Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2006-2007

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Chapter 10: Cooperation

INTRODUCTION

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

Note that municipal governments and agencies participate in NRCan's EAE measures as clients (for training workshops, as recipients of financial incentives, etc.) and as partners (for example, in anti-idling projects), and that NRCan also participates in ventures led by municipal organizations (for example, Green Municipal Fund, as explained in the accompanying textbox) and by provincially/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. The centres facilitate access to data on energy use in the industry, transportation and building sectors, monitor the quality of data, and investigate methods to improve data collection and analysis. The goal of another institution, the Canadian Centre for Energy Information, is to engage North Americans in critical inquiry and discussion on energy and energy-related issues affecting their quality of life. A third institution, the Canadian Energy Efficiency Alliance, is a non-profit organization established to promote the efficient use of energy in Canada.

There are two national consultative bodies in the area of energy efficiency:

• Assistant Deputy Minister Steering Committee on Energy Efficiency (ASCEE), established under the Council of Energy Ministers
• Office of Energy Efficiency (OEE) National Advisory Council on Energy Efficiency (NACEE)

In 2004, federal, provincial and territorial energy ministers decided that the ASCEE should be formed and tasked with establishing a coordinated and complementary agenda for energy efficiency in the built environment, industry and transportation sectors. The ASCEE held seven meetings in 2006-2007, with members representing the federal, provincial and territorial governments.

There are three working groups under the auspices of the ASCEE:

• Originally formed in 2003, the Demand Side Management Working Group (DSM WG), now reports to the ASCEE and has members representing NRCan, industry, and seven provinces and territories. The DSM WG has initiated studies, for example, related to DSM potential in Canada, best practices in performance measurement and reporting and regulatory frameworks.
• The ASCEE sponsored the formation the Transportation Working Group on Energy Efficiency (TWGEE) in 2005. Its mandate is to seek opportunities for stronger cooperation among governments in harmonizing policies and programs that can affect energy efficiency and to make recommendations to ministers on the need for government action. The TWGEE comprises senior federal and provincial government officials.
• A third working group, the Industry Working Group on Energy Efficiency, was formed in 2006 to promote 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.

NRCan created NACEE in April 1998 to advise the OEE on the most effective way to achieve its mission. The membership of NACEE is drawn from across Canada and all economic sectors and includes provincial/territorial officials and representatives of electricity and natural gas utilities. The members can comment on the OEE's business plan and programs. NACEE met three times during 2006-2007.

FEDERAL-PROVINCIAL AND FEDERAL-TERRITORIAL COOPERATION

Interest continues to grow in energy efficiency as a means of maximizing service from the existing energy supply capacity in the country. Provincial and territorial governments helped to deliver EAE programs to reduce energy costs, address climate change, increase competitiveness, improve air quality and generate economic opportunities. Coordination between the federal and provincial/territorial levels is essential to avoid duplication and ensure efficient program delivery. During the reporting period, governments cooperated on energy efficiency in general and on specific program initiatives.

All provinces and territories engage in energy efficiency activities and/or deliver programs in their jurisdictions. In some provinces and territories, specific organizations are mandated to promote energy efficiency. For example, Energy Solutions Alberta, under Climate Change Central, is a focus for information and action on energy efficiency and conservation in Alberta. In Saskatchewan, the mandate of the Office of Energy Conservation is to encourage and support voluntary action by the public and by industry through public information, energy efficiency demonstrations, and the development of pilot projects. The Ontario Power Authority's Conservation Bureau provides leadership in planning and coordinating measures for electricity conservation and load management. The Energy Efficiency and Conservation Agency of New Brunswick seeks to influence efficient energy use, help control energy expenses and lessen the impact of energy use on the environment. 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. The Arctic Energy Alliance promotes energy efficiency and renewable energy in the Northwest Territories. The Nunavut Energy Centre promotes energy efficiency and renewable energy in Nunavut.

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 consists of representatives from provincial/territorial code and energy ministries, departments and agencies; NRCan; and the Canadian Codes Centre.

The objectives of the BECC are to:

• 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) as a document by authorities that have the jurisdiction
• work in cooperation with the provinces and territories and the Canadian Commission on Building and Fire Codes towards a national consensus on establishing energy efficiency in the code process
• explore other regulatory and/or programmatic instruments for increasing energy efficiency in new housing, including updating the Model National Energy Code for Houses
• seek political and financial support from the federal government, and both the energy and building code ministries in the provinces and territories, and engage their representatives in the process

The groundwork already laid by provinces and territories in the area of energy efficiency is a strong foundation to choose making a collaborative effort for the MNECB rather than pursuing individual regulatory paths.

NRCan and the BECC recognize that effective and influential partnerships are critical to the success of an updated MNECB that is adopted and implemented by provinces and territories. The membership and focused activity of the BECC itself is a signal of a high level of federal, provincial, and territorial collaboration on this initiative.

Cooperation Agreements

NRCan's Letter of Cooperation (LOC) on EAE with the Agence de l'efficacité énergétique du Québec provides for consultation and exchange of information between the two governments, coordination of EAE activities in Quebec, and the creation of opportunities for joint projects. The management committee established under the LOC reviewed policy and program developments, progress on joint program initiatives, and areas for further cooperation.

