Guide to writing a municipal energy management strategy

Transcription

1 Guide to writing a municipal energy management strategy

2 Table of Contents Approach p. 3 Value Proposition p. 3 Step-by-step Guide 1. Propose an Energy Management Strategy to Municipal Council p Develop a thorough understanding of the current energy efficiency opportunities. p Organize and analyze energy efficiency opportunities p Contact Efficiency Nova Scotia. p. 5 Sample: Efficency Opportunities Spreadsheet p Create a short-term time line with long-term goals p Create an energy efficiency target p Create a Green Revolving Fund p Make a plan for accountability p. 8 Sample: Implementation Plan Table p Propose the plan to Council p Track progress p Engage with staff and public p Re-evaluate p. 10 Concluding Remarks p. 11 Useful Resources p. 11 Prepared by Emma Norton Energy Efficiency Coordinator Ecology Action Centre efficiency@ecologyaction.ca (902) Redesigned by Crystal Picard and Republished

3 Introduction This is a guide for municipalities in Nova Scotia to write their own Multi-Year Energy Management Strategy. Our intention is that municipal staff, with or without energy experience, can use this guide to help create an effective and achievable energy management strategy for the municipality. Value Proposition Energy management is defined here as using energy better by taking control of energy consumption and production. The key aspect, energy efficiency, is best thought of as an energy source, figuring into your energy use in the same way that electricity might. Energy efficiency is one of the safest financial investments an institution can make, as its return on investment is almost guaranteed and can be predicted based on engineering calculations rather than stock market estimates. As stated in a 2012 study from Environment Northeast, benefits of energy efficiency include avoiding expensive upgrades to aging energy infrastructure; facilitating new industry and centers of excellence; reducing the needs for energy assistance programs; and the value of energy security. 1 Communities and institutions around the world are already acting on and realizing the value of energy efficiency. Savings from energy efficiency projects are a source of revenue for the municipality. Energy efficiency will encourage growth in the local economy instead of paying for fuels from foreign markets and it creates measurable, healthy jobs. A report from the Pembina Institute for Appropriate Development states that investing in energy efficiency creates 3-5 more jobs than investing in either renewable energy or fossil fuel energy respectively. 2 In Nova Scotia, the efficiency industry has already created over 1200 full time jobs. 3 Energy efficiency puts money back in pockets of ratepayers and taxpayers by reducing utility bills. The Town of New Glasgow is saving about $35,000 a year from retrofitting their historic buildings, library, and local arena. Energy will be affordable for all people in our community, and secure energy sources will sustain a thriving economy. - The Town of Bridgewater The Town of Annapolis Royal reduced its greenhouse gas emissions by 24% in just 5 years. In the case of municipal governments, it creates stronger fiscal responsibility. The savings from energy efficiency can even be captured in a revolving fund, which can be used for other energy efficiency projects that will lead to further energy savings. As stated in the Ecology Action Centre s 2013 report, Electricity and Nova Scotia s Future: Hurdles and Opportunities, Nova Scotia differs from other Canadian jurisdictions that have undertaken similar energy and electricity system transformations in that energy security is a central motivating factor here rather than an economic opportunity. Energy import dependency is one of Nova Scotia s greatest social and economic vulnerabilities, since the province is almost wholly reliant on expensive and volatile import markets for its heating, transportation and electricity fuel supplies. 4 Managing energy consumption is a key aspect of regaining energy security in Nova Scotia so that our province can power itself from local and renewable resources like solar, wind, and tidal energy. Climate change is an increasingly dire 1 Leslie Malone, Jamie Howland, Bruna Gobeil. Brent Langille, Philippe Dunsky & Lisa Petraglia. Energy Efficiency: Engine of Economic Growth in Eastern Canada. A Macroeconomic Modeling & Tax Revenue Impact Assessment. Report Prepared for Environment Northeast, May 2012, p Barbara Campbell, Larry Dufay, Rob Macintosh Comparative Analysis of Employment from Air Emission Reduction Measures, Pembina Institute for Appropriate Development, January 31, 1997, p.4. 3 Efficiency Nova Scotia Annual Report. December 2013, p Catherine Abreu. Electricity and Nova Scotia s Future: Hurdles and Opportunities. Produced by the Ecology Action Centre. August 2013, p. 3. 3

