Chris Baber Neighbourhood Energy Manager City of Vancouver

VANCOUVER

Vancouver City USA Border 600,000 people MetroVancouver 2.5 million people Vancouver: Canada’s Pacific Gateway

4 Lowest greenhouse gas emissions in North America Power >90% hydro electric Provincial Carbon Tax $30/t Growing population and economy, decreasing vehicle use emissions Greenest City in the World by 2020

Greenest City Action Plan Aspirational Goals

Greenest City Action Plan Framework

City jurisdiction over Greenest City goals City goals will only be achieved through partnerships.

GOAL: Eliminate Vancouver’s dependence on fossil fuels target: Reduce greenhouse gas emissions 33 per cent from 2007 levels. TOWARD ZERO CARBON THROUGH: CLIMATE LEADERSHIP

Reaching our 2020 GHG Goal: Neighbourhood Energy’s Role 9 GCAP goal: 33% carbon reduction by 2020 (reduce 1,110,000 tons CO 2 / year)

SLIDE 10 What is Neighbourhood Energy? Neighbourhood Energy Systems (NES) supply centralized heating, hot water, and sometimes cooling for multiple buildings (commonly referred to as “District Energy”)..

11 Goal – Convert Legacy Steam Systems Target = 95,000 tonnes/year CO 2 reduction by 2020

12 Goal – Establish New Low Carbon Systems Target = 25,000 tonnes/year CO 2 reduction by 2020

Southeast False Creek Neighbourhood Energy Utility saved 2,500 tonnes of GHG emissions in 2013

SLIDE 14 SEFC Neighbourhood Energy Utility (established in 2010) 70% of energy supply is waste heat recovered from untreated sewage (60% CO 2 reduction) Financially self-sufficient, recovering capital/operating costs and ROI with competitive customer rates Rapidly expanding

Strategic Approach to Neighbourhood Energy Approved by City Council October  Targets areas with greatest CO 2 reduction potential  Utilizes a flexible combination of enabling tools  Minimizes City financial risk and exposure

NES Strategy - Priority Areas Identified 16

Energy Centre Guidelines: Supportive Policy for New Low Carbon Facilities -GHG performance - -Air quality - -Neighbourhood fit - -Sustainability of fuel sources - -Community engagement -

SLIDE 18 NES Enabling Tools NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and bylaws Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy

SLIDE 19 NES Enabling Tools NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and bylaws Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy

SLIDE 20 NES Enabling Tools NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. Customer Connection Policy: used to secure customer base to de-risk NES investments - examples include zoning policies and bylaws Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy

SLIDE 21 NES Enabling Tools NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes. Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and service area bylaws Access to City Assets: City provides access to property and other assets to enable the production, distribution and sale of energy.

Questions? 1.Low gas and electricity prices 2.The City does not own legacy steam heat systems 3.Limited public understanding of low carbon technologies Challenges

1.Rapid pace of land development 2.City controls land use and building code 3.Expertise gained through development of SEFC NEU Leverage Points

Utility partner selected with competitive process Planning underway to convert legacy steam system New franchise contract negotiated to establish system in Northeast False Creek IMPLEMENTATION STATUS: DOWNTOWN

IMPLEMENTATION STATUS: CAMBIE CORRIDOR Health authority has agreed to proceed with low- carbon conversion of hospital campus steam systems Utility partner selection underway to implement new NES networks Potential development of Resource and Energy Recovery Facility to supply heat

Facilitate rapid reduction of CO2 emissions O UR G OAL Facilitate and enable private sector success O UR R OLE C ONCLUSION

27 Change is possible 1980’s 2000’s