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Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act - 2003-2004

Chapter 11: Intergovernmental Cooperation

Introduction

This chapter describes Natural Resources Canada's (NRCan's) intergovernmental cooperation with respect to efficiency and alternative energy (EAE) during the reporting period at the provincial/territorial and international levels. Other examples of intergovernmental cooperation are set out in previous chapters in the Key Achievements sections of specific EAE program initiatives. It also should be noted that municipal governments and agencies participate in NRCan's EAE measures as clients (e.g. for training workshops; as recipients of financial incentives) and partners (e.g. in anti-idling projects). NRCan also participates in ventures led by municipal organizations (e.g. Green Municipal Funds, as explained in the accompanying textbox) and provincially/territorially regulated electricity and provincially regulated natural gas utilities.

Green Municipal Funds

• The Green Municipal Funds were created in Budget 2000 by an endowment of $125 million to the Federation of Canadian Municipalities (FCM). The funds were doubled in Budget 2001 to the current total of $250 million – $50 million for the Green Municipal Enabling Fund and $200 million for the Green Municipal Investment Fund.
• The Government of Canada signed an Agreement with the FCM, a non-profit organization, to deliver the Green Municipal Funds. Under the agreement, the Government of Canada (NRCan and Environment Canada) shares in the governance of the Green Municipal Funds, along with representatives from the public and private sectors, including municipal officials and technical experts, through participation on a Peer Review Committee and a governing Council. The FCM Board of Directors reviews council recommendations and decisions.

Federal-Provincial and Federal-Territorial Cooperation

Provincial and territorial governments assisted the delivery of a substantial number of EAE programs during the reporting period to reduce energy costs, increase competitiveness, improve air quality and generate economic and trade opportunities. Coordination between the federal and provincial/territorial levels is essential to avoid duplication and ensure efficient program delivery. During the reporting period, the governments cooperated at the general level and at the level of specific program initiatives.

General Cooperation

Cooperation Agreements

• NRCan's Letter of Cooperation (LOC) on EAE with the Agence de l'efficacité énergétique du Québec during the reporting period ensures an efficient consultation and exchange of information between the two governments, and helps the coordination of EAE activities in the province and the creation of opportunities for joint projects. The management committee established under the LOC met during the year to review policy and program developments, progress on joint program initiatives and areas for further cooperation. The LOC played a considerable role in facilitating the conduct of three activities in particular:
  • management of the licensing agreement for delivery of EnerGuide for Houses.
  • the processing of projects submitted to the Energy Innovators Initiative and the Commercial Building Incentive Program by public organizations in Quebec. This cooperation framework is also being applied to other NRCan programs aimed at the public sector in Quebec.
  • management of an agreement relating to the Programme d'intervention en réfrigération dans les arenas du Québec, under which NRCan has provided technical support for the implementation of innovative refrigeration systems in Quebec's ice rinks.

• NRCan's LOC on energy efficiency and renewable energy with the Government of Yukon facilitates information exchange and the creation of opportunities for joint projects in Yukon, including partnering with the Yukon Development Corporation to create the Canada-Yukon Energy Solutions Centre in Whitehorse. The Centre provides access to relevant technical services and programs for the Yukon population and undertakes outreach and public education activities.
• The Government of Canada contributes to the Arctic Energy Alliance to promote energy efficiency and renewable energy in the Northwest Territories and to facilitate opportunities for EAE projects. The Alliance also is the delivery agent in the Northwest Territories for the EnerGuide for Houses initiative.
• The Government of Canada promotes energy efficiency and renewable energy in Alberta by working with Climate Change Central, a not-for-profit corporation which is funded by a multi-stakeholder base, including the Government of Alberta.

National Advisory Council on Energy Efficiency (NACEE)

• NRCan created NACEE in April 1998 to advise and guide the Office of Energy Efficiency (OEE) on the most effective way to achieve its mission. Its membership is drawn from across Canada and all economic sectors, including provincial/territorial officials and representatives of electricity and natural gas utilities, who have the opportunity to comment on the OEE's business plan and programs. NACEE met three times during 2003-2004.

