Item - 2009.EX36.9

The Executive Committee recommends that:

RE: VISION, PRINCIPLES, AND TARGETS FOR THE POWER TO LIVE GREEN

1.         City Council adopt the following as its vision, principles and targets for Toronto’s sustainable energy future, building upon its adopted goals for reducing greenhouse and smog causing emissions:

a.         Vision Statement

            In the year 2050 Toronto is a low carbon city, having achieved the greenhouse gas emission reduction targets adopted unanimously by City Council in 2007. At the same time the city has a clean, reliable and affordable energy supply that meets our environmental, economic, social and consumer needs in 2050 and beyond.

b.         Principles

                        Implementation of the Power to Live Green: Toronto’s Sustainable Energy Strategy will be built upon the following key principles:

             i          Energy conservation and efficiency – the cleanest form of energy is the one that was never produced and our first priority.

ii.         Renewable energy – replacing polluting fossil fuel sources with sufficient clean renewable energy sources.

iii.        Smart energy distribution – will improve reliability, provide security of supply, reduce waste, and promote energy efficiency and conservation.

c.         Cumulative Targets

               (Based on 2007 levels of 5,000 Megawatts (MW) of electricity consumption and 4,200 Million cubic metres (Mm³) of natural gas consumption.)

Note: Conservation targets are in addition to existing Ontario Power Authority Toronto directive for 330 MW reduction.

RE: MAKING IT POSSIBLE TO LIVE GREEN

2.         City Council work with all appropriate stakeholders to make it possible for residents and businesses to take action on climate change and energy and water conservation and efficiency, and renewable energy programs by facilitating a one-window approach through the following directions:

a.                   Direct the Deputy City Manager, Cluster B, to facilitate before the end of 2010 the formation of an active partnership, to be called the ‘Live Green Toronto Energy and Water Efficiency Initiative’, among the City of Toronto and its Agencies, Boards, Commissions, Corporations, and Divisions, such as Toronto Water and Toronto Hydro, and other appropriate stakeholders, such as Enbridge and Enwave. This initiative will see the parties involved working collaboratively in the design, delivery and co-ordination of energy efficiency and water conservation programs and renewable energy programs for all market sectors in Toronto and would include:

i.          Coordination of programs, policies and resources.

ii.         Building upon existing community support programs, door-to-door and marketing efforts and other outreach activities to more fully engage residents and businesses in taking action.

iii.        Development of new programs and initiatives to address emerging issues associated with supporting residents and businesses in taking action.

iv.        Investigation and development of new financing tools and options to support residents and businesses in taking action.

v.         Coordination of initiatives that involve installation of simple energy efficiency, water conservation, and climate change adaptation measures.

vi.        Establishing of reporting guidelines to track performance against the targets of the Sustainable Energy Strategy and the Climate Change Action Plan.

vii.       Providing a one-stop resource to access information and resources on, but not limited to:

                               1.        Grants, finance options and financial incentives;

                               2.        Options for completing energy and water consumption audits;

                               3.        Assistance in the preparation of conservation and renewable energy plans;

                                     4.        Identification of and advice on obtaining required permits;

                                     5.        Advice on how to find qualified contractors and installers; and

                                     6.        Educational programs.

b.         Direct the Deputy City Manager, Cluster B and the Deputy City Manager and Chief Financial Officer, to work with all appropriate City Agencies, Boards, Commissions, Corporations and Divisions to ensure:

i.          Conformity of all existing policies, programs and initiatives with the vision, principles, targets, and recommendations from this staff report and the Power to Live Green:  Toronto’s Sustainable Energy Strategy.

ii.         Integration of the goal and objectives of the Power to Live Green:  Toronto’s Sustainable Energy Strategy into planning efforts.

iii.        Integration of the goal and objectives of the Power to Live Green:  Toronto’s Sustainable Energy Strategy in the design of  sustainable community planning frameworks used for community based neighbourhood redevelopment planning.

                           c.       Direct the Deputy City Manager, Cluster B and other city staff to make local procurement and manufacturing a priority by:

i.          Identifying the potential products that will be used for the "Live Green Toronto Energy and Water Efficiency Initiative," potential local manufacturers of these products and opportunities for creating new manufacturing capacity for these products within Toronto.

ii.         Integrating this information in the development of the "Live Green Toronto Energy and Water Initiative" in such a way that local procurement and local manufacturing are promoted as much as possible.