4 threat, especially to coastal communities around Nova Scotia. Canadian Municipalities are responsible (both directly and indirectly) for approximately 44% of our country s greenhouse gas emissions. 5 Most electricity and heating fuels in Nova Scotia come from coal, oil, or natural gas, so reducing consumption will help Nova Scotia and municipalities reduce emissions to mitigate climate change. Energy efficiency is essential in the fight against climate change. In 2014, every kwh of electricity purchased from Nova Scotia Power Incorporated released grams of CO 2 into the atmosphere. 6,7 Nova Scotia s power supply is becoming less carbon intensive at an impressive rate, but not quickly enough considering the urgency of climate change. Energy efficiency is key to making the switch to a fossil-free electricity system. Eventually low or no greenhouse gas emissions will become legislated norm; it is prudent to plan for more efficient operations now. Additionally, energy efficiency has social benefits closely linked to its economic and environmental benefits. Small communities in Nova Scotia based on fishing and agriculture are suffering as their industries struggle to compete in global markets. Jobs for local skilled tradespeople are created by investing in energy efficient upgrades due to the nature of energy retrofits and energy efficiency construction. Furthermore, the money saved from energy efficiency can be reinvested into other community programs or local goods. Municipalities can take advantage of these many benefits of energy management. We hope that this guide will help your municipality make these possibilities reality. Step 1: Propose an Energy Management Strategy to Municipal Council Through a presentation or simple report, show the Municipal Council the benefits of an Energy Management Strategy for your municipality. Use inspiring stories that demonstrate what other municipalities in Nova Scotia have already done. Examples can be found on the Union of Nova Scotia Municipalities Sustainability Office website. It is likely that your council has contacts in those municipalities already that you or they can look to for advice. Another option is to contact the Ecology Action Centre for a presentation about these stories and the benefits of energy efficiency. Use this opportunity to ensure that the municipality is ready to endorse energy management. A discussion with council can be used to identify opportunities for energy efficiency; it is helpful to have a number of opportunities identified beforehand to present to council. Opportunities and challenge in the development of the Energy Management Plan help to establish the energy efficiency priorities of the Municipal Council. Priority examples could include buildings of highest concern, cost savings, comfort of buildings, or engaging community. These priorities will be helpful in the development of an upgrade timeline later. Step 2: Develop an understanding of the current energy efficiency opportunities Many municipalities in Nova Scotia have had an energy audit completed in order to receive funding from the federal Gas Tax Fund. If your municipality has not already had an energy audit or scoping study conducted, it is an essential first step in developing an energy management plan. Most engineering consultancies can be contracted to do this. For 5 Federation of Canadian Municipalities Act Locally. The Municipal Role in Fighting Climate Change. Prepared by EnviroEconomics. Available online: reports/act_locally_the_municipal_role_in_fighting_climate_change_en.pdf 6 See Nova Scotia Power Incorporated s webpage, Total Systems Emissions (All Plants), total-system-emissions-all-plants.aspx. 7 CO2 equivalent (carbon dioxide equivalent), is a measure used to compare the emissions from various greenhouse gases based on their greenhouse effect potential. 4

5 guidance in finding a contractor to do the study, call Efficiency Nova Scotia ( ) or the Ecology Action Centre ( ). Efficiency Nova Scotia can provide funding for energy audits that include electricity saving opportunities. Step 3: Organize and analyze energy efficiency opportunities Once the scoping study is complete, develop a list of opportunities in spreadsheet format. Many engineering consulting companies for do this for you. For each opportunity to save energy, calculate the potential costs, potential savings (in kilowatt hours, in litres of fuel oil, gas, or propane, and in tonnes of greenhouse gas emissions), and predicted simple payback period. Dollar savings are based on the real price per kilowatt hour (kwh) of each account and estimated kwh savings. It is likely that various buildings in the municipality have different rate codes and therefore different electricity rates. Take this into consideration when calculating estimated savings. It must also be noted that energy rates are likely to rise in the future, so avoided costs will be larger than predicted as will total spending per kwh. Therefore kwh savings per year are the most accurate reflection of possible savings. Discuss the opportunities with the municipal property services manager, public works manager and/or whoever else might be informed on the situation. They can tell you what has been already been upgraded, what still needs to be upgraded and if there are any new potential projects. Update your spreadsheet using this feedback. Step 4: Contact Efficiency Nova Scotia Based on the opportunities identified in your review of the audit and the conversation with the municipal property services manager or public works manager, contact Efficiency Nova Scotia ( ) and find out what programs and incentives are available to help you use your energy better. Closely review the scoping study s list of opportunities with Efficiency Nova Scotia so that no opportunities for support from Efficiency Nova Scotia are missed. Efficiency Nova Scotia provides financial incentives for upgrades and studies as well as expertise about efficient technologies that save electricity. Efficiency Nova Scotia can immediately help with some of the easier energy saving opportunities, such as lighting upgrades. These changes will enable energy, financial, and maintenance savings to start immediately, and set the municipality up for more ambitious upgrades later. The earlier savings start Table 1: Sample Opportunities Spreadsheet 5

