HomeMy WebLinkAboutPLN 02-19--C~of--p](KERJNG From: Subject: Kyle Bentley Director, City Development & CBO City of Pickering Community Energy Plan File: A-2100-018 Recommendations: Report to Executive Committee Report Number: PLN 02-19 Date: February 4, 2019 1. That Council endorse the Low Carbon Pathway scenario in the draft Community Energy Plan (Energy Plan) in principle; 2. That Council endorse the Energy Plan's recommendations that support a low carbon future save and except Recommendation #2 and Recommendation #3 as outlined in Attachment #1 to Report PLN 02-19; 3. That Council advise the Region of Durham that Pickering has serious concerns with Recommendation #2 regarding the creation of a new central entity to coordinate the implementation of the Energy Plan and instead recommends that Veridian Connections and Enbridge be jointly tasked to lead and coordinate the Energy Plan's implementation, and requests the Region of Durham initiate discussions with Veridian Connections and Enbridge Inc. in this regard; 4. That Council request the Region of Durham to defer the Durham Green Standard Implementation Program in Recommendation #3 until such time as the building community in Durham Region has had an opportunity to assess the risks, barriers, and costs associated with implementing the Green Standard; 5. That Council authorize staff to participate in developing a five-year implementation plan for the six program areas and report back on the legal, financial and staffing implications of each program; and 6. That the City Clerk forward a copy of Report PLN 02-19 to the Region of Durham, local municipalities in Durham, Veridian Connections, Oshawa Power and Utilities Corporation, Whitby Hydro, Hydro One, Enbridge Inc., Building Industry and Land Development Association and the Durham Region Home Builders' Association. Executive Summary: The draft Community Energy Plan (Energy Plan) titled, Seizing the Opportunity: The Clean Energy Economy in Durham provides a guide to accelerate the transition to a clean energy economy in Durham while achieving multiple economic, environmental and social benefits. The Energy Plan was developed in partnership with the Region of Durham, local municipalities and utilities with public input through the study process.
PLN 02-19 Subject: Community Energy Plan February 4, 2019 Page 2 The Energy Plan outlines a roadmap to help the broader community conserve energy, reduce its carbon footprint, commit to a sustainable and secure supply of local energy generation, improve energy resilience and create local employment opportunities over a 35-year period. Work on the Energy Plan began in June 2016 with an initial stakeholder meeting that included the Ministry of Energy, Northern Development and Mines, Region of Durham, all municipalities and utilities in Durham. A three stage process was used to develop the Energy Plan as follows: Stage 1: Stakeholder Engagement; Stage 2: Baseline Energy Data and Stage 3: Community Energy Plan Development. The Stakeholder Engagement stage consisted of two engagement sessions held at the start of the planning process. The stakeholders produced elements of a vision and key messages for the Energy Plan. This initial stakeholder consultation input was used in conjunction with the baseline energy data to provide guidance to the Energy Planning stage of the Energy Plan process. The Baseline Energy Data stage provided important data on Durham's energy use in the base year, 2015. A detailed database was created and an infographic was produced. The Energy Plan Development stage included developing an energy plan for Durham with different future scenarios for energy production and use. Three scenarios were modelled: Business as Usual (BAU), Business as Planned (BAP) and Low Carbon Pathway (LCP). Based on the modelling, the LCP was the preferred scenario selected. The benefits of this pathway include reduced energy use, lower household energy costs, lower total energy expenditures, more renewable energy, and lower GHG emissions, less air pollution, local investment, electrification and increased self-reliance on energy. Moreover, energy investments will bring economic growth and the expenditures and savings will circulate in the local economy, rather than being exported. Also, local employment is created from investments in energy efficiency and energy generation which is about 210,000 person-years of employment over the period. This will result in an average of 7,000 new jobs each year. Six recommendations are offered in the Energy Plan as a means to achieve the LCP scenario as follows: • The Energy Plan partners continue to test innovative approaches and identify new strategies to reduce GHG emissions as part of the monitoring and evaluation of The Energy Plan. • A central entity is required for leadership and coordination between the municipalities, the Region and other organizations with the community to ensure the implementation of the Energy Plan and to. take advantage of the economies of scale. • The partners of the Energy Plan will develop a five-year implementation plan based on the six program areas: Durham Green Standard, Durham Deep Retrofit Program, Renewable Energy Co-operative, Electric Vehicle Joint Venture, Education and Outreach Program, and Coordinating Land-Use Policies. • The Energy Plan be both recognized and enabled by the forthcoming revisions of the Durham Region Official Plan and the local municipal official plans. • Work with financial partners to develop an Energy Plan capitalization strategy. • Implement the Energy Plan monitoring and evaluation strategy.
