Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2007-2008

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Chapter 6: Co-operation

Introduction

This chapter describes Natural Resources Canada’s (NRCan’s) co-operation with provincial and territorial governments and internationally on efficiency and alternative energy (EAE) during the reporting period. Examples of program co-operation on specific EAE initiatives are in the “Key Achievements” sections in earlier chapters.

Municipal governments and agencies participate in NRCan’s EAE measures as clients (for training workshops, as recipients of financial incentives, etc.) and as partners (e.g. in anti-idling projects). At the same time, NRCan participates in ventures led by municipal organizations, such as the Green Municipal Fund (see accompanying textbox), and by provincially and territorially regulated electricity utilities and provincially regulated natural gas utilities.

Several institutions in Canada address energy efficiency issues in broad terms, including the three data and analysis centres established by NRCan, the host universities and other partners. These centres are also sponsored by other federal departments, provincial government agencies, and various associations and energy supply utilities. Their main objectives are to facilitate access to data on energy use in the industry, transportation and building sectors; monitor the quality of data; and investigate methods of improving data collection and analysis.

There are two national consultative bodies in the area of energy efficiency: the Assistant Deputy Minister Steering Committee on Energy Efficiency (ASCEE), established under the Council of Energy Ministers; and the Office of Energy Efficiency’s (OEE’s) National Advisory Council on Energy Efficiency (NACEE).

Assistant Deputy Minister Steering Committee on Energy Efficiency

In 2004, federal, provincial and territorial energy ministers established the ASCEE and tasked it with establishing a coordinated, complementary agenda for energy efficiency in the built environment, industry and transportation sectors. The ASCEE held seven meetings in 2007–2008, with members representing the federal, provincial and territorial governments.

There are three working groups under the auspices of the ASCEE. In 2007, these groups contributed to the development of the Council of Energy Ministers’ document Moving Forward on Energy Efficiency in Canada: A Foundation for Action.

• Formed in 2003, the Demand Side Management Working Group (DSMWG) has members representing NRCan, industry and all provinces and territories. The DSMWG has initiated studies on such subjects as demand side management potential in Canada, best practices in performance measurement, and reporting and regulatory frameworks.
• The ASCEE sponsored the formation of the Transportation Working Group on Energy Efficiency (TWGEE) in 2005. Its mandate is to assess the status and enhance the alignment of transportation energy efficiency activities across federal, provincial and territorial jurisdictions and to investigate opportunities for further collaboration and new initiatives. The TWGEE comprises government officials from federal and provincial energy and transportation departments and ministries.
• The Industry Working Group on Energy Efficiency was formed in 2006. It promotes information exchange among industrial energy end-users and authorities, agencies, utilities and jurisdictions involved in the design, development and delivery of industrial energy efficiency programming in Canada.

National Advisory Council on Energy Efficiency

NACEE was created in April 1998 to assist the OEE as an innovative government organization by

• assessing and advising on the OEE’s strategic approach to meeting federal policy objectives
• advising the OEE on its performance and business planning and reporting on progress
• considering issues related to accelerating growth in energy efficiency in the Canadian economy

NACEE membership is drawn from across Canada. It includes representatives from various levels of government, academia, economic sectors, energy utilities and advocacy groups. NACEE met three times during 2007–2008.

Federal-Provincial and Federal-Territorial Co-operation

Interest continues to grow in energy efficiency as a means of maximizing services based on the existing energy supply capacity in the country. In addition to general co-operation on energy efficiency, provincial and territorial governments helped to deliver tools, or employed tools provided by federal EAE programs, to reduce energy costs, address climate change, increase competitiveness, improve air quality and create economic opportunities. Coordination between the federal and provincial/territorial levels avoids duplication and ensures efficient program delivery.

All provinces and territories engage in energy efficiency activities and/or deliver energy efficiency programs in their jurisdictions. In some provinces and territories, specific organizations are mandated to promote energy efficiency. For example, one of the objectives of Alberta’s Climate Change Central is to focus on information and action on energy efficiency and conservation in the province. The Office of the Fire Commissioner of Manitoba is engaging stockholders in a review of the Energy Code Advisory Committee recommendations, the introduction of water efficiency in the plumbing code and the identification of barriers in the Manitoba Building Code to energy and water efficiency in buildings. The Ontario Power Authority’s Conservation Bureau provides leadership in planning and coordinating measures for electricity conservation and load management. The Canada–Yukon Energy Solutions Centre is a service and program delivery agency for federal and Yukon government programs on energy efficiency and green power.