RE: IMPROVING ENERGY EFFICIENCY IN EXISTING BUILDINGS

3.         City Council recognize that to achieve the 80% greenhouse gas reduction target by 2050, the majority of existing homes, businesses and industries will need to become much more energy efficient - net zero in terms of their emissions and, therefore, City Council:

a.                   Direct the Deputy City Manager, Cluster B, to develop by 2011, a by-law(s) that will establish an energy efficiency standard for all buildings, both for new construction and existing retrofits that will assist in the achievement of the City of Toronto’s stated greenhouse gas emission reduction targets and that this plan address the following:

i.          Strategy for phase-in of the by-law(s);

ii.         Proposes energy efficiency standards for both new and existing buildings;

iii.        Thresholds that trigger application of the by-law(s);

iv.        Economic impact of the plan and a stakeholder engagement process;

v.         Financial and other supports that will be provided to property owners to bring their buildings into compliance with the by-law(s); and

vi.        Timelines for the phased-in implementation of the by-law(s);

b.         Direct the Deputy City Manager, Cluster B, to identify all opportunities where the City could encourage residents and businesses to consider implementing energy efficiency retrofits (e.g. Committee of Adjustment; building permit applications; licensing applications) and create the necessary operational changes to take advantage of those opportunities.

c.         Direct the Chief Corporate Officer to build upon existing programs and successes and prepare in 2010 a plan to further enhance the building efficiency and integration of renewable energy in all City-owned facilities.

d.         Direct the Director of the Toronto Environment Office to coordinate  advocacy efforts to federal and provincial regulators and the banking industry to allow for and offer, respectively, more competitive lending practices for energy retrofits and renewable energy projects.

e.         Direct the Chief Planner to consider during the 2011 review of the City’s Official Plan changes, including implementation plans, strategies and guidelines, that will help advance the objectives of the Climate Change Action Plan and the Sustainable Energy Strategy.

f.          Direct the Deputy City Manager, Cluster B, to undertake the actions necessary in 2010 for the City to evaluate and implement a building energy benchmarking and  energy use labelling program, initially for institutional buildings and subsequently for commercial/multi-unit and residential buildings.

RE: GREENING THE GRID FOR TORONTO TO BECOME THE RENEWABLE ENERGY CAPITAL OF CANADA

4.         City Council work with key stakeholders and  the community to aggressively “green the grid” by embracing new renewable energy opportunities under the Green Energy and Green Economy Act and its related Feed-in-Tariff provisions and that City Council:

a.                   Direct the Deputy City Manager, Cluster B, to ensure that all City, Agency, Board, Commissions and Corporation by-laws, permit processes, policies and operational procedures are designed to accommodate and streamline the installation of renewable energy systems on public and private property.

b.                  Direct the Chief Planner to consider during the  2011 review of the City’s Official Plan changes, including implementation plans, strategies and guidelines, that will help advance the renewable energy goals and targets set by Climate Change Action Plan and the Sustainable Energy Strategy.

c.                   Direct the Deputy City Manager and Chief Financial Officer to coordinate the actions necessary, including accessing the Feed-in Tariff, that will see by 2020 the installation of renewable energy systems, where feasible, on all City owned buildings and properties.

d.                  Direct the General Managers of Solid Waste Management and Toronto Water, to implement all viable opportunities for utilizing the bio-gas generated from the processing of waste at landfills, source separated organic facilities and waste water treatment facilities.

e.         Direct the Deputy City Manager, Cluster B and other city staff to make local procurement and manufacturing a priority by:

i.          identifying the potential products that will be used for "greening the grid," potential local manufacturers of these products and opportunities for creating new manufacturing capacity for these products within Toronto; and

ii.          integrating this information into the development of the green grid in such a way that local procurement and local manufacturing are promoted as much as possible.

RE: INVESTING IN DISTRIBUTED ENERGY INFRASTRUCTURE

5.         City Council facilitate the development of district/distributed energy system in existing and new neighbourhoods to reduce greenhouse gas emissions and enhance energy security of supply and that City Council:

a.         Direct the Deputy City Manager, Cluster B, to work with key stakeholders to establish in 2010 the system potential, identify barriers and potential mechanisms to facilitate the installation of district/distributed energy infrastructure including:

i.          Identifying the geographic areas with the greatest potential for district/distributed energy installations, based on energy utilization mapping and other research, experiences of existing programs, such as the Mayor’s Tower Renewal, and assessments of neighbourhood interest.

ii.         Identifying and assessing appropriate energy sources for the district/distributed energy systems that will help achieve the greenhouse gas and smog causing emission reduction targets set in the Climate Change Action Plan.

iii.        Coordinating the installation of the infrastructure with other City infrastructure and stakeholder work, in order to reduce start-up costs.

iv.        Identifying and addressing any issues associated with existing City of Toronto by-laws and policies.

v.         Advocating for any required changes or investments from the Province of Ontario, the Ontario Power Authority, the Ontario Energy Board or other relevant provincial bodies.

vi.        Developing any necessary provisions, as permitted, under the City of Toronto Act.

vii.          Identifying the potential products that will be used for creating a distributed energy infrastructure, potential local manufacturers of these products and opportunities for creating new manufacturing capacity for these products within Toronto.

