HomeMy WebLinkAboutPLN 02-18 Ci of Report to
P I C KE RI N G Executive Committee
Report Number: PLN 02-18
Date: January 8, 2018
From: Kyle Bentley
Director, City Development & CBO
Subject: Update on Energy Management Initiatives
- Corporate Energy Management Plan
- LED Streetlight Conversion Program
- Municipal GHG Challenge Fund
I
Recommendation:
1. That Report PLN 02-18 regarding the status of three energy management initiatives be
received for information.
Executive Summary: The purpose of this report is to provide an update on three energy
management initiatives: the Corporate Energy Management Plan, LED Streetlight Conversion
Program, and the Municipal GHG Challenge Fund.
The Corporate Energy Management Plan (CEMP) is a roadmap of energy management activities
that the City can implement over five years (2014 — 2019) to improve energy efficiency and reduce
greenhouse gas (GHG) emissions. Currently, the City has completed its third year of the CEMP
and is transitioning into years four and five. At the end of the third year, we expect the City will
achieve an estimated energy savings of 4,468,239 kilowatt-hours (kWh) per year, cost savings of
$622,051 per year and will receive an incentive amount totaling $680,395 for its capital projects
from the Independent Electricity System Operator (IESO) SaveOnEnergy program.
In regards to the LED Streetlight Conversion Program, the City retained Realterm Energy Corp.
(Realterm) to replace approximately 7,200 High Pressure Sodium (HPS) streetlight luminaires with
energy efficient Light Emitting Diode (LED) lighting. Once completed (anticipated first quarter
2018), we expect an estimated energy savings of 3,436,765 kWh per year, cost savings of
$457,015 per year and GHG emissions reductions of 137 metric tonnes per year. Also, we expect
to receive an incentive amount of approximately $500,000 from the SaveOnEnergy program.
In September 2017, the Province announced the Municipal GHG Challenge Fund to support
community-led action on climate change. The City submitted the following three applications:
• A funding request of $116,600 to cover 50% of the eligible project costs to purchase two
all-electric vehicles, two plug-in hybrid electric vehicles, and four level 2 electric charging
stations to serve our fleet.
• A funding request of$455,212 to cover 25% of the eligible project costs to purchase and
install the remaining 1,832 LED streetlight luminaires across the City after the application
deadline date of November 17, 2017.
PLN 02-18 January 8, 2018
Subject: Energy Management Initiatives Page 2
• A funding request of$900,000 to cover 24% of the eligible project costs for additional
energy storage and control software associated with the Marshall Homes microgrid
townhouse proposal for a community-scale solar power generation and a 500 kWh Tesla
battery.
The Province will be informing successful applicants by February 2018.
Financial Implications: No additional direct costs to the City are anticipated as a result of the
recommendations of this report. The costs noted for the identified programs will be reflected in
the 2018 budget.
1.0 Discussion
1.1 Corporate Energy Management Plan
In May 2014, Council endorsed the Corporate Energy Management Plan (CEMP), which is
a roadmap of priority energy management activities that the City will implement over five
years (2014 —2019) to improve energy efficiency and reduce GHG emissions. At the end
of 2017, the City will have completed its third year, which includes both short-term and
medium-term actions. Highlights of completed capital projects include facility indoor LED
lighting retrofits, installation of energy efficient mechanical units with controls, the
Integrated Energy Project (IEP) and the LED streetlight retrofit project. See Attachment#1
— CEMP Capital Projects, which identifies the results of our capital projects. Also,
completed renewable energy projects include the installation of solar LED lights in three
City parks: Grand Valley (off-leash) dog park, Kinsmen, and McPherson. These parks now
have upgraded lighting that enhances park safety.
From these retrofit projects completed to-date, the City will achieve an estimated energy
savings of 4,468,239 kWh per year, cost savings of$622,051 per year and earn a total of
$680,395 from current incentives. Moving forward into 2018, the City is transitioning into
years four and five of the long-term action plan and the projects will be determined pending
budget approvals. Moreover, in 2019 the City will look to renew and update its CEMP for
the next five years (2019 — 2024).