Recently, there has been a greater focus on energy efficiency in the Maritime provinces, as evidenced by the creation of three agencies: Efficiency NB, Conserve Nova Scotia and Prince Edward Island’s (P.E.I.’s) Office of Energy Efficiency. Efficiency NB’s mandate is to promote efficient energy use, help control energy expenses and lessen the impact of energy use on the environment, while P.E.I.’s Office of Energy Efficiency provides advice and programs to promote sustainable energy use. Other regional organizations of note are the Arctic Energy Alliance in the Northwest Territories, the Nunavut Energy Centre and the Agence de l’efficacité énergétique du Québec.

The Building Energy Codes Collaborative

The Building Energy Codes Collaborative (BECC) is a provincial-territorial-federal committee supported by the Council of Energy Ministers, ASCEE and NRCan. BECC is made up of representatives from provincial/territorial code and energy ministries, departments and agencies; NRCan; and the Canadian Codes Centre. The objectives of the BECC are as follows:

• provide a forum for provinces, territories and the federal government to support the update, regulatory adoption and implementation of the Model National Energy Code for Buildings (MNECB) by responsible authorities
• work in co-operation with the provinces and territories and the Canadian Commission on Building and Fire Codes toward a national consensus on establishing energy efficiency in the code process
• explore other regulatory and/or program instruments for increasing energy efficiency in new housing, including updating the MNECB
• seek support from the federal government and the energy and building code ministries in the provinces and territories and engage their representatives in the process

NRCan and BECC prepared a business plan for updating the MNECB and presented it to the Canadian Commission on Building and Fire Codes. Commission members unanimously approved the following motion at its annual meeting in Calgary in February 2007: “... that the updating of the MNECB as a progeny document based on the BECC Business Plan be approved.”

NRCan then prepared and signed a memorandum of understanding with the National Research Council (NRC). NRCan is contributing up to $5 million over four years to support the technical development of the new code and is providing technical expertise to the NRC team tasked with developing national codes. The NRC launched the project, and the Standing Committee on Energy Efficiency in Buildings held its first meeting on updating the code in Ottawa in December 2007.

The updated MNECB will be published by 2011 in an objective-based format. It will complement objective-based model national construction codes published in 2005.

Co-operation Agreements

NRCan’s memorandum of agreement (MOA) on EAE with the Agence de l’efficacité énergétique du Québec provides for the consultation and sharing of information between the two governments, the coordination of EAE activities in Quebec and the creation of opportunities for joint projects. Further, the management committee established under the MOA reviews policy and program developments, progress on joint program initiatives and areas for further co-operation. NRCan is working with the Agence de l’efficacité énergétique to deliver services under the ecoENERGY programs.

The MOA played a role in facilitating three activities in particular:

• management of the licensing agreement for local delivery of ecoENERGY Retrofit – Homes
• NRCan’s Buildings Division’s continued processing of payments for the former EnerGuide for Existing Buildings and Commercial Building Incentive programs under a letter of co-operation (LOC) with the Agence de l’efficacité énergétique that covers 2007–2008 and 2008–2009. Though the two programs are closed, payments, which can be made only when the client proves to NRCan that work has been completed, are still being processed.
• management of an agreement on the Programme d’intervention en réfrigération dans les arénas du Québec, under which NRCan has provided technical support for the implementation of innovative refrigeration systems in Quebec ice rinks

NRCan’s LOC on energy efficiency and renewable energy with the Government of Yukon facilitates information sharing and the creation of opportunities for joint projects in Yukon. These projects include the Canada–Yukon Energy Solutions Centre in Whitehorse. The Centre provides access to technical services and programs for the Yukon population and undertakes outreach and public education activities.

NRCan works co-operatively with the Office of the Fire Commissioner of Manitoba, a special operating agency of Manitoba Labour and Immigration, to engage Manitoba stakeholders in a review of the Energy Code Advisory Committee recommendations. Manitoba is also consulting stakeholders on introducing water efficiency in the plumbing code and identifying barriers in the Manitoba Building Code to energy and water efficiency in buildings. The result will be a stakeholder consultation report provided to Manitoba’s Minister of Labour and Immigration and Minister of Science, Technology, Energy and Mines.

