City of. Kelowna CORPORATE ENERGY & GHG EMISSIONS PLAN

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1 City of Kelowna 2011 CORPORATE ENERGY & GHG EMISSIONS PLAN

2

3 Prepared for: City of Kelowna 1435 Water Street Kelowna, BC V1Y 1J4 Tel: (250) City of Kelowna CORPORATE ENERGY & GHG EMISSIONS PLAN 2011 For the 2007, 2008, and 2009 Inventory Years Prepared by: Hyla Environmental Services Ltd. Port Moody, BC (604)

4 Acknowledgement Staff are gratefully acknowledged for their efforts in the development of this plan. This study has been produced with the assistance of the Green Municipal Fund, a fund financed by the Government of Canada and administered by the Federation of Canadian Municipalities.

5 About Hyla Environmental Services Ltd. HES Ltd. specializes in developing corporate and community energy and emissions plans for municipal government and departments within senior levels of government (regional, provincial, and federal). With over 13 years of dedicated experience to emissions management, HES work extends to corporate and community sustainability plans, including integrated community sustainability plans. HES has developed proprietary software, Energy and Emissions Reporting and Monitoring System (EEMRS ), which is used to calculate emissions, develop emissions forecasts, and integrate account-level management to produce accurate, cost effective emissions management strategies. HES is a leader in this field having completed over 120 corporate energy and emissions inventories and 30 emissions management strategies. As well, HES produced the preliminary community-wide energy and emissions inventories for all municipal governments (189) in British Columbia on behalf of the Province of British Columbia s Ministry of Environment in Acronyms CO 2 Carbon Dioxide CO 2 e Carbon Dioxide Equivalent EEMRS Energy and Emissions Monitoring and Reporting System GHG Greenhouse Gas HES Hyla Environmental Services Ltd. Disclaimer: Notwithstanding financial support from the Government of Canada and the Federation of Canadian Municipalities, the views expressed are the personal views of the author, and the Government of Canada and the Federation of Canadian Municipalities accept no responsibility for them. Copyright 2011, City of Kelowna All rights reserved. No part of this publication may be reproduced, recorded or transmitted in any form or by any means, electronic, mechanical, photographic, sound, magnetic or other, without advance written permission from the owner.

6 Table of Contents 1 Introduction Plan Development Process Regional and Local Context Inventory and Plan Preparation Process and Methods Report Organization Corporate Inventory Summary and Trends Corporate Inventory Summary GHG Emissions Trends by Sector ( ) Energy Consumption Trends by Sector ( ) Cost Trends by Sector ( ) Buildings Energy and GHG Inventory for Buildings Assets and Inventory Exclusions Inventory Trends Forecast for Buildings Reduction Initiatives for Buildings Outdoor Lighting Energy and GHG Inventory for Outdoor Lighting Assets and Inventory Exclusions Inventory Trends Forecast for Outdoor Lighting Reduction Initiatives for Outdoor Lighting Best Practices for other Subsectors Water & Wastewater Energy and GHG Inventory for Water & Wastewater Assets and Inventory Exclusions Inventory Trends Forecast for Water and Wastewater Reduction Initiatives for Water & Wastewater...53 vi

7 City of Kelowna 6 Vehicle Fleet Energy and GHG Inventory for Vehicle Fleet Assets and Inventory Exclusions Inventory Trends Forecast for Vehicle Fleet Reduction Initiatives for Vehicle Fleet Summary of Reductions Corporate Solid Waste Inventory Inventory Exclusions Inventory Trends Forecast for Solid Waste Reduction Initiatives for Corporate Solid Waste Provincial Carbon Neutral Voluntary Commitment Carbon Neutral Governance and the Climate Action Charter How does the PCP inventory compare to the CAC inventory? How much will it cost the City to become carbon neutral? Summary Summary of Corporate Inventory and Forecast Summary of Corporate GHG Emission Reductions Responsibility for Implementation of Corporate GHG Emission Reduction Initiatives Summary of Provincial Carbon Neutral Voluntary Commitment Reduction Target Statement...78 Glossary of Terms...79 Appendix 1 - Detailed GHG Emissions Inventory (2009)...80 Corporate Energy & GHG Emissions Plan 2010 vii

