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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 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 included in the “Key Achievements” sections of 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 idle-free 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.

Green Municipal Fund

The Government of Canada endowed the Federation of Canadian Municipalities (FCM), a non-profit organization, with $550 million to establish the Green Municipal Fund (GMF) for the purpose of providing a long-term, sustainable source of funding for municipal governments and their partners. The GMF invests in plans, studies and projects that offer the best examples of municipal leadership in sustainable development and that other Canadian communities can replicate.

Under the GMF agreement, the Government of Canada (represented by NRCan and Environment Canada) participates in governance of this revolving fund, along with representatives from the public and private sectors, including municipal officials and technical experts, through a peer review committee and an advisory council.

The FCM board of directors approves projects in light of the council’s recommendations. As of March 31, 2010, the GMF had approved more than $450 million for more than 800 sustainable community plans, feasibility studies, field tests and capital projects with the potential to leverage almost $3 billion of economic activity in approximately 400 Canadian communities. Actual environmental benefits include the reduction of an estimated 103 994 tonnes of carbon dioxide annually from 28 completed capital projects.

More details can be found in the Green Municipal Fund Annual Report 2009–2010 at fmv.fcm.ca/About_Us/Annual_Reports/.

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. Their main objectives are to facilitate access to data on energy use in the industry, transportation and building sectors; monitor the quality of data; develop expert knowledge; and investigate methods of improving data collection and analysis. Since their establishment, these centres are also sponsored by various entities, including other federal departments, provincial government agencies, industry associations and energy supply utilities.

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

Steering Committee on Energy Efficiency

In 2004, federal, provincial and territorial energy ministers established the SCEE and tasked it with establishing a coordinated, complementary agenda for energy efficiency in the built environment, industry and transportation sectors. The SCEE held four face-to-face meetings in the 2009–2010 fiscal year – in Winnipeg, Montréal, Ottawa and Toronto – with members representing the federal, provincial and territorial governments.

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

Responding to Ministers’ direction, the three SCEE working groups are continually undertaking actions to develop concrete energy efficiency initiatives based on the themes and ideas in Moving Forward on Energy Efficiency in Canada. These may be delivered by multiple jurisdictions and in conjunction with key stakeholders.

At the September 1, 2009, meeting of the Council of Energy Ministers, the efforts of these working groups culminated in the announcement of a series of tools for collaborative energy efficiency actions, namely:

  • On the Road to a Fuel-efficient Truck: A Guide for Purchasing Aerodynamics for Heavy-Duty Tractors and Trailers – to provide truck owners and operators with the information to select, install, maintain and drive with aerodynamic devices that can be installed on heavy-duty trucks to reduce fuel use and greenhouse gas (GHG) emissions, as well as how to calculate expected fuel savings and return on investments

  • The Energy Management Information Systems (EMIS) Audit and Implementation Plan Manual and Tool – to assist industrial facilities in better measuring and tracking energy use to help promote investing in energy efficiency through the proper use of an EMIS audit, preparing business cases and implementing systems to achieve long-term reductions in energy consumption per unit of production

  • Recommissioning Guide for Building Owners and Managers – to provide education for sector clients and training for service providers on how existing building recommissioning can facilitate the optimal energy performance envisioned by updated building codes

  • Integrated Community Energy Solutions: A Roadmap for Action – to provide a broad strategy to capitalize on synergies available at the community level to achieve improvements in energy performance and cuts to GHG emissions, as well as a menu of tools to complement existing sectoral energy efficiency strategies

  • Formed in 2003, the Built Environment Working Group (formerly the Demand Side Management Working Group) has members representing NRCan, industry and all provinces and territories. Its subcommittees perform collaborative tasks in the following areas:

    • National Energy Code for Buildings
    • building energy benchmarking
    • commissioning and recommissioning of buildings
    • energy-efficient equipment
    • integrated community energy solutions
    • lower-income-household energy efficiency options
    • accelerated penetration of energy-efficient home retrofits
    • energy efficiency financing in the commercial/institutional sector
    • a positioning paper on energy efficiency

  • The SCEE 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, provincial and territorial energy and transportation departments and ministries.

    In the 2009–2010 fiscal year, TWGEE members collaborated to launch On the Road to a Fuel-efficient Truck: A Guide for Purchasing Aerodynamics for Heavy-Duty Tractors and Trailers, referenced above. Additionally, TWGEE members developed a best practices guide for developing idle-reduction programs, which was distributed to federal and provincial government partners, strengthening the cooperation, collaboration and alignment among jurisdictions on this issue. The TWGEE also undertook research studies that will be used to engage industry stakeholders on the issue of fuel-efficient tires and involve them in developing a framework that could be used in Canada to promote fuel-efficient tires to heavy-duty truck tire purchasers.

