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Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2009-2010

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Chapter 3 Energy Efficiency and Alternative Transportation Fuels

Natural Resources Canada’s (NRCan’s) Office of Energy Efficiency (OEE) aims to strengthen and expand Canada’s commitment to energy efficiency in all sectors and increase the production and use of alternative transportation fuels in Canada. The OEE manages the ecoENERGY Efficiency Initiative, under the ecoENERGY suite of programs initiated on April 1, 2007. The ecoENERGY Efficiency Initiative includes the following programs:

  • ecoENERGY Retrofit
  • ecoENERGY for Buildings and Houses
  • ecoENERGY for Industry
  • ecoENERGY for Personal Vehicles
  • ecoENERGY for Fleets
  • ecoENERGY for Biofuels
  • ecoENERGY for Equipment (see Chapter 2)

In addition to ecoENERGY, the OEE manages the Federal Buildings Initiative and the National Renewable Diesel Demonstration Initiative.

This chapter describes the objective of each of the aforementioned programs and outlines key achievements.

ecoENERGY Retrofit

Objective

To provide incentives for energy efficiency improvements in homes and in small and medium-sized organizations in the institutional, commercial and industrial sectors. The program has two components:

  • ecoENERGY Retrofit – Homes
  • ecoENERGY Retrofit – Small and Medium Organizations

For more information:
oee.nrcan.gc.ca/retrofit

ecoENERGY Retrofit – Homes

Objective

To assist homeowners and owners of existing low-rise properties make smart energy retrofit decisions that will result in significant energy savings and a cleaner environment.

Description

Initiated on April 1, 2007, the ecoENERGY Retrofit – Homes program is investing $745 million over four years, providing federal grants to property owners for improving the energy efficiency of their homes and reducing their home’s impact on the environment. ecoENERGY Retrofit – Homes offers a professional evaluation by a qualified energy advisor of the energy efficiency characteristics of a house, including a diagnostic test to determine air leakage.

The energy advisor prepares a detailed personalized checklist of recommended upgrades for the property owner, including the EnerGuide pre-retrofit energy rating of the house. The checklist shows the recommended, most effective upgrades. The property owner chooses which upgrades to have done.

After the retrofit work is complete, the advisor performs a post-retrofit energy evaluation and assigns a new energy-rating label. After the required improvements have been made, the property owner is entitled to a grant.

In fiscal year 2009–2010, an additional $285 million was allocated to the ecoENERGY Retrofit – Homes program in response to unprecedented demand, bringing the total budget for this element to $745 million over four years. On March 31, 2010, the program ceased accepting bookings for pre-retrofit evaluations, but continued to process grant applications from homeowners who had these evaluations and remained eligible. This demonstrated prudent program management and ensured that all eligible homeowners who previously entered the program had the opportunity to apply for a grant.

Figure 3-1 illustrates the energy use and savings gained per household before and after renovations.

FIGURE 3-1 Residential Energy Use and Energy Savings per Household, Pre-1945 to 2000-2009.

Key 2009-2010 Achievements

  • As of March 31, 2010, the ecoENERGY Retrofit – Homes program received more than 290 000 grant applications and performed nearly 610 000 pre-retrofit evaluations. The program has provided more than $350 million to more than 275 000 grant recipients. Participants reduced their annual energy consumption by about 22 percent and greenhouse gas (GHG) emissions by approximately 3 tonnes per house per year.

  • Over the same time period, more than 73 000 grants were paid for more energy-efficient renewable technologies and products, including water conservation equipment, wood burning appliances, ground-source heat pumps, solar domestic hot water systems and drain water treatment recovery pipes (representing 25 percent of program participants).

  • All regions of Canada, except one territory, have full or partial matching programs from which homeowners can get seamless access to both federal and provincial/territorial government support for home retrofits.

  • Since program inception, a reduction of approximately 0.90 megatonnes (Mt) of GHG emissions can be attributed to the ecoENERGY Retrofit – Homes program.

ecoENERGY Retrofit – Small and Medium Organizations

Objective

To encourage building owners and managers of commercial and institutional buildings and industries to implement energy efficiency projects.

