Chris Baber Neighbourhood Energy Manager City of Vancouver

1. Vancouver’s Strategic Approach to Low Carbon Neighbourhood Energy WORLD URBAN FORUM • APRIL 9, 2014 Chris Baber Neighbourhood Energy Manager City of Vancouver

2. VANCOUVER

3. Vancouver: Canada’s Pacific Gateway USA Border MetroVancouver 2.5 million people Vancouver City 600,000 people

4. Greenest City in the World by 2020 • Lowest greenhouse gas emissions in North America • Power >90% hydro electric • Provincial Carbon Tax $30/t • Growing population and economy, decreasing vehicle use emissions

5. Greenest City Action Plan Aspirational Goals

6. Greenest City Action Plan Framework

7. City jurisdiction over Greenest City goals City goals will only be achieved through partnerships.

8. TOWARD ZERO CARBON THROUGH: CLIMATE LEADERSHIP GOAL:Eliminate Vancouver’s dependence on fossil fuels. 2020 target: Reduce greenhouse gas emissions 33 per cent from 2007 levels.

9. Reaching our 2020 GHG Goal:Neighbourhood Energy’s Role GCAP goal: 33% carbon reduction by 2020 (reduce 1,110,000 tons CO2 / year)

10. What is Neighbourhood Energy? Neighbourhood Energy Systems (NES) supply centralized heating, hot water, and sometimes cooling for multiple buildings (commonly referred to as “District Energy”). .

11. Goal – Convert Legacy Steam SystemsTarget = 95,000 tonnes/year CO2 reduction by 2020 Central Heat (steam) Hospital Campuses (steam)

12. Goal – Establish New Low Carbon SystemsTarget = 25,000 tonnes/year CO2 reduction by 2020 Central Heat (steam) NE False Creek Hospital Campuses (steam) SE False Creek River District Large Development Sites

13. Southeast False Creek Neighbourhood Energy Utility saved 2,500 tonnes of GHG emissions in 2013

14. SEFC Neighbourhood Energy Utility(established in 2010) • 70% of energy supply is waste heat recovered from untreated sewage (60% CO2reduction) • Financially self-sufficient, recovering capital/operating costs and ROI with competitive customer rates • Rapidly expanding

15. Strategic Approach to Neighbourhood EnergyApproved by City Council October 2012 • Targets areas with greatest CO2 reduction potential • Utilizes a flexible combination of enabling tools • Minimizes City financial risk and exposure 15

16. NES Strategy - Priority Areas Identified Downtown Cambie Corridor Broadway Corridor

17. Energy Centre Guidelines: Supportive Policy for New Low Carbon Facilities • GHG performance - • Air quality - • Neighbourhood fit - • Sustainability of fuel sources - • Community engagement -

18. NES Enabling Tools • NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes • Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. • Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and bylaws • Access to City Assets: City provides access to property and other assets to enable the production,distribution and sale of energy

19. NES Enabling Tools • NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes • Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. • Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and bylaws • Access to City Assets: City provides access to property and other assets to enable the production,distribution and sale of energy

20. NES Enabling Tools • NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes • Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. • Customer Connection Policy: used to secure customer base to de-risk NES investments - examples include zoning policies and bylaws • Access to City Assets: City provides access to property and other assets to enable the production,distribution and sale of energy

21. NES Enabling Tools • NES Franchise Contracts: City provides utility with exclusive right to supply energy in return for performance outcomes. • Cost Competitiveness Measures: may include adjustments to property tax policy, access to grants etc. • Customer Connection Policy: used to secure customer base to de-risk NES capital investments - examples include zoning policies and service area bylaws • Access to City Assets: City provides access to property and other assets to enable the production,distribution and sale of energy.

22. Challenges • Low gas and electricity prices • The City does not own legacy steam heat systems • Limited public understanding of low carbon technologies Questions?

23. Leverage Points • Rapid pace of land development • City controls land use and building code • Expertise gained through development of SEFC NEU

24. IMPLEMENTATION STATUS: DOWNTOWN • Utility partner selected with competitive process • Planning underway to convert legacy steam system • New franchise contract negotiated to establish system in Northeast False Creek

25. IMPLEMENTATION STATUS: CAMBIE CORRIDOR • Health authority has agreed to proceed with low-carbon conversion of hospital campus steam systems • Utility partner selection underway to implement new NES networks • Potential development of Resource and Energy Recovery Facility to supply heat

26. Conclusion

27. Change is possible 1980’s 2000’s