In order to meet the CEMP's communication and engagement actions, an Energy Team,
comprised of City staff from various departments, has been formed. This team meets
quarterly to discuss projects, communication tools, budgets, products, workshops,
seminars and any new energy related initiatives. In addition, staff participate in the
Sustainable Pickering Day and Farmers Market where an energy booth is set-up for
residents to learn about the City's energy initiatives and how they can save energy and
reduce their utility bills at home. Information is provided on social media (Facebook,
Twitter, Instagram), newsletter and City website, which updates staff and residents on
current and on-going energy related projects.
1.2 LED Streetlight Conversion Program •
In 2017, Realterm Energy Corp was retained to replace the City's existing approximately
7,200 HPS streetlight luminaires with energy efficient LED lighting.
PLN 02-18 January 8, 2018
Subject: Energy Management Initiatives Page 3
Upon completion of the LED Streetlight Conversion Program, City staff expects in the future
to save an estimated 3,436,765 kWh of energy per year, equivalent to a 63% reduction,
compared to the City's current consumption and an estimated cost savings of$457,015 per
year. LEDs will also help the City reduce maintenance costs estimated up to $236,962 per
year, equivalent to 80% because LEDs are a solid-state technology (no moving parts) and
last up to four times longer than the City's existing streetlights. The retrofit will also improve
the City's environmental footprint by reducing GHG emissions to an estimated 137 metric
tonnes of CO2 per year and 3,404 metric tonnes of CO2 over the life of the luminaires.
Also, we expect to receive an incentive amount of approximately $500,000 from the
SaveOnEnergy program. Once the LED streetlights are installed and commissioned, the
City will work alongside its local utility company, Veridian, to validate the above energy and
costs savings from this retrofit project.
In addition, the City prepared Seaton Community Streetlight Guidelines to aid the
development industry in the design, construction and installation of a LED streetlight
system. The Guidelines take into consideration dark sky and nuisance lighting issues, as
well as the ability to implement adaptive control technologies. As a result, the City has
adopted LED lighting technology as its recommended technology for new and existing
infrastructure.
1.3 Municipal GHG Challenge Fund
This fall, the Province announced the Municipal GHG Challenge Fund as part of Ontario's
Climate Change Action Plan to address climate change, reduce GHG emissions and
transition to a low-carbon economy. The action plan and the cap and trade program form
the backbone of Ontario's strategy to cut GHG emissions to 15% below 1990 levels by
2020, 37% by 2030, and 80% by 2050.
Although Pickering does not have a complete community-wide GHG emissions inventory,
reduction targets or a plan to achieve them, the City was eager to participate in the
Municipal GHG Challenge Fund. The Fund was opened to allow all municipalities to apply,
so long as applicants demonstrate a commitment to completing their community-wide GHG
inventory, targets, and plan within 18 months. As the City is participating in the Region of
Durham's Community Energy Plan initiative, the Province has agreed that this initiative
would suffice in the absence of a Pickering community-wide inventory of GHG emissions,
GHG reduction targets and/or a plan to achieve them. The City will commit to complete this
work after the Region's Plan is finalized later in 2018.
The City has submitted the following three applications:
• A funding request of $116,600 to cover 50% of the eligible project costs to purchase two
all-electric vehicles, two plug-in hybrid electric vehicles and four level 2 electric charging
stations to serve our fleet. The estimated total GHG reduction is 427 metric tonnes of CO2.
The electrifying of our fleet will help reduce the City's Corporate Energy Management
Plan GHG reduction targets. This application is also consistent with the City's practice
of replacing existing conventional gas engine vehicles with more fuel-efficient and
hybrid vehicles. In 2017, the City purchased six SUV's and three pickup trucks with
reduce engine sizes.
PLN 02-18 January 8, 2018
Subject: Energy Management Initiatives Page 4
• A funding request of$455,212 to cover 25% of the eligible project costs for purchasing
and installing the remaining 1,832 LED streetlight luminaires after the application
deadline date of November 17, 2017. The estimated total GHG reduction is 3,404 metric
tonnes of CO2. A portion of these funds will be used to cover the cost of converting the
Millennium Square marina and boardwalk pedestrian lights to LED. This project has
been added to the Parks Draft 2018 Capital Budget.