8 List of Tables Table Carbon Neutral Government Accounting - NO IMPLEMENTATION...xviii Table Carbon Neutral Government Accounting - IMPLEMENT MEASURES xviii Table Carbon Neutral Government Accounting - IMPLEMENT MEASURES YEAR TWO...xviii Table Emissions Coefficients and Factors...3 Table GHG Emissions, Energy, and Costs by Sector (2007)...6 Table GHG Emissions, Energy, and Costs by Sector (2008)...6 Table GHG Emissions, Energy, and Costs by Sector (2009)...6 Table GHG Emissions Trends ( )...7 Table Energy Consumption Trends ( )...8 Table Cost Trends ( )...9 Table Summary of Building Sector Emissions (2009)...12 Table Building Accounts Ranked by GHG Emissions (All Energy Types Combined; 2009)...12 Table Summary of Building Sector Assets (2007 & 2009)...13 Table Overall Magnitude and Percent Change in GHG Emissions in Buildings...14 Table Overall Magnitude and Percent Change in Energy Consumption in Buildings...14 Table Increases in Electricity Consumption in Buildings (2007 & 2009)...15 Table Decreases in Electricity Consumption in Buildings (2007 & 2009)...16 Table Increases in Natural Gas Consumption in Buildings (2007 & 2009)...16 Table Decreases in Natural Gas Consumption in Buildings (2007 & 2009)...17 Table Overall Magnitude and Percent Change in Energy Costs in Buildings...17 Table Predicted Growth for Buildings ( )...18 Table Forecast of Energy Consumption for Buildings ( )...18 Table Forecast of Costs for Buildings ( )...19 Table Forecast of Emissions (CO 2 e tonnes) for Buildings ( )...19 Table Summary of Forecasts for Buildings...19 Table Audits and Year Conducted...20 Table Summary of Completed Reduction Initiatives for Individual Buildings...21 Table Overall Summary of Proposed Reduction Initiatives in the Buildings Sector...21 Table Proposed Reductions for Airport Terminal Building...23 Table Proposed Reductions for the Family Y...26 Table Proposed Reductions for Rutland Twin Arena...28 Table Proposed Reductions for Community Theatre...30 Table Proposed Reductions for City Works Yard...31 Table Reduction Initiatives Implemented at H2O...33 Table Reduction Initiatives Implemented at Firehall # Table Reduction Initiatives Implemented at Rutland Firehall...35 Table Reduction Initiatives Implemented at Kelowna Library...37 Table Summary of Proposed Reductions for the Buildings Sector...37 Table Reductions Already Implemented in the Buildings Sector ( )...38 Table Summary of Lighting Sector Emissions (2009)...40 Table Lighting Accounts Ranked by GHG Emissions (All Energy Types)...40 Table Summary of Lighting Sector Assets (2007 & 2009)...41 Table Overall Magnitude and Percent Change in GHG Emissions in Lighting...41 Table Overall Magnitude and Percent Change in Energy Consumption in Lighting...42 Table Decreases in Electricity Consumption in Outdoor Lighting...42 Table Overall Magnitude and Percent Change in Costs in Lighting...43 Table Predicted Growth by Sector ( )...43 viii

9 City of Kelowna Table Summary of Proposed Reduction Initiatives for the Outdoor Lighting Sector...44 Table Summary of Water & Wastewater GHG Emissions (2009)...46 Table Water & Wastewater Accounts Ranked by GHG Emissions (All Energy Types)...46 Table Summary of Water & Wastewater Assets (2007 & 2009)...47 Table Overall Magnitude and Percent Change in GHG Emissions for Water and Wastewater...47 Table Overall Magnitude and Percent Change in Energy Consumption for Water and Wastewater...48 Table Increases in Electricity Consumption in Water and Wastewater...49 Table Decreases in Electricity Consumption in Water and Wastewater...49 Table Increases in Natural Gas Consumption in Water and Wastewater...50 Table Overall Magnitude and Percent Change in Costs in Water and Wastewater...50 Table Predicted Growth for Water and Wastewater ( )...51 Table Forecast of Energy Consumption for Water and Wastewater ( )...51 Table Forecast of Costs for Water and Wastewater ( )...52 Table Forecast of Emissions (CO 2 e tonnes) for Water and Wastewater ( )...52 Table Summary of Forecasts for Water and Wastewater...52 Table Summary of Proposed Reduction Initiatives for Water & Wastewater...53 Table Proposed Reductions for the Water and Wastewater Treatment Facility (Electricity)...54 Table Proposed Reductions for the Water and Wastewater Treatment Facility (Natural Gas)...55 Table Proposed Reductions for Potable Water Systems...56 Table Costs for Further Detailed Study for for Potable Water Systems...57 Table Summary of Vehicle Fleet GHG Emissions (2009)...60 Table Summary of Vehicle Fleet GHG Emissions (All Energy Types)...60 Table Summary of Vehicle Fleet Assets (2007 & 2009)...61 Table Overall Magnitude and Percent Change in GHG Emissions for Vehicle Fleet...62 Table Overall Magnitude and Percent Change in GHG Emissions All Diesel Fuel Blends...62 Table Overall Magnitude and Percent Change in Energy for Vehicle Fleet...63 Table Overall Magnitude and Percent Change in Energy Consumption of all Diesel Fuel Blends...63 Table Overall Magnitude and Percent Change in Energy Consumption of Biodiesel Blends...63 Table Overall Magnitude and Percent Change in Costs for Vehicle Fleet...64 Table Predicted Growth for Vehicle Fleet ( )...64 Table Forecast of Energy Consumption for Vehicle Fleet ( )...65 Table Forecast of Costs for Vehicle Fleet ( )...65 Table Forecast of Emissions (CO 2 e tonnes) for Vehicle Fleet ( )...65 Table Summary of Forecasts for Vehicle Fleet...66 Table Implementation of Smart Fortwo Passenger Vehicles...67 Table Introduction of Biodiesel Blends...67 Table Reductions for Implemented Quantitative Initiatives...68 Table Reductions from Implementation of Smart Driver Training...69 Table Portion of Inventory not counted in Smart Driver Training...69 Table Replacing Biodiesel 20 with Higher Biodiesel Blends...70 Table Reductions for all Initiatives...70 Table Overall Magnitude and Percent Change in GHG Emissions in Corporate Solid Waste...71 Table Carbon Offset Summary (2012)...75 Table Carbon Offset Summary with Full Implementation (2017)...75 Table Carbon Neutral Government Accounting - Business as Usual...76 Table Carbon Neutral Government Accounting - IMPLEMENT MEASURES Table Carbon Neutral Government Accounting - IMPLEMENT MEASURES Table Inventory and Forecast Summaries of Energy Consumption, Costs for Energy, and GHG Emissions...77 Table Summary of Estimated Reductions for Corporate Sectors...77 Corporate Energy & GHG Emissions Plan 2010 ix