Description

Initiated on April 1, 2007, ecoENERGY Retrofit – Small and Medium Organizations is investing $40 million over four years, providing financial incentives to implement energy retrofit projects in buildings and industrial equipment and processes. Industrial facilities with fewer than 500 employees and commercial and institutional buildings of less than 20 000 square metres may be eligible for funds through contribution agreements with the program.

ecoENERGY Retrofit – Small and Medium Organizations was originally a five-year program. However, demand was less than expected, and on April 30, 2010, the Government of Canada announced that the program would end in March 2011. Until then, projects continue to be approved, and no existing agreements are affected. Applications continue to be processed on a first-come, first-served basis until March 31, 2011, or until all funds are allocated.

ecoENERGY Retrofit provides up to 25 percent of the cost of a project, to a maximum of $50,000, based on estimated energy savings resulting from the project. Recipients of funding in this category may also qualify for funding support from utilities and/or other levels of government. To qualify, eligible organizations must submit an application detailing the energy efficiency project, including the total budget, timeframe for completion and expected results, based on a certified technical assessment of the building’s or industry’s energy use.

Key 2009-2010 Achievements

  • As of March 31, 2010, 848 contribution agreements had been signed in the buildings and industry sectors (494 buildings projects and 354 industry projects). These agreements are for projects worth $161 million, yielding annual energy cost savings of $29 million.

  • More than 1900 buildings and industry sector participants took part in webinars and information sessions.

  • Since program inception, the program has approved projects that will save approximately 0.156 Mt of GHG emissions.

ecoENERGY For Buildings and Houses

Objective

To encourage the construction and operation of more energy-efficient buildings and houses through a range of complementary activities, such as rating, labelling and training.

Description

Initiated on April 1, 2007, the ecoENERGY for Buildings and Houses program is investing $60 million over four years and includes the following activities for the buildings sector:

  • implementing new design tools and training, including building design simulation for new buildings and the Dollars to $ense Energy Management workshops for existing buildings, so designers, builders, owners and operators can learn about and use best practices and new technologies to improve the energy efficiency of new and existing buildings

  • updating building energy ratings and promoting labelling systems for housing, including the EnerGuide Rating System (ERS), the R-2000 Standard7 and ENERGY STAR® for New Homes, to encourage consumers to invest in energy-efficient upgrades during the construction planning phase of building a new home (see Figure 3-2)

  • supporting the National Research Council financially in upgrading the National Energy Code for Buildings, last published in 1997

  • engaging in ongoing dialogue and co-operation with provincial and territorial programs to encourage other levels of government to adopt more stringent building energy codes

  • providing training and implementing outreach and communication strategies to increase awareness and build capacity among builders, building owners, managers and consumers to support the adoption of sustainable energy efficiency programs

  • establishing and maintaining partnerships to reduce energy use and improve energy efficiency information

FIGURE 3-2 Number of R-2000 Housing Certifications, 1990 to 2009.

Key 2009-2010 Achievements

  • By March 31, 2010, more than 4000 building owners, managers, operators, designers and builders had received energy management training, while almost 400 commercial buildings received energy labels as part of a pilot energy management labelling and benchmarking program.

  • Issued more than 540 000 housing labels for new and existing houses.

  • More than 1700 building professionals took part in technical support workshops, and more than 4700 housing professionals, builders and energy advisors were trained.

  • As of the end of the 2009–2010 fiscal year, six provinces (B.C., Man., Ont., Que., N.B., N.S.) had announced changes to their building codes to achieve the ERS80 level by 2012. Eleven provinces and territories participate in the Building Energy Codes Collaborative.

  • More than 75 percent of new homes are constructed in provinces that have announced the intent to increase the minimum ERS level of new homes to ERS80 by 2012. This represents a 30 percent decrease in energy consumption when comparing with homes built according to the requirements of the 2006 building code.

  • Since program inception, an estimated 1.07 Mt of GHG emissions were saved as a result of the ecoENERGY for Buildings and Houses program.