The Government of Canada contributes to the Arctic Energy Alliance as a means of promoting energy efficiency and renewable energy in the Northwest Territories and providing opportunities for EAE projects. The Alliance is also the R-2000 delivery agent in the Northwest Territories. Through the contribution agreement with the Qulliq Energy Corporation, the Government of Canada contributes to the Nunavut Energy Centre, which promotes energy efficiency and renewable energy in Nunavut.

NRCan works with Ontario’s Ministry of Small Business and Entrepreneurship, the Independent Electricity System Operator and local distribution companies to provide energy management training to individual companies across Ontario through Dollars to $ense workshops.

The Government of Canada promotes energy efficiency and renewable energy in Alberta by working with Climate Change Central, a non-profit corporation funded by a number of stakeholders, including the Government of Alberta.

International Co-operation

NRCan co-operates with several international organizations and foreign governments in EAE program areas. Canada benefits from this co-operation by

• learning about improved ways of designing and delivering EAE programs to meet policy objectives
• working with others on the harmonization of energy efficiency tests and performance standards to reduce barriers to trade in energy-using products

International Energy Agency

The International Energy Agency (IEA), based in Paris, France, is an autonomous agency of the Organisation for Economic Co-operation and Development. The IEA runs a comprehensive program of energy co-operation among its 26 member countries, including Canada. IEA member governments have committed to sharing energy information, coordinating energy policies and co-operating on the development of rational energy programs incorporating energy security, economic development and environmental protection. The IEA and its governing board are assisted in their work by several standing groups and special committees, which bring together energy specialists from member countries.

The Standing Group on Long-Term Co-operation (SLT) is the key committee on the policy side. The Group analyses policies to promote conservation and the efficient use of energy, the increased use of alternatives to oil, and other measures to increase long-term energy security while protecting the environment. The SLT monitors energy developments in member countries and makes recommendations on energy policy through a regular series of individual country reviews. The SLT’s Energy Efficiency Working Party (EEWP) provides advice on and direction to the IEA’s work on specific energy efficiency issues. The OEE represents Canada on the EEWP.

Canada’s international energy research and development (R&D) objectives are mainly advanced through the IEA’s working parties, implementing agreements and the Committee for Energy Research and Technology, chaired by NRCan. Canada participates in 32 of the IEA’s 40 implementing agreements on R&D collaboration programs. NRCan spent $752,000 on IEA implementing agreements in 2007–2008, in addition to personnel and travel expenditures. In many programs, this work has helped to accelerate technology development in Canada, generating benefits that far outweigh the direct costs of collaboration.

Canada also co-operates with research centres in member countries on several R&D and technology agreements and programs. NRCan facilitates R&D and commercial business ventures abroad by Canadian firms by undertaking a wide variety of activities. These activities include participating in various IEA tasks and supporting technical and trade-oriented workshops and conferences.

Group of Eight

Member states of the Group of Eight (G8) are Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, the United States and the European Union. The G8 Summit in 2005 established the Gleneagles Plan of Action, which includes a number of actions in the area of EAE. While NRCan’s participation in the IEA and international mechanisms for standards harmonization respond to many of the listed activities, others are implemented through NRCan’s EAE programs.

At the G8 summit in 2007 in Heiligendamm, Germany, the leaders of the G8 countries and Brazil, China, India, Mexico and South Africa agreed to initiate a topic-driven dialogue under the “Heiligendamm Process.” The Process has four pillars, and working groups have been formed around each one. Energy, with a special focus on energy efficiency, is one of the pillars. The Energy Working Group will explore the common ground available for building international support for new ideas and approaches for increasing energy efficiency. It will focus on energy security, development of a sustainable buildings network, energy efficiency in power generation (particularly in existing power plants), and alternative sources of energy and renewable energy. Canada, represented by the OEE, is co-chair with India. The Working Group held its first meeting in March 2008.

Asia-Pacific Economic Co-operation

At the 2007 Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting, leaders highlighted the importance of improving energy efficiency in the Sydney APEC Leaders’ Declaration on Climate Change, Energy Security and Clean Development. The declaration endorsed an APEC-wide regional aspirational goal of a reduction in energy intensity of at least 25 percent by 2030 (with 2005 as the base year).

The OEE is a member of the APEC Expert Group on Energy Efficiency and Conservation (EGEE&C), which reports to APEC’s Energy Working Group. One of the tasks of the EGEE&C is updating and maintaining the APEC Energy Standards Information System (ESIS). ESIS provides public, up-to-date information on appliance and equipment energy standards and regulations. It also provides links to experts and information related to standards and regulations used by APEC and other economies. NRCan contributes regularly to the database by providing updated information on Canadian equipment standards and labelling and new initiatives, such as the phase-out of incandescent lamps.

