CORPORATE STRATEGIC INITIATIVES. Chair and Members of the Community and Corporate Services Committee

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1 Pg 1 of Report CSI-3/09 CORPORATE STRATEGIC INITIATIVES TO: SUBJECT: Chair and Members of the Community and Corporate Services Committee Corporate Energy Management Program Update Report Number: CSI 3/09 Report Date: June 10, 2009 Lynn Robichaud Author(s): Ken Pirhonen Date to Committee: June 24, Telephone: Ext Date to Council: July 6, 2009 Ward(s) Affected: All File Number(s): APPROVALS: Department Head To be completed by the Clerks Department City Manager Committee Disposition & Comments Council Disposition & Comments 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 01 Approved 02 Not Approved 03 As Amended 04 Referred 05 Deferred 06 Received & Filed 07 Withdrawn 1.0 RECOMMENDATION: THAT Council approve the attached corporate Energy Policy (Appendix A). 2.0 PURPOSE: To provide Council with an update on the status of the corporate energy management program and present the corporate Energy Policy for approval. 3.0 BACKGROUND AND RELATIONSHIP TO STRATEGIC PLAN: Energy Management: The city has implemented a number of energy conservation initiatives over the years, including the installation of energy efficient streetlights and traffic signals, rightsizing vehicles in the

2 Pg 2 of Report CSI-3/09 corporate fleet as well as the use of hybrid vehicles, facility lighting improvements, completion of energy audits at city arenas and use of photo cells in the parking garage ensuring lights are only on when necessary. In 2005 staff reported on the progress of an energy management program that was overseen at the time by a corporate energy management team (refer to report CORPSERV 2/05). Funding was approved in the capital budget to support ongoing energy reduction initiatives. In 2007, staff worked with a consultant to complete energy audits for all city owned arenas. In 2008, funding was approved to hire a staff person to help develop and deliver an energy management program for city facilities. Priorities identified for 2009 include the completion of an energy policy (see Appendix A), energy audits for city facilities, development of a corporate energy management plan and the implementation of an energy tracking system. Staff have also worked with the Mayors Megawatt (MMW) Challenge group to track the energy consumption of 11 city facilities (Aldershot Arena, Appleby Arena, Central Arena, Mainway Arena, Mountainside Arena, Nelson Arena, Skyway Arena, Brant Hills Community Centre, Tansley Woods Community Centre, Seniors Centre and City Hall). A summary of the energy savings for 2008 vs can be seen in the following table. SAVINGS REPORT Mayors Megawatt Challenge Facilities ( ) Electricity (kwh) Gas (m3) Water 1 (m3) Total Savings (increases) 772,509 (48,778) 6, gigajoules Savings (increases) $51,638 ($10,169) $40,291 $41,468 % 7.0% -5.1% 7.9% 1.3% GHG savings (tonnes) 170 (92) 1 78 Between 2007 and 2008 approximately 965 gigajoules 2 worth of energy was reduced at the 11 participating facilities, representing a savings of $41, Additional detailed graphs can be seen in Appendix B. Benchmarking the energy consumption of a select group of city facilities with other similar municipal facilities has enabled staff to compare energy usage and identify areas where improvements can be made to achieve further reductions. Participating in the MMW Challenge network allows staff to share our energy conservation success stories, such as the Mainway Arena lighting improvement and the Tansley Woods Aqua Drive System, as well as learn best practices from the other participants. Partners for Climate Protection: Initiatives to reduce energy consumption, whether the implementation of energy conservation measures or the use of green energy, also result in reduced greenhouse gas emissions. In 2007, 1 Does not include energy required for Halton Region s water treatment and distribution system. 2 Gigajoule (GJ) is a standard energy unit. For example, 1 GJ = 278 kwh

