Improving Energy Performance in Canada – Report to Parliament Under the Energy Efficiency Act For the Fiscal Year 2005-2006

Chapter 10: Cooperation

Introduction

This chapter describes Natural Resources Canada's (NRCan's) cooperation on efficiency and alternative energy (EAE) with the provinces and territories and internationally during the reporting period. Examples of program cooperation on specific EAE initiatives are given in the Key Achievements sections of earlier chapters. It should be noted that municipal governments and agencies participate in NRCan's EAE measures as clients (for training workshops, as recipients of financial incentives, etc.) and as partners (e.g. in anti-idling projects), and that NRCan also participates in ventures led by municipal organizations (e.g. Green Municipal Fund, as explained in the accompanying textbox) and provincially/territorially regulated electricity and provincially regulated natural gas utilities.

There are several institutions in Canada that address energy efficiency issues in broad terms, including the three data and analysis centres established by NRCan, the host universities and other partners. These centres are also sponsored by other federal departments, provincial government agencies and various associations and energy supply utilities. They facilitate access to data on energy use in the industry, transportation and building sectors, monitor the quality of data, and investigate methods to improve data collection and analysis. The goal of another institution, the Canadian Centre for Energy Information, is to engage North Americans in critical inquiry and enlightened discussion on energy and energy-related issues affecting their quality of life. A third institution, the Canadian Energy Efficiency Alliance, is a non-profit organization established to promote the efficient use of energy in Canada.

There are three national consultative bodies in the area of energy efficiency:

• ADM Steering Committee on Energy Efficiency (ASCEE), established under the Council of Energy Ministers;
• Demand Side Management Working Group (DSM WG); and
• Office of Energy Efficiency (OEE) National Advisory Council on Energy Efficiency (NACEE).

In 2004, federal, provincial and territorial energy ministers decided that the ASCEE should be formed and tasked with establishing a coordinated and complementary agenda for energy efficiency in the built environment, industry and transportation sectors. The ASCEE held five meetings in 2005–2006 with representatives of the federal government, eight provinces, industry, and environmental non-governmental organizations.

The previously existing DSM WG is now under the auspices of the ASCEE. It began its work in 2003 and its members represent NRCan, industry and seven provinces and territories. The DSM WG undertook joint work and completed various studies related to demand side management, including the identification of the DSM potential, regulatory process and framework. The DSM WG also created an "Energy Code Collaborative" to oversee work on energy codes for buildings and houses, produced an inventory of energy efficiency programs for low-income households, and fostered cooperation between jurisdictions in this area.

The ASCEE sponsored the formation of a federal/provincial working group on transportation energy in 2005 to seek opportunities for stronger cooperation among governments in harmonizing policies and programs that can impact energy efficiency and to make recommendations to ministers on the need for government action. The Transportation Working Group on Energy Efficiency (TWGEE) comprises senior federal and provincial government officials. Members come from a variety of departments (primarily energy and transportation), representing the interdisciplinary nature of the transportation energy efficiency issue. The primary role of TWGEE is to guide discussions and work toward a long-term, integrated approach to accelerating transportation energy efficiency nationally.

NRCan created NACEE in April 1998 to advise and guide the OEE on the most effective way to achieve its mission. Its membership is drawn from across Canada and all economic sectors and includes 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 2005–2006.

Federal-Provincial and Federal-Territorial Cooperation

Recently there has been renewed interest in increased energy efficiency as a means of maximizing service from the existing energy supply capacity in the country. Provincial and territorial governments helped to deliver a substantial number of EAE programs during the reporting period to reduce energy costs, increase competitiveness, improve air quality and generate economic opportunities. Coordination between the federal and provincial/territorial levels is essential to avoid duplication and ensure efficient program delivery. During the reporting period, governments cooperated on energy efficiency in general and on specific program initiatives.

All provinces and territories engage in energy efficiency activities and/or deliver programs in their respective jurisdictions. In some provinces and territories, specific organizations are mandated to promote energy efficiency. For example, Energy Solutions Alberta, under Climate Change Central, is a focus for information and action on energy efficiency and conservation in Alberta. In Saskatchewan, the Office of Energy Conservation's mandate is to encourage and support voluntary action by the public and by industry through public information, energy efficiency demonstrations, and the development of pilot projects. The Ontario Power Authority recently established the Conservation Bureau with a mandate to provide leadership in planning and coordinating measures for electricity conservation and load management. The Energy Efficiency and Conservation Agency of New Brunswick was created in late 2005 to influence efficient energy use, help control energy expenses and lessen the impact of energy use on the environment. The Canada-Yukon Energy Solutions Centre is a service and program delivery agency for federal and Yukon government programs on energy efficiency and green power. The Arctic Energy Alliance promotes energy efficiency and renewable energy in the Northwest Territories. The Nunavut Energy Centre promotes energy efficiency and renewable energy in Nunavut.