  • 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.

    The working group launched Canada’s involvement in developing the ISO9 50001 standard for Energy Management Systems Standard. In the 2009–2010 fiscal year, significant progress was made in addressing the scope, language and definition of the standard, energy performance indicators and the energy planning process. The standard is expected to be available in the 2011–2012 fiscal year. In support of the standard, three pilot workshops were undertaken with respect to the energy management information systems. These efforts have facilitated the development of a new EMIS Dollars to $ense Energy Management workshop to be launched in 2011–2012.

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 twice during the 2009–2010 fiscal year.

Federal-Provincial and Federal-Territorial Co-operation

Interest continues to grow in energy efficiency as a means of maximizing the services obtained from Canada’s existing energy supply capacity. In addition to general co-operation on energy efficiency, provincial and territorial governments helped to deliver or employ 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.

Use of Federal EAE Program Tools by Utilities, Provinces and Territories

Provincial and territorial governments and utilities use federal EAE program tools to complement their own energy efficiency programs. Here are some examples:

  • Homeowners in all regions of Canada, except one territory, were able to access both provincial/territorial and federal home retrofit programs through a single energy evaluation offered under ecoENERGY Retrofit – Homes. The ecoENERGY evaluation and its criteria are also used by these jurisdictions to determine eligibility for incentives.

  • Canadians in most provinces and territories can benefit from rebates and sales tax exemptions on selected ENERGY STAR® qualified products. The ENERGY STAR Initiative in Canada is administered by the OEE and is used by a number of provinces and utilities as a qualifying criterion.

  • NRCan’s R-2000 Standard is used by utilities in Manitoba, New Brunswick and Nova Scotia as a qualifying criterion for incentives and rebates designed to encourage the construction of energy-efficient new homes.

  • All the provincial and territorial bodies (with the exception of Nunavut) responsible for driver education use the Auto$mart Driver Education Kit, developed by the OEE, to educate young drivers on fuel efficiency. For example, Manitoba Public Insurance and the Province of Ontario have recently incorporated a component on fuel efficiency into their driver education curricula. Also, many provinces display the OEE’s publications in their licensing bureaus.

  • Similarly, for commercial drivers, four memoranda of understanding with provinces and territories were put in place in 2009–2010, with five more under negotiation. Under these agreements, the province or territory will begin to incorporate knowledge of fuel-efficient driving techniques as a requirement in commercial driver licensing for novice drivers. OEE’s ecoENERGY for Fleets program will provide the educational and informational materials that are needed by the provinces, territories and driver educators to respond to this new requirement. This will ensure that new licensees in these jurisdictions are exposed to information on fuel-efficient driving practices as part of the licensing process and further encourage the uptake of program materials by driver education schools.

  • The OEE works in co-operation with many provincial organizations, such as Conserve Nova Scotia, to fund and implement actions to reduce energy use and GHG emissions from personal vehicles by improving the buying, driving and maintenance practices of Canadians.

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 Manitoba Hydro Power Smart program is widely recognized for its effective, user-friendly tools for homeowners, businesses and industry to boost energy efficiency and save significantly on energy costs.

The Ontario Power Authority’s Conservation Bureau provides leadership in planning and coordinating measures for electricity conservation and load management.

The 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 work of three agencies: Efficiency NB, Conserve Nova Scotia and Prince Edward Island’s Office of Energy Efficiency.

Other regional organizations of note are the Arctic Energy Alliance in the Northwest Territories and the Agence de l’efficacité énergétique du Québec.

The provinces have been promoting the use of renewable energy for electricity generation. They provide numerous incentives, including voluntary renewable energy targets, legislated renewable portfolio standards and the procurement of renewable energy through requests for proposals, standard offers and feed-in tariff programs.

The Building Energy Codes Collaborative

The Building Energy Codes Collaborative (BECC) is a federal-provincial-territorial committee supported by the Council of Energy Ministers, the SCEE 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 BECC are as follows:

  • provide a forum for provinces, territories and the Government of Canada to support the update, regulatory adoption and implementation of the Model National Energy Code for Buildings (MNECB), which is now called the National Energy Code for Buildings (NECB), 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 NECB

NRCan and BECC prepared a business plan for updating the 1997 NECB 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 (MOU) with the National Research Council Canada (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 NECB 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 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

  • continued processing of payments by the OEE’s Buildings Division 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. Though the two programs are closed, payments, which can be made only when the client verifies that work has been completed, are still being processed.

