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Report To: Planning and Development Committee
Date of Meeting: April 25, 2016
Report Number: PSD-030-16 Resolution Number: 1? (Q
File Number: PLN 39.7 By-law Number:
Report Subject: Joint Application for a Durham Community Energy Plan
Recommendations:
1. That Report PSD-030-16 be received;
2. That the Municipality of Clarington participate in the coordinated Community Energy Plan
proposal with the Region of Durham, other Durham Region municipalities, and local
utilities;
3. That, subject to award of grant funding from the provincial Municipal Energy Plan
Program, the Mayor and Clerk be authorized to sign a collaborative agreement with the
Region of Durham, regarding the preparation of a Durham Region Community Energy
Plan; and
4. That all interested parties listed in Report PSD-030-16 and any delegations be advised of
Council's decision.
Municipality of Clarington
Report PSD-030-16 Page 2
Report Overview
The purpose of this report is to request Council's approval to participate in the collaborative
development of a Durham Community Energy Plan with the Regional Municipality of Durham,
the seven other local lower-tier municipalities, and the local utility providers, with funding
support being pursued from Ontario's Municipal Energy Plan Program. The energy plan would
examine how energy is used, shared and invested across all of Durham Region, helping to
define both regional and local priorities around energy with a view to improving efficiency,
reducing greenhouse gas emissions, and supporting economic development. The
collaborative approach that is proposed presents an opportunity to leverage time and
resources in developing a community energy plan and implementing actions, and ensures
coordination across all utilities and local levels of government. To date, all of Durham Region's
lower-tier municipalities, except the Municipality of Clarington, have provided a letter of support
for the joint Municipal Energy Plan Program application and proposed cost sharing
responsibilities.
1 . Background
1 .1 . Efficient energy use is a provincial priority as reflected in the Planning Act, the Provincial
Policy Statement, 2014, the Green Energy Act, and the Places to Grow Act. In addition,
Ontario's Long-Term Energy Plan includes a significant push to increase energy savings
through the Conservation First Framework. While this initiative will be delivered primarily
through programs developed by local distribution companies, the Long-Term Energy Plan
also includes an initiative for municipalities to play a direct role in energy planning by
developing Municipal Energy Plans (MEP).
1 .2. In August 2013, the Ontario Ministry of Energy launched the MEP Program to support
municipalities' efforts in local and long-term energy planning. The MEP Program
provides successful applicants with funding for fifty percent of eligible costs, up to a
maximum of$90,000, for the development of a MEP.
1 .3. In November 2015, the Ministry of the Environment and Climate Change released their
updated Climate Change Strategy, which included an interim target of reducing
greenhouse gas emissions by 37% below 1990 levels by 2030 and a long-term target of
reducing emissions by 80% below 1990 levels by 2050. In the Climate Change Strategy,
the Ministry of Environment and Climate Change noted that collaboration between
municipalities, businesses, industry and residents across the province will be key in
helping Ontario to reach its targets.
1.4. The Region of Durham has identified the preparation of a MEP as a key component of
climate change mitigation and adaptation planning for the community. Further, it
presents an important opportunity for planning of projected growth and development, and
enhancing local economic development. Such a plan takes substantial effort in data
collection, analysis and community consultation. As such, the collaborative development
Municipality of Clarington
Report PSD-030-16 Page 3
of a Durham Community Energy Plan, involving all of the local municipalities and local
utilities with funding support pursued from Ontario's MEP Program has been proposed.
1 .5. The purpose of this report is to request Council's approval to participate in the Durham
Community Energy Plan Proposal and, subject to confirmation of grant funding, authorize
the signing of a partnership agreement with the Region of Durham.
2. What is a Municipal Energy Plan?
2.1 . A MEP is a comprehensive long-term plan that serves to define community priorities
around energy. It aims to improve energy efficiency, reduce energy use and greenhouse
gas emissions, and foster green energy solutions at the local level, while helping to plan
ahead for future growth and development, and energy generation, delivery and use in a
community. A MEP helps municipalities to:
• Assess community energy use and greenhouse gas emissions;
• Identify opportunities to conserve, improve energy efficiency and reduce greenhouse
gas emissions;
• Consider the impact of future growth and options for local clean energy generation;
and
• Support local economic development leading to more sustainable communities.
2.2. A MEP considers long-term energy generation, consumption, infrastructure, economic
growth, and land-use planning. It encompasses a community's residential, commercial
and industrial sectors, as well as institutional and transportation energy use and water
use.