Cooperation Agreements
NRCan's Letter of Cooperation (LOC) on EAE with the Agence de l'efficacité énergétique du Québec provides for efficient consultation and exchange of information between the two governments, coordination of EAE activities in Quebec, and 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 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 targeting the Quebec public sector
• management of an agreement relating to the Programme d'intervention en réfrigération dans les arénas 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 the Yukon, including the establishment of 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 provide opportunities for EAE projects. The Alliance is also the delivery agent in the Northwest Territories for R-2000. Through the contribution agreement with the Qulliq Energy Corporation, the Government of Canada contributes to the Nunavut Energy Centre, which promotes energy efficiency and renewable energy in Nunavut.

The Government of Canada promotes energy efficiency and renewable energy in Alberta by working with Climate Change Central, a non-profit corporation funded by a multi-stakeholder base, including the Government of Alberta.

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 working with others on the harmonization of energy efficiency tests and performance standards to reduce barriers to trade in energy-using products

International Energy Agency (IEA)
The IEA, based in Paris, is an autonomous agency of the Organization 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 Co-operation (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. The OEE represents Canada on the EEWP.

Canada's international energy research and development objectives are advanced primarily through the IEA's Working Parties and the Committee on Energy Research and Technology, chaired by NRCan. Canada is a signatory to 31 of the IEA's 40 implementing agreements for research and development (R&D) cooperation programs.

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

Canada also cooperates with research centres in member countries on several agreements and programs on 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 collaborative ventures with other governments and multilateral organizations, and with technical support from more than 200 experts representing industry, government and academia. Key partners are the Energy Unit of the United Nations Environment Program (UNEP) and the UNEP-Global Environment Facility-sponsored Solar and Wind Energy Resource Assessment (SWERA) project. Other key international partners include NASA's Langley Research Center and the World Bank's Prototype Carbon Fund.

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.

Mexico
NRCan signed an 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 and investment as well as technical and other exchanges related to energy-efficient products, energy management services and alternative energy goods and services.

Under the MOU on EAE, officials of Mexico's National Commission for Energy Savings (CONAE) participated in an industrial energy efficiency conference held in May 2005 in Ottawa. Also under the MOU, NRCan organized an energy efficiency workshop in cooperation with CONAE in Puebla City, Mexico. The workshop was held in March 2006.

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.

Canada has been cooperating with the U.S. DOE under an MOU on energy R&D in the areas of fuel cells, fossil fuels, bioenergy, community systems and microgeneration, nuclear fission, and carbon sequestration.

United States and Mexico
NRCan continues to participate with the United States and Mexico in the Energy Efficiency Experts Group of the North American Energy Working Group (NAEWG) 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. In 2005–2006, work under NAEWG primarily involved coordinating the energy sector commitment to the Security and Prosperity Initiative. In addition to ongoing standards and program collaboration, a project has been implemented to develop a North American approach to standby loss by electricity-using products.

Also under the umbrella of the NAEWG, Canada, the United States and Mexico have been charged with implementing an initiative that will contribute to accelerating the adoption of affordable and appropriate sustainable housing solutions for rapidly growing regions of Mexico. In early 2004, NRCan's CANMET Energy Technology Centre (CETC) was given the lead role within the NAEWG Science and Technology Experts Group for a sustainable housing project in Mexico known as La Casa Nueva / La Comunidad Nueva (LCN).

A Canada-Mexico Partnership (CMP) was established in October 2004. The CMP is designed to be a high-level public-private sector alliance identifying policies for facilitating cooperation, enhancing investment and creating opportunities for Canadian entrepreneurs to take part in projects that contribute to the socioeconomic development of Mexican society.

Three themes were identified as priorities under the CMP:

• Housing and Urban Development
• Competitiveness
• Human Capital

The Housing and Urban Development theme is being led by two agencies: Canada Mortgage and Housing Corporation (CMHC) for issues related to housing; and Industry Canada's Sustainable Cities Initiative, for issues related to urban development. Mexico identified a number of activities related to housing technology, energy efficiency, renewable energy and sustainable communities as areas of interest. As a result of CETC's previous and ongoing technology cooperation activities in Mexico under the NAEWG-LCN initiative, CMHC invited the centre to help develop the terms of reference for housing technology activities under the CMP and asked for its involvement and technical input in furthering specific activities of the CMP housing technology working group.

At the same time, Industry Canada's Sustainable Cities Initiative is undertaking a number of targeted projects in the cities of Matamoros and Reynosa, Mexico, to foster sustainable solutions to many of the energy and environmental pressures facing most Mexican cities. These activities are being brought under the umbrella of the CMP. Sustainable and energy-efficient housing is one of the priority areas identified under the Sustainable Cities Initiative. NRCan's CETC has been invited to assist and manage the implementation of the sustainable housing components of the Sustainable Cities Initiative, leveraging and providing a bridge between the CMP housing technology working group and the NAEWG-LCN.