Canada Northwest Territories Gas Tax Fund: Outcomes Report

Transcription

1 Canada Northwest Territories Gas Tax Fund: Outcomes Report November 2, 2009

2 Canada Northwest Territories Gas Tax Fund: Outcomes Report 2

3 Canada Northwest Territories Gas Tax Fund: Outcomes Report Table of Contents Section One - Introduction... 5 Section Two - Partnerships Section Three - Integrated Community Sustainability Planning Section Four - Outcomes Section Five - Conclusion and Challenges Appendix A: Agreement on the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities Appendix B: Gas Tax Funding Allocation. 83 Appendix C: Joint Evaluation of the Gas Tax Fund and Public Transit Fund. 87 Appendix D: Eligible Project Categories and Costs Appendix E: Gas Tax Projects in the NWT as of March 31,

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5 Canada Northwest Territories Gas Tax Fund: Outcomes Report Section One - Introduction The Government of Canada (Canada) and the Government of the Northwest Territories (GNWT) signed the Agreement on the Transfer of Federal Gas Tax Revenues in November 2005 (the Agreement). This Agreement allows for the transfer of Federal Gas Tax revenues to the Northwest Territories (NWT) for the period of 2005 to The Agreement provided the NWT with $37.5 million during the initial five-year period, with an additional $15 million each year thereafter, until Of the allocation, two percent is set aside for a Capacity Building Fund designed to improve capacity at the community level via a territorial approach. A further one percent is allocated to the GNWT for the administration of the agreement. The Gas Tax Fund (the Fund) is designed to help strengthen NWT Community Governments by providing a reliable and predictable funding source which supports the implementation of municipal infrastructure that not only enhances the local economy, but also improves the environment and quality of life. In addition, the Fund benefits communities by providing funding to increase the capacity of communities to undertake long term planning in a variety of areas. Appendix A is the signed Agreement between Canada and the NWT. i. Outcomes Section b of the Agreement states that the NWT will, prepare, publish and disseminate to the public, by no later than September 30, 2009, and periodically thereafter, an Outcomes Report. This Outcomes Report will report on the cumulative investments made, including information on the degree to which these investments have actually contributed to the objects of cleaner air, cleaner water, reduced Green House Gas emission and other positive environmental impacts or outcomes. Schedule E of the Agreement lists five main outcome indicators which should be reported on. They are: a. NWT communities have access to a secure supply of high quality drinking water; 5

6 Canada Northwest Territories Gas Tax Fund: Outcomes Report b. NWT community enjoy a high standard of air quality; c. NWT residents participate in active transportation to avoid greenhouse gas emissions; d. NWT communities are energy efficient; and e. NWT communities manage solid waste and wastewater in a manner that preserves the integrity of the natural environment. ii. Examples of Gas Tax Investment As of September 30, 2009, there have been a total of seventy-one individual projects reported which received either full or partial investment from the Gas Tax Program. This has resulted in a financial investment of $12,212,929 towards achieving the desired outcomes of the Agreement and helping to preserve the environment of the NWT. Projects in the NWT have focused on each aspect of the desired outcomes in a variety of different ways: The Chipsealing projects in K asho Got ine (Fort Good Hope) and Fort Simpson have helped to improve air quality for residents. Gameti s new sewage truck and newly expanded sewage lagoon have helped to improve the collection and disposal of wastewater. The communities of Sachs Harbour and Ulukhaktok have seen investment made to improve their long term planning in the areas of project management, capital planning and financial monitoring. The City of Yellowknife has been able to implement many successful water projects and a city wide energy plan. Communities in the NWT have utilized Gas Tax funding for small projects such as a small systems water treatment course ($250) and large projects such as the replacement of the Pump House at the new Water Treatment Plant in Yellowknife ($3,965,000). 6

7 Canada Northwest Territories Gas Tax Fund: Outcomes Report iii. Funding Allocation After the signing of the Agreement in 2005, the GNWT consulted with the NWT Association of Communities (NWTAC) to allocate funds for the initial five-year period. The following three allocations of money were agreed upon: Administration One percent of the Funds received by the NWT over the first five years ($75,000/year) would be used by the GNWT to administer the fund. This funding would be used to monitor the fund and ensure that responsibilities under this agreement were met. After the initial five year period, the parties would consult to ensure that the one percent was adequate and appropriate. Capacity Building Two percent of the Funds received by the NWT over the first five years, would be available for capacity building on a territorial approach. This allocation allowed the GNWT to host several workshops and deliver training for Integrated Community Sustainability Plans, a component required under the Agreement. Community Funding 97 percent of the Funds received by the NWT was available for distribution among all thirty-three communities in the NWT. The allocation methodology used to distribute the funds was a Base-Plus approach. This produced communities a guaranteed one percent base per year, to ensure each received an equitable amount of funding under the Agreement. In addition, communities would receive additional funding calculated on a per capita basis. See Appendix B, for a full NWT funding allocation breakdown. iv. Extension of the Gas Tax Agreement Initially, the Agreement signed between Canada and the GNWT was to expire on March 31, 2010, however the funding agreement was been extended, and will now expire in The parties entered into formal negotiations in 2008 to extend the funding agreement to One of the factors which helped to guide the negotiations was a joint evaluation of the program, which took into account the views of stakeholders (see Appendix C). Generally, the evaluation indicates the Gas Tax 7