3 Pg 3 of Report CSI-3/09 staff presented to council a corporate action plan (Agenda for Action) to reduce greenhouse gas emissions under the Partners for Climate Protection program, a program administered by the Federation of Canadian Municipalities (refer to report COMSERV 4/07). The report was received for information and the proposed actions were subsequently incorporated into the Environmental Stewardship section of the strategic plan, Future Focus Seven. During the development of the strategic plan, council advised that they would support a corporate greenhouse gas reduction target as one of the goals in the plan. The PCP program encourages municipalities to set an emissions reduction target by 20% below the base year (1994), which should be achieved within 10 years of a municipality joining the PCP program (2012 for Burlington). However, recognizing that Burlington is a growing community, the target was based on reducing emissions on a per capita basis. It is estimated that a 20% reduction of emissions below 1994 on a per capita basis would be.06 tonnes of equivalent carbon dioxide ((e)co 2 ). The 2012 emissions reduction target was then based on multiplying the city s forecasted population for 2012 (177,100) by.06 tonnes of (e)co 2, which resulted in an emissions reduction target of 10,626 tonnes of (e)co 2. If no reduction initiatives were undertaken, it is forecasted that emissions would increase to 16,911 tonnes of (e)co2 by Tonnes of eco Corporate GHG emissions forecast & reduction target 20,000 15,000 10,000 Emissions Forecast Emissions Reduction 5, * 2012* Corporate GHG emissions for 2008 are estimated to be 11,500 tonnes, below the forecasted estimate of 15,000 tonnes, indicating that the city is moving toward its 2012 target, represented by the decreasing line from 2008 to The increasing blue line above represents a straight line emission forecast based on business as usual with no specific emission reduction actions being implemented. (Note: some assumptions were made in the 2008 estimate as the hydro data was incomplete. As well, fuel used for transit vehicles is not included in the corporate inventory as under the PCP program, transit fuel usage is included in the community GHG emissions inventory.) The implementation of an energy tracking tool would assist staff to confirm and monitor the current status of corporate GHG emissions in greater detail and help assess the probability of meeting the corporate reduction target. See section 4.0 of this report for further details on the energy management program. Additional information regarding the city s GHG emissions inventory can be found in staff report CORPSERV 12/05.

4 Pg 4 of Report CSI-3/09 Related Corporate Policy Initiatives: In 2008 Council adopted the Green Fleet Transition Strategy (refer to report D&I 11/08) with an objective to continue greening the corporate fleet by improving efficiency and reducing emissions. The strategy includes ten different areas of focus from right sizing fleet vehicles, use of hybrid technology, alternative fuels and electric plug-in vehicles, to driver training and transportation demand management initiatives. Furthermore, Council has approved a new idling control by-law, with a decrease in the permitted idling time from three to one minute. The bylaw applies to all city vehicles (transit vehicles have a maximum limit of three minutes at points of layover; a decrease from the former ten minute limit). Two other important and related policies include the corporate green procurement and green building policies. Procurement of energy efficient equipment for city operations will be a key part of the new green procurement policy. As well energy conservation is an important aspect of green buildings, along with the use of sustainable building materials, water conservation, transportation demand management measures and appropriate siting of building. Given that there is a strong relationship between these policies, staff must be cognizant of the requirements as each are developed and ensure that they complement one another instead of including contradictory information. It is anticipated that there will be a need to compile a corporate environmental policy document for staff reference. Green Energy Act: On May 14 th, the provincial government approved the Green Energy and Green Economy Act, legislation to accelerate the implementation of renewable energy projects and set requirements for public agencies, including municipalities, to commit to energy conservation programs by developing plans, and monitoring and reporting on progress. (Refer to staff report PB for further information.) Staff will monitor the Environmental Bill of Rights Registry for the posting of the regulation requiring municipalities to develop and report on energy conservation plans. Future Focus Seven: The following Future Focus Seven strategic action and initiative is related to energy management and conservation: 5.1 Develop a corporate policy for energy conservation and the use of renewable energy. Burlington will reduce corporate greenhouse gas emissions by 20 per cent on a per capita basis from 1994 levels by A Develop an Energy Management Plan for corporate facilities. 4.0 DISCUSSION: 4.1 Energy Management Program To be effective, energy management needs to be business as usual. The key elements of an energy management program include gaining control of energy use, maintaining control as a