6 accruing, the better results the municipality will receive due to fewer wasted resources. Integrate the data from Efficiency Nova Scotia contractors, newly calculated costs, savings and payback periods into the Opportunities Spreadsheet. Efficiency Nova Scotia s data will be more accurate than a scoping study and will give you a better idea of the savings and costs involved in electricity saving upgrades. Step 5: Create a short-term time line with long-term goals In this stage, identify which projects can be started right away and decide whether the savings will help pay for future projects. This is a good time to calculate the current total energy use of your buildings in kwh and fuel oil litres. Start with the quick wins. Quick win projects have little cost but big savings and therefore short payback periods. The higher the savings achieved during the first year, the more cumulative savings will be achieved by the end of the timeline. The time-line should be a detailed plan of when the energy saving upgrades will be made in the municipality. Calculate what the savings will be at the end of each year, and how much was spent on upgrades that year. Savings should meet expenditures over the years, especially as savings from the first years accumulate and build. For example, if your municipality saves 40,000 kwh from the first upgrades made in your baseline year, five years later the initial upgrades have saved the municipality 200,000 kwh. Helpful estimates to add this timeline include: annual kwh total, dollar, and greenhouse gas emission savings achieved during the year, cumulative kwh (since upgrades began), cumulative dollar, and cumulative greenhouse gas emission savings since the beginning of the plan, expenditures on energy projects during each year, and cumulative spending on energy projects over the whole timeline. Step 6: Create an energy efficiency target A target for energy efficiency is important to inspire action and measure progress. Targets should be S.M.A.R.T. specific, measurable, attainable, realistic, and timely. Writing the timeline first will establish a measurable, attainable, and realistic target. Set a kilowatt-hour (kwh) target instead of a greenhouse gas emission target, greenhouse gas emission reductions are harder to estimate since each year the emissions per kwh from your power utility will be changing based on their energy generation sources. The target should have a baseline year and target year. Case Study: Municipality of Barrington In 2014, the Ecology Action Centre helped develop a Multi-Year Energy Management Strategy for the Municipality of Barrington using the framework outlined in this document. The five-year timeline provides a path for the municipality to save an impressive $40,000+ per year in energy costs, with payback for achieved by the end of the fifth year. The $40,000 in annual savings equals 15 per cent reduction in electricity and a 60 per cent reduction in fuel oil below 2013 levels. Using the strategy, by the end of 2014, the Municipality of Barrington could reduce its electricity consumption by 2 per cent. 6