10 List of Charts Chart GHG Emissions by Sector ( ; tonnes CO 2 e)...5 Chart GHG Emissions By Year By Sector ( )...7 Chart GHG Emissions by Sector by Year ( )...7 Chart Energy By Year By Sector ( )...8 Chart Energy by Sector by Year ( )...8 Chart Costs by By Year By Sector ( )...9 Chart Costs by Sector by Year ( )...9 Chart Buildings Inventory (2009)...11 Chart GHG Emissions by Subsector (2009)...13 Chart Trend of Energy Consumption by Energy Type for Buildings...15 Chart Annual and Monthly Electricity and Natural Gas Consumption at Kelowna International Airport...22 Chart Annual and Monthly Electrical and Natural Gas Consumption at Family Y...24 Chart Annual and Monthly Electricity and Natural Gas Consumption at Rutland Twin Arena...26 Chart Annual and Monthly Electricity and Natural Gas Consumption at Community Theatre...28 Chart Annual and Monthly Electricity and Natural Gas Consumption at City Works Yard...29 Chart Annual and Monthly Electricity and Natural Gas Consumption at Firehall # Chart Annual and Monthly Electricity and Natural Gas Consumption at Rutland Firehall...32 Chart Annual and Monthly Electricity and Natural Gas Consumption at Kelowna Library...33 Chart Lighting Inventory (2009)...35 Chart GHG Emissions for Energy in the Lighting Subsectors...36 Chart Trend by Energy Type for Buildings...38 Chart Water and Wastewater Inventory (2009)...41 Chart GHG Emissions for Energy in the Water & Wastewater Subsectors (2009)...42 Chart Trend by Energy Type for Water and Wastewater...44 Chart Vehicle Fleet Inventory (2009)...55 Chart GHG Emissions in Vehicle Fleet Subsectors (2009)...56 Chart Trend by Fuel Type for Vehicle Fleet...58 Chart PCP Inventory vs. CAC Inventory...70 x

11 City of Kelowna Executive Summary This document has been produced for the City of Kelowna to showcase energy and greenhouse gas reduction initiatives implemented to date and to provide further initiatives for future implementation. Inventory To determine the City of Kelowna s GHG emissions reduction quantity, energy use, GHG emissions, and costs for consumption were calculated for the City s base year (2007) and forecast year (2017). Two inventories are presented. The primary inventory is throughout the document, and conforms to international standards adopted by the City s funding partner the Federation of Canadian Municipalities Partners for Climate Protection (FCM PCP). The second inventory follows Provincial guidance for Carbon Neutral Government under the Climate Action Charter (Section 8) and is presented to estimate the cost to the City to become carbon neutral under the Climate Action Charter by In 2007, the City s base year emissions quantity was 8,317 tonnes of carbon dioxide equivalent (CO 2 e). The City consumed ~307,000 GJ of energy with energy costs amounting to $6.2 million. 307,000 GJ Energy Consumed $6.2 Million Purchased Energy 8,317 tonnes 2007 CO 2 e Equivalents 3,591 tonnes CO 2 e: Buildings 51 tonnes CO 2 e: Outdoor Lighting 653 tonnes CO 2 e: Water & Wastewater 3,343 tonnes CO 2 e from Vehicle Fleet 653 t (7.9%) (7.8%) 3,591 t 3,672 (43.2%) (42.6%) Title Va tonnes CO 2 e from Corporate Solid Waste 3,343 t (40.2%) 3,409 (39.6%) Inne 3D H Labe 609 t (7.3%) (0.6%) (9.4%) 51 t (0.6%) 679 t (8.2%) Colo Buildings Lighting Water Wastewater Vehicle Fleet Solid Waste xmchart Corporate Energy & GHG Emissions Plan ,460 t (41.6%) 3,526 t (42.4%) xi

12 Inventory Trends Three inventories were developed for this report for the years 2007, 2008 and Comparisons are provided for each of the inventory years. +6 % Net Increase in GHG emissions between 2007 and 2009 Between 2007 and 2009, GHG emissions rose in all sectors (Chart E1) with a total increase of approximately 500 tonnes CO 2 e or 6 percent (Table E1). Explanations for the increases are detailed in Section 2 of the report. 4,000 Chart E1 - GHG Emissions Trends by Sector ( ) 3,500 Emissions (tonnes CO 2 e) 3,000 2,500 2,000 1,500 1, Buildings Lighting Solid Waste Vehicle Fleet Water & Wastewater Table E1 - GHG Emissions Trends ( ) Sector Energy Type/ Unit Consumption CO 2 e (t) CO 2 e (t) Consumption CO 2 e (t) CO 2 e (t) Consumption CO 2 e (t) CO 2 e (t) Percent Change Percent Change Overall Percent Change Buildings Elect (kwh) 18,730, ,583, ,450, ,591 3,526 Nat Gas (GJ) 68,926 3, ,535 3, ,531 3, , % 9.1% 7.1% Lighting Elect (kwh) 8,541, ,566, ,529, % -0.4% -0.1% Water & Wastewater Elect (kwh) 23,956, ,900, ,203, Nat Gas (GJ) 10, , , % 33.4% 24.4% Biodiesel 5 42, , , Vehicle Fleet Biodiesel , , Biodiesel , , ,343 3,460 Diesel Fuel 670,611 1, ,319 1, , Gasoline 446,617 1, ,048 1, ,298 1,078.1 Propane 13, , , , % -1.5% 2.0% Solid Waste Tonnes % 1.7% 1.7% TOTAL 8,317 8,325 8, % 5.8% 5.9% xii