5 Pg 5 of Report CSI-3/09 continuous business process, and investing in measures to improve energy performance over time. Gaining and maintaining control are dependent on information related to how energy is used in the organization and the reporting of this information throughout the organization. This requires ongoing monitoring, tracking and reporting. The organization must invest not only in capital or operational measures to conserve energy, but invest in human resources as well to ensure staff are properly trained and engaged in the goals and objectives of the energy management program Energy Policy As directed under the city s strategic plan, a corporate energy policy is attached to this report for Council approval (see Appendix A). The policy is meant to be a high level document to provide guidance and direction to staff on the development and implementation of a comprehensive corporate energy management program. The policy was developed by Corporate Strategic Initiatives (CSI) staff and circulated to various staff and stakeholders for feedback including the Sustainable Development Committee, Burlington Hydro, Union Gas, and a representative of the Mayors Megawatt Challenge. Staff amended the policy in response to the feedback received from the various stakeholders by adding information relating to the green fleet strategy and water conservation. The policy includes a background section on the importance of energy management and conservation and the key components of a program, the overall goal, objectives and principles for the program, and identifies the lead responsibility for the policy, as well as related policies and strategies. 4.2 Energy Audits Facility energy audits are a key part of an energy management program. In 2006 and 2007, funding was partially provided through the Mayors Megawatt Challenge to complete audits of city arenas, seven facilities in total. The implementation of the recommended actions resulting from these audits will be coordinated with ongoing capital projects, such as the building automation system. In 2009, CSI staff plan to complete audits for a number of city facilities. The actions resulting from these audits will form the basis for the development of a corporate energy management plan. 4.3 Energy Management Plan The energy management plan or strategy will be based on the results of the energy audits, identifying actions to conserve energy (operational and capital), a reduction target and measures, a schedule for improvements (short, medium and long term), as well as including a plan to engage and educate staff. Roles and responsibility for energy management in the organization will be clearly stated. The energy management plan will be ongoing and should have provisions for regular reviews, reporting and updates, using an energy monitoring system to provide feedback on success and setbacks by benchmarking between facilities. 4.4 Energy Monitoring/Tracking An effective energy management program is dependent on tracking, monitoring and reporting of energy usage and consumption. It requires resources to track ongoing energy usage and assess 3 Information re: energy management obtained from the Canadian Institute for Energy Training; April 2008

6 Pg 6 of Report CSI-3/09 the data to determine how the information should be used to implement improvements, whether operational or capital improvements. It is essential that monitoring reports are circulated through the organization to communicate success stories as well as identify where improvements need to be made. This type of information can help to engage staff as they are challenged to help meet energy reduction targets. 4.5 Corporate Wide Building Automation System The indoor environments for the majority of our larger facilities are controlled by individual building automation systems. Other facilities are controlled by stand alone programmable thermostats which help to conserve energy by utilizing night time set back temperature settings. A quick review of the existing systems and life cycle of the equipment has identified a need to implement a corporate wide building automation system. The new technologies today allow for more effective control of indoor environments which in turn allows for the individual facilities to conserve energy when occupancy is low or vacant. A building automation system will also improve control over facility mechanical systems, help to reduce maintenance failure and predict preventative maintenance requirements based on equipment run times rather than routine checks. Centralized control of facility temperature and equipment provides facility operators with the ability to respond faster to temperature issues and mechanical problems. Funding has been approved through the federal and provincial infrastructure stimulus funding program. Staff will report back with further information on the scope of the project and an implementation plan. An energy monitoring and tracking tool identified in item 4.4 is key to monitoring energy consumption and flagging anomalies with the performance of the building automation system. The tracking system will roll up all of the corporate energy use and benchmark against like facilities. This system will be used in parallel with the corporate wide building automation system to help conserve and control the corporate energy use. 5.0 FINANCIAL MATTERS: Energy conservation funding is available in the city s capital budget, which has funded numerous projects in recent years, such as lighting retrofits and LED exit signs. In 2009, the energy conservation capital budget is $270,000. A total of $120,000 has been allocated to complete energy audits of city facilities. Planning for this initiative is in progress and is anticipated to be completed by the fourth quarter of An additional $70,000 has been allocated toward a solar thermal water system for the Tansley Woods pool, using a renewable resource to assist with water heating. An additional $80,000 has been targeted to install more efficient lighting in three arenas, including Central, Nelson and Skyway. These lighting upgrades are similar to the successful installation of T5 lamps made in 2006 at Mainway Arena where the payback in energy savings was less than 18 months. Mainway has been used as a case study for many municipalities as it was one of the first installations of T5 lighting in a cold indoor setting in Canada. An amount of $35,000 has also been allocated in the capital budget for the purchase and implementation of a corporate energy tracking system. Staff are currently reviewing options to determine the most effective system to track corporate energy consumption, identify necessary resources and will report back with a preferred course of action.

