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STAFF REPORT TO COUNCIL PLANNING AND DEVELOPMENT 1100 Patricia Boulevard, Prince George, B.C., V2L 3V9

DATE: January 11 2011

TO: MAYOR AND COUNCIL FROM: DAN ADAMSON, ENVIRONMENT MANAGER SUBJECT: Letter of Support to Sustainable Northern Solutions Society ATTACHMENT(S): 1. Letter to Mayor and Council from Sustainable Northern Solutions Society 2. Letter of Support to Sustainable Northern Solutions Society PURPOSE: This report is provided for Council’s consideration with respect to a request from the Sustainable Northern Solutions Society for a letter of support from the City of Prince George regarding the Society’s interest in undertaking a feasibility study for a biodiesel pilot facility to recycle waste vegetable oil. POLICY / REGULATORY ANALYSIS: Mayor and Council received a December 15, 2010 letter from Mr. Purvis, President of the Sustainable Northern Solutions Society, requesting a letter of support from the City of Prince George. The Society intends to apply to a number of agencies for grant funding to undertake a feasibility study for a biodiesel pilot facility to recycle and convert waste vegetable oil. The Society has received support letters from UNBC, the Coast Inn of the North, the Regional District of Fraser-Fort George, and REAPS. Mr. Purvis had held preliminary discussions with City staff in 2008 to discuss the concept. City staff indicated that the concept had merit but there were many technical and business related questions yet to be addressed. There are no biodiesel production facilities in north-central BC. Waste cooking oil is currently collected and transported from Prince George by McLeod’s By-Products (about 2 trips per month) and the oil is converted into an additive for feed stock for the agricultural sector.

RECOMMENDATION(S):

1. THAT the Staff Report be received.

2. THAT Council APPROVE the following resolutions:

a. BE IT RESOLVED that the attached letter of support be sent to the Sustainable Northern Solutions Society

CITY OF PRINCE GEORGE

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Although the City Fleet Services have been using biodiesel in blending with regular diesel, the biodiesel has been brought up from southern BC and the supplier has recently indicated that they will no longer be able to continue to supply Prince George.  Fleet Services will consider any supplier of the product providing it meets established quality and production standards. City staff supports the concept of utilizing waste oil and converting it to biodiesel which can be a cleaner burning fuel. If a local biodiesel facility is realized, it will substantially reduce the current transportation of waste oil to southern facilities and provide a local source for biodiesel. A feasibility study would address a number of technical and business related questions and City staff recommends that Council support the Society pursuing grant funding for a feasibility study. An attached letter has been drafted for Council’s consideration. STRATEGIC PRIORITIES: This initiative falls within two of Council’s strategic core focus areas: “Improving our Health and Safety”, and “taking care of our Air, Water, and Land Resources”. FINANCIAL CONSIDERATIONS: There are no budget implications. SUMMARY AND CONCLUSION: City staff recommends supporting the Society in pursuing applications for grant funding in order to conduct a feasibility study for a biodiesel pilot facility. Collection and conversion of local waste cooking oil to biodiesel has a number of benefits if successful. A feasibility study would address a number of technical and business related questions. Respectfully submitted:

_____________________________ Dan Adamson, Environment Manager (250-614-7891)

To: Mayor and Council

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City of Prince George Letterhead

Mayor’s Office

January ,2011 Mr. Russ Purvis President Sustainable Northern Solutions Society PO Box 725, McBride, BC V0J 2E0 Dear Mr. Purvis, The City of Prince George is pleased to provide this letter of support in principle for your intention to conduct a feasibility study for a biodiesel pilot facility to recycle used vegetable oil. The City of Prince George supports the concept of utilizing waste oil and converting it to biodiesel, which can be a cleaner burning fuel. If a local biodiesel facility is realized, it will substantially reduce the current transportation of waste oil to southern facilities and provide a local source for biodiesel. We also note that this has the potential to create local employment, and to reduce costs to local restaurants which currently pay to have waste cooking oil transported to other recycling facilities in southern BC. In addition, a local biodiesel facility would assist in reducing waste cooking oil that ends up in the local landfill. Since 2007, the City of Prince George has been using a blended biodiesel for 134 vehicles in its fleet. However the supplier, located in southern BC, is currently unable to continue their supply to Prince George. Having a local source of quality biodiesel would improve the supply situation and make using biodiesel blending more feasible, not only for the City’s fleet, but potentially for other local fleet operators as well. A feasibility study is a good first step in addressing a number of outstanding technical and business related questions. We wish you the best of luck in your pursuit of your study, and we look forward to hearing about your progress. Sincerely, CITY OF PRINCE GEORGE Dan Rogers, Mayor

Sustainable Northern Solutions Society

December 15, 2010

Mayor and Council City of Prince George 1100 Patricia Boulevard Prince George, B.C V2L 3V9

RE: Request for Letter of Support

Mayor and Coum;il:

In pursuit of a cleaner environment, greater local energy security and a more sustainable local economy we ask for a letter of support. We are seeking grant funding for a Feasibility Study for a Biodiesel Pilot Facility to recycle the waste vegetable oil generated by the businesses and institutions within the City.

