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!

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eco.on.ca

Dianne SaxeEnvironmental Commissioner

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