For more information:
ecoaction.gc.ca/ecoenergy-ecoenergie/buildingshouses-batimentshabitations-eng.cfm

ecoENERGY For Industry

Objective

To improve industrial energy intensity and reduce energy-related industrial GHGs and air pollution.

Description

Initiated on April 1, 2007, the ecoENERGY for Industry program is investing $18 million over four years to accelerate energy-saving investments and exchange best-practices information within Canada’s industrial sector. The program helps industry become more energy efficient by providing tools, training and cost-shared studies to enable industry to identify opportunities, calculate payback and overcome technical, management and financial barriers to energy efficiency project implementation.

The Canadian Industry Program for Energy Conservation (CIPEC) is an industry-government partnership delivered through the ecoENERGY for Industry program. The CIPEC network encompasses more than 50 associations and 25 industrial sectors, covering 98 percent of industrial energy use in Canada. Registered CIPEC Leader companies voluntarily commit to energy efficiency improvements as well as to reducing GHG emissions. Innovative companies at the leading edge receive recognition though the national CIPEC Leadership Awards.

Key program elements include the following:

  • the Dollars to $ense Energy Management workshops, which teach industry members how to improve operational efficiency, create a better work environment and reduce GHG emissions

  • the ecoENERGY Assessment Incentive for Industry, which offers a cost-shared solution to help industrial companies conduct state-of-the-art process integration and computational fluid dynamics studies that identify opportunities to increase energy efficiency and improve production processes. Typically, opportunities for annual energy savings of 10 percent to 25 percent are identified.

  • the CIPEC Leaders network, which demonstrates industry sector commitment to reducing energy use, provides members with opportunities for networking, recognition and sharing of best-practices, as well as eligibility for financial incentives

  • tools, publications and benchmarking studies that create awareness of energy-saving opportunities and promote actions to achieve those savings

Key 2009-2010 Achievements

  • More than 3100 industrial energy managers have attended the Dollars to $ense Energy Management workshops since program inception, with 1060 trained in 2009–2010. Customized workshops are held on-site to facilitate access in remote locations.

  • Welcomed 320 new members to the CIPEC Leaders network, which now has 2100 members, and held 35 network meetings.

  • Organized and hosted the Energy 2009 Industrial Energy Efficiency Conference and awards gala, which attracted 400 participants from industry, utilities and academia.

  • Since program inception, the ecoENERGY for Industry program helped Canadian industry avoid approximately 1.11 Mt of GHG emissions.

For more information:
ecoaction.gc.ca/ecoenergy-ecoenergie/industry-industrie-eng.cfm

ecoENERGY For Personal Vehicles

Objective

To facilitate and support improvements in energy efficiency by encouraging Canadians to buy, drive and maintain their vehicles with fuel efficiency in mind.

Description

Initiated April 1, 2007, the ecoENERGY for Personal Vehicles program is investing $21 million over four years to provide Canadians with information, tips and decision-making tools to assist them in changing their buying, driving and maintenance behaviours in order to reduce fuel consumption and GHG emissions from their personal vehicle use. It does so through the following:

  • decision-making information and tools, such as the annual Fuel Consumption Guide, labels and vehicle awards
  • “Eco” driver education and training

  • idle-free and tire inflation campaigns

  • collaborative ventures with community groups and industry stakeholders

ecoENERGY for Personal Vehicles also facilitates work with the vehicle industry to implement and monitor the voluntary memorandum of understanding (MOU) between the Government of Canada and the auto industry to reduce automobile GHG emissions.

Program components include the following:

  • the EnerGuide labelling system, which places fuel consumption labels on all new light-duty vehicles sold in Canada (see Figure 3-3)

  • the 2005 MOU between the Government of Canada and the Canadian auto industry – a framework for automakers to produce more fuel-efficient and lower-GHG-emission vehicles by 2010 (see Figure 3-4)

  • the annual ecoENERGY for Vehicles Awards, which recognize and identify, for consumers, the most fuel-efficient light-duty vehicles in their classes available in Canada

  • the Auto$mart driver education series, which teaches drivers how to drive safely, save fuel and money, and protect the environment by using fuel-efficient driving techniques

  • idle-free and tire maintenance campaigns that use educational materials and outreach activities to encourage drivers to embrace fuel-efficient practices

FIGURE 3-3 New Vehicle Fuel Efficiency Labelling.