Sources of potential funding are: Northern Development Initiative Trust, Business Development Baok of Canada, the Cooperative Development Initiative, and Sustainable Development Technology Canada, amongst others.

We ask you join other members of the greater community: former President of the Prince George Restaurant Association, Recycling .and Environment Action Planning Society (REAPS), Regioqal District of Fraser-Fort George, and University ofNorthem British Columbia, in offeting your support.

Thank you.

..-· . .,..-··-Sincerely,

President

"The purposes of the society are to educate and demonstrate sustainable living

strategies and solutions within a Regional context."

PO Box 725, McBride, British Columbia VOJ 2EO

Tel. 250-553-6882 Email: info@kakwaecovillage.com C

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A Successful Feasibility Study Could lead to a Biodiesel Processing Pilot

in Prince George

Overview

In 2007 a groundswell of community interest was generated by discussions around the

possibilities of local biodiesel processing. A series of public meetings were held.

Representatives from 4 groups from within the wider community were in attendance: The

City, UNBC, CNC, and local farmers/citizens. A national Cooperative consultant (Marty

Frost*) was made available by the national Cooperative Secretariat to identify the

possibilities of forging a single voice for this group. The ultimate identified stumbling

block was lack of locally available farmer supplied feedstocks. This was further enforced

by the lack of available funds for feedstock crop trials from the provincial Ministry of

Agriculture in support of identified farmers’ interest.

Feedstock

As a city of 77,000+ Prince George has a projected waste vegetable oil feedstock

potential of 358,216 liters of “yellow grease” and 517, 423 liters of “trap grease” from

restaurant sources alone. (See: http://www.wd.gc.ca/rpts/research/biodiesel/full_e.pdf.)

Using base catalyzed transesterification processing conversion efficiency to biodiesel can

be as high as 98%. That translates into 858,126 liters of biodiesel which could be

produced from local restaurant’s recycled waste vegetable oil annually. This same

amount could be substituted for petroleum derived diesel resulting in enhanced air quality

benefits. This number increases significantly when the estimate is expanded to the

Fraser-Fort George Regional District.

Rationale and projected economic benefits to the local or regional economy:

Sustainability Givens:

A) Biodiesel is a cleaner burning fuel than its petroleum based counterpart.

B) Reduced local consumption of petroleum based fuels will result in enhanced local AQ

and reduced GHG emissions.

C) The City of Prince George has recognized the benefits of biodiesel including a

purchase of as much as 36,000 liters on an annual basis for its fleet. A locally produced

biodiesel product should be able to compete for the City's business.

D) Recycling has the potential to reduce impacts on the local municipal sewage/waste

processing plant

E) The net micro economic benefit of local biodiesel production from recycled sources

would include in the first year:

a) creation of 1-2 jobs,

b) a cheaper fuel source for local farmers.

F) Recycled local waste products provide local jobs as opposed to exporting them to

Vancouver thereby stimulating the local economy, creates greater local energy security,

and a more sustainable local economy.

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Investment Required

Beyond the obvious management skill set to bring the concept to manifestation the

following infrastructure needs will require sources:

1) site with water and power (if processing and distribution occurs during the summer

months indoor space may not be needed)

2) storage/processing tanks

3) pump/utility truck for pickup of waste vegetable oil/grease

4) quality control and processing engineer/consultants

Local Team

A community based legal entity with a board of directors representing: the City of Prince

George, UNBC, the Regional District, the PG Food and Restaurant Association, and area

farmers/citizens would conceivably bring all the local stakeholders together. There is

some precedence in BC for a Cooperative to meet this type of a diverse multi-stakeholder

function. In 2007 a representative from the City of Prince George’s fleet services group, a

UNBC representative and a local farmer attended a biofuels conference sponsored by the

Cooperative Secretariat in Ottawa. This provided an opportunity to garner a wider view

and assessment of potential future support. A spokesperson for the PG Food and

Restaurant Association has stated his interest in supporting the concept, expressing the

obvious benefits for members of the association: reduced costs for disposal of a waste

product, potential local jobs creation, and support of “green” technology.

Down the Road

A future with a local recycled fuel source is a positive step towards building a more

vibrant, resilient local economy. As local academic institutions see the value in

participating in various aspects of the Coop from lab work to marketing, the Coop could

achieve significant advances in the quality of products after a relatively short period of

time. Due to the apparent ease in processing/transport of yellow grease it is expected to

be the primary initial feedstock. Beyond trap grease as a secondary feed stock source

other potential sources including tallow from local abattoirs and oil seeds might be

developed over time.

Notes:

*Marty Frost created and is Director of Westcoast Development Cooperative (Devco).

