Halton Region. Corporate Energy Management Plan

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1 Legislative and Planning Services Asset Management May 2014

2 INTRODUCTION This will guide Halton Region through the managed control of its utility costs, energy use, greenhouse gas emissions, green building policies and green procurement decisions. With a population of more than 500,000 residents, it is essential that the Region continue to take an active role in creating a healthy, green and sustainable place to live. The objective of the Corporate Energy Management strategy is to: Treat energy as a managed resource. Reduce dependency on fossil fuels in program delivery. Use renewable energy sources, complemented by conservation programs. Investigate energy generation and recovery projects in municipal operations. Construct new infrastructure, replace existing equipment and modify processes so Halton s aggregate infrastructure is designed to meet emerging green standards. Assess all future project viability based on full life cycle costing and the four pillar approach of sustainability (environmental, economic, social and cultural). To meet these goals, actions under the following four theme areas of the program will be considered: Consumption Cost Sustainability Energy self-sufficiency The following plan details how Halton Region will achieve success through a plan that is aligned with the existing Energy Management Strategy, Corporate Sustainability Action Plan, Renewable Energy Feasibility Study, as well as various Green Building Policies and strategies. It also outlines the areas of opportunities that will assist the Region in meeting its short and long term Corporate Energy Management and Greenhouse gas reduction goals. BACKGROUND Halton Region has committed to reducing its impact on the environment and to the principles of sustainability through its Corporate Sustainability Action Plan. One of the key themes of this plan is effective corporate energy management. The objectives under the Plan are: 1. Reduce Halton Region s carbon footprint through sustainable practices and maximize the use of renewable energy. 2. Lead, host and participate in energy conservation programs. 3. Achieve all five corporate milestones of the Federation of Canadian Municipalities, Partners for Climate Protection Program. Halton Region has undertaken several initiatives to improve energy efficiency in Region owned facilities. The adoption of the Green Building Policy for New Construction and Renovation, Greening of Existing Facilities Policy, along with the Green Procurement Policy outline a comprehensive roadmap for integrating energy efficiency and sustainable practices into the Region s ongoing operations and projects. The Region has already made substantial progress towards incorporating energy conservation initiatives and introducing green thinking into corporate policy and practice. These include; Halton Region s Corporate Energy Management Strategy 2007 Asset Management Services undertook an environmental scan of the current and emerging trends in energy conservation and sustainable best practices in Ontario and Canada. The goal of the scan was to develop a strategic approach for a corporate energy management program. The result of the scan was a white paper entitled Keying in on Green, that encompassed many facets that a municipal energy management program would need to consider in developing a successful program for conserving energy. The objectives of the Keying in on Green strategy has served as a guidance document and has formed the basis of this energy management plan and approach. 3