PLN 02-19 Subject: Community Energy Plan February 4, 2019 Page 3 As a result, it is recommended that the LCP scenario in the Energy Plan is supported in principle. In regards to the Energy Plan's recommendations, it is recommended that Council endorse the recommendations in principle save and except Recommendations # 2 and #3. The Region of Durham should be advised that Pickering has serious concerns with Recommendation #2 regarding the creation of a new central entity to coordinate the implementation of the Energy Plan and instead recommends that Veridian Connections and Enbridge Inc. be jointly tasked to lead and coordinate the Energy Plan's implementation. Also, the Region of Durham should initiate discussions with Veridian Connections and Enbridge Inc. in this regard. In addition, the Region of Durham should be requested to defer the Durham Green Standard Implementation Program in Recommendation #3 until such time as the building community has had an opportunity to assess the risks, barriers, and costs associated with implementing the Green Standard. The final Community Energy Plan will be presented in 2019 to regional and local Councils for approval and to the boards of the energy utilities for their support. Financial Implications: No financial implications at this time. However, it is anticipated that programs proposed in the Energy Plan will have financial costs for Durham's municipalities and local utilities. Program costs to homeowners and businesses are unknown at this time. Staff recommends that any future senior government funding be shared between the lower tier municipalities and the Region. Staff will report back once the five-year implementation plan is developed on the six program areas and the funding implications are known. 1. Background: In April 2015, Pickering provided a Letter of Support for the development of a Community Energy Plan (Energy Plan) for the Region of Durham. An Energy Plan would assist municipalities and utilities to identify opportunities to conserve and improve energy efficiency and reduce greenhouse gas emissions; consider the impact of future growth and options for local clean energy generation, fuel switching and storage; and support economic development. Work on the Energy Plan began in June 2016 with an initial stakeholder meeting that included the Ministry of Energy, Northern Development and Mines, Region of Durham, all municipalities and utilities in Durham. A three stage process was used to develop The Energy Plan as follows: • Stage 1: Stakeholder Engagement • Stage 2: Baseline Energy Data and • Stage 3: Community Energy Plan Development In the Stakeholder Engagement stage, two Stakeholder engagement sessions were held at the start of the planning process.
PLN 02-19 Subject: Community Energy Plan February 4, 2019 .Page 4 The first session took place in September 20, 2016 and there were 44 participants. The second session took place on February 28, 2017 and 63 participants were present. The stakeholders produced elements of a vision and key messages for the Energy Plan. This initial stakeholder consultation input was used in conjunction with the baseline energy data to provide guidance to the energy planning stage of the Energy Plan process. The Baseline Energy Data stage provided important data on Durham's energy use in the base year of 2015. A detailed data base was created and an infographic was produced. Highlights of the baseline energy data are listed below: • Energy Use by Sector: Transportation (36%), Residential (30%), Industrial (19%) • Energy Supply: Gasoline & Diesel (37%), Natural Gas (35%) and Electricity (17%) • Greenhouse Gas Emissions: Gasoline & Diesel (49%), Natural Gas (33%), and Electricity (5%) • Energy Cost: Gasoline & Diesel (48%), Electricity (39%) and Natural Gas (9%) The Community Energy Plan Development stage was undertaken by Sustainability Solutions Group (SSG), in association with Whatlf Technologies, to undertake this analysis and prepare a draft Durham Community Energy Plan. SSG has prepared similar plans for Toronto, Markham, Waterloo Region, Edmonton, Bridgewater, NS and other Canadian municipalities. This stage included developing an energy plan for Durham with different future scenarios for energy production and use. Three scenarios were modelled: Business as Usual (BAU), Business as Planned (BAP) and Low Carbon Pathway (LCP). Based on the modelling, SSG selected the LCP as the preferred scenario. The benefits of this pathway include reduced energy use, lower household energy costs, lower total energy expenditures, more renewable energy, and lower GHG emissions, less air pollution, local investment, electrification and increased self-reliance on energy. Moreover, energy investments will bring economic growth and the expenditures and savings will circulate within the local economy, rather than being exported. Also, local employment is created from investments in energy efficiency and energy generation, which is about 210,000 person-years of employment over the period. This will result in an average of 7,000 new jobs each year. Once the draft Plan was created, Stakeholder Feedback Sessions took place on November 22, 2018. The insights and suggestions from the sessions will be included in a future stakeholder feedback document, which will inform continuing work on the final Plan. The final Energy Plan will be presented in 2019 to Regional and local Councils for approval and to the boards of the energy utilities for their support. 2. Discussion: Staff supports the transition to a clean energy economy that uses energy more efficiently, moving from fossil fuels to electricity wherever possible and generating electricity with low or zero carbon emissions. The Energy Plan is aligned with many of the City's current energy programs and initiatives.