8 Canada Northwest Territories Gas Tax Fund: Outcomes Report program in the NWT has been successful and is receiving support from large and small communities. As of September 30, 2009, the funding agreement between Canada and the GNWT has not been signed, however there is agreement that funding will proceed at the 2009/2010 level, which will provide the NWT with $15 million per year. v. Terms of the Agreement a) How can the funds be used? The Gas Tax funds can be used towards eligible costs in six different categories: 1. Water; 2. Wastewater; 3. Solid Waste; 4. Community Energy Systems; 5. Active Transportation Infrastructure; and 6. Capacity Building. Consistent with the Agreement, eligible projects in the categories listed above must fulfil the desired outcomes of the Agreement, listed in section 1.i of this document and Schedule J of the Agreement. In essence, eligible projects are those capital projects resulting in green infrastructure or capacity building which helps community governments manage their infrastructure more effectively. As an example, centralized composting for solid waste sites and wood pellet boilers for arenas are eligible projects; which coal boilers and garbage trucks are not. An important distinction must also be made between what is capital and what is operation and maintenance (O&M), as the former is an eligible category for funding, and the latter is not. Projects resulting in new infrastructure (i.e. a new building or mobile equipment) are capital expenditures and are eligible, as long as the infrastructure relates to one of the six categories listed above. Projects resulting in the betterment of infrastructure, by extending useful life and increasing the output of the asset (i.e. installation of a fuel efficient boiler or adding a new cell to a sewage lagoon) are also eligible. 8

9 Canada Northwest Territories Gas Tax Fund: Outcomes Report Projects that are not extending the useful life of an asset, or enhancing its output, and do not create new infrastructure are considered O&M expenses, and are not eligible projects under the Agreement. Communities are encouraged to speak with the GNWT s Gas Tax Co-ordinator, or their Municipal and Community Affairs Regional Office, if they have any questions regarding project eligibility. See Appendix D, for a complete listing of eligible categories and costs. b) What s an eligible recipient? There are two significant requirements eligible recipients of Gas Tax funding must comply with. The recipient must report to the GNWT on Gas Tax fund activity. They must, through their annual audited financial statements and quarterly reporting, share with the GNWT the following information: The total amount of Gas Tax funds received; The total amount of Gas Tax funds spent; o What eligible project the funds were spent on; o What eligible category the project complies with; and o What positive outcome the project will produce; The amount of accrued interest on unused Gas Tax funds received. As well, eligible recipients must provide the GNWT with additional information relating to funds received and eligible projects, on an as needed basis. Secondly, eligible recipients must complete an Integrated Community Sustainability Plan (ICSP) by March 31, ICSPs, as defined by the Agreement, mean a long-term plan, developed in consultation with community members that provides direction for the community to realize sustainability objectives it has for the environmental, cultural, social and economic dimensions of its identity... The Agreement does not stipulate the framework of an ICSP. Schedule H of the Agreement requires Canada and the NWT to approve, by way of Oversight 9

10 Canada Northwest Territories Gas Tax Fund: Outcomes Report Committee and consultation with the NWTAC, the components of the ICSP by March 31, The agreed upon framework of the ICSP are: A strategic plan; An energy plan; A human resources plan; and A five-year capital investment plan. The GNWT and the NWTAC agreed in 2007 to create a Sustainability Coordinator position through the NWTAC to assist communities in the creation of ICSPs. The Coordinator has been actively working with communities to create their ICSPs. If recipients fail to comply with the requirements under their individual funding agreements, the GNWT may withhold payments to communities. If a recipient rectifies the situation in a timely and satisfactory manner, the funds withheld are given to the community immediately. 10

11 Canada Northwest Territories Gas Tax Fund: Outcomes Report Section Two - Partnerships As with any program of this nature, there is a strong need for consultation, collaboration and teamwork to ensure success. The GNWT has worked closely with three different groups to ensure the Gas Tax program worked for all stakeholders. Community Governments, Infrastructure Canada (INFC) and the NWTAC have all been integral in the implementation of the Gas Tax program. i. Community Governments NWT community governments have been an integral factor in realizing success of implementation of the Agreement. The majority of communities have seized the opportunity to invest wisely in environmentally sustainable municipal infrastructure (ESMI) and innovative capacity building. Innovative projects, such as the Centralized Composting project at the Yellowknife Landfill or the Geographic Information Systems (GIS) mapping of the Town of Fort Smith s infrastructure, illustrate the inherent need for this funding and the innovative thinking in the NWT to develop and utilize new methods of managing and monitoring community public infrastructure. Community governments have expressed their satisfaction with the program, as documented in the Joint Evaluation of the Gas Tax Fund and Public Transit Fund (2009). Previous types of Federal infrastructure programs, such as the Municipal Rural Infrastructure Fund (MRIF), where projects are funded on a reimbursement basis, are not the types of program a NWT community desires. Of the $19.2 million available thru MRIF, $19 million was applied for, leaving $200,000 unallocated, which was returned to the Government of Canada. Communities have spoken highly of their ability to use the GTF to boost capacity within communities. It is well documented that many communities in the NWT have capacity issues which can cause frustration in many areas, including managing and monitoring finances and infrastructure. Fortunately, Schedule A of the Agreement was negotiated to include capacity building as an eligible category. Communities have utilized this category to improve their capacity in the areas of: capital planning, project management, water treatment operations, and many others. 11