3 Halton Region s Corporate Sustainability Assessment The Region undertook a Corporate Sustainability Assessment of current practices against several sustainability criteria in order to consider the Region s current performance as it relates to sustainable initiatives. The Region established a baseline and identified future directions for the five major or theme areas of operations: Corporate Facilities and Land Management, Corporate Energy Management, Transportation and Fleet Management, Green Procurement and Waste Management and Water. Halton Region Corporate Sustainability Action Plan 2010 Halton s Corporate Sustainability Action Plan identified action items and set deliverable targets from Corporate Sustainability Assessment, and was developed to further advance sustainability shown to date and provide a framework that incorporates sustainability and energy management into the Region s service delivery and decision making with clearly defined goals and objectives. The key Energy Management outcomes identified in the Plan are: A Corporate Energy Management Strategy to be fully developed and implemented Regional facilities to be made more energy efficient A 15% reduction in energy consumption for Regional facilities by 2015 All incandescent bulbs in Regional owned facilities to be replaced Reduced greenhouse gas emissions at all Regional facilities The Region s commitments to the Partners for Climate Protection program be fulfilled STRATEGY AND GUIDING PRINCIPLES OF THE PLAN Halton s Asset Management Division has developed and set out an overall energy management strategy that will use guiding principles to align energy management with Federal and Provincial strategies and legislation, as well as Halton s internal Sustainability Guidelines. Halton s Corporate Energy Management goals are set out as follows. By adopting policies and implementing a program approach to managing energy resources that will guide Halton to a future where: Energy is a managed resource. There is a reduced dependency on fossil fuels in program delivery. Energy consumed comes mainly from renewable sources, complemented by conservation programs Energy generation and recovery projects in municipal operations are exploited. Construction of new infrastructure and the replacement of existing equipment and processes with those designed to emerging green standards. Project viability is based on full life cycle costing that considers the four pillars of sustainability (economic, environmental, social and cultural). A green procurement policy guides all future purchases. In order to accomplish these goals, the Region s Corporate Energy Management Program focuses on four key themes to direct the corporate conservation effort. A summary of these elements and the progress made to date is noted on the following page: Consumption Cost Sustainability Implement Energy & Environmental Management System (EEMS) COMPLETED Develop load profiles for electricity usage to support procurement COMPLETED Conduct audits, identify retrofit projects and implement operational enhancements Measure, benchmark and compile energy consumption and savings information Report Corporate energy performance to Council - Develop an approach to energy procurement that considers commodity type, market conditions risk tolerance. (Electricity, Natural Gas, Vehicle Fuels, Green power) COMPLETED Ongoing tracking of energy commodity costs patterns for budgeting Track and report on potential vs. actual cost savings to measure effectiveness of retrofit projects, operational enhancements, and procurement strategies - Minimize the future impact of new infrastructure and processes Investigate the use of green and renewable energy sources Achieve measurable reductions in GHG emissions Implement Policies to sustain energy management practices (Green Building & Renovation, Green Procurement and Greening of Existing Buildings) COMPLETED Promote awareness and education on energy conservation including participation in initiatives that raise awareness (Earth Hour, and Count Me in Challenges.) Energy Self- Sufficiency Investigate energy selfsufficiency projects that minimize the reliance on non-renewable energy sources Investigate energy recovery, power generation and energy efficiency in all future renovation and new construction projects Investigate and implement power generation from renewable and municipal generated sources within Halton Develop a position on Carbon Trading and investigate Carbon Credits of projects - 4 5