FIGURE 3-4 Company Average Fuel Consumption (CAFC) Versus Canadian Voluntary Standards, 1990 to 2009.

Source: http://www.tc.gc.ca/eng/programs/environment-fcp-cafctargets-385.htm

Key 2009-2010 Achievements

  • In fiscal year 2009–2010, more than 350 000 new drivers were trained using materials from the Auto$mart fuel-efficient driving curriculum. A fuel savings of 5 percent to 25 percent is possible when drivers adopt fuel-efficient driving techniques.

  • Distributed more than 300 000 copies of the 2009 Fuel Consumption Guide, including 117 000 copies to 3400 new car dealerships and 600 to Canadian Automobile Association offices.

  • All provinces and most territories have incorporated fuel efficiency into driver education handbooks.

  • Nearly 21 million Canadians have been reached through targeted campaigns on fuel-saving practices related to idling and tire inflation since the program was launched in 2007. In 2009–2010, the “Be Tire Smart” campaign reached 9 million people about the environmental and fuel economy benefits of proper tire inflation and regular maintenance.

  • To date, the estimated GHG emission reductions associated with idle reduction and tire maintenance campaigns and with new driver training are 0.1 Mt.

For more information:
vehicles.nrcan.gc.ca

ecoENERGY For Fleets

Objective

To achieve reductions in fuel use and related costs and GHG emissions through a wide range of measures targeting operators and managers of Canada’s commercial and institutional road vehicle fleets.

Description

Initiated April 1, 2007, the ecoENERGY for Fleets program is investing $22 million over four years to promote the adoption of existing and emerging new technologies, such as energy-efficient vehicle components and hybrid technologies, and best practices, such as fuel management techniques.

ecoENERGY for Fleets is aimed at the commercial/institutional fleet transportation sector and provides information, workshops, technical demonstrations and training programs on fuel-efficient practices for fleet vehicles.

Program components include the following:

  • Fuel Management 101 workshops, which assist fleet managers with the preparation, implementation and monitoring of a fuel management plan

  • SmartDriver training programs, which offer knowledge sharing and on-the-road instruction to drivers of various types of fleets for the purpose of reducing fuel consumption

  • funding for fuel-efficient technology demonstrations, which help overcome knowledge barriers, encouraging uptake of fuel-saving technologies by fleets

Key 2009-2010 Achievements

  • In fiscal year 2009–2010, nearly 14 000 commercial drivers participated in SmartDriver training workshops and more than 360 participants took part in Fuel Management 101 workshops to promote greater uptake of transportation energy efficiency practices.

  • Completed two idling awareness campaigns.

  • Since program inception, a reduction of approximately 0.31 Mt of GHG emissions can be attributed to the ecoENERGY for Fleets program.

For more information:
fleetsmart.gc.ca

ecoENERGY For Biofuels

Objective

To support the production of renewable alternatives to gasoline and diesel and encourage the development of a competitive domestic renewable fuel industry.

Description

ecoENERGY for Biofuels provides an operating incentive to facilities that produce renewable alternatives to gasoline, such as ethanol, and renewable alternatives to diesel, such as biodiesel, based on production volumes. The program will invest up to $1.48 billion over nine years, starting April 1, 2008, in support of biofuel production in Canada.

This program is expected to increase domestic production and develop a competitive domestic renewable fuel industry. The expected program volume is 2.5 billion litres (L) of domestic production by March 2012, with a target of 2 billion L of renewable alternatives to gasoline and 500 million L of renewable alternatives to diesel fuel.

In order to receive an incentive, eligible recipients must have signed a contribution agreement with NRCan and must have met the requirements of the Canadian Environmental Assessment Act and comply with all other applicable federal, provincial and municipal legislation.