12 Canada Northwest Territories Gas Tax Fund: Outcomes Report Two conferences were held, with support from the Territorial Capacity Building Fund, at the onset of the Gas Tax program to help foster effective relations between the GNWT and communities. The Sustainable Communities Workshop was held in 2006, and the Strengthening Communities Workshop in These conferences allowed communities to build partnerships with not only the GNWT, but other communities and organizations such as the Arctic Energy Alliance and the NWTAC, to assist in the completion of ICSPs. The conferences were also used to solicit input from NWT communities in selecting the components and approved the template for the NWT ICSP. Communities were thankful to be included in the decision making and appreciated the chance to ensure the ICSP template would conform to, not only the requirements of the Agreement, but also their long-term planning needs. This approach will help to ensure ICSPs are practical and useful for community governments that can help to guide future policy decisions. ii. Infrastructure Canada (INFC) Infrastructure Canada was established as a federal department in August Since then, the department has worked to: Provide a focal point for the Government of Canada on infrastructure issues and programs through the Building Canada plan; Lead the Government of Canada s efforts in addressing the infrastructure challenges of the country; Support infrastructure initiatives across the country; and Facilitate world-class public infrastructure for Canada and Canadians. INFC is the co-signatory to the Canada-NWT Gas Tax Agreement and has been a major factor in developing and fostering infrastructure development in the NWT. Unlike Federal infrastructure agreements before it, the Gas Tax agreement allows for the greatest control by community governments to decide how to use their funding. A long-term desire for communities has been a program which allows them to have a stable, predictable source of income that can be used towards environmentally sustainable infrastructure. Prior to the Gas Tax program, community governments had relatively equal opportunities for each federal dollar invested in the NWT. INFC, in partnership 12

13 Canada Northwest Territories Gas Tax Fund: Outcomes Report with the GNWT, have listened and delivered a program that invests directly to each of the thirty-three municipalities in the North. As part of their capital investment plans, community governments can expect to receive their allocation and plan for its use accordingly instead of the uncertainty surrounding competitive infrastructure funding agreements. The Gas Tax program gives communities ultimate responsibility to spend, save and invest. NWT communities can: Spend the money as they receive it on a variety of vital infrastructure projects; Save the money they receive and use the funding received over two or more years towards a larger project; and Invest in the future and ensure their community continues to flourish. GTF projects are essentially projects promoting healthy communities. Whether they reduce green house gases (GHGs), provide for cleaner water or lead to current infrastructure being managed better. 1 INFC continues to work with the GNWT closely to monitor and improve the Gas Tax program in the north. In March 2009, an extension to the Agreement was announced giving the NWT $15 million per year between 2010 and This continued stable and predictable funding source will help to address the infrastructure funding deficit prevalent in NWT communities and Canada as a whole. An issue facing many NWT communities is the lack of capacity and continuity amongst senior administrative staff. This lack of capacity and turnover led to some communities becoming non-compliant with the program. Non-compliant communities have their funding held by the GNWT until such a time as the community regains compliancy. Non-compliant issues will be touched on later in this document; however these issues range from a lack of appropriate accounting of funds received, and the spending of the Funds on ineligible expenses. 1 Infrastructure Canada. About Infrastructure Canada Infrastructure Canada < 13

14 Canada Northwest Territories Gas Tax Fund: Outcomes Report iii. NWT Association of Communities (NWTAC) The NWTAC is responsible for, the promotion and exchange of information amongst the Community Governments of the NWT and to provide a united front for the realization of goals. 2 The organization was formed in 1967 and currently represents twenty-seven of the thirty-three communities in the NWT. The NWTAC is governed by an elected board chosen from amongst its members. Currently the Mayor of Yellowknife, Gordon Van Tighem, is the President of the NWTAC. The NWTAC has two major roles when it comes to the Gas Tax program: a voice at the negotiating table for community governments and the provision of practical advice to support ICSPs development. The NWTAC is consulted prior to any major decision resulting in the use of Gas Tax funds. For example: Allocation of funds for GNWT Administration expenses; Use of the Capacity Building Fund (NWTAC is a voting member of the committee which determines its use); and Finalization or modification of the formula allocating available Funds to community governments. In 2008, a decision was made by the committee responsible for the use of the Capacity Building Fund to hire a Sustainability Coordinator through the NWTAC. The Sustainability Coordinator s mandate is to ensure that community government s meet the requirement in the Agreement to have an ICSP completed by March 31, Since that time, the Coordinator has been actively working with communities focusing on their strategic and human resource planning. Also in 2008, the Coordinator facilitated the purchase and distribution of a strategic planning program that helps communities with the process. In 2009, regional strategic planning workshops were held in each of the five different regions of the NWT to implement the program. 2 NWTAC. About us NWTAC < 14

15 Canada Northwest Territories Gas Tax Fund: Outcomes Report Since the workshops, the Sustainability Coordinator has been visiting communities, upon request, to help guide the development of their individual ICSPs. 15