  • signing a three-year collaboration agreement with CanmetENERGY and the Agence de l’efficacité énergétique to help refrigerated facilities (ice and curling rinks, supermarkets, warehouses) in Quebec reduce their energy consumption and GHG emissions through the Programme d’optimisation en réfrigération (OPTER). This program is based on the CoolSolution approach developed by CanmetENERGY. CanmetENERGY provides technical support and training for consultants and decision-makers.

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 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 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.

Sustainable Development Technology Canada – NextGen Biofuels FundTM

The NextGen Biofuels FundTM is a $500-million program scheduled to run from 2008 to 2017. Responsibility for the program is held jointly by NRCan and Environment Canada. The fund is managed under the auspices of Sustainable Development Technology Canada (SDTC).

The NextGen Biofuels FundTM aims to facilitate the establishment of first-of-a-kind, large, demonstration-scale facilities for the production of next-generation biofuels and co-products in Canada; improve the sustainable development impacts arising from the production and use of biofuels; and encourage retention and growth of technology expertise and innovation capacity for the production of next-generation biofuels.

Next-generation renewable fuels are derived from non-traditional renewable feedstocks – such as forest biomass, fast-growing grasses and agricultural residues – and are produced with non-conventional conversion technologies. An eligible project must use feedstocks that are or could be representative of Canadian biomass, and the technology must have been demonstrated at the pre-commercial pilot scale. SDTC supports up to 40 percent of eligible project costs.

In 2009, SDTC approved funding for the detailed engineering phase of a large demonstration-scale cellulosic ethanol facility project. Based on the results, SDTC will decide whether to fund the construction phase of the project. SDTC is also assessing other projects for funding.

NRCan works with Ontario’s Ministry of Small Business and Consumer Services, the Independent Electricity System Operator and local distribution companies to provide energy management training to companies across Ontario through Dollars to $ense Energy Management 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 several stakeholders, including the Government of Alberta.

NRCan works with Efficiency NB to facilitate the access for owners of small and medium-sized buildings to the ecoEnergy Retrofit – Small and Medium Organizations program.

Atlantic Energy Gateway

The Atlantic Energy Gateway (AEG) is a $4-million joint initiative of NRCan and the Atlantic Canada Opportunities Agency for facilitating co-operation among Atlantic provinces for the development of the region’s clean energy resources.

In 2009, an AEG advisory committee of federal, provincial and utility members was formed. The committee oversees research and analysis that will provide insight into the challenges and opportunities involved in maximizing the benefits of developing clean energy in the Atlantic region.

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 (in this regard, NRCan provides input, as requested, to Foreign Affairs and International Trade Canada on prospective free trade agreements and on technical barriers to trade)

  • participating, along with other international partners, including the U.S. Department of Energy, in the development of ISO 50001, an Energy Management Standard that will help guide industry on best management practices and technical practices to reduce energy waste. Work on the standard started in the fall of 2008, and the expected release date is mid 2011.

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 national 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 SLT analyses policies to promote conservation and the efficient use of energy, as well as 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, including the Energy Policies of IEA Countries – Canada – 2009 Review, which was released in April 2010. 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. In 2009–2010, the IEA released a report card to the Group of Eight (G8) that recognized Canada as one of the top four IEA member countries that has fully or partially implemented the IEA’s recommendations on energy efficiency.

Canada’s international energy research and development (R&D) objectives are mainly advanced through the IEA’s working parties, implementing agreements, and experts groups that are under the Committee for Energy Research and Technology. Canada participates in 31 of the IEA’s 40 implementing agreements on R&D collaboration programs. NRCan contributed $889,000 to IEA implementing agreements in 2009–2010. One such agreement is the IEA Implementing Agreement for a Co-operating Programme on Efficient Electrical End-Use Equipment (4E). This agreement brings together energy efficiency policy-makers from Asia, Europe and North America to encourage the use of more efficient appliances (e.g. solid state lighting, electric motor systems and standby power). Co-operation through implementing agreements has helped to accelerate technology development and set the stage for technology deployment in Canada, generating benefits that far outweigh the direct costs of collaboration.

Canada also co-operates with research centres in IEA member countries on several R&D and technology agreements and programs outside the IEA. NRCan, together with Foreign Affairs and International Trade Canada, 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.