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

• management of the licensing agreement for local delivery of EnerGuide for Houses
• processing projects submitted to the EnerGuide for Existing Buildings and the Commercial Building Incentive Program by public organizations in Quebec. This cooperation framework is also being applied to other NRCan programs that target the Quebec public sector.
• management of an agreement that relates to 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's ice rinks

NRCan's LOC on energy efficiency and renewable energy with the Government of Yukon facilitates information exchange and the creation of opportunities for joint projects in the Yukon, including the establishment of the Canada-Yukon Energy Solutions Centre in Whitehorse, Yukon. The centre provides access to technical services and programs for the Yukon population and undertakes outreach and public education activities.

The Government of Canada contributes to the Arctic Energy Alliance to promote energy efficiency and renewable energy in the Northwest Territories and provide opportunities for EAE projects. The Alliance is also the delivery agent in the Northwest Territories for R-2000. 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 cooperatively 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 the province 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 multistakeholder base, including the Government of Alberta.

INTERNATIONAL COOPERATION

NRCan cooperates with several international organizations and foreign governments in EAE program areas. Canada benefits from this cooperation:

• by learning about improved ways of designing and delivering EAE programs to meet policy objectives
• through 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 conducts a comprehensive program of energy cooperation among its 26 member countries, including Canada. IEA member governments have committed to sharing energy information, coordinating energy policies and cooperating in the development of rational energy programs. 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 Energy Efficiency Working Party (EEWP) of the SLT undertakes IEA work on specific issues related to energy efficiency. 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, that is, R&D collaboration programs. NRCan spent $605,000 on IEA Implementing Agreements in 2006-2007, plus personnel expenses and travel. In many programs, this work has permitted acceleration of technology development in Canada that far exceeds the direct costs of collaboration.

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

Group of Eight

The Group of Eight (G8) Summit in 2005 established the Gleneagles Plan of Action that includes a number of actions in the area of EAE. While NRCan's participation in IEA and international mechanisms for standards harmonization responds to many of the listed activities, others are implemented through NRCan's EAE programs.

United Nations

RETScreen^® International is managed under the leadership of NRCan's CANMET Energy Technology Centre-Varennes (CETC-Varennes) 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 the NASA's Langley Research Center and the Renewable Energy & Energy Efficiency Partnership. Other international partners include the Energy Unit of the United Nations Environment Program (UNEP) and the Solar and Wind Energy Resource Assessment project sponsored by the UNEP-Global Environment Facility.

China

In February 2001, Canada and China signed a Memorandum of Understanding (MOU) on Energy Cooperation. In January 2003, they signed an MOU on Climate Change and the Clean Development Mechanism. Energy efficiency is one area of cooperation identified in both MOUs.

Mexico

NRCan signed an MOU on EAE cooperation 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 enhancing trade and investment as well as technical and other exchanges related to energy-efficient products, energy management services and alternative energy goods and services.

Under the MOU on EAE, officials of Mexico's National Commission for Energy Savings (CONAE) participated in an industrial energy efficiency conference held in May 2005 in Ottawa. Also under the MOU, NRCan organized an energy efficiency workshop in cooperation with CONAE. The workshop was held in Puebla, Mexico in March 2006.

United States

NRCan and the United States (U.S.) Department of Energy (DOE) have an MOU on road transportation, energy efficiency and alternative fuels. It provides a formal mechanism to advance harmonization of North American policy on fuel efficiency, fuel quality and alternative transportation fuels. The MOU provides a framework for joint projects and studies in areas of mutual interest, such as the costs and market potential of hybrid electric-powered and diesel-powered vehicles. The MOU facilitates bilateral discussion of a broad range of issues in the motor vehicle and fuels policy area and affords access to technology assessments and policy-related studies conducted for the DOE by its national laboratories.

Canada has been cooperating with the U.S. DOE under an MOU on energy R&D in the areas of fuel cells, fossil fuels, bioenergy, community systems and microgeneration, nuclear fission, and carbon sequestration.

North America

NRCan continues to participate with the U.S. and Mexico in the Energy Efficiency Experts Group of the North American Energy Working Group (NAEWG) to promote the harmonization of energy efficiency test methods, mutual recognition of conformity assessment systems for energy efficiency standards, and cooperation on trilateral energy efficiency labelling programs. In 2006-2007, work under NAEWG involved primarily coordinating the energy sector commitment to the Security and Prosperity Initiative. In addition to ongoing standards and program collaboration, a project was implemented to develop a North American approach to standby loss by electricity-using products.

The Canada-Mexico Partnership (CMP), established in 2004, serves as a mechanism for identifying policies for facilitating cooperation, 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 is a priority theme under the CMP. Canada Mortgage and Housing Corporation (CMHC) chairs 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 provides the scope of the working group activities. NRCan participates as a member of this working group through CETC's Sustainable Buildings and Communities Group.

In 2006, under the CMP, NRCan and CMHC facilitated meetings between Mexican builders and developers and Canadian photovoltaic (PV) and solar domestic hot water companies. A PV grid-connect project was an area of common interest and a pilot project was carried out in 2007. Mexican stakeholders were interested in Canadian approaches to sustainable projects for entire neighbourhoods including standards for sustainable projects, decision-making tools and access to Canadian case studies. A workshop to facilitate this information exchange also took place in 2007.

Innovative financing for renewable energy and energy-efficient projects is an on-going theme under the CMP working group. Mexico is launching a "green mortgage" instrument and government and industry stakeholders want to learn more about financing instruments for renewable energy and energy efficiency features in housing. An element of this includes possible Clean Development Mechanism credits.

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