4 ADOPTIONG AN INTEGRATED APPROACH TO ENERGY MANAGEMENT Internal 1. Past Energy Conservation Measures The Region has long been active in implementing energy conservation measures under the facilities management mandate. In 2007 Asset Management documented the energy savings generated from previously implemented initiatives such as the implementation of a centralized building automation and control system, the retrofit of lighting and lighting control systems, the implementation of energy star office equipment and the completion of energy audits of all major facilities to identify opportunities and comprehensive retro-fits. 2. Green Procurement Policy In 2009, The Region introduced a Green Procurement Policy to encourage the purchase of environmentally preferred goods and services, where cost and lowering the impact on the environmental and human health were key considerations. Asset Management provided significant input into the development process and has included Green procurement as an overall guideline to achieving corporate energy management goals. The Energy Management plan incorporates the following two environmental goals into procurement transactions for a product, packaging or supply wherever possible. i. Conserving Resources ii. Protecting Human Health and the Environment 3. Green Building Policy for New Construction and Renovations using various industry best practice documentation including LEED, ASHRAE, and the National Model Energy Code for Buildings, with input from major internal stakeholders including Paramedic Services and Public Works. The goal of this policy is to reduce energy consumption through the facility and system design process, while maintaining a fiscally responsible approach by minimizing the environmental impact of new facilities and ensuring that all new construction employs the latest energy efficiency focused technology, in order to allow Halton to maintain a long term position as a municipal leader in energy management. 4. Greening of Existing Facility Policy The Region has adopted a policy to address energy consumption and greenhouse gas emissions in existing corporate facilities through the implementation of accepted best practices in key operations and maintenance areas. The policy is aimed at reducing energy consumption and greenhouse gas emissions by incorporating Region-wide energy strategies in areas such as the implementation of building automation systems and lighting controls. The policy also addresses the use of more energy efficient equipment during a life cycle replacement of energy consuming equipment, the systematic completion of energy audits of all major facilities, and the implementation of waste reduction and water conservation programs. 5. Corporate Sustainability Action Plan External 1. Partners for Climate Protection Program In 2005, The Region adopted the 5 Milestone Approach as defined by the Partners for Climate Protection Program or PCP, under report MO The PCP Program incorporates a series of five milestones as follows: i. Milestone One: Creating a Greenhouse Gas Emissions Inventory ii. Milestone Two: Setting the Emissions Reduction Target iii. Milestone Three: Developing the Local Action Plan iv. Milestone Four: Implementing the Plan v. Milestone Five: Measuring Progress Monitor, verify & report on greenhouse gas reductions. Milestones can be implemented either in numeric order (1 through 5) or in the order that is most appropriate for Halton. While many municipal governments start by completing a greenhouse gas inventory, others have moved immediately to actions aimed at reducing greenhouse gas emissions. The Region has moved forward on both milestones simultaneously, and will be able to report reductions to its carbon footprint for any initiatives implemented since the initial established base year of The challenge with this program will be the ongoing tracking of emission reductions, despite a growing population and the resultant increased need for Regional services. The co-benefits of joining PCP include attaining energy savings and reducing air pollution and its effects, such as climate change and health problems. 2. Ontario Regulation 397/11 The Green Energy Act - Energy Conservation Plans for Public Agencies January 2012 Ontario Regulation 397/11, also known as the Green Energy Act, came into effect on January 1, 2012, and requires all Public Agencies and Municipalities, to collect and submit annual energy consumption and building characteristic information on a supplied template. The regulation also mandates municipalities to develop a 5 year demand management plan for corporate operations and report annually on progress made towards achieving reduction targets outlined in the demand management plan. By undertaking energy management actions outlined in this plan, Halton Region be aligned to meet the requirements of Ontario Regulation 397/11 and be in a strong position to prepare and submit the required reports as detailed under the Green Energy Act. 5 milestones of PCP Program: i. Milestone One: Creating a Greenhouse Gas Emissions Inventory ii. Milestone Two: Setting the Emissions Reduction Target iii. Milestone Three: Developing the Local Action Plan iv. Milestone Four: Implementing the Plan v. Milestone Five: Measuring Progress Monitor, verify & report on greenhouse gas reductions. The Region has adopted a policy that adopts a tiered approach to Green Building Construction practices and considers facility use, occupancy and fiscal responsibility in assigning a level for green construction strategies. The policy was developed The goals and objectives of the Corporate Energy Management are aligned with the main themes of the Corporate Sustainability Action Plan in positioning Halton as a leader in balancing social, environmental, cultural and economic sustainability in its operations and decision-making. 6 7

5 ENERGY MANAGEMENT SCOPE The is focused on energy usage in Regional Facilities and Water and Wastewater process operations. This Plan does not attempt to address energy used in street lighting, fleet vehicles and the Halton Community Housing Corporation. Energy used in those sectors will be addressed by specific plans within each separate program area. The Region s total Energy Profile is as follows: Water & Wastewater 56% Total Energy Consumption by Major Operating Sector Street & Traffic Lighting 3% 28% of Total Energy Consumption is by Regional facilities Additionally, the Region s facilities sector can be broken out into six main program areas; Administration; Long Term Care (LTC); Child Care (RCCC); Police Services (POLICE); Operations; and Paramedic Services. The following chart depicts the total facility energy utilised in each specific sector type. Total Energy Consumption by Major Operating Sector % Energy Used by Facility Type 2013 Facilities Fleet & Equipment 13% Water & Wastewater Street & Traffic Lighting Fleet & Equipment Facilities 28% 8 9

