhouse gas emissions as well as promote the use of green energy. GOAL THREE ( ACTION PLAN: 3.q Regularly monitor, review and report on legislative and regulatory changes as they affect the Region of Peel Staff will monitor, review and report on changes to relevant legislation and regulations that may impact the Regional Corporation. This will include taking proactive measures to closely monitor and review energy laws to ensure that the Region of Peel maintains compliance. 10 Energy and Environment Sustainability Strategy
14 3.2 Develop advocacy positions where appropriate to seek change that is consistent with the Region's strategic goals and objectives The profile of energy conservation in Ontario and the Region of Peel has increased considerably in recent years due to growing concerns about environmental impacts caused by energy generation. Ontario faces a considerable electricity supply-demand challenge as coal-fired generation is taken out of service and nuclear plants reach the end of their operational life. The effects of this supply demand-challenge have already become apparent for the Region of Peel. The Regional Corporation has made a commitment to put energy conservation at the top of its list of energy management strategies. Staff will continue to work with various partners such as the Ministry of Environment, the Ministry of Energy, Peel Climate Change Strategy, AM0 Task Force, Toronto Region and Conservation Authority, GTAA Clean Air Council, Ontario Power Authority, Independent Electricity Systems Operator and area municipalities, advocating for conservation and renewable energy policy and practices in alignment with the Region's strategic goals and objectives. 3.3 implement appropriate policies, procedures and practices that will achieve compliance Staff will report annually to the Ministry of Energy and to Regional Council on the corporate GHG emission reductions and energy reductions to ensure compliance with ECDMP and Ontario Regulation
15 Corporate Energy Conservation and Demand Management Plan (C-ECDMP) Ontario Regulation outlines the requirements necessary for public agencies to develop and implement a Corporate Energy Conservation and Demand Management Plan (C-ECDMP) within their organization. The regulation requires public agencies to prepare, publish and make available to the public, a summary of the municipality's annual energy consumption and greenhouse gas emissions (GHGs) for its operations. The plan should also encompass a description of the previous, current and proposed measures for conserving and reducing the amount of energy consumed by carrying out municipal operations and services. Lastly, the plan should include a forecast of the expected results for the current and proposed measures. The C-ECDMP will incorporate and summarize the contents of the Program Energy Conservation Demand Management Plans (P-ECDMP) for all programs. The C-ECDMP report will be submitted to Regional Council and then to the Ministry of Energy and Infrastructure on an annual basis. The first C- ECDMP report is due to the Ministry on or before July 1, Program Energy Conservation and Demand Management Plan (P-ECDMP) Integration of P-ECDMP with Program Plans Under the Integrated Planning Framework (IPF), Program Plans at the Region of Peel are related services that contribute to community outcomes that are aligned with the themes and goals of the Region's Strategic Plan. P-ECDMPs will be developed and integrated with Program Plans so that opportunities for energy sustainability are identified within Program Plans. By the first quarter of 2014, the Region will develop its first version of the P-ECDMP. The EEM section will work collaboratively with each program area to develop a P-ECDMP that will be in alignment with the program's goals and objectives. It will evaluate the programs current business practices and identify opportunities to reduce energy demand. All energy and GHG reduction projects and initiatives- including the budget, targets and timelines will be documented, prioritized and planned over a five year P-ECDMP and will become part of Departmental Program Plans. Financial implications to complete energy projects will be identified through departmental budget submissions to Regional Council. The P-ECDMPs will be revised and updated as required through the P-ECDMP planning process. The P-ECDMP will be flexible and will have the ability to adapt to the various Regional programs. P-ECDMP and C-ECDMP Process Attached as Appendix I(a) is a high level process map that outlines the processes for the developments, implementation, measurement and reporting for both P-ECDMP and C-ECDMPs. The 'swim' lanes identifiy where responsibility lies for various parts of the process. It should be noted that one lane is shown as collaborative work. Energy and Environment Sustainability Strategy
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