Examples of Cooperation at the Program Level

R-2000 Standard and EnerGuide for Houses

• The Government of Canada contributes towards the delivery of R-2000 and EnerGuide for New Houses by the Yukon Housing Corporation. The Corporation also delivers EnerGuide for Houses in the existing housing market in the territory.
• In New Brunswick, Newfoundland and Labrador, Nova Scotia and Saskatchewan, the provincial governments and NRCan supported R-2000 through financial or in-kind contributions. Saskatchewan also supports marketing of EnerGuide for Houses in that province.
• In Manitoba and Yukon, the provincial and territorial governments delivered R-2000 under a licensing agreement with NRCan.
• In Quebec, the Agence de l'efficacité énergétique du Québec has incorporated the R-2000 Standard into its Novoclimat Initiative. The Agence also coordinates the delivery of EnerGuide for Houses in the province.
• Manitoba Hydro has incorporated the R-2000 Standard and EnerGuide for Houses into its Power Smart initiatives.
• British Columbia Hydro offers a financial incentive for energy-efficient residential retrofits, based on the EnerGuide for Houses service.

Federal Buildings Initiative (FBI)

• British Columbia and New Brunswick have replicated several elements of the FBI into programs aimed at improving the energy efficiency and environmental performance of their buildings.

Commercial Building Incentive Program (CBIP)

• Provinces and territories distributed information on CBIP.
• Provincial and territorial health and education departments were active participants in the program as eligible parties.
• NRCan works with the Agence de l'efficacité énergétique du Québec to facilitate the participation of public organizations in the initiative.
• The province of Alberta, through the Energy Solutions Alberta initiative of Climate Change Central, implemented a pilot program providing additional financial incentives to projects approved by CBIP.
• The province of Saskatchewan announced a new policy mandating CBIP compliance for provincial buildings receiving at least 30 percent government funding.

Canadian Industry Program for Energy Conservation (CIPEC)

• NRCan collaborated with the Agence de l'efficacité énergétique du Québec, Hydro-Québec and Gaz Métro in Quebec; with Enbridge and Union Gas in Ontario; and with Manitoba Hydro and BC Hydro on funding industrial energy audits of companies within their jurisdictions. As well, provincial government and utilities in the provinces of Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Manitoba, Saskatchewan, Alberta and British Columbia collaborated with CBIP to deliver industrial energy efficiency information sessions.

Energy Innovators Initiative (EII)

• The EII relies on partners to promote energy efficiency and facilitate access to its members as well as to provide sectoral information. Partners include the Association of Canadian Community Colleges, the Canadian School Boards Association, the Canadian College of Health Service Executives, the Association des gestionnaires de parcs immobiliers institutionnels, and the Ontario Hospitals Association.
• A dynamic partnership has been established with BC Hydro to assist in identifying new retrofit projects with large energy users.
• EII established a collaboration with Hydro-Québec to hold joint promotional activities, as well as to explore ways to harmonize each party's programs.
• The EII works with the Agence de l'efficacité énergétique du Québec to facilitate program delivery to the province's institutional sector.

Equipment Energy Efficiency Regulations and Labelling

• NRCan and five provinces (British Columbia, New Brunswick, Nova Scotia, Ontario and Quebec) regulate the energy efficiency performance of prescribed equipment. They share information and consult through the Canadian Standards Association's Advisory Committee on Energy Efficiency.
• Incentive rebate programs for the purchase of ENERGY STAR^® qualified equipment were conducted, in cooperation with NRCan, by BC Hydro and Terasen Inc. (British Columbia), Climate Change Central (Alberta), the Province of Saskatchewan, Union Gas (Ontario), Enbridge Gas Distribution (Ontario) and Enbridge Gas New Brunswick.
• NRCan worked with Manitoba Hydro and the City of Winnipeg on a demonstration of the use of LED (light emitting diode) traffic lights in severe climates. It undertook a pilot program with British Columbia Hydro to promote the purchase and use of LED seasonal lights.