CanmetENERGY was named the operating agent of the new IEA Annex 54, “Integration of Micro-generation and other Energy Related Technologies in Buildings.” The research program will focus on improved models of poly-generation and/or hybrid type micro-generation systems. The purpose is to better assess the application of these systems, to identify the impact on energy use and GHG emissions and to investigate the competitiveness of these micro-generation systems in relation to other technologies. Participants are from 14 countries in Europe, Asia, Japan and North America and represent 24 research organizations, academia and private companies.

Group of Eight

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.” Working groups were formed around the process’ four pillars, one of which was energy, with a special focus on energy efficiency. The Energy Working Group explored the common ground available for building international support for new ideas and approaches for increasing energy efficiency. It focused on energy security, development of a sustainable buildings network, energy efficiency in existing power plants, and alternative sources of energy and renewable energy. Canada served as co-chair with India. The Working Group held its final meeting in April 2009 and submitted its report to the Heiligendamm Dialogue Process Steering Committee. The Steering Committee summarized the reports of the four working groups and submitted its report and conclusions to the 2009 G8 Summit in Italy.

International Partnership for Energy Efficiency Cooperation

NRCan participated in the development of an agreement establishing the International Partnership for Energy Efficiency Cooperation (IPEEC). This agreement was formally signed by Canada and 11 other countries during the G8 Energy Ministers Meeting in May 2009. The partnership supports the on-going energy efficiency work of the participating countries and relevant international organizations. The IPEEC Executive Committee met in 2009 and 2010, and the Policy Committee first met 2010. A key component of the IPEEC framework is task groups that pursue projects that interest most, but not all, IPEEC member countries. Canada contributed to the Sustainable Buildings Network Task Group and the Super-Efficient Equipment and Appliance Deployment Task Group.

Methane to Markets

CanmetENERGY represents Canada, in collaboration with the Environment Canada Climate Change International Branch, at the international Methane to Markets Partnership Steering Committee and co-chairs the Methane to Markets Oil and Gas Subcommittee with Mexico and Russia. CanmetENERGY-Devon R&D projects were showcased at the international Methane to Markets Partnership Expo in Delhi, India, on March 2–5, 2010. These domestic and international projects manage energy and emissions at oil and natural gas production and processing operations.

United Nations

RETScreen® International is managed under the leadership of NRCan’s CanmetENERGY. The RETScreen Clean Energy Project Analysis software, provided free-of-charge, can be used worldwide to evaluate the energy production and savings, costs, emission reductions, financial viability and risk for various types of renewable energy and energy-efficient technologies. RETScreen is managed through cost- and task-shared collaborative ventures with other governments and multilateral organizations and with technical support from more than 350 experts representing industry, government and academia.

Key partners are the NASA Langley Research Center, the Renewable Energy and Energy Efficiency Partnership and the Energy Branch of the United Nations Environment Programme.

Asia-Pacific Economic Co-operation (APEC)

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.

Asia-Pacific Partnership

The OEE participates through the Asia-Pacific Partnership (APP) on Clean Development and Climate on a task force on standby power data to internationally coordinate its efforts to reduce standby power consumption.

CanmetENERGY participates in the APP on three task forces: the Buildings and Appliances Task Force (BATF), the Renewable Energy and Distributed Power Generation Task Force (REDGTF) and the Cleaner Fossil Energy Task Force (CFETF). The Electricity Resources Branch of NRCan is the federal lead of the Power Generation and Distribution Task Force in 2010.

CanmetENERGY-Devon administered a project to develop corporate’s guidelines for energy and emissions management at the China National Petroleum Corporation’s upstream oil and natural gas facilities. This work was in collaboration with the Environment Canada Climate Change International Branch, APP funding and the U.S. Environmental Protection Agency (EPA). Also, a joint workshop for the APP CFETF and the international Methane to Markets Partnership’s Oil and Gas Subcommittee was co-hosted at Lake Louise, Alberta, by CanmetENERGY-Devon, Environment Canada and the EPA.

Within the BATF and REDGTF, CanmetENERGY proposed the Net Zero Energy Homes initiative. Under this initiative, Canadian delegates have initiated a collaborative dialogue with BATF and REDGTF partners to establish a formal international partnership that will map the path to achieving net zero energy homes.

Through a series of workshops and design charettes, Canada offered APP member countries an opportunity to set a precedent for housing performance optimization by bringing together the fragmented supply chain to discuss issues facing the sector. Participation from the project leaders of the existing BATF and REDGTF projects has ensured synergies. The workshops prominently featured Canadian industries, case studies and research, development and demonstration, potentially leading to commercial and technology transfer opportunities for Canadian firms.