7 Pg 7 of Report CSI-3/09 To date, Burlington Hydro has also been extremely helpful in supporting the city s energy conservation and awareness programs, providing expertise on lighting improvements and other energy related projects, as well as funding support (to date, approximately $67,000 has been received from Burlington Hydro). The city also benefitted from the Mayor s Megawatt Challenge (MMW Challenge) where city funding of $20,000 was matched by the Federation of Canadian Municipalities to support the completion of energy audits for city arenas. A number of MMW Challenge municipalities participated in this initiative. Infrastructure stimulus funding has been received from the federal and provincial governments in the amount of $1 million to support the implementation of a centralized building automation system. In 2007 the Halton Purchasing Cooperative procured the services of Wattsworth to move many of the city s electricity accounts from the regulated price plan to the market price. This strategy has helped the city to save money, particularly with the streetlight account as this sector uses off peak lower priced energy. Finance Purchasing staff plan to submit a more detailed report to Council on this initiative within the next quarter. Council has been very supportive in approving capital funding to invest in energy conservation initiatives. To expand upon this, staff will be developing a policy to provide guidance to staff on procedures and funding mechanisms for investing in conservation measures. 6.0 ENVIRONMENTAL MATTERS: Conservation reduces our environmental footprint by decreasing the use of fossil fuels to generate energy, helping to reduce greenhouse gas emissions and air pollutants. It lowers energy costs and is an important sector for economic development through job creation and developing of new technologies. Conservation initiatives also reduce pressure on the province s electricity grid and to build new generating stations. Recognizing how important conservation is to the province s power system plan, the Ontario government has set a high target for reduction in electricity demand. This target is among the most ambitious in North America 6,300 megawatts of reduced peak demand by This represents about 75 percent of the expected growth in demand during this period and is equal to taking one in five users off the electricity supply grid COMMUNICATION MATTERS: Staff have been raising awareness on an ongoing basis of the importance of energy conservation with support from various parties including Halton Partners for Clean Air, Burlington Hydro, and the Conservation Bureau of Ontario. Activities have included circulating reminder stickers to turn lights off, putting up energy conservation displays, promoting home energy audits, hosting lunch and learns, and holding an energy efficient light bulb exchange for staff. 4 Ontario Power Authority; May 26, 2009.

8 Pg 8 of Report CSI-3/09 A staff awareness and training plan will be developed as part of the energy management plan to build on past energy conservation practices. 8.0 CONCLUSION: The city is committed to developing a comprehensive energy management program. This will support further implementation of energy conservation measures in corporate facilities and promote a culture of conservation, resulting in savings and a reduced carbon footprint. The Energy Policy document included in this report provides a policy context to the city to achieve this. Respectfully submitted, Lynn Robichaud Sr. Sustainability Coordinator Ken Pirhonen Coordinator, Project Management (Energy) Copy filed: s:\inet\ccs Appendices: A Corporate Energy Policy B Energy Tracking Details Mayor s Megawatt Challenge Staff / Others Consulted: Name Telephone Leo DeLoyde, GM D&I Scott Stewart, GM Community Services Steve Zorbas, Acting Director, P&R Rob Peachey, P&R Dave Currie, P&R Pete Armstrong, RPM Mike Fagan, RPM Shayne Mintz, RPM Robin MacDouell, RPM Donna Clegg, T&T Mike Spicer, T&T Jazz Thandi, Finance - Purchasing P&R Facilities Supervisors Team Amy Kunz, Burlington Hydro Ian Dunbar, Union Gas Noel Cheeseman, Enerlife (Mayors Megawatt Challenge) Sustainable Development Committee X 7883 X 7839 X 7729 X 7722 X 7791 X 6134 X x x218 X 7763 X 7845 X 7660 Notifications: Name Mailing or Address Special Instructions: Regular Agenda

9 Pg 9 of Report CSI-3/09 APPENDIX A 4. ENVIRONMENT 4.5 Corporate Energy Policy Background: The City of Burlington continues to face rising costs to maintain and repair aging infrastructure, to deliver services to the community and to obtain the necessary energy to power its facilities and fleet of vehicles. The generation and use of energy also contributes to climate change through greenhouse gas (GHG) emissions. Four fossil fuel electricity generating stations remain in operation in Ontario, although the provincial government has committed to de-commissioning the coal fired stations by Natural gas, another source of greenhouse gas emissions (although cleaner than coal), is relied upon as a source for heat for city facilities. The development of a comprehensive energy management program will ensure that energy conservation and efficiency is a key consideration in the city s facility renewal actions. The implementation of conservation measures will reduce corporate GHG emissions and energy costs for city facilities through decreased energy consumption. Simple measures like lighting retrofits can result in short payback periods of less than two years. Longer payback periods may be experienced for larger capital investment items such as HVAC (heating, ventilation & air conditioning). The first step in implementing an energy management program is the completion of energy audits for corporate facilities. Audits involve a technical review of a facility and its operations, the development and analysis of a baseline energy profile for the facility and identification of energy management opportunities and savings. Another important component of an energy management program is the re-commissioning of City facilities. Over the life cycle of a facility, the mechanical building automation and distribution systems are adjusted from day-to-day to suit user room temperature requirements. Moreover, mechanical distribution or building controls instrumentation is sometime over-looked when renovations take place. Re-commissioning involves examining the original mechanical design and operating specification against any building renovations and recalibrates the settings to suit today s energy efficient standard practices. It also ensures that mechanical operating practices are current and appropriate to maximize building system efficiencies. The use of renewable energy measures can also help reduce overall corporate greenhouse gas emissions by lessening our demand for fossil fuel generated energy (oil, gas or coal). The investment for these types of measures can be significantly greater than conservation initiatives and therefore, should be considered on a case-by-case basis through a cost and environmental benefits analysis. However, it is acknowledged that the use of technologies such as wind, solar and geothermal can show community leadership and help raise awareness of the benefits of utilizing renewable energy. The success of the energy management program can only be determined through the measurement of savings. The implementation of an energy tracking tool can help the corporation monitor progress, provide constant and consistent reports to ensure efficiencies in