2.3. Benefits of developing a MEP can include:
• Identifying and addressing potential energy limitations;
• Articulation of a community energy vision for others to invest in;
• Retention of energy dollars within the community;
• Reduction in air pollution and greenhouse gas emissions;
• Fostering local sustainable energy solutions in the community;
• Increased energy security and resilience;
• Optimizing infrastructure costs; and
• Leveraging greater community collaboration.
2.4. Over the past five years an increasing number of municipalities across Ontario and
Canada have undertaken the development of MEP. Early adopters in Ontario include
Burlington, East Gwillimbury, Guelph, London and Markham.
Municipality of Clarington
Report PSD-030-16 Page 4
2.5. Examples of priority actions that may be identified through the development of a MEP for
implementation by the local or regional municipality, or other key energy players in the
community are listed below:
• Designing and targeting conservation programs to a specific segment of the
community's older residential building stock, as identified by the plan's energy
mapping exercise, coupled with exploring the use of local improvement charges to
support financing of energy efficiency retrofits,
• Enhancing the capacity of municipal staff to consider passive energy and sustainable
building measures to conserve energy through the development approvals process,
where feasible,
• Including a policy in future Secondary Plans that requires developers to submit an
Energy Plan as part of a complete application for a Plan of Subdivision where the
total number of proposed units exceeds a specific threshold;
• Studying the concept of greywater `hubs', similar to water towers, to promote the use
of greywater or the harvesting of rainwater;
• Adjusting densities for specific areas of the community, as identified by energy
mapping (e.g. designated transit hub), increasing the overall target for number of
homes;
• Preparing an urban forest strategy and business plan;
• Completing a detailed assessment of cycling infrastructure in the community to
identify gaps for improvement through the municipality's transportation master plan;
• Designing and implementing an education program targeting the industrial and
commercial sector to promote energy efficiency, share best practices and resources,
and provide guidance on applying for available energy efficiency incentive programs;
• Developing a detailed business plan for a municipal district energy entity to service
specific high heating density planning districts, as identified by the plan;
• Undertaking a feasibility assessment for the use of source-separated organic waste
as a feedstock for the production of bioenergy products as part of a municipality's
waste diversion strategy,
2.6. Municipalities are already mandated to prepare a corporate energy management plan.
Encouraging energy conservation at the broader community level through the
development of an MEP is viewed by the province as complimentary initiative that will
further support provincial long term energy goals.
3. The Durham Community Energy Plan Proposal
3.1. The Durham Community Energy Plan (DCEP) Proposal represents a collaborative
approach to the Ministry of Energy's MEP Program. The partnership would include the
Region of Durham, the eight lower-tier municipalities, and the five local utility providers.
Municipality of Clarington
Report PSD-030-16 Page 5
3.2. The DCEP would determine how energy should be generated, delivered and used for the
period 2015 (base year) to 2050 and identify both Region-wide and local priorities. The
objectives of the DCEP are to:
• Set goals, targets and timelines for energy supply and demand management in
Durham;
• Identify and assess opportunities to develop local sources of energy generation, co-
and tri- generation, district energy, energy storage and smart energy networks,
factoring in local land use, transportation, climate, waste and water plans and
strategies;
• Provide the data and market intelligence to enhance local conservation and demand
management / demand side management programs for electricity, natural gas, and
transportation fuels in Durham and assist in integration, promotion and
implementation of these programs;
• Identify the business case and local economic impacts of these programs and
projects and how they can contribute to the economic development of Durham;
• Identify appropriate next steps and mechanisms for the Region, local municipalities,
utilities and others to implement the DCEP.
3.3. The development of the DCEP will follow the three-stage process required by the
provincial MEP Program. An additional fourth stage is also proposed, which will focus on
presenting the DCEP to all partner agencies and other appropriate organizations and
advancing the implementation process. The four stages are briefly described below:
Stage 1: Stakeholder Engagement— Building awareness of current energy use,
identifying conservation objectives and local energy champions, and securing local
interest and involvement in the development of the DCEP.
Stage 2: Baseline Energy Study and Energy Mapping — Identifying how and where
energy is used within a community and spatially analysing opportunities for energy
reduction.
Stage 3: Community Energy Plan Development— Evaluation of regional and local
energy conservation opportunities and development of a plan that includes program and
policy recommendations aimed at reducing energy use in the community, approved by
Municipal Council.
Stage 4: Implementation Plan — Integration of priorities into municipal operational
priorities and plans and land use planning processes, and development of a short- and
long-term implementation strategy across the Corporation.