PLN 02-19 Subject: Community Energy Plan February 4, 2019 Page 5 Recommendations are offered in the Energy Plan as a means to achieve the LCP and reducing GHG emissions. Staff comments on each of the six recommendations are provided below: Recommendation #1: The Energy Plan partners continue to test novel approaches and identify new strategies to reduce GHG emissions as part of the monitoring and evaluation of The Energy Plan. Comment: As part of the City's commitment to best practices, staff are constantly seeking innovative solutions and approaches to reduce energy consumption and GHG emissions. The following actions highlight some of the City's recent initiatives: • facility indoor LED lighting retrofits • energy efficient mechanical unit installations • LED streetlight retrofit project • electric and plug-in hybrid vehicle and EV charger purchases • Sustainable Seaton Workshop net zero housing session Also, the City partners with our local utilities to promote energy conservation in the community through brochures and social media platforms. More recently, the City was awarded the "Lighting -Largest Savings" award at the Powering Up Durham symposium for the City's LED streetlight conversion program (converted over 7,000 streetlights) and facility lighting retrofits (Pickering Recreation Complex, East Shore Community Centre, City Hall). Recommendation #2: A central entity is required for leadership and coordination between the municipalities, the Region and other organizations with the community to ensure the implementation of the Energy Plan and to take advantage of the economies of scale. Comment: The creation of a central entity to coordinate the implementation programs represents another layer of bureaucracy. Though well intended to improve efficiency and effectiveness, this group would not be responsible to any government. It is not clear as to who would create this organization and how it would function administratively. Instead of creating a separate entity, staff recommends that Veridian Connections and Enbridge Inc. be jointly tasked to coordinate the Energy Plan's implementation given its expertise, leadership and business acumen. Both utilities are well-versed in providing innovative energy solutions and programs to Durham households and businesses. This joint partnership is best suited and better aligned to lead the clean energy transition to a low carbon economy. Recommendation #3: The partners of the Energy Plan will develop a five-year implementation plan based on the six program areas identified in The Energy Plan. Comment: To achieve the LCP scenario, the Energy Plan identified the following six programs of activity that would be implemented over a five-year period: • Durham Green Standard • Durham Deep Retrofit Program
PLN 02-19 Subject: Community Energy Plan • Renewable Energy Co-operative • Electric Vehicle Joint Venture • Education and Outreach Program, and • Coordinating Land-Use Policies February 4, 2019 Page 6 These activities include employing enhanced energy measures for new buildings, retrofitting nearly the entire existing building stock; dramatically increasing the energy performance of new buildings; deploying local renewable energy technologies; installing energy storage and electrifying personal and commercial vehicles; and preparing complementary energy Official Plan policies. The Energy Plan is advocating for enhanced energy performance for buildings beyond Ontario Building Code standards. In this regard, Durham Region prepared a draft Climate Resilience Standard that included 42 measures for new home construction and was advocating for its implementation by municipal building departments. Building Industry and Land Development Association (BILD) and the Durham Region Home Builders' Association have voiced concerns with implementing the standard and the enforceability of the standard by Durham's Chief Building Officials. Given these concerns, staff recommends that the implementation of the Green Standard be deferred until such time as the building industry has had an opportunity to assess the risks, barriers, and costs associated with implementing the Green Standard. Further, in discussions with BILD, there is interest in exploring opportunities to implement some of the key elements of the Green Standard as part of a pilot project in consultation with Durham Region and Durham's Chief Building Officials. Recommendation #4: The Energy Plan be both recognized and enabled by the forthcoming revisions of the Durham Region Official Plan and the local municipal official plans Comment: As part of Amendment 23 to the City's Official