Conservation: Let’s Get Serious
June 13, 2016, Presentation to the Ontario Energy Network
Dianne SaxeEnvironmental Commissioner
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Overview
Where are we now? Three new laws
Energy stats
Conservation 2014
Conservation future: Climate change action plan
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Three new laws since May 19
172: Climate Change Mitigation and Low-Carbon Economy Act
151: Waste-Free Ontario Act
135: Energy Statute Law Amendment Act
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Climate Cap and Trade
Climate Change Mitigation and Low-Carbon Economy Act Legal requirement to cut GHGs, from 1990 baseline:
15% by 2020.
37% by 2030.
80% by 2050!
Fossil fuel costs to rise
~$1.9 B/year to Greenhouse Gas Reduction Account
To be spent as per Action Plan
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Why 80%?
170 MT to 36 MT
12.6 T/person to >2
Consistent with 2 degrees?
IPCC 5 computer model way too optimistic?
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Ontario GHG emissions
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How much climate change since you were born?
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Circular Economy
Waste-Free Ontario Act Resource Recovery and Circular Economy Act
Individual producer responsibility
All forms of waste, not just packaging
No more diversion monopolies
Waste Diversion Transition Act
Blue Box stranded assets?
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Energy
Energy Statute Law Amendment Act
Amends: Green Energy Act
Disclosure of energy and water use
Access to usage data
Conservation plans
Electricity Act
Long term energy planning
Ontario Energy Board Act
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Current energy stats
80% fossil fuels
Every fossil fuel, except coal, is up since 2007
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Some decoupling
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• Total energy use is flat• Energy use per capita (all fuels) down 7% from 2007 to 2014
Mostly from Electricity
• Use down 6% from 2007 (8% excluding embedded gen.), summer peak down 17%• 91% low emission
• Utility spending: $421M in 2014
• LDCs: 109% of energy target, 70% of peak demand target
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Natural gas: use is up
• Twice as much energy use as electricity, but 1/6 the conservation spending ($66M in 2014)
• Weather impact (e.g. 2014 “polar vortex”)
• Good conservation performance by Union/Enbridge
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Transportation fuel: use is up
• No dedicated conservation funding
• Government targets: no action (10% Low Carbon Fuel Standard), or poor performance (land use; only 1% of the way towards 2020 EV target)
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Overview
Where are we now? Three new laws
Energy stats
Conservation 2014
Conservation future: Climate change action plan
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Rebalancing conservation
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• Need to increase effort on conserving fossil fuels (buildings and transportation)
• Carbon pricing will help, but is it enough?
Lopsided focus
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Is it driving rates up?
$483M/ yr: a lot of money
Confusion /resentment over rate increases
Global Adjustment charges: Legitimate?
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Why conserve during a surplus?
Take or pay surplus in some hours (usually overnight)
Will largely disappear with nuclear refurbishment/ Pickering shutdown / NUG expiry
Conservation pays its wayfrom savings in other hours and in future years
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It matters when we conserve
Electricity conservation has more economic and environmental value when it displaces gas-fired generation
Conservation framework needs focus
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Credibility needs transparency
Relevant data
Response to critiques
Coherent explanations
Subsidies
Off peak “value”
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Fossil fuel subsidies
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• $628 M in Ontario tax breaks for fossil fuels
• At cross-purposes to cap and trade
• Good tax policy?
Overview
Where are we now?
Conservation 2014
Conservation future: Climate change action plan
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Role of conservation?
IEA: About 40% of the reductions we need by 2050
About half of our recommendations accepted in action plan
Buildings
Transportation
Standards
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Buildings: transparency
Poor energy use data
Mandatory reporting by 15,000 buildings in the Broader Public Sector (O. Reg. 397/11)
Who are the energy hogs?
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Admin & Storage Facilities
2,057,002,060 ekWh/yr
Hospitals & Emergency Response
4,746,486,624 ekWh/yr
Schools, Universities, Colleges and Libraries
8,548,905,751 ekWh/yr
H2O & Sewage1,595,722,106
ekWh/yr
Community, Sports, & Rec Centres1,774,408,680
ekWh/yr
Where energy is used in the BPS
Energy Use Intensity in BPS Buildings
Good and bad performers in all categories of buildings.
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Large variations in energy intensity
Buildings with the same function perform very differently…
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Huge potential savings …. 35% energy savings; 1 MT/yr GHG reduction; $450M in
utility bills.
Buildings: action plan
Public sector: 50% reduction from 2006 by 2030
Moving towards carbon neutrality
Funding for schools, universities, hospitals
Use of ESCOs
Energy reporting and benchmarking by large private buildings
Pre-sale audits/ disclosure for homes
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Transportation: a huge challenge
Largest source of emissions but toughest to tackle
Key levers: Land use planning (reduce travel distances)
Transit/shared transportation (reduce vehicle km per person)
Cleaner/more efficient vehicles (reduce energy/emissions intensity)
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Electrification?
Abundant, low-emissions off-peak electricity: 1 million EVs would increase electricity use only 2%
Role for energy industry: Match customer charging to electric utility needs
Maximize off-peak charging
Smart grid technologies/innovative programs
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Transportation in the action plan
Better land use planning
Focus on transit, active transportation
Lower carbon fuels and vehicles especially electrification
Electric school buses
Charging infrastructure Workplaces
New homes
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Product efficiency standards
Recent Ontario regulatory updates: Harmonize with many U.S. standards;
Proposed (stricter) Ontario-specific standards for many HVAC products – most abandoned or watered down
ECO: Standards for water fixtures (water = embodied energy)
Authority to enforce compliance
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Can utilities pave the way for higher standards?
Targeted programs to increase market share of high-efficiency technologies in advance of proposed standards?
Model has worked well for the Building Code (this year’s voluntary high-performance home becomes next year’s Code minimum).
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Standards in the action plan
Energy efficiency standards for equipment in water and wastewater treatment plants
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Conclusions
Generational change: three new laws More level playing field for a sustainable economy?
Half of our recommendations already accepted
Ontario’s getting serious about conservation/ efficiency
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Continuing the conversation
Report: eco.on.ca/reports/2016-lets-get-serious/
Hot topics for 2017?
Questions?
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Thanks!
Sign up for ECO updates and blog at
eco.on.ca
Dianne SaxeEnvironmental Commissioner
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