Initiative to Purchase Electricity From Emerging Renewable Energy Sources

• The February 2000 federal budget announced that the Government of Canada would expand the pilot Green Power Initiative to procure $15 million of renewable energy over the next 10 years in Saskatchewan and Prince Edward Island. By early 2001, agreements were reached with SaskPower and Maritime Electric on the purchase of "green" power for federal facilities in the provinces they serve.

Market Incentive Program for Distributors of Electricity From Emerging Renewable Energy Sources

• Announced in October 2002, this program provides a limited financial incentive towards projects aimed at developing market-based programs and promoting the sale of electricity from emerging renewable sources to residential and small-business customers. Agreements have been signed with Selectpower, a subsidiary of Guelph Hydro Inc. (Ontario), NB (New Brunswick) Power and Maritime Power (Prince Edward Island).

Residential Wood Combustion

• NRCan is a member of the Intergovernmental Working Group on Residential Wood Combustion, which includes representatives from municipal, provincial, territorial and federal governments. The Working Group was formed in 1999 to promote and coordinate government actions on the sustainable development of residential wood combustion. Its first priority was to address four components related to residential wood combustion under the Joint Initial Actions on the Canada-wide Standards for fine particulate matter (PM_2.5) and ozone. Under these actions, governments committed to participating in new initiatives to reduce emissions from residential wood-burning appliances, including:
  • an update of the Canadian Standards Association's standards for new wood-burning appliances
  • development of a national regulation for new, clean-burning residential wood heating appliances
  • national public education programs
  • an assessment of the option of a national wood stove upgrade or change-out program

Personal Vehicles and Vehicle Fuels

• In Ontario, the Municipalities of Mississauga, Ottawa, Caledon and the Greater Toronto Area are active members of NRCan's vehicle anti-idling campaign. Other campaigns have been successfully completed in Calgary, Edmonton, Sherbrooke and Québec City.
• All provinces and territories have agreed to include fuel efficiency messaging provided by NRCan in their next version of basic drivers handbooks.
• NRCan co-chairs the federal-provincial/territorial Council of Energy Ministers' Working Group on Biofuels.

Program of Energy Research and Development (PERD)

• NRCan manages this 30-year program that funds energy research and development through 12 federal departments.
• Research and development is performed in federal facilities located across Canada and is also supported by the provinces/territories and industry.

Technology and Innovation Research and Development (T&I R&D)

• Announced in 2003 as part of the Climate Change Plan for Canada, this five-year interdepartmental initiative will accelerate the development of technologies to help achieve GHG reductions in the longer term.
• Energy efficiency will be a key element of energy R&D programs targeted in the areas of cleaner fossil fuels, advanced end-use efficiency technologies, decentralized energy production (including renewables), biotechnology and the hydrogen economy.

International Cooperation

NRCan cooperates with several international organizations and foreign governments in EAE program areas. Canada benefits from this cooperation:

• by learning about improved ways of designing and delivering EAE programs to meet policy objectives
• through the harmonization of energy efficiency tests and performance standards that helps reduce barriers to trade in energy-using products

International Energy Agency (IEA)
The IEA, based in Paris, France, is an autonomous agency within the framework of the Organisation for Economic Co-operation and Development. The IEA carries out a comprehensive program of energy cooperation among its 26 member countries, including Canada. IEA member governments have committed to sharing energy information, coordinating energy policies and cooperating in the development of rational energy programs. 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 Cooperation (SLT) is the key committee on the policy side. It analyses policies to promote conservation and the efficient use of energy, the increased use of alternatives to oil and other 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. The Energy Efficiency Working Party (EEWP) of the SLT undertakes IEA work on specific issues related to energy efficiency. Canada is represented at the EEWP by NRCan's Office of Energy Efficiency. In 2003, the IEA conducted an in-depth review of Canada's energy policies, including EAE policies and measures.