13 City of Kelowna GHG Emissions Reductions Achieved from 2007 to 2009 Although GHG emissions have been observed to increase in every sector between 2007 and 2009 (Table E1), the actual increases, from growth and higher service levels, were mitigated by reduction initiatives implemented by staff from 2007 to Smart planning and decision-making by staff and Council have curtailed growth in GHG emissions, as the City faces the challenge of maintaining service levels in a growing community. 888 tonnes saved in buildings 252 tonnes saved in vehicle fleet In City-owned buildings, 888 tonnes CO 2 e were saved by implementing initiatives between 2007 and 2009 (Table E2). Much of these savings occurred in the new aquatic facility, H2O, where changes to the design increased energy efficiency, and saved 789 tonnes CO 2 e. Table E2 - Reductions Already Implemented in the Buildings Sector ( ) Building CO 2 e (t) Reduced H2O* 789 Firehall #1 42 Rutland Firehall 53 Kelowna Library 4 TOTALS 888 * reductions of 1,300 tonnes at H2O not realized until 2010 after which the facility will have operated for a full year Although total fuel used in the vehicle fleet went up between 2007 and 2009 to keep pace with service levels (Table E1), the use of various grades of biodiesel eased the impact on GHG emissions. Annual GHG savings from biodiesel fuel alone saved approximately 210 tonnes CO 2 e. Increasing biodiesel use in the future could save an additional 292 tonnes CO 2 e. Further, the savings from the purchase of 18 smart fortwo passenger vehicles reduced emissions by 42 tonnes CO 2 e (Table E3). Table E3 - Reductions Already Implemented in the Fleet Sector ( ) Fleet Measure CO 2 e (t) Reduced smart fortwo vehicles 42 biodiesel blends 210 TOTALS 252 Corporate Energy & GHG Emissions Plan 2010 xiii

14 GHG Emissions Reductions Proposed A 26 percent reduction is possible. Table E4 presents the base year GHG emissions (2007), projected GHG emissions (2017), the total of the proposed GHG emissions reductions if implemented, GHG emissions after reductions, and the overall percent reduction for each corporate sector. This table shows the numbers used to calculate the overall reduction target. Each number is explained in detail at the bottom of this page. -26 % Overall reduction in GHG emissions is possible Table E4 - Reduction Targets Summary Sector 2007 Base Year Emissions (tonnes CO 2 e) 2017 Emissions Projection (tonnes CO 2 e) Reductions Achieved ( ) Proposed Reductions from Implementation Emissions after Reductions (2017) Overall Percent Reduction (2017) Buildings 3,591 5, ,509 2,840-21% Outdoor Lighting % Water and Wastewater % Vehicle Fleet 3,343 3, ,613-22% Corporate Solid Waste % s 8,317 10,118 1,140 2,799 6,179-26% 1 Lighting includes all overhead streetlights owned by the City, sportsfield lighting, parking lots, etc. 2 Solid waste from all City facilities Breakdown of the values in Table E4 The 2007 Base Year Emissions of 8,317 tonnes CO 2 e represents GHG emissions from the consumption of energy in all buildings and engineering assets (outdoor lighting, water and wastewater, vehicle fleet), as well as solid waste generated at corporate facilities. This inventory is based on conventional inventory methods. The 2017 Emissions Projection of 10,118 tonnes CO 2 e shows the forecast of GHG emissions following changes to the inventory of buildings and engineering assets. This forecast includes the airport expansion and upgrades to the Wastewater Treatment Facility. The Reductions Achieved ( ) of 1,140 tonnes CO 2 e is the calculated GHG emissions reduction in the buildings and vehicle fleet sectors, thanks to initiatives implemented by staff. The Reductions from Implementation of 2,799 tonnes CO 2 e is the potential reduction in each sector, if proposed initiatives are implemented. These estimates were calculated through reviewing all buildings and engineering assets, and assigning initiatives to individual accounts. The estimates are summed to establish the Estimated Potential Reduction in GHG emissions. The Emissions after Reductions (2017) quantity of 6,179 tonnes CO 2 e represents Potential Reductions deducted from the 2017 Projection. The Overall Percent Reduction of -26 percent is the percent difference between Emissions after Reductions and the 2007 Base Year Quantity. xiv

15 City of Kelowna Summary of GHG Emissions Reductions for Corporate Sectors Administrative Recommendations The City should bring together the energy management committee and give them the responsibility of managing energy in City buildings and engineering assets, and implementing this plan. The work team should review any new infrastructure plans for the City to ensure designs meet LEED standards, or equivalent performance criteria under an Energy Efficient Buildings Policy. It is imperative that buildings are designed with the highest energy efficiency standard. New City-owned buildings and infrastructure should be reviewed before new projects are forwarded for approval. Notable projects in the near future include significant airport expansion and a new police building. Other initiatives are available for implementation in City-owned buildings. Beyond conventional energy retrofits and waste heat recovery retrofits, consider programs such as, turn it off. A monitoring program for energy consumption and building performance should be put into action, to ensure that on a regular basis, energy consumption data is retrieved and buildings properly commissioned and re-commissioned. The City should work with Fortis BC to explore a Continuous Optimization Program (COP) for major buildings. COP will allow staff to conduct a monitoring program on major buildings, although the program must include all of the City s energy consuming assets. With 3 electrical utilities providing data for assets, centralized collection and storage is imperative to ensure consistent reporting in the future. Buildings and Miscellaneous Facilities To reduce GHG emissions by 275 tonnes CO 2 e in the buildings sector, further investigate the proposed reduction initiatives as described in Section 3, and establish business cases for each building. Table E5 summarizes the Capital Costs, Energy Costs Reduced, Simple Payback, CO 2 e (tonnes) Reduced, and Cost per tonne CO 2 e Reduced for specific buildings where reductions are possible. In 2010 Council endorsed reduction measures that affect the Family Y. Rank Table E5 - Summary of Proposed Reductions for the Buildings Sector Building Capital Costs Energy Costs Reduced Simple Payback CO 2 e (t) Reduced Cost per Kilotonne CO 2 e Reduced 1 Airport Existing Building $887,238 $207, $2,120 1 Airport Expansion $1,718,538 $121, $5,183 2 Family Y $760,000 $95, $1,570 3 Rutland Twin Arena $665,000 $80, $2,759 4 Community Theatre $57,000 $11, $1,781 5 City Works Yard* $40,000 $1, $20,000 TOTALS $4,127,776 $516, ,509 $2,735 * Although the reduction initiative at the City Works Yard is relatively small, it is included herein because the initiative must occur during the project period and will result in a reduction of GHG emissions Although GHG emissions from the airport are not included in carbon neutral accounting relevant to the provincial Climate Action Charter (see Provincial Carbon Neutral Voluntary Commitment on page xvii), they are included in the overall target calculation. Energy forecast data and estimates of possible reductions at the airport were obtained from a recent study on the airport expansion 1. The study included reduction initiatives that would coincide with the airport expansion. The calculations in the study are preliminary and subject to change within the on-going planning process. 1 Kelowna International Airport, Air Terminal Building Expansion Schematic Design Report, Dialog. November 2010 Corporate Energy & GHG Emissions Plan 2010 xv