10 Pg 10 of Report CSI-3/09 facility operations, identify successful retrofits that can be replicated in other facilities, highlight problem areas or facilities, as well as track and report on greenhouse gas emissions. In order to sustain a corporate culture of conservation, staff must be engaged in an effective awareness and education program. Although facilities staff have the lead responsibility in ensuring city facilities operate efficiently, all city staff should be familiar with and utilize energy efficient measures where possible. The issue of an adequate and reliable supply of electricity in the southwestern Greater Toronto Area has also been raised as a concern by the Ontario Power Authority due to significant growth this region has experienced over the past several years. Energy conservation and demand management (reducing energy usage during periods of peak demand) are important measures to help safeguard against an already strained transmission system and to reduce pressure on peaking generating stations. The following energy policy is intended to guide the City through the development and implementation of a corporate energy management program. Goal: To implement a comprehensive corporate energy management program to reduce consumption, achieve cost savings and meet its greenhouse gas (GHG) emission reduction target (reduce corporate GHG emissions by 20 per cent on a per capita basis from 1994 levels by 2012). Objectives: Undertake facility energy audits to identify energy efficient and capital improvement measures. Develop an energy management plan based on the results of the facility energy audits, including a comprehensive schedule to implement recommended energy efficient and capital improvement measures to conserve electricity, natural gas and water. Implement a corporate energy tracking program to monitor and report on energy consumption, variances and greenhouse gas emissions. Undertake re-commissioning of facilities where necessary. Implement an energy demand management program to reduce energy consumption during peak power periods. Develop and implement an employee training and staff energy conservation awareness program. Continue to implement the green fleet strategy to conserve fuel and reduce GHG and air emissions.

11 Pg 11 of Report CSI-3/09 Principles: The city will manage its infrastructure and fleet in an efficient manner resulting in energy savings and a reduction in greenhouse gas emissions. All staff will be responsible for ensuring a culture of conservation and achieving savings. Conservation measures will be assessed to determine priorities based on return on investment, lifecycle costs, and payback analysis. Renewable energy opportunities will be assessed on a case-by-case basis, using implementation costs, lifecycle costs, performance results, references, energy savings, payback analysis and social impact analysis. The city will also participate in the provincial demand management program where possible to conserve energy, reducing demand on the provincial electricity grid during peak periods. Energy consumption will be monitored through an energy tracking system for electricity, natural gas, other fuels and water to determine usage, trends, savings and reduction in emissions. Utility billing verification will be a part of this system. The city will work with local distribution companies and other community energy partners on an ongoing basis to help facilitate the implementation of a corporate energy management program. Responsibility: The administration and implementation of this plan will be responsibility of the Executive Director for Corporate Strategic Initiatives. Since we all use energy in our daily activities, it will also be the responsibility of all City staff to be aware of their energy use and work towards a culture of conservation. Through staff training and web base energy management tools, staff will be able to see the results of their efforts, and benchmark between corporate facilities and with industry standards. Related Policies & Strategies: Fuel savings will be achieved through the implementation of the Green Fleet Transition Strategy (approved by Council in 2008) with a focus on hybrid technology, right sizing and smart driving. In 2009, Council updated the City s idling control by-law, which also applies to city vehicles, with an idling time limit of one minute (Transit buses have an idling limit of three minutes at layovers, reduced from the former 10 minute policy). At the time this policy was being written, corporate policies are also being developed for green procurement as well as a corporate green building standard. Procurement of energy efficient equipment for city operations will be an important part of the new green procurement policy. As well, energy conservation is a key aspect of green buildings, along with the use of sustainable building materials, water conservation, transportation demand management measures and appropriate siting of buildings.

12 Pg 12 of Report CSI-3/09 APPENDIX B Mayors Megawatt Challenge Energy Savings TOTAL FOR ALL 11 FACILITIES TOTAL FOR ALL 11 FACILITIES