• A funding request of$900,000 to cover 24% of the eligible project costs for additional
energy storage and control software as part of Marshall Homes microgrid townhouse
proposal that is being engineered to include community-scale solar power generation
and a 500 kWh Tesla battery: The estimated total GHG reduction is 7,480 metric
IF tonnes of CO2. This is consistent with Council's April 11, 2017 Resolution #286/17 to
support the 28-unit townhouse proposal in Pickering as being Canada's first microgrid
community.
The Province will be informing successful applicants by February 2018.
Attachment
• 1. CEMP Capital Projects
Prepared By: Approved/Endorsed By:
4,6 j
Abid Syed, P. Eng. f£R Grant McGregor, MCIP, RPP
Coordinator, Energy Management Manager, Strategic Initiatives &
Sustainability
•
75/e /.lei;
Kyle Bentley, P. Eng.
Director, City Development & CBO
AS:GM:Id
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
ATTACHMENT# I TO
REPUR1 # Pl-N Oa- i
Corporate Energy Management Plan (CEMP) Capital Projects
Table 1: Priority actions (Year 1, January 2015 - January 2016)
Annual
Completion Location(s) Measure Energy Annual Cost Incentives
Date Savings Savings
(kWh)
Recreation LED Lighting
16-Jan-15 Complex - Tennis Retrofit 201,944 $32,311 $17,732
Court
Recreation LED Lighting
18-Sep-15 Complex - Delaney Retrofit 138,802 $22,208 $9,720
Rink
Recreation LED Lighting
18-Sep-15 Complex - O'Brien Retrofit 94,332 $15,093 $6,600
Rink
9-Oct-15 Recreation Chiller Retrofit 76,978 $12,316 $25,600
Complex
Recreation LED Lighting
30-Nov-15 Complex - Retrofit 27,945 $4,471 $1,960
Swimming Pool
Total - - 540,001 $86,400 $61,612
Table 2: Medium-term actions (Years 2-3, January 2016 -January 2018)
Annual
Completion Location(s) Measure Energy Annual Cost Incentives
Date Savings Savings
(kWh)
30-Jul-16 Recreation SF-17, 18 & 19 51,600 $8,256 $8,256
Complex Retrofit
21-Sep-17 East Shore LED Lighting 7,883 $1,261 $2,750
Community Centre Retrofit
N/A** Recreation Dehumidification 196,754 $31,481 $35,760
Complex Project (IEP*) '
N/A** Recreation Ice Storage 136,068 $21,771 $62,100
Complex Project (IEP*) '
EEM1
N/A** Recreation Refrigeration 99,168 $15,867 $9,917
Complex Integration
Upgrade (IEP*)
NIA** Various areas LED Streetlight 3,436,765 $457,015 $500,000
througout the City Retrofit Project
Total - - 3,928,238 $535,651 $618,783
ATTACHMENT# I TO
REPORT # PIN 02-16
Table 3: Long-term actions (Years 4-5, January 2018 - July 2019)
Completion Annual Annual Cost
Date Location(s) Measure Energy Savings Incentives
Savings
Supply Fan,
N/A** Civic Complex Return, Fan, TBD*** TBD*** TBD***
Boiler and
Chiller Retrofits
Supply Fan,
N/A** Recreation Return, Fan, TBD*** TBD*** TBD***
Complex Boiler and
Chiller Retrofits
Recreation Design and
N/A** Complex - Upgrade of TBD*** TBD*** TBD***
O'Brien Rink Refrigeration
Plant
Recreation LED Lighting
N/A** Complex - Lobby g g TBD*** TBD*** TBD***
& Dressing Rooms Retrofit
N/A** Fire Halls # 2, 5 & LED Lighting TBD*** TBD*** TBD***
6 Retrofit
Pickering Museum LED Lighting
N/A** TBD*** TBD*** TBD***
Village Retrofit
George Ashe LED Lighting,
N/A** Library & g g' TBD*** TBD*** TBD***
Community Centre Boiler Retrofit
Dr. Nelson F.
N/A** Tomlinson Boiler Retrofit TBD*** TBD*** TBD***
Community Centre
Total - - TBD*** TBD*** TBD***
Table 4: Grand Total
Completion Annual Annual Cost
Date Location(s) Measure Energy Savings Incentives
Savings
Total - - 4,468,239 $622,051 $680,395
Notes:
* IEP = Integrated Energy Project
** N/A = Not available
*** TBD = To be determined, pending budget approval