16 Canada Northwest Territories Gas Tax Fund: Outcomes Report Section Three - Integrated Community Sustainability Planning Integrated Community Sustainability Planning (ICSP) has three key elements: the community government, community residents and the environment. Effective strategic sustainable planning provides for a cleaner environment, a healthier citizenry and a reduced operating budget for the community government. It is well documented that the initial push to complete an ICSP may be costly as the majority of NWT communities will struggle to complete them without the use of consultants and contractors. However, once a community completes an ICSP, the benefits are both tangible and intangible. Of the NWTs ICSP template, all four components have a role to play in accomplishing the outcomes of the Agreement. The Human Resources Plan will help develop a community s public service. This plan will allow community governments to invest time and effort into establishing an appropriate reporting and staffing framework. The end result is a clearly defined public service that considers all areas required to provide necessary services to community residents. For communities in the process of developing or that have completed development of a plan, indicate priority for a position dedicated to efficient uses of capital funding and energy consumption. These positions are integral to reducing a community s energy output, thereby reducing operating and maintenance costs which can be reinvested into other capital programs and expenditures. Energy and Capital Plans will help communities set infrastructure targets and allow them to maximize the limited financial resources they have. This planning component will allow them to understand their energy situation and be better suited to determine ways to reduce their operating budget and provide for a cleaner community. The Strategic Plan will bring all three components together and set a greater vision for the community. Essentially, the community will be authoring a document which will guide decision making well into the future. The Strategic Plan will be respectful of the culture, democratic nature and fiscal abilities of the community. By completing and implementing ICSPs, community governments are setting their own outcomes, many of which will be similar in scope to the GTF, and are helping to produce healthy and sustainable communities. 16

17 Canada Northwest Territories Gas Tax Fund: Outcomes Report Section Four - Outcomes As mentioned previously, the Agreement has the following five desired outcomes for NWT communities: 1. Access to a secure supply of high quality drinking water; 2. A high standard of air quality; 3. Participation by NWT residents in active transportation to avoid greenhouse gas emissions; 4. Energy efficiency; and 5. Management of solid waste and wastewater in a manner that preserves the integrity of the natural environment. To measure the impact of the GTF on these outcomes, the GNWT looked at four key areas to measure the outcomes of projects in the NWT. These four areas were: 1. Cleaner Air and Reduction of Green House Gases (GHGs); 2. Cleaner Water; 3. Effective Management of Solid Waste Sites; and 4. Capacity Building. As of September 1, 2009, there were a total of seventy-one individual projects partially or completely funded through GTF. All seventy-eight projects fit under the four areas listed above. This allowed the GNWT to quantify and gauge the success of the GTF in meeting the outcomes in the NWT. See Appendix E for a complete listing of GTF projects in the NWT. The next four sub-sections will detail the findings of the GNWT s study into the areas mentioned above. i. Cleaner Air and Reduction of Green House Gases (GHGs) This is a broad outcome and one that cannot be addressed without further breakdown. In terms of this report, two subsections are needed and, subsequently, two main types of projects were looked at. a. Cleaner Air: Eligible projects fall under Dust Suppression, which is a subeligible category of the Active Transportation Eligible Category. 17

18 Canada Northwest Territories Gas Tax Fund: Outcomes Report b. Reduction of GHGs: Eligible projects fall under the Community Energy Systems Eligible Project Category. a. Cleaner Air Up until the meeting of the Oversight Committee on August 18, 2009, dust suppression included asphalt, chip-sealing, calcium chloride, and other types of dust suppression. To quantify the investment that GTF has made on cleaner air, this report will look at the type of dust suppression used, the dollar amount invested and the length (in kilometres) of road treated. There are many detrimental effects of road dust on NWT communities including safety, nuisance, vehicle damage, road maintenance costs and legal liability concerns. No concern, however, is greater than the damage that road dust can cause to the environment and the health of community residents. According to the Dust Control Alternatives Cost Benefit Analysis (2005) by EBA Engineering Consultants Ltd. dust from gravel roads can have the following negative impact on the environment, Large amounts of dust falling on vegetation may stress plants due to increased heat absorption and decreased transpiration. High levels of dust falling into aquatic systems may adversely affect aquatic plants and fish that are not adapted to high levels of sedimentation. 3 In respect to the health of residents, the report goes on to state that, Particulates are known to aggravate symptoms in individuals who already suffer from respiratory or cardiovascular diseases (Health Canada 2004). Very fine particulate matter is of most concern from a health perspective because these particles can enter the deepest parts of the lungs. A Canada-Wide Standards for very fine particulate matter that has a diameter of less than 2.5 microns has been established pursuant to the 1998 Canada-wide Accord on Environmental Harmonization of the Canadian Council of Ministers of the Environment (CCME). This limit is for less than 30 μg/m3, over a 24 hour averaging time, to be achieved by year EBA Engineering Ltd. Dust Control Alternatives Cost Benefit Analysis EBA Engineering Ltd. Dust Control Alternatives Cost Benefit Analysis