Plan, staff introduced new policies and changed existing policies to strengthen the Plan's policy foundation for energy conservation among other matters. New policies encouraging the use of green technologies, renewable energy systems and sustainable design policies were incorporated into the Official Plan. Any amendments to the Durham Regional Official Plan pertaining to the Energy Plan will be reviewed as to whether similar policy revisions are required to the City's Official Plan. Recommendation #5: Work with financial partners to develop an Energy Plan capitalization strategy. Response: The transition to the Low Carbon Pathway will require capital investments in buildings, vehicles and infrastructure of $31 billion over 30 years. However, $31 billion in capital investments will return fuel and electricity savings, carbon premiums and maintenance savings totaling $40.2 billion over the 2018-2050 period. This capitalization strategy cannot be done without significant funding and incentives from both federal and provincial governments over this period.
PLN 02-19 Subject: Community Energy Plan February 4, 2019 Page 7 Along with these expenditures, complementary changes to the Ontario Building Code that includes more robust construction standards to achieve higher energy conservation are required. Recommendation #6: Implement the Energy Plan monitoring and evaluation strategy. Response: Currently, staff monitors the energy consumption (electricity, natural gas and fuel oil) and greenhouse gas emissions of our City-owned facilities on a monthly basis from our utility bills. Furthermore, as part of Ontario Regulation (0 Reg.) 397/11, we are required to report the yearly energy consumption and greenhouse gas emissions of our facilities and have it available on our website for the public. Some of the City's facilities are on a Building Automation System (BAS), which can be monitored in real-time. In the future, we look to implement an Energy Management System (EMS) for all our City's facilities to monitor, control, and optimize the performance of the facilities in real-time. However, the specific activities identified to support the Energy Plan requires further discussion among the partners. For example, the development of an annual work plan, annual indicator report and updates to the energy and GHG emissions profile at a community level requires dedicated staff and resources beyond what Pickering can currently provide. 3. Conclusion: The Energy Plan was developed in partnership with the Region of Durham, local municipalities and utilities with public input through the study process. The Energy Plan outlines a roadmap to help the broader community conserve energy, reduce its carbon footprint, commit to a sustainable and secure supply of local energy generation, improve energy resilience and create local employment opportunities over a 30-year period. It is recommended that Council endorse the Low Carbon Pathway scenario in the Energy Plan in principle. To achieve the low carbon pathway, implementation of the Energy Plan's recommendations are required. It is recommended that Council endorse the Recommendations in principle save and except Recommendations # 2 and #3. Staff recommends that the Region of Durham be advised that Pickering has serious concerns with Recommendation #2 regarding the creation of a new central entity to coordinate the implementation of the Energy Plan and instead recommends that Veridian Connections and Enbridge Inc. be jointly tasked to lead and coordinate the Energy Plan's implementation. Also, the Region should initiate discussions with both utilities in this regard. In addition, staff recommends that the Region of Durham defer the Durham Green Standard Implementation Program in Recommendation #3 until such time as the building community has had an opportunity to assess the risks, barriers, and costs associated with implementing the Green Standard.
PLN 02-19 Subject: Community Energy Plan Attachment: 1. Community Energy Plan -Conclusion Prepared By: OtJ ¾ Abid Syed, P. Eng. Coordinator, Energy Management ~mmt ~ ~ Grant McGregor, MCIP, RPP Manager, Strategic Initiatives & Sustainability AS:GM:ld Recommended for the consideration of Pickering City Council 6)?wd/ Ju . ,~, Zf}f'f Tony Prevedel, P. Eng. Chief Administrative Officer Approved/Endorsed By: ly~ Kyle Bentley, P. Eng. February 4, 2019 Page 8 Director, City Development & CBO
llTf ACHf\~EI\IT # / TO R[POR1 I! .£LN O>X-lq
The DCEP is a pathway to a low carbon future. This
pathway requires new investments by the public sector,
the private sector and households, and will stimulate a
new economy.