16 Lighting (Streetlights, Sportsfield Lighting, and Parking Lot Lighting) Implement advanced management of existing streetlights or retrofit existing streetlights to LED technologies, whichever is more cost effective. Either measure could reduce energy consumption by ~11,000 GJ, costs for energy by ~$360,000, and GHG emissions by 18 tonnes CO 2 e. Water & Wastewater Implement the reduction initiatives for the water and wastewater sector as described in Section 5 to reduce energy consumption by ~ 20,000 GJ, energy costs by ~$330,000, and GHG emissions by 349 tonnes CO 2 e. Waste Water Treatment Facility: It is imperative that energy retrofits to the Waste Water Treatment Facility are completed during the construction process to take advantage of cost efficiencies. Retrofits that are not connected with the expansion of the plant, especially those that reduce natural gas consumption, should be done as soon as is practical. The estimated reduction from all proposed initiatives at this facility alone is 333 tonnes CO 2 e (85 percent of the total 349 tonnes possible in this sector). Water Pumping Stations: City staff have received a report on possible reductions for water pumping stations. The estimated reduction from all proposed initiatives in this report is 16 tonnes CO 2 e, although additional planning reports must be undertaken to achieve this reduction. Vehicle Fleet Implement the reduction initiatives for the vehicle fleet sector as described in Section 6 to reduce GHG emissions by 573 tonnes CO 2 e (Table E6). Approximately 252 tonnes CO 2 e have already been saved (as noted in Table E3 on page xiii). Net energy consumption will not necessarily decrease in this sector, as the reductions are based on fuels with lower carbon intensity. Costs will rise due to the ever-increasing cost per unit of fuel. Table E6 - Summary of Proposed Reductions for the Vehicle Fleet Sector Fleet Measure CO 2 e (t) Reduced Smart Driver Training 281 Replacing Biodiesel 20 with B TOTALS 573 Reduction Target Statement The City of Kelowna can reduce GHG emissions by 26 percent by xvi

17 City of Kelowna Provincial Carbon Neutral Voluntary Commitment In 2007 the BC Provincial Government, the Union of British Columbia Municipalities (UBCM) and over a hundred communities across the province signed the BC Climate Action Charter (CAC). The CAC is a voluntary commitment made by local governments to become carbon neutral in their corporate operations by Other functions of the Charter are to foster cooperative inter-government relationships, remove legislative and regulatory barriers to climate change actions, and encourage the development of compact, socially responsible communities. Provincial guidance for purchasing carbon offsets to earn carbon neutrality is not based on any recognized GHG accounting protocols. Instead, a model based on equality amongst local government was designed. Atypical services, such as airport and police operations, are excluded from the provincial CAC inventory and thus not included in carbon neutral government accounting. Chart E2 illustrates the differences between a Partners for Climate Protection inventory and a Climate Action Charter Inventory. Chart E2 - PCP vs CAC Inventories Buildings Outdoor Lighting Water and Wastewater PCP Inventory CAC Inventory Vehicle Fleet Corporate Solid Waste ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Tonnes Table E7 summarizes the emissions inventory that will be included in carbon neutral accounting if the City chooses to become carbon neutral by 2012 and endorses the purchase of carbon credits to offset their absolute emissions. Sector Table E7 - Carbon Neutral Government Accounting (2012) 2012 Forecast of GHG Emissions (tonnes CO 2 e) Excluded in CAC Accounting Inventory used for CAC Accounting Footnote Cost for Offsets with no Implementation ($25/tonne) Emissions after Reductions (2012) Cost for Offsets in 2012 ($25/ tonne) Buildings 4, ,652 1 $91,300 2,764 $69,100 Outdoor Lighting $1, $1,275 Water & Wastewater $20, $20,275 Vehicle Fleet 3, ,443 4 $61,085 2,443 $61,075 Corporate Solid Waste (0) 5 (0) s 9,319 2,362 6,958 $173,947 6,069 $151,725 1 Airport, Biosolids Facility, Gravel and Sand Extraction, Landfill, Misc. Facilities, Police Services 2 Airport Hazard Lights 3 Irrigation controls, Misc. Facilities 4 Airport vehicles, Landfill and Biosolids vehicles 5 All Corporate Solid Waste 2 Solid waste facilities regulated under The Environmental Management Act are not included Corporate Energy & GHG Emissions Plan 2010 xvii