19 Canada Northwest Territories Gas Tax Fund: Outcomes Report As of March 31, 2009, the following communities have completed dust suppression projects in their communities using the GTF: 1. Aklavik; 2. Fort Simpson; 3. Fort Providence; 4. K asho Got ine (Fort Good Hope); and 5. Whati. Of these five communities, Aklavik, Fort Providence and Whati have used calcium chloride on their roads instead of traditional methods of dust suppression (asphalt or chip sealing). Calcium chloride is a water-absorbing dust suppressant that slows the rate of evaporation of salt and water. These types of suppressants work well in permafrost areas, like the NWT, because they mitigate ice formation and hence can prevent cracking from freeze-thaw action. 5 As mentioned previously, calcium chloride was previously an acceptable project under the program. However, clarification was made by the GTF Oversight Committee that all calcium chloride expenditures after August 18, 2009, would be deemed unacceptable due to concerns regarding the lifespan of calcium chloride. While calcium chloride is an alternative type of suppressant that costs less, one 6 application typically lasts only seventeen months and does not fit under the definition of a capital cost. The Federal Government and the GNWT have committed to work on a case-bycase basis to determine if other methods for traditional dust suppression could be considered capital costs. Clarification of these methods will be released to the public in In total the amount of road treated with a form of dust suppressant was km. 5 EBA Engineering Ltd. Dust Control Alternatives Cost Benefit Analysis EBA Engineering Ltd. Dust Control Alternatives Cost Benefit Analysis

20 Canada Northwest Territories Gas Tax Fund: Outcomes Report Table 4-1 Community Type of Suppressant GTF Invested in Project Aklavik Calcium Chloride $55, km Kilometres Treated Fort Simpson Chip Sealing $413, km Fort Providence Calcium Chloride $65, km K asho Got ine Chip Sealing $87, km (Fort Good Hope) Whati Calcium Chloride $44,717 8 km Case Study Fort Providence s Dust Problem and Solution Historically, northern communities have suffered from dust issues associated with gravel roads in their downtown core. Gas Tax funding has provided our communities with a mechanism to address this issue. The Hamlet of Fort Providence has used Federal Gas Tax funds to procure and apply calcium chloride, a benign chemical that keeps the dust down and greatly improves the quality of life in their community. Further, the Hamlet of Fort Providence is in the process of applying an asphaltic surface treatment (chip seal) to every road in the community. The chip seal treatment will last much longer than calcium chloride and is awaited with great pride by all citizens in the community. Gas Tax is funding this dust control project; the design is complete and work is expected to start this fall (2009), with the anticipated completion date in the summer of Keith Morrison, Manager of Community Infrastructure Planning, Municipal and Community Affairs, South Slave Region As of March 31, 2009, the Hamlet of Fort Providence has utilized $65,058 in Gas Tax funding for the purchase of calcium chloride to suppress dust in the community. Since the project s inception, the community has treated thirty-three kilometers of road. However, the disadvantage of using this type of dust suppression is that the lifecycle of the product is only seventeen months, which amounts to one summer season in the community. In the summer of 2009, the community decided to enter into discussions to have the entire community undergo a chipsealing program. The project will utilize Gas Tax funding and severely limit the amount of dust in the community. 20

21 Canada Northwest Territories Gas Tax Fund: Outcomes Report b. Reduced Green House Gases (GHGs) According to Environment Canada (EC), GHGs are gases in the atmosphere that trap energy from the sun. Naturally occurring GHGs include water vapor, ozone, carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Without them, the Earth's average temperature would be about 33 C lower than it is, making the climate too cold to support life (Schneider, 1989). While these naturally occurring gases are what make life possible, a serious concern today is the enhanced effect on the climate from increased levels of these gases in the atmosphere, due mainly to human activities 7. Communities rely upon fossil fuel mediums which cause high levels of GHG emissions. One of the desired outcomes of the Gas Tax program is to offer a financial incentive for communities to provide a cleaner supply of energy to the community. These methods include biofuel, solar and wind. The eligible category which most compliments this outcome is the Community Energy Systems category. Eligible projects in this category include: Co-generation or combined heat and power projects (where heat and power are produced through a single process); District heating and cooling projects where heat (or cooling) is distributed to more than one building); and Use of proven technology to incorporate alternative energy sources (wind, geothermal, biomass, sun, tide, waste heat recovery, etc.) for Community Public Infrastructure, recognizing that only the energy efficient components of such projects are eligible. While there has been a direct investment of $706,465 of Federal funding towards these types of infrastructure through the Municipal Rural Infrastructure Fund (MRIF), there has been only $78,948 in GTF used towards energy efficiencies and GHG reduction. To quantify this reduction, the GNWT surveyed the two communities that used GTF towards these projects and asked them to provide the quantity of kilowatt hours saved by employing these new technologies. 7 Environment Canada. What are greenhouse gases? Greenhouse Gas (GHG) Information Environment Canada < 21