RE: SUPPORTING DEVELOPMENT OF A SMART GRID

6.         City Council acknowledge that Toronto Hydro is investing in the development and implementation of a smart grid in the City of Toronto that will modernize an aging infrastructure, significantly improve the efficiency of the existing electricity distribution system, provide access for renewable energy and smart grid technology, prepare for electrified transportation, and empower customers with information, options, and control, to manage their electricity and reduce their carbon footprint, and that City Council:

a.                   Direct the City Manager to continue to monitor and encourage the development by Toronto Hydro and provincial and federal authorities of smart grid technologies and innovations.

b.                  Direct the Director of the Toronto Environment Office to collaborate with Toronto Hydro to support Toronto Hydro’s Smart Grid education, outreach and advocacy plan to enhance the public profile of Smart Grid and its relevance to the City’s Energy Strategy.

c.                   Direct the Chief Corporate Officer to ensure all City owned buildings are fully equipped and enabled to take advantage of the smart grid, innovative technology and pending rate options.

RE: FOSTERING THE GREEN ECONOMY AND GREEN JOBS

7.                  City Council build upon its adoption in July 2007 of the Green Economic Sector Development Strategy and its recognition of the significant job creation and economic opportunities being created by the shift to energy conservation/efficiency and renewable energy and that City Council:

a.                   Direct the Deputy City Manager, Cluster B, to work with stakeholder partners and renewable energy business associations to ensure that any mechanical, structural, and related inspection requirements specific to Toronto and/or Ontario are integrated into existing and contemplated national and provincial training programs.

b.                  Direct the General Manager of Economic Development, Culture and Tourism to market and promote existing energy efficiency and renewable energy certification programs available in Toronto and the GTA.

c.                   Direct the Director of the Toronto Environment Office to work with local school boards on the design of a training course as part of the Specialty High School Majors program in the area of energy efficiency retrofits and renewable energy generation.

d.                  Direct the Director of the Toronto Environment Office to work with appropriate stakeholders to develop a program that will provide job placement support to the community for skilled trades people positions in the areas of retrofitting buildings and generating renewable energy.

e.                   Direct the Director of the Toronto Environment Office to work with local Community Colleges in the design, development and marketing of training programs that will generate people with the skills necessary to assist property owners in complying with emerging energy efficiency and renewable energy by-laws and regulations.

f.                   Direct the Deputy City Manager and Chief Financial Officer, to establish in 2010 the business processes necessary for internal coordination within the City of Toronto to more proactively evaluate, pilot and implement new and emerging energy conservation and renewable energy technologies.

g.         Direct the City Manager to prioritize local procurement and manufacturing, where feasible, in the implementation of the recommendations in this report by:

i.          Ensuring all procurement decisions made by City Divisions, Agencies, Boards and Commissions as a result of implementing these recommendations give priority to local manufacturing, where feasible.

ii.         Working with industry associations to identify and promote local manufacturing opportunities that emerge out of the implementation of these recommendations.

RE: SUSTAINABLE TRANSPORTATION AND DEPLOYMENT OF ELECTRIC VEHICLE INFRASTRUCTURE

8.         City Council continue to build upon its existing efforts in the area of sustainable transportation and that City Council;

a.         Direct the Deputy City Manager, Cluster B, to ensure that the first priority for transportation planning and infrastructure development is for net zero energy modes of commuting such as walking and cycling, and, as a second priority, for alternatives such as telecommuting, public transit and car-pooling.

b.                  Direct the Director of the Toronto Environment Office, working with all appropriate internal and external stakeholders, to complete an analysis of mobile source emissions among trucks, cars, rail, airports, and other sources to help inform the design of and priorities for mitigation measures, including potential by-laws, as previously authorized under the Climate Change Plan.

c.                   Direct the Chief Corporate Officer to ensure the City’s Green Fleet Plan incorporates the integration and utilization of electric vehicles, where appropriate for City operations.

d.                  Direct the Deputy City Manager, Cluster B, building upon the existing work of the City of Toronto, the Toronto Atmospheric Fund, Toronto Hydro and others, to initiate and undertake economically viable actions necessary to support and facilitate the utilization of electric powered motor vehicles in corporate and commercial fleets.

e.                   Direct the Chief Planner to consider during the 2011 review of the City’s Official Plan policies and guidelines changes, including implementation plans, strategies and guidelines, that will help advance infrastructure requirements for and deployment of electric vehicles.