18 With no implementation, an expenditure of $174,000 for the purchase of carbon offsets at a price of $25/tonne would be required to meet the Provincial requirements for carbon neutrality. Benefits to Local Governments While the CAC is not legally binding, signatories who meet their commitments under the charter are eligible to receive an annual Climate Action Revenue Incentive Program (CARIP) grant. The value of the CARIP grant matches the carbon tax paid by the local government in the previous year. The grant is intended to support local governments that implement reduction initiatives. Table 1.8 shows carbon neutral accounting if the City did not implement the measures proposed herein. This scenario is described as Business as Usual and results in a net annual loss of ~$74,000 (i.e. the difference between the costs for GHG offsets and the CARIP Grant). This calculation assumes that the Province will remit the CARIP Grant to CAC signatories as long they report their corporate GHG emissions, current actions implemented, and proposed actions for the following year. Table Carbon Neutral Government Accounting - NO IMPLEMENTATION 2012 Base Year Emissions (tonnes CO 2 e) Cost for Offsets with no Implementation ($25/tonne) Annual CARIP 3 Grant Net Annual Loss 2012 s 9,319 $173,947 $100,000 $73,947 3 Climate Action Revenue Incentive Program Table 1.9 shows carbon neutral accounting in the year that full implementation is achieved as proposed herein. This scenario is described as IMPLEMENT MEASURES 1 and results in a net annual loss of ~$3,731,000. Note that the capital costs for implementation are included in this scenario. The one-time expenditure leads to energy cost savings year after year. Table Carbon Neutral Government Accounting - IMPLEMENT MEASURES 2011 Capital Costs to Implement Measures (one time) Energy Cost Savings after Implementation (annual) Cost for Offsets after Implementation (annual) Annual CARIP 3 Grant (sliding downward) Net Gain/Loss s ($4,498,976) $846,856 ($173,947) $95,000 ($3,731,067) 3 Climate Action Revenue Incentive Program Table 1.12 shows the carbon neutral accounting in the year subsequent to full implementation (note: the accounting presented is simplistic. Implementation of initiatives would normally occur over several years). This scenario is described as IMPLEMENT MEASURES 2 and results in a net annual gain of ~$763,000. Note that the net annual gain diminishes as the implemented measures expire. Also, the CARIP Grant has been lowered accordingly since less fuel will be purchased as measures are implemented, and less carbon tax paid on fuel consumed. Table Carbon Neutral Government Accounting - IMPLEMENT MEASURES YEAR TWO Capital Costs to Implement Measures Energy Cost Savings after Implementation (annual) Cost for Offsets after Implementation (annual) CARIP 3 Grant (annual sliding downward) Net Gains/Losses s none $846,856 ($173,947) $90,000 $762,909 3 Climate Action Revenue Incentive Program xviii

19 City of Kelowna 1 Introduction The City of Kelowna has developed a corporate energy and greenhouse gas emissions management plan. Not to be confused with a community plan, the scope of the City s corporate plan includes buildings and engineering assets owned by the City, for which the City has operational control 1. In 2008, the City of Kelowna signed the Provincial Climate Action Charter (CAC), which is in part a voluntary commitment to work towards carbon neutral corporate operations by In 2001, the City of Kelowna endorsed participation in the Federation of Canadian Municipalities (FCM) Partners for Climate Protection (PCP) 3. This plan, which includes an inventory, detailed reduction initiatives, and a reduction target, is the first step to fulfilling requirements of both the CAC and the PCP. More importantly, evaluating current energy consumption and GHG emissions and developing reduction initiatives and an implementation strategy supports energy conservation and management of GHG emissions reductions into the future. 1.1 Plan Development Process Hyla Environmental Services Ltd. (HES) was hired to develop this plan for the City. City staff helped identify energy consumption accounts and gather other data on consumption and direct emissions. After discussions with staff, forecasts of GHG emissions were estimated. Reduction initiatives were assigned to corporate assets after walkthrough audits of buildings and engineering assets. See section 1.3 for more details on the inventory development process. To develop this plan, the City and HES did the following: 1. Four Project Initiation Meetings were held to introduce the project, outline the plan development process, and gather necessary data for a target calculation: January 28, 2010, March 3, 2010, April 1, 2010, and March 31, Over 20 individual meetings were conducted with various staff to review buildings and engineering assets: May 3, 2010 (airport), June 3/4, 2010 (firehalls and airport), June 17/18, 2010 (all other major buildings including the wastewater treatment plant), June 19, 2010 (fleet manager), and June 21, 2010 (ice arena). 3. Presentation to senior staff regarding project progress and next steps (included attendance of Fortis BC staff ) on June 8, The draft Corporate Energy Plan was submitted to staff for review and comment on October 15, The Corporate Energy Plan was endorsed by Council on December 6, For the purposes of this report, operational control is designated to an asset if the City can change or control the energy consumed by the asset. For example, in a building owned by the City and leased to another party, if the City does not have access to lighting and heating controls, the City cannot control how much energy is consumed. In this instance, the City does not have operational control and therefore the asset is not counted in the Ciity s inventory. Note that this explanation is the definition adopted by the City and may differ from other definitions of operational control Plan Development Process: 1. Acquire energy consumption data and direct GHG emissions data 2. Identify accounts and code accordingly 3. Develop draft energy and GHG emissions inventory 4. Conduct interviews and walkthrough audits of buildings and engineering assets 5. Develop the GHG emissions forecast 6. Develop the GHG emissions reduction initiatives 7. Develop the capital costs for implementation 8. Calculate the overall GHG emissions reduction quantity Corporate Energy & GHG Emissions Plan