A preliminary work program and timeline for the DCEP is provided as Attachment 1. The
MEP Program requires that projects be completed within a two year timeframe.
3.4. To support development of the DCEP, funding will be sought from the Ministry of
Energy's MEP Program in the amount of$90,000. Matching funds, as required by the
MEP Program, will be from the partner proponents bringing the total to $180,000. The
Municipality's contribution would include providing staff time for the project's Steering
Municipality of Clarington
Report PSD-030-16 Page 6
Committee and to provide existing planning data, review reports and prepare comments,
and a financial contribution of$4,000 in 2016 and 2017 ($8,000 total).
3.5. As indicated in the work program (Attachment 1), broad community stakeholder
involvement is planned throughout the project, involving workshops with a Stakeholder
Council composed of representatives from local post-secondary institutions, large
industry, environmental organizations, boards of trade and chambers of commerce,
school boards, local energy companies and the land development and building industry.
4. Discussion
4.1. Community energy planning is a local level planning process that aims to achieve
sustainability goals through the management of energy production and consumption.
While municipalities are only required to undertake corporate energy management plans,
community-based planning is increasingly being encouraged to achieve broader energy
conservation goals. Further, increasing the efficiency of energy use, substitution of fuels
with lower greenhouse gas impacts, energy conservation efforts, and increasing the
protection and resilience of energy generation and distribution capacity are often key
components of climate change mitigation and adaptation plans.
4.2. The Municipality has not yet undertaken the development of a climate change mitigation
and/or adaptation strategy. Local action planning for climate change is generally similar
to the objectives of community energy planning. For some municipalities, the
development of a community energy plan has been an approach taken on climate change
as it includes a coordinated identification of community priorities.
4.3. The DCEP Proposal supports Council's strategic plan priorities as it relates to building a
sustainable community, supporting economic growth, community engagement, and cost
prudence. It also supports the implementation of both existing and proposed policy
related to sustainable development, energy conservation and efficiency, and addressing
climate change, and can inform the preparation of future Secondary Plans, transportation
master planning, and updates to the Corporate Energy Management Plan.
4.4. Community energy planning takes substantial effort in data collection, analysis and
community consultation. The DCEP Proposal is based on collaboration and partnership
across the community, offering greater opportunity to leverage time and resources in
developing a community energy plan and implementing the recommended priorities than
would be available to the Municipality if independently pursued in the future.
4.5. It is important to recognize that the DCEP Proposal is largely a planning exercise. Like
any strategy, implementation is critical to the success of the initiative. A lack of support
within an organization or from higher levels of government, funding, and resources
include common barriers to implementation for community energy plans. Participation in
the DCEP will require close examination during Stage 4, across multiple departments, of
the identified priorities that would be the responsibility of the Municipality (in whole or in
part). Opportunities and challenges for integration within existing operations and
programs, and municipal budget processes would need to be considered.
Municipality of Clarington
Report PSD-030-16 Page 7-
5. Financial Considerations
5.1. Subject to the award of grant funding from the provincial MEP Program, the Municipality's
contribution to the collaborative project is $4,000 in 2016 and 2017 ($8,000 total), in
addition to staff time. The financial contribution would be drawn from the Planning
Services Department consulting budget.
6. Concurrence
Not Applicable
7. Conclusion
7.1. A collaborative approach to community energy planning involving the Region of Durham,
all of the local municipalities and the local utilities, and including provincial funding
support, has been proposed in order to examine how energy is used, shared and
invested across all of Durham Region.
7.2. Participation by the Municipality provides the opportunity to realize cost and resource
savings. The concept of community energy planning aligns with Municipal strategies,
priorities, policy and programs, and supports climate action and economic development.
However, success will require a close review of recommended priorities and
implementation planning across the Corporation.
7.3. Staff recommend that Council support participation in the DCEP Proposal, including
signing of a partnership agreement with the Region of Durham subject to the confirmation
of grant funding form the Ministry of Energy's MEP Program.
S. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by: `" Reviewed by:
David J. rome, MCIP, RPP Franklin Wu,
Director of Planning Services Chief Administrative Officer
Staff Contact: Amy Burke, Senior Planner, 905-6233379 ext. 2423 or aburke@clarington.net
Attachments:
Attachment 1 — Durham Community Energy Plan Work Preliminary Program and Timeline
The following is a list of the interested parties to be notified of Council's decision:
Brian Kelly, Manager of Sustainability, Office of the CAO, Regional Municipality of Durham
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