22 Canada Northwest Territories Gas Tax Fund: Outcomes Report The two projects combined have lead to a total reduction of 28,600 kwh/year consumed in the NWT. Table 4-2 Community Project Title GTF Invested in Project Kilowatt year(kwh/year) Hours Reduced Fort Resolution Energy Upgrade for $18,948 3,600 Arena Inuvik Recreation Centre $60,000 25,000 Energy Upgrade Project per While the above projects are typically tied directly to fix asset community public infrastructure, three other project types in the NWT have led to a direct reduction in GHGs. They are: mobile stock drinking water distribution systems wastewater collection systems, efficiency upgrades to existing water/wastewater systems and active transportation/public transit. Whereas southern Canadian jurisdictions benefit from water and sewer piping connecting infrastructure and homes, many NWT communities rely on trucked delivery and collection of water and wastewater. The NWT has received clarification that under the terms of the GTF Agreement, mobile stock relating to wastewater collection and water distribution systems are eligible projects. Three communities have used GTF to purchase water trucks and four have purchased vacuum trucks, used for the collection of wastewater. For the purposes of measuring the magnitude in which these municipal service vehicles have assisted in meeting the outcomes of the Agreement, the GNWT has compared the reduction in fuel consumption from previous service vehicles to the new vehicles. The seven new service vehicles have led to a total reduction of 51, litres per year of fuel consumption. 22

23 Canada Northwest Territories Gas Tax Fund: Outcomes Report Table 4-3 Community Project Title GTF Invested in Project Litres (L) of Fuel Consumption Reduced Fort Resolution Water Distribution Truck $176,900 Unchanged Fort Liard Water Distribution Truck $148,094 Unchanged Fort Providence Water Distribution Truck $179, Litres Gameti Wastewater Collection Truck Kakisa Wastewater Collection Truck K asho Got ine (Fort Wastewater Collection Good Hope) Truck Tsiigehtchic Wastewater Collection Truck $132,750 Unchanged $99,950 Unchanged $131, litres $150, litres Three of the tax based communities in the NWT have used GTF to improve the energy efficiency of their water and wastewater systems. This has resulted in a positive effect on reducing the amount of GHGs generated and led to a total reduction of 120,000 kwh/year used by their distribution and collection services. Table 4-2 Community Project Title GTF Invested in Kilowatt Project (kwh/year) Hours Reduced Per Year Inuvik Utilidor Upgrade $649,281 60,000 kwh/yr Norman Wells Sewage Lift Pump and Electrical Upgrades Yellowknife Monitor and Controls for Pump houses and Lift stations Upgrades Yellowknife Remote Pressure and Temperature Sensors $20,773 $146,000 $7,000 Project Completed Project Completed 60,000 kwh/yr Not Not 23

24 Canada Northwest Territories Gas Tax Fund: Outcomes Report Another important outcome of the Agreement is the model shift away from private transportation towards public transit systems. To date, under the program, $260,297 has been spent by Tuktoyaktuk and Yellowknife to initiate and improve public transit services. Tuktoyaktuk purchased a thirty-two passenger school bus which has been converted into a community use bus. This unit resulted in a yearly ridership figure of 6,000 people per year. Yellowknife installed bus shelters and new high efficiency light emitting diode (LED) traffic lights. 7 shelters have been installed throughout the city. The increased number of shelters has given some protection to users during periods of poor weather. The traffic lights have led to an improved energy efficient system and a reduction of 1000 kwh. Case Study City of Yellowknife s Energy Conservation Program The Gas Tax fund is critical to change the processes used in the city. The fund allows the city to put a focused effort towards being innovative, think innovatively and leverage further sources of funding. The Gas Tax has allowed the city to lower our carbon footprint and become more environmentally responsible. Mark Henry, Energy Coordinator, City of Yellowknife As of March 31, 2009, the City of Yellowknife utilized $801,000 in GTF towards its own Energy Conservation Program. A key facet of the entire program is the Energy Coordinator. As the GTF is designed for the implementation of infrastructure projects and capacity building, the City of Yellowknife applied for special dispensation to hire an employee at the City on a fixed term basis to spearhead its energy conversation program. The program has been instrumental in completing and implementing the City s Energy Plan. The program has led to many energy efficiency projects in the City, including the installation of wood pellet boilers. Currently the City is exploring the possibility of utilizing GTF towards a proposed geothermal extraction project at the former ConMine Gold Mine. This source of 24

25 Canada Northwest Territories Gas Tax Fund: Outcomes Report geothermal heat will help to provide the City with a source of clean heat, as the City makes a concentrated push to end its reliance on fossil fuels. ii. Cleaner Water The health of NWT residents depends on the effective management, protection and enhancement of natural resources. Preserving NWT water is an important challenge and the continued care and management of NWT water resources requires a large investment. Thanks to the GTF, there has been an investment of $5,904,956 towards the preservation and treatment of water and wastewater, as well as the installation of fixed distribution systems (i.e. pipes) and storm water management. This has been the single largest area of investment for the GTF and has been identified as the most important area for future investment by the GNWT and NWT communities. In terms of drinking water treatment, there has been $4,030,303 spent on four individual projects. This has resulted in 6,500 cubic metres of water being treated to a higher standard per day. Table 4-5 Community Project Title GTF Invested in Project Metres Cubed Treated to a Higher Standard per Day Fort Liard Water Plant Retrofit $6,500 Unchanged Fort McPherson Water Intake Upgrade Norman Wells Water Treatment Plant Capital Upgrades Yellowknife Pump house Replacement / New Water Treatment Plant $64,860 $3,943 $3,965,000 Unchanged Unchanged 6,500 25