7 For example, a 15 per cent energy reduction below 2013 (baseline year) levels by 2019 (target year). Many international climate organizations recommend setting a baseline of Your municipality might opt for the base year to be the year of their scoping study or energy audit because the study provided an accurate measurement of the energy consumed during this year. Targets can be helpful for staff engagement. Incentives for meeting annual goals could be created, like an extra day of vacation for the team that reaches the goal first, or a celebration when the entire municipality reaches the target. For some, the increased comfort of the workspace will be enough incentive! 7. Create a Green Revolving Fund A Green Revolving Fund (GRF) allows the municipality to use the savings gained from efficiency upgrades to make further upgrades. By capturing the operational savings from recent energy upgrades and using them for future energy efficiency projects, it lessens the demand on the municipal budget for energy efficiency projects. A GRF is a stable fund for energy efficiency projects that does not affect taxes or debt. It also increases seed funding for feasibility studies and big energy projects that do not have incentives available through other means. GRF s have many possibilities : Your GRF fund can be configured in various ways: A. 100% of operations savings go to the fund B. 50% of operations savings to the fund and 50% to municipal operations, C. 75% to the fund and 25% to municipal operations; any division of savings is possible. Your municipality can determine at what point after making the upgrade to start and stop capturing the savings in a GRF. For example, the municipality might decide to wait until the project has been paid back from the savings incurred to start capturing the savings. A GRF has a number of advantages: 1. Simple to implement in comparison to other funding models; 2. Funds revolve indefinitely creating a source of funds for the long term; 3. Takes stress off of utility budget; 4. Does not effect debt; 5. Funds can be managed to help finance a variety of different projects. A GRF used for the purposes of funding efficiency projects would be either considered an Efficiency Fund or a Hybrid Fund. An Efficiency Fund would, according to a research report for the Federation of Canadian Municipalities, provide capital to energy and/or water efficiency measures. Their benefits are in resource reduction and cost savings. Efficiency funds tend to expect a relatively short payback period and are typically not used to engage the broader community. A hybrid fund targets resource reduction and cost savings, but also considers community engagement and outreach goals. A hybrid GRF could fund future efficiency projects but also capture the savings from those projects to use for other non-efficiency projects in the municipality. 8 The same research report lists the following ways to fund GRF s: 1. Selling an asset 2. Directing savings from an initiative into a fund 3. Issuing a municipal bond 4. Various forms of taxation 5. Municipal capital blended with private capital 6. Municipal borrowing capability leveraged as a source of funds 8 Sustainability Solutions Group. Green Revolving Loan Fund Research Project: Phase II. Submitted for Federation of Canadian Municipalities. Pg. 7. 7

8 Green Revolving Funds are a new kind of funding technique, but quickly becoming popular amongst many academic institutions, including Harvard University and Carleton University. The topic requires additional research and explanation to create, and we recommend following up with the Federation of Canadian Municipalities for more information. Step 8: Make a plan for accountability The Energy Management Plan requires an implementation plan through which the municipality can easily execute the outlined energy saving opportunities and track its progress. Simple changes to facilitate implementation include: changes in job descriptions, committee creation, and engagement with staff and community about the energy management strategy. Target setting and vision statements support engagement and accountability by documenting the reasons and goals for managing energy. Energy Management Committee The Energy Management Committee is responsible for implementing the energy management projects of the municipality and monitoring their progress. An Energy Management Committee would include community, staff, and council stakeholders. In some cases, a representative from each municipal department might make up the Energy Management Committee. The Municipal Climate Change Mitigation Plan Guide from Union of Nova Scotia Municipalities recommends using a table like the one below to assign roles, and assure accountability on behalf of the Energy Management Committee. 9 Proposed roles It can be useful for roles to be assigned or shared between certain people for the Energy Management Committee meetings. A Property Services or Public Works Department representative would be responsible for arranging energy efficiency upgrades within the various municipal facilities and keeping the Committee informed of these upgrades and their potential savings and costs. If there are larger projects that need discussion, the Property Services Manager can bring them to the Energy Management Committee and Municipal Council. An Accounts Payable position would work best for the financial representative, as they can make a report to the committee on the financial savings captured through efficiency upgrades. They can also advise on budgets for energy efficiency upgrades and campaign as needed. A Municipal Council Member s role on the committee would be to report back to Council on energy management projects. Alternatives Rather than starting an entirely new committee the municipality could add to some staff job descriptions to cover the following responsibilities: 1. Overseeing the implementation of the energy efficiency upgrades outlined in the Multi-Year Energy Management strategy Table 2: Sample Implementation Plan Table 9 Stantec, UNSM Municipal Climate Change Mitigation Plan Guide, Prepared for Union of Nova Scotia Municipalities Sustainability Office, April 2011, pg 26. 8