As of May 2010, the APP had endorsed 175 projects and 22 flagship projects. Flagship projects comprise a portfolio of projects and activities that collectively exemplify the vision and objectives of the APP. Canada is involved in 30 APP projects.

U.S.-Canada Clean Energy Dialogue

The U.S.-Canada Clean Energy Dialogue (CED) was launched by Prime Minister Harper and President Obama in February 2009. It is a strategy for aligning regulatory standards and enhancing collaboration on the development of clean energy technologies to reduce GHG emissions. There are three working groups under the CED, and NRCan is involved in two of them: the Electric Grid Working Group and the Clean Energy Research and Development Working Group. Both focus areas are detailed in the CED Action Plan, which was presented to the Prime Minister and President in September 2009.

The Electricity Grid Working Group is focused on bilateral co-operation facilitating the long-term transition to a modernized electricity system based on clean and renewable generation. This facilitation includes identifying options for increasing Canada-U.S. trade in clean electricity, including the role that energy storage technologies might play in accommodating increased penetration of renewable sources. The facilitation also includes sharing best practices and engaging provinces, territories, industry and stakeholders in increasing the application of communications technologies, sensors and computer software to the electrical system – a concept known as the smart grid.

Human resources challenges are a particular problem in the electricity sector because of significant infrastructure renewal and modernization requirements. To foster dialogue on workforce issues, the Working Group brought together leading experts from industry and academia to identify required skills and share best practices. An outcomes report and recommendations were issued in summer 2010.

Energy storage technologies may hold the key for accommodating high proportions of intermittent renewable energy sources on the electric grid. However, these technologies face several technological, economic and regulatory barriers. To further understanding of these barriers, the Working Group commissioned a scoping paper that was presented in conjunction with a CED conference focused on increasing Canada-U.S. trade in clean electricity in May 2010.

R&D drives technological discovery and innovation, which are key ingredients in developing the low-carbon energy system of the future. The Clean Energy R&D working group aims to facilitate greater cross-border R&D collaboration by connecting Canadian and U.S. experts and institutions in priority areas for the Clean Energy Dialogue, including future-generation biofuels, clean engines/vehicles, and energy efficiency (homes and buildings). Strengthening collaboration in these areas through joint research, development and deployment will help reduce GHG emissions while strengthening both countries’ economies and creating new jobs.

The ENERGY STAR program is an on-going collaborative activity under the Clean Energy R&D Working Group. Expanding collaboration in the program will increase the availability and number of energy-efficient products and appliances and facilitate the harmonization of the North American equipment market.

NRCan’s Buildings Division is working with the EPA to develop a Canadian version of the U.S. ENERGY STAR building benchmarking program. The “Measure it, Manage it” Building Energy Benchmarking System tool will allow benchmarking of energy use of building types in both countries. This tool will help building operators and owners and energy utilities track, benchmark and manage energy consumption to reduce GHG emissions from commercial and institutional buildings.

United States

In addition to collaboration through the Clean Energy Dialogue, NRCan’s OEE signed an MOU with the EPA in September 2005 to share in the common goal of achieving greater energy efficiency and reducing CO2, 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 the reporting of initiatives. They are working together to harmonize program efforts in Canada and the United States.

In 2009, CanmetENERGY, working with the Standards Council of Canada, formed a National Smart Grid Technology and Standards Task Force to provide Canadian input into smart grid standardization activities being led by the U.S. National Institute of Standards and Technology. This process is engaging key stakeholders and regulators in Canada and has enhanced Canada-U.S. collaboration on smart grid interoperability issues.

North America

CanmetENERGY has established partnerships among Canada, the United States and Mexico under the Security and Prosperity Partnership (SPP) of North America to support marine energy research and low-head hydropower demonstrations. CanmetENERGY and other Canadian partners in the SPP program are collaborating with the United States to optimize the rotor design, electricity production and interconnection for the next generation of Verdant Power’s Free Flow Kinetic Hydropower System, for use in tidal currents and in-stream river applications. Through the same program, CanmetENERGY has created collaborative support for the demonstration of an innovative very low-head hydropower technology in Canada to evaluate the impacts on fish behaviour and the adaptation of the technology for cold climates.

NRCan also continues to work with the United States and Mexico through the Energy Efficiency Experts Group (EEEG) to promote the SPP agenda of harmonizing energy efficiency standards and co-operating on energy efficiency labelling programs. The EEEG is one of nine expert groups of the North American Energy Working Group.

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