26 Canada Northwest Territories Gas Tax Fund: Outcomes Report Three fixed asset water distribution system projects have been completed resulting in an investment of $1,146,447. This has resulted in an increased capacity of 287,956 cubic metres distributed per day. Table 4-6 Community Project Title GTF Invested in Project Hay River Stewart Drive Drainage and Restoration Hay River Rehabilitation and Sustainability of the Town s Drainage and Underground Water and Sewer Infrastructure Yellowknife Pump house #4 New Piping $423,604 $602,843 $120,000 Increased Capacity of Water Distributed (Metres Cubed Per Day) 143, ,978 Project Completed Not Communities have allocated $722,206 towards the treatment of wastewater, resulting in an increased capacity to treat 5,028 cubic metres/per day to meet safety standards. Table 4-7 Community Project Title GTF Invested in Project Increased Capacity to Treat Wastewater (metres cubed reduced per day) Fort Liard Sewage Lagoon $29, ,000 metres cubed Construction Fort Liard Sewage Treatment $649,586 Project Not Facility Complete Gameti Sewage Lagoon $42, meters cubed In addition, the community of Aklavik has installed two culverts (132.2m) for $6,000 to aid in the community s drainage plan. The Hamlet of Aklavik lies in a 26

27 Canada Northwest Territories Gas Tax Fund: Outcomes Report flood risk area and has perennially been a flood risk. The community has engaged a northern firm to assist in the creation of a drainage plan to mitigate further risks to community residents, interests and assets. The installation of culverts to divert water from the community has been the first step in the implementation of the drainage plan. iii. Effective Management of Solid Waste Sites Effective management of solid waste sites by community governments leads to lower operation and maintenance costs, and a longer lifecycle for the asset. Solid waste sites were once operated and managed by the GNWT on behalf of communities. Under the New Deal for NWT Community Governments, responsibilities for solid waste sites are being transferred to communities. While the transfer of land ownership is still on-going, community governments are currently operating and maintaining solid waste sites independently of the GNWT. Through an investment of GTF, community governments are now able to look at expanding current sites and to use new ideas and technologies to divert solid waste to recycling or composting facilities. A total of eighteen projects, in nine different communities, are tied directly to effectively managing a solid waste site. These projects account for $924,502 of the GTF utilized in the NWT since When tracking these types of projects, the GNWT uses two primary outcome indicators: Increased capacity of site in tonnes; and Increased tonnage of waste diverted from the landfill. Two additional projects that fall into the overarching solid waste site category, which have unique indicators and were tracked separately. a. Increase capacity of site in tonnes The largest GTF investment in the area of solid waste site management was introduced to increase the capacity of the current solid waste sites. As of March 31, 2009, there were nine such projects with an investment totalling $595,494. These projects have led to an increased solid waste capacity of 38,904 tonnes. 27

28 Canada Northwest Territories Gas Tax Fund: Outcomes Report Table 4-8 Community Project Title GTF Invested in Project Increase Capacity of Site (in Tonnes) Aklavik Gravel Berm at Solid $120, Tonnes Waste Site Fort Providence Development of New Cell $78,530 7 Tonnes Fort Liard Construction of New $18,263 Project Not Complete Solid Waste Site and Closure of Previous Solid Waste Site Gameti Solid Waste Site $42,746 3,141 tonnes Upgrade Norman Wells Landfill Expansion $177,857 15,000 Tonnes Ulukhaktok Rebuilding of Landfill $79,098 6 Tonnes Yellowknife New Landfill $56,000 Project Not Complete Yellowknife Landfill Expansion $23,000 20,000 Tonnes When the new Yellowknife Landfill is completed, it is expected to add an additional 150,000 tonnes of additional capacity. b. Increased tonnage of waste diverted from the landfill The City of Yellowknife has undertaken seven different projects which aim to reduce the amount of waste deposited at the solid waste site and divert it to either recycling or composting sites. The seven projects total $223,000 of GTF investment, and have diverted 150 tonnes of waste from the landfill. 28

29 Canada Northwest Territories Gas Tax Fund: Outcomes Report Table 4-8 Community Project Title GTF Invested in Project Yellowknife Bailing Facility Mechanical Upgrades Increased Tonnage of Waste Diverted from Landfill $46,000 Project Not Completed Yellowknife Transfer Station Bins $49,000 Project Not Completed Yellowknife Landfill Site $26,000 Project Not Restoration Completed Yellowknife Three Cell Salvaging $11,000 Project Not System Completed Yellowknife Centralized $16, Tonnes Composting Pilot Project c. Other Solid Waste Projects The other two projects tied to effective management of a solid waste site have resulted in GTF investment of $106,008 for the Town of Fort Smith and the City of Yellowknife. The City of Yellowknife has instituted a new Landfill Fire Control system to mitigate against potential fire damage to the asset and the subsequent pollution that would be released into the air at a project cost of $25,000. The Town of Fort Smith has concluded a site improvements project on their solid waste site, the most notable inclusion to their current management system is the addition of a ground water monitoring system. This is tied directly to the effective management of solid waste sites and the eventual outcome of cleaner water by increasing water conservation and protection. 29