9 2. Entering utility bill data into the Energy Baseline Report Sheets every month (total of 1-2 hours a month) 3. Reporting back to Municipal Council on the progress of the Multi-Year Energy Management Plan Step 9: Propose the plan to Council. Before presenting the plan to council make sure that councilors, the Chief Administrative Officer (CAO) and the town clerk have seen and read the plan. The support of the CAO and at least one councilor as champion is essential to success. Explain how the targets are smart, measurable, attainable, realistic, and timely. It is also important to explain the priorities and payback times. Be prepared with alternative scenarios to choose from that range in ambition. Step 10: Track progress Track how the municipality s energy reduction endeavours are progressing with software from Energy Savings Inc., meter readings and energy bills. The Union of Nova Scotia Municipalities (UNSM) has also developed a toolkit for tracking corporate energy and emissions that can be found on their Sustainability Office s website. Engage with municipal staff and elected officials by posting progress in public, high traffic areas. Tracking and sharing progress is part of the engagement piece that is crucial to achieving significant energy savings. Depending on capacity, your municipality can may a large or small engagement campaign. A smaller one could involve posters with energy consumption and information in public areas. A larger engagement campaign could be a competition between buildings to reduce energy consumption. The tracking mechanism developed by the Ecology Action Centre is a simple spreadsheet. The only data that needs to be entered into the spreadsheets are: kwh consumed, energy charges, taxes and other charges. This data can be found on bills from your electric utility. This data automatically populates and updates the spreadsheets and three different posters included in the same file. The posters are described in more detail in the Community and Staff Communications Tools section. Other tracking mechanisms, such as the Energy Star Portfolio Manager, are available. Step 11: Engage with staff and public Studies and experience have shown that engagement with the public and staff is integral to energy reduction. Engagement encourages staff and facility users to adopt energy conservation practices as part of their daily routines. Case Study: Town of Bridgewater Bridgewater developed an Energy Management Program in 2008 to outline how Bridgewater would reduce its energy consumption. The 2011 Energy Management Plan for Facilities set a target of 15 per cent below 2008 levels by Bridgewater has met this target! This energy reduction is equivalent to over $40,000 in energy savings per year. Bridgewater has a Sustainability Planner who oversees the energy management projects as well as other town sustainability projects. Some of the many energy retrofits made in Bridgewater include: solar space heating in the town hall, retrofit of HVAC system in the Town Hall, and a new propane boiler in the Water Treatment Plant. 9

10 Vision Statement A vision statement is important to inspire enthusiasm and work ethic when working towards a goal. If your municipality already has a vision statement, it could be useful for your municipality to add a sentence about energy management. Alternatively, for the purpose of the Multi-Year Energy Management Plan, your municipality could consider creating another vision statement focused on energy management. Community and Staff Communication Tools Along with the tracking software, we have prepared poster templates you can use to keep users of municipal buildings aware of energy efficiency and conservation. One poster breaks down the energy costs for the municipality, another breaks a year s consumption into average daily energy consumption per month. The third poster is an infographic comparing a year s energy consumption to past years and kilowatt-hours to more easily understood examples of energy units. These posters require data input from the utility bills, monthly or bi-monthly. Tracking energy consumption and engaging with public through the posters created by the software will increase energy conservation behavior in your municipality. Step 12: Re-evaluate Once the initial strategy has run its course and your municipality has reached its goal, it is time for A sample of the annual Poster from the Energy Tracking Software 10

11 Concluding Remarks the municipality to evaluate its energy efficiency endeavors. What will the next phase look like? An excellent resource is BC Hydro s Energy Management Priorities Self-Assessment Tool. 10 This tool can be used throughout the timeline as well, to help evaluate what your institution s next energy management steps should be. It also helps your municipality assess its ability to organize for energy management and evaluate if there is room for improvement. Suggestions for additions to future energy management plans in municipalities include residential engagement, water management, and fleet fuel management. Concluding Remarks This guide provides municipal staff or interested residents with direction to make energy management a priority and reality for their municipality. Energy management is a complex task but can be simple if broken into smaller steps and the right resources are available. ICF International for the Sustainable Endowments Institute. Published January Federation of Canadian Municipalities Partners for Climate Protection. programs/partners-for-climate-protection.htm. 5. UNSM Corporate Energy and Emissions Toolkit. Produced by Nova Scotia Energy/Conserve Nova Scotia, Service Nova Scotia & Municipal Relations, and Nova Scotia Environment Nova Scotia, Service Nova Scotia & Municipal Relations, and Nova Scotia Environment climate-changeenergy- efficiency.html. Useful Resources 1. From Great Ideas to Great Communities A Guide for Implementing Integrated Community Sustainability Plans in Nova Scotia. Produced by Golder Associates Ltd and The Natural Step Canada for the Union of Nova Scotia Municipalities Municipal Sustainability Office. Published in UNSM Municipal Climate Change Mitigation Plan Guide. Report prepared for the Union of Nova Scotia Municipalities Municipal Sustainability Office. Published in April Green Revolving Funds: An Introductory Guide to Implementation & Management. Prepared by 10 BC Hyrdo. Industrial Equipment Reference Guides: Carbon Trust Self-Directed Assessment. industrial/carbon_trust_assessment_guide.pdf 11