United Nations

RETScreen^® International is managed under the leadership of NRCan’s CanmetENERGY Varennes (QC) Research Centre. RETScreen is managed through cost- and task-shared collaborative ventures with other governments and multilateral organizations, and with technical support from more than 250 experts representing industry, government and academia. Key partners are NASA’s Langley Research Center and the Renewable Energy and Energy Efficiency Partnership. Other key international partners include the Energy Branch of the United Nations Environment Programme (UNEP) and the UNEP Solar and Wind Energy Resource Assessment, which is sponsored by the Global Environment Facility.

Mexico

NRCan signed a memorandum of understanding (MOU) on EAE co-operation with the Mexican Energy Secretariat in June 1996. Its objective is to contribute to the EAE objectives of Canada and Mexico by improving the design and delivery of EAE programs and by fostering trade, investment, technical and other exchanges related to energy-efficient products, energy management services, and alternative energy goods and services. Under the MOU, officials of Mexico’s National Commission for Energy Savings (CONAE) participated in an industrial energy efficiency conference held in May 2005 in Ottawa. In March 2006, NRCan organized an energy efficiency workshop in Puebla, Mexico, in co-operation with CONAE.

Established in 2004, the Canada–Mexico Partnership (CMP) is designed to serve as a mechanism for identifying policies for facilitating co-operation, enhancing investment and creating opportunities for Canadian entrepreneurs to take part in projects that contribute to the socio-economic development of Mexican society. Sustainable housing has been identified as a priority theme under the CMP. Canada Mortgage and Housing Corporation (CMHC) has been charged with chairing a working group on sustainable housing technologies under the CMP within the framework of a letter of intent (LOI) with CONAVI, the Mexico National Housing Agency. The LOI establishes the scope of the working group activities. NRCan participates as a member of this working group through the CANMET Energy Technology Centre.

In 2006, under the CMP, NRCan and CMHC facilitated meetings between Mexican builder-developers and Canadian photovoltaic (PV) and solar domestic hot water companies. In 2007, five PV units were installed in a residential development in Mexicali, Mexico, using a system designed by ICP, a Montréal company. The project will be used as a case study to provide the builder, state and utility with field data to assess the value of developing a business case for an incentive-based PV program for residential grid-connected PV energy supply in the region. In 2006, Mexican stakeholders also expressed interest in Canadian approaches to sustainable neighbourhood-scale projects, including standards for sustainable projects, decision-making tools and access to Canadian case studies. A workshop to facilitate this information exchange was conducted in Tijuana, Mexico, in 2007.

Innovative financing for renewable energy and energy-efficient projects is an ongoing theme under the CMP working group. Mexico is launching a “green mortgage” instrument, and government and industry stakeholders have expressed interest in learning more about financing instruments for renewable energy and energy efficiency features in housing. This theme remains an area of mutual interest.

United States

In September 2005, NRCan’s OEE signed an MOU with the U.S. Environmental Protection Agency to share in the common goal of achieving greater energy efficiency and reducing carbon dioxide, particulate matter and oxides of nitrogen emissions through the work of their respective programs: ecoENERGY for Fleets (FleetSmart) and the SmartWay Transport Partnership. These two programs use a voluntary approach with the on-road freight sector to increase energy efficiency through training, education and reporting initiatives. They are working together to harmonize program efforts in Canada and the United States.

North America

In July 2007, energy ministers of Canada, the United States and Mexico signed a co-operation agreement on energy science and technology. The trilateral agreement provides a legal framework for R&D co-operation on new technologies in such areas as bioenergy, clean coal, carbon capture and storage, fuel cells, and electricity networks. This new agreement supersedes a previous U.S.–Canada MOU on energy R&D.

NRCan continues to participate with the United States and Mexico in the Energy Efficiency Experts Group of the North American Energy Working Group (NAEWG) to promote the harmonization of energy efficiency standards and co-operation on energy efficiency labelling programs. In 2007–2008, work under NAEWG primarily involved coordinating the energy sector commitment to the North American Security and Prosperity Initiative. In addition to ongoing standards and program collaboration, NAEWG initiatives were implemented to develop a North American approach to vehicle fuel efficiency and standby loss by electricity-using products. A workshop on energy efficiency was held in Mexico City on October 1–2, 2007, to promote trilateral collaboration on transportation.

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