30 Canada Northwest Territories Gas Tax Fund: Outcomes Report iv. Capacity Building This area of GTF utilization has resulted in the second highest volume of projects and funds used. Communities in the NWT need funding like the GTF, in order to train their staff to effectively manage and monitor infrastructure and finances. There has been many innovative and necessary capacity building projects undertaken using GTF, including mapping community infrastructure using GPS technology, project fundamentals coursework and effective solid waste management. There have been seventeen capacity building projects undertaken by ten community governments. There has been a direct investment of $1,195,786 of GTF in capacity building at the community level. While conferences, courses and workshops relating to water, waste water, solid waste, accounting, and ICSP development are prevalent, the City of Yellowknife has utilized $881,000 to develop an Energy Conservation Program. This program has been led by an Energy Coordinator whose position is funded out of the City s Gas Tax allocation. The position is term, non-permanent, and this investment has produced the City s Energy Plan and led to a reduction in GHGs emissions. Since the approval of the Energy Coordinator s position at the City of Yellowknife, other communities have expressed their interest for a similar resource. In 2009, the community of Paulatuk will be hiring their own Energy Coordinator to lead development of an energy plan which will cut the Hamlet s GHG emission footprint. 30

31 Canada Northwest Territories Gas Tax Fund: Outcomes Report Table 4-9 Community Project Title GTF Invested in Project Aklavik Strategic Plan Development $12,024 Aklavik ICSP Strategic Planning $1,386 Tool Workshop Aklavik Property and Asset $427 Management Colville Lake Human Resources Plan $50, Implementation Deline Small Systems Water $250 Treatment Course Deline Solid Waste Management $300 Deline ICSP Regional Workshop $14,446 Fort Providence Water and Waste Water Training $1,014 Fort Smith GPS Mapping of $54,468 Infrastructure Fort Smith GIS Equipment and $24,714 Software K asho Got ine (Fort Good Water Conference $34, Hope) Lutselk e Financial Training $1, Sachs Harbour Capital Planning Workshop $5, Ulukhaktok Accounting Training $10,836 Ulukhaktok Project Fundamentals Course Yellowknife YK Smart Growth Redevelopment Plan Yellowknife Energy Conservation Program $2,408 $100,000 $881,000 31

32 Canada Northwest Territories Gas Tax Fund: Outcomes Report Case Study Ulukhaktok Builds Project Management Capacity The project management courses that have been taken by the Hamlet staff will allow them to understand project management basics and allow the individual to utilize these new skills in managing their new infrastructure projects. Understanding the steps and the processes for a project will allow for the implementation of project s on time, on budget and according to scope. It builds local capacity and assists the community in ensuring projects happen as required to ensure optimization of their infrastructure. The Gas Tax funds have allowed the community a vital chance to build their capacity and further the goals of the program. Lorie Fyfe, Manager Capital Programs and Works, Municipal and Community Affairs, Inuvik Region The Hamlet of Ulukhaktok is the second most northerly community in the NWT, situated 925 kilometers north of Yellowknife on Victoria Island. The community has a population of 434 and is only accessible by the air or, seasonally, water. The Project Management Certificate, which the Hamlet is aspiring to attain, is a program offered by Aurora College and consists of ten courses with the goal of learning how to manage a project on time and within budget. The community plans to begin construction of a community hall in the near future. This project is a Building Canada Plan (BCP) which requires project management knowledge that the community has not yet been required to undertake on their own. As of April 1, 2007 capital planning and infrastructure implementation responsibility were transferred to community governments under the New Deal for NWT Community Governments. This will be the first large scale capital project the community will implement without the direct assistance of the GNWT. The knowledge transferred by taking the Project Management Certificate will aid the community to undertake this project. In this instance, one can see how the GTF is helping to promote capacity among community governments and ensure the success of the Building Canada Plan and New Deal for NWT Community Governments. 32

33 Canada Northwest Territories Gas Tax Fund: Outcomes Report Section Five - Conclusion and Challenges As a result of $12,212,929 in GTF invested in seventy-one projects in the NWT, the following outcome indicators have been met: Cleaner Air: o km of road treated with dust suppressant; o 148,600 kwh/hr decreased; o Reduction of 51, l of fuel; o 7 bus shelters installed; and o 6,000 people public transit ridership increased by. Cleaner Water: o 6,500 metres cubed of water treated to a higher standard; o An increased capacity of 294,456 cubic metres distributed per day; o An increased capacity to treat 5,028 cubic metres/per day of wastewater to meet safety standards; and o metres of culverts installed. Effective Management of Solid Waste Sites: o An increased solid waste capacity of 38,904 tonnes; o 150 tonnes of waste diverted from the landfill; Capacity Building: o Invested $1,195,786 towards capacity building. The Gas Tax Fund has been a highly successful program in the NWT. It has led to strengthened partnerships, increased long-term planning and stable funding which has led to innovative thinking, as it relates to municipal infrastructure. However the program is not without its challenges and issues. Due to capacity issues and high staff turnover, not all communities are compliant with their individual Gas Tax funding agreements with the GNWT. At the time that this report was published, there were nine community governments currently non-compliant. The main issues are: Segregation of GTF from other sources of funding; Failure to track interest earned on GTF; Failure to report on GTF expenditures; Failure to use GTF on eligible projects; and Failure to submit a council motion in support of the ICSP deadline. 33