Key changes to the program were announced in December 2009: a realignment of the nine-year funding allocation, a new payment regime and a new decision-making methodology.

ecoENERGY for Biofuels is a key component of Canada’s renewable fuel strategy, which aims to

  • reduce the GHG emissions resulting from fuel use

  • encourage greater production of biofuels

  • accelerate the commercialization of new biofuel technologies

  • provide new market opportunities for agricultural producers and rural communities

Key 2009-2010 Achievements

  • As of March 31, 2010, 21 contribution agreements had been signed with companies.

  • These agreements represent a total commitment of $966.2 million and a domestic production of 1.6 billion L of biofuels (1.4 billion L of ethanol and 0.189 billion L of biodiesel).

For more information:
ecoaction.gc.ca/biofuels

Federal Buildings Initiative

Objective

To assist Government of Canada organizations in implementing energy efficiency upgrades that lead to reduced energy and water use, GHG emissions and operating costs.

Description

The Federal Buildings Initiative (FBI) is an energy efficiency program targeting federal departments and agencies and Crown corporations. The FBI provides a range of products and services required by an organization to implement comprehensive energy efficiency improvement projects in its facilities.

FBI services include project facilitation, such as energy management technical advice, program policy advice and procurement services, to assist organizations in making energy efficiency improvements. The FBI uses a financing technique known as energy performance contracting, in which the cost of the job is paid for from the savings stream.

Other levels of government, institutions and private sector firms have drawn on the FBI’s experience for help in designing their own energy efficiency programs using energy performance contracting. Since its inception in 1991, the FBI has helped upgrade thousands of square metres of federal building floor space, representing one third of the total federal floor space, saving $43 million in energy bills and reducing the risks associated with climate change.

Key 2009-2010 Achievements

  • Since 2007–2008, the FBI has facilitated five new contracts with federal agencies: Canadian Forces Base Gander, Canadian Forces Base Gagetown, Foreign Affairs and International Trade Canada, Fisheries and Oceans Canada, and Public Works and Government Services Canada.

  • In fiscal year 2009–2010, the FBI helped facilitate three potential projects. Two of them reached the request for proposal tendering and evaluation stage, and the third was close to procurement.

For more information:
oee.nrcan.gc.ca/fbi

National Renewable Diesel Demonstration Initiative

Objective

Initiated in December 2008, the National Renewable Diesel Demonstration Initiative (NRDDI) aims to address remaining questions from industry and end-users about renewable diesel use by demonstrating how it will perform under Canadian conditions.

Description

The Government of Canada is committed to expanding the production and use of a range of cleaner, renewable biofuels, including renewable diesel. The intent is to reduce GHG emissions that result from fuel use, encourage greater production of biofuels, accelerate the commercialization of new biofuel technologies and provide new market opportunities for agricultural producers and rural communities.

In December 2006, the government announced its intention to develop a regulation requiring an average annual 2 percent renewable fuel content in diesel fuel and heating oil by 2012, upon successful demonstration of renewable diesel fuel use under the range of Canadian conditions. More recently, the government has announced its intention to accomplish this by 2011, subject to technical feasibility.

Renewable diesel has been tested in a variety of vehicle engines under driving conditions in many parts of Europe and the United States. Renewable diesel has also been tested in certain applications in Canada, such as trucks, buses and marine vessels.

During consultation, Canadian industry sectors and end-users raised questions related to large-scale integration of renewable diesel into fuel distribution networks. The NRDDI aims to address these remaining questions in advance of the proposed regulation coming into effect.

Non-repayable contributions have been provided to approved projects that demonstrate aspects of renewable diesel use and/or distribution in Canada.

Key 2009-2010 Achievements

  • Seventeen stakeholder organizations were consulted.

  • Five contribution agreements and three MOUs were signed to deliver projects in forestry, construction, rail, electricity generation (gensets), home heating and agricultural applications to address stakeholder questions about cold weather operability, long-term storage, materials compatibility and sediment formation.

  • Two projects were completed.

  • A study that assessed infrastructure readiness for the proposed regulation was completed.

For more information:
oee.nrcan.gc.ca/transportation/fuels/biodiesel/NRDDI

7 R-2000 is an official mark of Natural Resources Canada.

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