20 1.2 Regional and Local Context The City of Kelowna is the economic and cultural hub of British Columbia s Okanagan region. Kelowna covers an impressive 214 square kilometres, and the population, now over 115,000, is growing at one of the fastest rates in British Columbia. The City encompasses lake fronts, steep hillsides, and rich agricultural land, and as such the development types vary from urban to suburban to rural. Since Kelowna covers such a large area, the City has 4 distinct urban town centres and 8 local village centres, each surrounded by residential neighbourhoods. As the regional centre for the southern interior of British Columbia, Kelowna offers a wide range of health, education and cultural services. For example, Kelowna general hospital is the largest and most comprehensive in the southern interior. Kelowna also has a local college, and a campus for the University of British Columbia. Several theatre groups and a symphony orchestra also call the City home. Kelowna is known for its stunning natural surroundings. The City is bordered by Okanagan Lake on the west, orchards to the north, agricultural lands to the east, and wetlands to the south. Residents enjoy an impressive number of parks and beaches within their City. Kelowna s natural surroundings, the internationally acclaimed wine industry and outdoor activities like golfing, fishing, skiing, and watersports, all contribute to the City s thriving tourism industry (Figure 1.1). Figure Aerial photo of the City of Kelowna, British Columbia 2

21 City of Kelowna 1.3 Inventory and Plan Preparation Process and Methods The emissions inventory provides an analysis for all City operations that consume energy and create solid waste. The base year emissions quantity is for the 2007 inventory year and the project period is from 2011 to 2017 with the energy and emissions forecast extending to corporate GHG emissions are summarized by sector and energy type in Section 2. Sectors include GHG emissions from buildings, outdoor lighting, fleet vehicles, other motorized equipment, water and wastewater infrastructure, and solid waste generated at City-owned facilities. Energy types that contribute to GHG emissions include electricity, natural gas, propane, diesel fuel, biodiesel fuel, and gasoline. Three electricity utilities operate within City boundaries : City Utility, Fortis BC, and BC Hydro. A major source of GHG emissions is methane from the decomposition of waste in landfills. This is a direct emission, as opposed to those from burning fossil fuels. The mass of GHG emissions are calculated from the energy consumed by various local government operations. The program s overall goal is derived from this data. The data will also be used to measure progress in the future. The City of Kelowna s electricity provider, Fortis BC and BC Hydro, supplied consumption data for City owned accounts. The City provided consumption data for its own electrical utility. Terasen Gas Inc. provided the cost and data for natural gas consumption. Vehicle fleet data was compiled from internal records, while solid waste generated from operations was determined from the total volume of solid waste collected at City facilities. Data was imported into the energy and emissions module of HES Energy & Emissions Monitoring and Reporting System. The emissions calculator within this software conforms to the methods described in the International Panel on Climate Change Greenhouse Gas Inventory Reference Manual 4, the principles provided in the International Standards Organization (ISO) Draft International Standard for Greenhouse Gases 5, and the general guidance within the FCM s guidance document for the preparation of PCP inventories 6. Emissions coefficients for liquid and gaseous fuels and emissions factors for electricity that are specific to the Province of BC have been used to calculate GHG emissions and are presented in Table 1.1. Fuel Type Units Table Emissions Coefficients and Factors Emissions Coefficient CO 2 CH 4 N 2 O Fortis BC CO 2 e Emission Factor BC Hydro Electricity tonnes/gwh Natural Gas kg/m Gasoline kg/l * * Diesel Fuel kg/l * * Propane kg/l Global Warming Potential * assigned according to emissions technology of the vehicle Energy and emissions are calculated at the account level (e.g., an asset that consumes energy, such as a building or pumping facility, represents an account in the software). A detailed summary of the energy and emissions inventory is provided in the Appendices. 4 IPCC (2006), IPCC Guidelines for National Greenhouse Gas Inventories, Prepared by the National. Greenhouse Gas Inventories Programme, Eggleston H.S., Buendia L., Miwa K., Ngara T. and Tanabe K. (eds). Published: IGES, Japan. 5 ISO (2006), Draft International Standard ISO/TC 207 WG5 N162. Greenhouse Gases - Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. 28pp. 6 Corporate Energy & GHG Emissions Plan

22 1.3.1 Forecasting Energy Consumption and Emissions Overview For this report to be recognized by the PCP Secretariat as fulfilling Milestone One of the PCP program, a forecast must be developed ten years subsequent to the base year inventory. Accordingly, a forecast was estimated based on anticipated changes to individual accounts or new accounts added within the ten year period. The forecast, derived from HES interviews with staff, is presented in section Forecasts and their Contribution to Reduction Targets The forecasts of energy consumption, costs, and GHG emissions is the projected growth from the most current inventory year (e.g., 2009). Forecasts allow us to understand future energy consumption, costs and emissions. As stated earlier, the forecast is essential to calculating the reduction targets. However, consider them a work in progress, as new information can change forecasts and therefore reduction targets. Since all parameters for calculating targets are subject to change, targets are essentially moving as new information is gathered. The reduction target is equal to the percent difference between the base year inventory and the forecast year inventory. Since reduction targets are absolute and not based on per capita emissions, to achieve an actual reduction from the base year, total reductions during the project period must be greater than the growth in emissions over that period. If the business as usual scenario is allowed to continue, implementing reduction initiatives will, at a minimum, slow the growth of emissions. Reduction initiatives selected by the City are summarized in section The Reduction Quantity and Reduction Measures To calculate the overall reduction quantity for this document, reduction initiatives have been selected that reduce GHG emissions and energy consumption from existing infrastructure (i.e., base year energy and emissions). Although they are estimates, the possible effect of each reduction initiative on energy consumption has been carefully considered. Each initiative s GHG reduction estimate has been calculated based on the predicted effect of implementing various measures in buildings, lighting, water and wastewater, and vehicle fleet sectors. Reduction estimates are provided for energy consumption, cost for consumption, and GHG emissions. The initiative for each building and/or engineering asset is listed in the Technical Compendium of Inventories, Forecasts, and Reduction Initiatives and summarized herein. A Technical Compendium of Inventories, Forecasts, and Reduction Initiatives has been provided to staff that lists all reduction initiatives applied to each account in the energy inventory. Reduction measures are not appropriate for very small accounts (e.g., pumps that consume <5,000 kwh/year). For other accounts, no initiatives are possible (e.g., flat rate accounts for irrigation systems with existing timers and rain sensors). Within this document, accounts are grouped as they appear in the detailed energy and emissions inventory presented in Appendix I. Estimates of energy, costs for energy, and GHG reductions are provided for each account. Capital costs, simple payback, and costs per kilotonne reduced are also in the compendium. Staff must refer to the compendium to review reduction initiatives that are specific to individual accounts. 1.4 Report Organization This report is organized into five sections. Section 2 summarizes GHG emissions, energy consumption, and costs for energy for the three inventory years. The Appendices contain the GHG energy and emissions for each inventory year. Sections 3 through 5 present the forecasts, reduction initiatives, associated costs, a summary of emissions and the reduction target. 4