6 TARGETS AND APPROACH The Corporate Sustainability Action Plan targeted a reduction in energy consumption and CO2 emissions across the entire range of facility types that comprise Halton s facility portfolio. Through a series of energy audits that were completed on major energy consuming facilities between 2010 and 2013, a comprehensive listing of various energy conservation measures (ECM s) was identified. The results have been compiled into a comprehensive demand management plan that when implemented, could realise a potential energy savings of $ 488, per year. This savings represents an energy demand reduction of approximately 10 % of the audited Facilities total utility usage if full implementation of all identified measures is completed. A summary of the measure identified is represented in the following table and chart. Conservation Measure Cost to Implement Savings Generated Lighting Retrofits $1,910, $250, Mechanical Modifications $2,655, $106, Control Upgrades $648, $92, Water Conservation $184, $18, Building Envelope Upgrades $153, $21, Total $5,552, $488, Additionally, Public Works also identified a number of key initiatives that are to be reviewed and implemented in order to reduce the energy consumption of water and wastewater process operations. By pursuing opportunities for energy conservation through green building design, alternate energy production and identified initiatives to realize operating cost efficiencies and environmental benefits, Public Works will make the best possible decisions regarding its energy conservation measures while minimizing risk and cost to the Region and its taxpayers while maximizing service delivery. The Plan will: Review its long-term infrastructure master plans and the Budget and Business Plan.; Document existing and planned work practices and procedures.; Provide business cases for key infrastructure investments to support Regional services.; Develop sustainable financial plan.; Support customer desired levels of service derived from the infrastructure assets.; and Meet legislative requirements. Identified initiatives include: 1. Burl-Oak WTP Pump & Impeller Optimisation 2. Wastewater Plant Lighting & Controls Improvements 3. Mid Halton Outflow micro-turbine project 4. Water Process Average Day Operations Narratives for Energy Conservation 5. Aeration Tank 3-D Dissolved Oxygen Modelling / DO Sensor Improvements 6. Oakville Water Plant High & Low Lift Pump Efficiency Improvements The Corporate Energy Management Plan: A Combined Progress Plan The will reduce consumption and show positive greenhouse gas reductions, through the adoption of a Combined Progress Plan approach. This Combined Progress Plan will: Identify and quantify savings from energy reduction measures already undertaken. Seek committed annual capital funding ($100 K in 2014) to fund energy management projects. Review approved annual capital and life cycle replacement projects to identify further potential energy and efficiency improvements. Identify and recover funds from energy incentive programs, then re-invest incentives received to fund future energy conservation projects. Foster a conservation mindset through education and awareness. The combined effect of these measures will support energy and greenhouse gas reductions. Several conservation projects have already been undertaken by the Region from 2009 until The range of projects undertaken includes: 1. Energy Star Office Equipment Program 2. LED Exit Lighting 3. Domestic Hot Water Initiatives 4. Compact Fluorescent Lamps 5. Building Automation System & Control Strategies 6. Major Lighting System Conversion and Retrofits 7. Motor Efficiency and Pumping Strategies The savings from these conservation projects have been 10 11