Devco is the leader in co-op development in the Province of British Columbia and has

assisted over 100 co-ops and community groups with their development and training

needs. He’s a founder and former Director of the Canadian Worker Co-op Federation

(CWCF) and their co-op developers' network which has roughly 50 co-op developers in

every province in Canada. In addition he’s a former Director of the Co-op Housing

Federation of Canada and consults for the Enterprising Non-Profits program which

provides technical assistance to charitable non-profits who wish to create an income-

generating enterprise to support their activities

-- - -- -- ··-· ---. ·-. -·

f ,Jae· UNIVERSITY OF . · . l,lrj NORTHERN BRITISH COLUMBIA

Office of Research ~d Graduate Programs Room#1050 3333 University Way,.Princc-George, BC, V2N 4Z9 Tel 250.960.5820 Fax 250.960.5362 e-mail: fondahlg@unbc.ca

29 September, 2009

.... ---- ------ -----RE: Application for Funding of a Feasibility Study Application to the Northern Development Initiative in Support of a Local Biodiesel Facility

Applicant Organization: Sustainable Northern Solutions Society

To whom it may concern:

UNBC finds the proposal for a Biodiesel Facility of substantial interest, given its interest in bioenergy and the bioeconomy. Such a facility could reduce the waste stream in Prince George, contribute to the reduction of greenhouse gas emissions, and produce a local source of commercial . grade biodiesel, which would contribute to increasing the energy autarky of the Prince George region. It could also contribute to the local economy through the creation of jobs.

Our interest is especially the research opportunities such a facility might provide. We would hope to be able to work with the Facility to answer research questions, and to consider internship opportunities for our graduate students.

Sincerely,

Dr. Gail Fondahl, PhD Vice President, Research

July 14, 2009

Prince George Restaurant Assoc 4046 Cormack Gres Prince George, BC

RE: Application for funding of a Feasibility Study Application to the Norther:n Development Initiative in support of a local Biodiesel Facility

Applicant Organization: Sustainable Northern Solutions Society

To whom it may concern: ~y.f:~.: . .<' .. :/•".r:z . . ·-e=· : .

As a member of the Prince George Restaurant Association and it's former President I believe a local Biodiesel Facility would have a positive benefit on the business climate of the City of Prince George.

Restaurants and food service institutions incur significant costs annually to pay for disposal of locally generated waste vegetable oil. A local recycling facility would have several positive benefits:

1 ) Reduce operating costs for local restaurants & food service institutions by having demand from a local recycler 2) Production of local commercial grade biodiesel would offer some measures of fuel security for the City of Prince George and the Regional District of Fraser-Fort George as well as potentially lower operating costs. 3) Biodiesel usage has been identified as a contributor to improved AQ (air quality) Vs. petroleum derived diesel in a City where AQ impacts the livability and tourism potential. 4) Supports a new local renewable energy based economy that is likely to foster some direct job creation.

Yours truly,

Food & Beverage Manger The Coast Inn of the North Prince George, BC

Head Office: 155 George Street Prince George, BC V2L 1P8

Telephone: (250) 960-4400 Long Distance from within the Regional District: 1-800-667-1959

Fax: (250) 563-7520

http://www.rdffg .bc.ca

Municipalities: McBride Mackenzie Prince George Valemount

Electoral Areas: Chi/aka River-Nechako Crooked River-Parsnip Robson Valley-Canoe Salmon River-Lakes Tabor Lake-Stone Creek Willow River-Upper Fraser Woodpecker-Hixon

• REGIONAL DISTRICT , A' of Fraser-Fort George

November 30, 2009

Russ Purvis Sustainable Northern Solutions Society PO Box 725 McBride, BC V0J 2E0

Dear Mr. Purvis:

BOA 1.8

The Regional District of Fraser-Fort George is pleased to express support in principle for the feasib ility study for a pilot processing facility for recycled waste vegetable oil, or bio diesel.

Biodiesel is a safe, non-toxic, biodegradable and renewable fuel that can be easily used in unmodified diesel engines and a variety of other applications. Biodiesel is now the fastest growing alternative fuel in Europe. The City of Prince George's Supply and Fleet Services Division started using biodiesel fuel in June 2007 in 134 vehicles owned and operated by the City. Currently, there is no local producer of bio-diesel, so the addition of a bio-diesel processing plant in our region would not only provide that fuel locally, but it could also help divert some of the hundreds of thousands of litres of waste vegetable oil that is currently going to our landfill.

We wish you all the best in your study, and look forward to hearing about your progress.

Yours truly, /

C-Q-/-~

Art Kaehn Chair

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21 June 2010

Dear Mr. deMontigny:

RE: Proposed· Biodiesel Production in Prince George BC

Thanks you for contacting REAPS reg.arding your proposed new Biodiesel facility in Prince _George

REAPS M_andate is fostering environmental stewardship in the Regional District of Fraser Fort George. Our main focus is waste reduction and we support local.·initiatives of waste avoidance and low carbon solutions such as biodieset :production from waste materials.

While we do not .endorse specific business•, we fully support the establishment of local initiatives that tum waste into usable products.

We wish you all the best with your endeavour.

Regards On Behalf of t_he Board of Directors of REAPS

Terri McClymont, Executive Director

REAPS Mandate

. REAPS is a noni)l'ofil society wol1<ing towards waste avoidance. We support yr.tSte management solutions by offering school environmental programs and presentations; community workshops on composting, vermicomposting and organic gardening; conducting resean:ti; facilitating the exchange of ideas; and providing recycling Information services in the Regional District of Fraser-Fort George.