Municipal and regional interventions will be
foundational. These efforts will unlock key strategies
to advance the low carbon scenario, including creating
policies to support district energy, land-use planning,
supporting advanced building performance standards,
financing retrofits and renewable energy, and education
and support.
The low carbon pathway nearly achieves Durham's
GHG targets. New opportunities will need to be
incorporated into the DCEP in order to address the gap
between the Region's <;;HG targets and the LCP scenario.
Recommendation : The DCEP partners
continue to test novel approaches and identify
new strategies to reduce GHG emissions as part
of the monitoring and evaluation of the DCEP
A coordinating entity is required. The implementation
of the actions requires a novel, integrated approach that
brings together the municipalities, the Region and utilities
in an entity that is both nimble and entrepreneurial. A
DRAFT Durham Community Energy Plan
regional implementation organization is recommended as
a strategy that balances control by the municipalities with
entrepreneurial-ism.
Recommendation #2: A central entity is required
for leadership and coordination between
the municipalities, the Region and other
organizations within the community to ensure
the implementation of the DCEP and to take
advantage of economies of scale.
Implementation focuses on six program areas.
The transition requires efforts firstly to reduce energy
consumption through high performance building codes
and land-use planning, secondly to improve the energy
system by retrofitting existing buildings, and thirdly to
switch to renewable energy, primarily electricity and to a
lesser degree renewable natural gas. The DCEP outlines
specific actions and programs that will implement those
actions.
Recommendation #3: The partners of the DCEP
will develop a five-year implementation plan
based on the six program areas identified in the
DCEP
November, 2018
Durham Region is not alone. Many other cities and
regions around the world are exploring similar pathways,
and there are opportunities to compare notes and learn
from successes and challenges going forward.
Land-use policy will enable implementation. Energy
and GHG gains that occur as a result of land-use
planning are essentially free in that they require no
investment and deliver a range of other co-benefits.
Therefore municipalities should continue to advance
intensification strategies as an enabling strategy to
reduce GHG emissions. Other policies in the Official Plan
will also support the delivery of the programs and the
implementation of the actions.
Recommendation · The DCEP be both
recognized and enabled by the forthcoming
revisions of the Durham Region Official Plan and
local municipal official plans.
The DCEP is an economic development strategy.
There are opportunities for new and existing businesses
in the fields of heat pumps, building retrofits, renewable
energy, district energy, energy storage and others yet to
be determined.
Major investments are required. The transition to the
November, 2018
Low Carbon Pathway will require capital investments in
buildings, vehicles and infrastructure of $30 billion over
30 years. In the business-as-usual scenario, capital
expenditures in buildings, vehicles and energy-related
infrastructure and equipment is projected to total $165
billion, so put in this context the Low Carbon Pathway
requires an 18% increase in capital expenditures in these
areas. That incremental $30 billion capital investment
will return fuel and electricity savings, carbon premiums,
operating and maintenance savings and revenue from
local generation that together total $35 billion over the
2018-2050 period.
Recommendation #5: Work with financial partners
to develop a DCEP capitalization strategy
The LCP actions modelled have varying returns on
investment and risk profiles. Some investments will be
more suited to the public sector, whereas others will be
more appropriate for private businesses. Determining
whi~h action is best associated with which entity has
yet to be done but there are many promising investment
opportunities.
New jobs will be created. The investments in the energy
system will generate employment in building design,
retrofits, district energy, renewable energy, electric vehicle
DRAFT Durham Community Energy Plan
manufacturing and other sectors. A total of 210,000
direct person years of employment will be created over
the period as a result of the implementation of the LCP
scenario.
The low carbon pathway will evolve. As new
technologies emerge and new approaches to deployment
are developed, the approach to implementing the
actions will change. The earlier the Durham Region can
undertake the investments contemplated in the pathway,
the greater financial and environmental benefits will be for
the communities and the Region as a whole. Delay will
result in, for example, increasing household energy costs
for a longer period.
Recommendation #6: Implement the DCEP
monitoring and evaluation strategy
DRAFT Durham Community Energy Plan November, 2018