7 tracked and recorded, and will be combined with the ECM s identified in order to create an energy demand management plan that will result in an aggregate energy reduction of 10%. The chart below outlines one scenario as to how the energy savings will be realised over a multi-year implementation and funding model. The implementation cost of this program, including design and management fees, is approximately $900k over several years in order to generate additional cumulative annual savings. Corporate Energy Management Initiaives Already Undertaken Comprehensive Energy Retrofit Program With Annual Capital Funding 6% progress to % from 2014 onward In order to achieve these results, it is recommended that a multi-year implementation program of identified measures be funded at a rate of $100,000 per year from This Combined Energy Program Plan, along with the reinvestment of incentive dollars received, will allow a 10 % energy reduction cumulative reduction target to be realised by Projected Energy Savings in Corporate Facilities Through a Combined Energy Management Plan Assumes a $100K expenditure for ECM s per year starting 2014* 1 Implementation And Progress Halton Region has undertaken a number of steps to begin implementation of energy management across the facilities that comprise the Region s infrastructure. Those steps include: Retrofits The Region has already begun process of retrofits in multiple facilities in order to ensure that existing buildings meet the Region s targets for energy conservation and sustainable practices. These retrofits, conducted through the life cycle replacement program, includes upgrades to more efficient lighting, heat retention, HVAC systems and the integrity of the building envelope, represent the first steps in properly managing energy costs across the system. Additional planned facility retrofits and upgrades are a core element in meeting the established reduction targets. Green Energy Halton s Corporate Sustainability Action Plan outlines a number of methods to integrate green energy procurement as a priority as part of the overall energy cost of the Region. One method identified is the procurement energy from renewable or alternate sources. This strategy can allow Halton to further reduce its carbon footprint as an energy consumer. Is should be noted however that since there is a premium paid per unit of energy used from these sources, and that the carbon reductions only remain in place as long as the renewable energy sourced is purchased, it should only be deployed after the implementation of the identified comprehensive retrofit items, in order to only pay the added premium on the net energy consumed and not the full, pre-retro fit consumption, as that would be more costly to the Region without providing any added benefit. Renewable Energy Halton Utility Group (HUG) The Region, in partnership with the Halton Utilities Group, is spearheading an initiative to investigate renewable energy opportunities across all suitable Regional assets. The baseline study identifies the viability of renewable energy generation such as solar power on Halton Region property. New Facilities Halton s Green Building Policy for New Construction & Renovations is designed to ensure that all new construction that is regionally owned or financed meets the same requirements and goals in terms of compliance with the Corporate Sustainability Action Plan. By minimizing environment impact during construction and ensuring that all new construction employs the latest energy efficiency focused technology, Halton will be able to maintain a long term position as a municipal leader in energy management. Green Policies In addition to Halton s Corporate Sustainability Action Plan and Halton s Green Building Policy for new Construction & Renovations, Halton has also adopted green policies for Procurement and the Greening of Existing Facilities. These policies create a clear and consistent standard across all the facilities and expansion plans in the Region to adhere to. Green Energy Act (Ontario Regulation 397/11) The Region submitted its first annual report as required under the Green Energy Act legislation in June of A second report is due July 1, Additionally the Region must register a 5 year Conservation and Demand Management Plan (CDMP) on this same date. A Comprehensive CDMP is being prepared and will be ready for submission to the province by July 1,

8 SUMMARY In conclusion, Halton Region continues to make great strides towards establishing a Corporate Energy Management approach that achieves the goals of: Treating energy as a managed resource. Reducing dependency on fossil fuels. Redirecting energy consumed to come mainly from renewable sources. Investigating energy generation and recovery projects in municipal operations. Construct new infrastructure and replace existing equipment and processes to meet green standards. Reassess project viability to be based on full life cycle costing and triple bottom line approach. By undertaking all the initiatives outlined in this plan, Halton will be in a strong position to reduce energy and greenhouse gas emissions and contribute to corporate sustainability. The potential for future energy and costs savings is significant. By continuing to undertake energy audits and feasibility studies, as well as implementing appropriate measures from these studies, procuring future goods and services in green manner, building future assets to new greener standards, and promoting energy conservation through internal awareness campaigns, the Region will see significant improvements in energy reduction and greenhouse gas emissions. Continuing on this path to success, Halton Region will reduce its greenhouse gas footprint, take control of its utility costs and become a leader in Municipal energy conservation; creating a healthy, green sustainable place to live. NOTES 14

9 HE-14030

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