23 3,672 (42.6%) City of Kelowna 48 L 812 W 3409 V 671 S Inner Radi A summary of total GHG emissions by sector for 2007 through 2009 is provided in Section 2.1. The associated data tables for emissions are outlined in Tables 2.1, 2.2, and ,409 (39.6%) 2 Corporate Inventory Summary and Trends Chart GHG Emissions by Sector ( ; tonnes CO 2 e) (0.6%) (9.4%) 3D Height Labels Abs Rel Color Sche Descriptions and graphs showing GHG emissions, consumption, and costs, are provided in Sections 2.2, 2.3, and 2.4 respectively, along with data tables showing percent differences between years. More detailed inventories for 2009 (e.g., the most current inventory year) are provided in Sections 4 through 8 for sectors and energy types. The Technical Compendium of Inventories, Forecasts, and Reduction Initiatives has an account-by-account listing for each inventory year. 2.1 Corporate Inventory Summary The City s corporate GHG emissions from 2007, 2008, and 2009 are summarized in Chart 2.1, with associated data on the following page. The two largest sources of GHG emissions are buildings and vehicle fleet, which together make up over 80 percent of GHG emissions in all three years reported. xmchart Buildings Lighting Water Wastewater Vehicle Fleet Solid Waste 679 t (8.2%) ,343 t (40.2%) 679 t (8.2%) ,591 t (43.2%) 51 t (0.6%) 653 t (7.9%) 3,526 t (42.4%) In 2007, the GHG emissions from buildings, 43 percent, were slightly higher than the 40 percent from the vehicle fleet. Water and wastewater infrastructure and the decomposition of solid waste both made up about eight percent of total emissions. Less than one percent came from outdoor lighting. GHG emissions in 2007 totaled 8,317 tonnes CO 2 e. In 2008, the City s buildings and vehicle fleet produced the majority of GHG emissions, at about 42 percent each. Less than 20 percent of emissions were produced by outdoor lighting, solid waste, and water and wastewater combined. In 2008, GHG emissions totaled 8,325 tonnes CO 2 e. The two largest GHG emissions sources in 2009 remained buildings and vehicle fleet. Emissions from water and wastewater were a distant third, followed by solid waste and outdoor lighting. The total emissions in 2009 were 8,808 tonnes CO 2 e. 3,460 t (41.6%) 691 t (7.8%) ,409 t (38.7%) 51 t (0.6%) 609 t (7.3%) 3,846 t (43.7%) 51 t (0.6%) 812 t (9.2%) Buildings Lighting Water & Wastewater Vehicle Fleet Solid Waste INVENTORY PROTOCOL FOLLOWED: The GHG emissions inventory in this report is based on current protocols from the Federation of Canadian Municipalities Partners for Climate Protection. Inventory information based on the Provincial Climate Action Charter GHG accounting is provided in Section 8. Corporate Energy & GHG Emissions Plan

24 energy, costs for energy consumption, and GHG emissions for the years 2007 to 2009 are outlined in Table 2.1, 2.2, and 2.3 respectively. In all three years, buildings used the most energy and incurred the highest costs. The two largest sources of GHG emissions were buildings and vehicle fleet. Table GHG Emissions, Energy, and Costs by Sector (2007) Sector Emissions (CO 2 e tonnes) Energy (GJ) Cost Percent Emissions Percent Energy Percent Costs Buildings 3, ,355 $2,608,358 43% 44% 42% Lighting 51 30,749 $941,297 1% 10% 15% Water & Wastewater ,325 $1,641,264 8% 31% 26% Vehicle Fleet 3,343 43,427 $1,028,431 40% 14% 17% Solid Waste 679 8% 0% 8, ,855 $6,219, % 100% 100% Table GHG Emissions, Energy, and Costs by Sector (2008) Sector Emissions (CO 2 e tonnes) Energy (GJ) Cost Percent Emissions Percent Energy Percent Costs Buildings 3, ,036 $2,694,554 42% 45% 39% Lighting 51 30,839 $943,641 1% 10% 14% Water & Wastewater ,257 $1,896,325 7% 31% 28% Vehicle Fleet 3,460 45,381 $1,324,416 42% 15% 19% Solid Waste 679 8% 0% 8, ,512 $6,858, % 100% 100% Table GHG Emissions, Energy, and Costs by Sector (2009) Sector Emissions (CO 2 e tonnes) Energy (GJ) Cost Percent Emissions Percent Energy Percent Costs Buildings 3, ,351 $2,976,714 44% 47% 42% Lighting 51 30,705 $945,345 1% 9% 13% Water & Wastewater ,339 $2,071,378 9% 30% 29% Vehicle Fleet 3,409 45,909 $1,049,835 39% 14% 15% Solid Waste 691 8% 0% 8, ,305 $7,043, % 100% 100% 6

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