NRCan is a member of the Centre for Analysis and Dissemination of Demonstrated Energy Technologies (CADDET), established under the IEA Agreement on Energy and Environmental Technologies Information Centres. CADDET is an international information network that helps managers, engineers, architects and researchers find out about energy-using technologies that have worked in other countries.

Canada also collaborates with research centres in member countries on several agreements and programs oriented toward R&D and technology. NRCan facilitates R&D and commercial business ventures abroad by Canadian firms by undertaking a wide variety of activities, including participating in various IEA tasks and supporting technical and trade-oriented workshops and conferences.

United Nations
RETScreen^® International is managed under the leadership of NRCan's CANMET Energy Technology Centre – Varennes (CETC-Varennes) through cost- and task-shared collaborations with other governments and multilateral organizations, and with technical support from experts in industry, government and academia. Key partners are the United Nations Environment Programme's Energy Unit of the Division of Technology, Industry and Economics; Global Environment Facility-sponsored Sustainable Alternatives Network; Risoe Centre on Energy, Climate and Sustainable Development; and the Solar and Wind Energy Resource Assessment project. Other international partners include the World Bank's Prototype Carbon Fund; the National Aeronautics and Space Administration's Langley Research Center; the Barbados Ministry of Energy and Public Utilities; the United States Agency for International Development; and the Korean Institute for Energy Research.

China
In February 2001, Canada and China signed a Memorandum of Understanding (MOU) on Energy Cooperation. In January 2003, they signed an MOU on climate change and the Clean Development Mechanism. Energy efficiency is among the areas of cooperation identified in both MOUs.

The Federal Buildings Initiative of NRCan's OEE participated in a workshop on "government energy management programs" organized by the China Certification Center for Energy Conservation Product and the Lawrence Berkeley National Laboratory of the United States Department of Energy and held in Beijing, China. The event brought together leading experts in the field of energy efficiency management and government efficiency management.

Mexico
NRCan signed a MOU on EAE cooperation with the Mexican Energy Secretariat in June 1996. Its objective is to contribute to the EAE objectives of Canada and Mexico by improving the design and delivery of EAE programs and enhancing trade, investment and exchanges (technical and other) related to energy-efficient products, energy management services and alternative energy goods and services.

United States
NRCan and the U.S. Department of Energy (DOE) have an MOU on road transportation, energy efficiency and alternative fuels. It provides a formal mechanism for negotiating and harmonizing North American policy on fuel efficiency, fuel quality and alternative transportation fuels. The MOU provides a framework for joint projects and studies in areas of mutual interest, such as the costs and market potential of hybrid electric-powered and diesel-powered vehicles. The MOU facilitates bilateral discussion of a broad range of issues in the motor vehicle and fuels policy area and affords access to technology assessments and policy-related studies conducted for the DOE by its national laboratories. In 2003-2004, a study was begun on hybrid and diesel powertrains in the U.S. light-duty vehicle market. Diesel and hybrid technologies each have the potential to reduce light-duty vehicle fuel consumption by 25 percent or more without loss of performance, yet these technologies have typically been excluded from technical assessments of fuel economy potential on the grounds that hybrids are too expensive and diesels cannot meet Tier 2 emissions standards. The study takes a detailed look at the market potential of these two powertrain technologies and their possible impacts on light-duty vehicle fuel consumption.

United States and Mexico
NRCan continues to participate with the United States and Mexico in the North American Energy Working Group's (NAEWG's) Energy Efficiency Experts Group to promote the harmonization of energy efficiency test methods, mutual recognition of conformity assessment systems for energy efficiency standards and cooperation on trilateral energy efficiency labelling programs. During the review period, work was initiated to compare test standards for central air conditioners and transformers and other products. Mexico continued to review implementation of ENERGY STAR® and adoption of a new approach, developed in Canada and the U.S., for promoting the replacement of inefficient electric motors. A trilateral stakeholder meeting was held in conjunction with the annual meeting of the Council for the Harmonization of Electrotechnical Standards for the Nations of the Americas, which provided feedback on ways for more effective interaction between the group and the NAEWG.