RE: INNOVATIVE FINANCIAL TOOLS

9.         City Council direct the Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to explore with key stakeholder partners all viable funding options including, but not limited to, revenue bond financing, grants, tax incentives, funding from the Federation of Canadian Municipalities, funding from the rate-base through Ontario Energy Board, and funding from Ontario Power Authority, in particular the new Municipal Renewable Energy Program.

RE: ADVOCATING FOR ACTION PROVINCIALLY, NATIONALLY AND INTERNATIONALLY

10.       City Council continue to show leadership in advocating for action on climate change, energy conservation and efficiency and renewable energy generation and that City Council:

a.                   Direct the City Manager to engage provincial and federal authorities on the following Sustainable Energy Strategy issues and, if necessary, pursue alternative, local measures as permitted under the City of Toronto Act:

i.           Amendments of the Planning Act, Building Code Act and/or related laws to remove barriers to more widespread energy efficiency, renewable energy, and “smart” distribution.

ii.          Amendments of the City of Toronto Act, the Planning Act, Building Code Act and/or related laws to explicitly authorize application of the appropriate elements in the Toronto Green Standard to existing residential, commercial, institutional, and industrial buildings, triggered by action such as renovations or changes in ownership.

iii.         Amendments of provincial laws to require energy audits and disclosure of energy consumption of buildings at point of sale and that the Province of Ontario fund the required energy audits.

iv.         Higher energy efficient standards for appliances and heating and cooling systems.

v.          Economic support and other measures to remove barriers hindering the growth of the local, green building materials industry.

vi.         Allowing more competitive lending practices to the commercial, institutional, and industrial sectors for conservation and demand management processes.

vii.        City representation on the advisory board established under the Green Energy and Green Economy Act for reforming the Ontario Building Code to assure greater energy efficiency.

viii.      Stronger incorporation of renewable energy into the provincial and federal governments’ long-term energy reliability planning so that aspects of the City’s future energy and climate change actions, that may contribute to an increase on the load (e.g. increased number of street cars/light rail cars; promotion of  electric vehicles) do not generate substantial increases in greenhouse gas emissions.

ix.        Reduction and removal of barriers that hinder growth and competitiveness of a locally produced, low carbon, green building materials.

x.         Reducing and removing barriers that contravene City policies or adopted targets or otherwise limit the City's ability to secure Ontario Power Authority funding for renewable energy generation projects and conservation measures undertaken by the City.

xi.        Implement stricter standards for corporate average fuel economy (CAFE) standards and alternative fuel development for internal combustion vehicles.

b.         Direct the Chief Corporate Officer and the Director of the Toronto Environment Office, with support from Legal Services, to intervene when needed to support City objectives at the Ontario Energy Board in connection with the City’s Climate Change Action Plan and Sustainable Energy Strategy goals.

RE: MONITOR AND REPORT REGULARLY ON PROGRESS

11.       City Council direct the Deputy City Manager, Cluster B, to prepare, starting in 2010, an annual environmental achievements and challenges report that:

a.                   Integrates reporting on the implementation of the Climate Change Action Plan, the Sustainable Energy Strategy and related initiatives, such as the Green Economic Development Sector Strategy, the Sustainable Transportation Initiatives and the Water Efficiency Plan.

b.                  Identifies the outcomes of these policy, program and other activities.

c.                   Identifies emerging issues and challenges and makes recommendations for new or amended actions required to further achieve the targets established in the Climate Change Action Plan and the Sustainable Energy Strategy.

12.              City Council direct the Director of the Toronto Environment Office to augment its existing responsibilities to monitor, inventory and report on the greenhouse gas and smog causing emissions reductions within the context of the targets set in the Climate Change Action Plan, by also monitoring and reporting, with the cooperation of stakeholders, on energy consumption and renewable energy generation within the context of the targets set in the Sustainable Energy Strategy.

13.       City Council request Deputy City Manager, Cluster B, and the Deputy City Manager and Chief Financial Officer to include in the next annual review, specifics on how the community will be involved in implementing Toronto's Sustainable Energy Strategy, including residents and communities marked by marginalization and social exclusion.

In 2007, City Council established an international benchmark with its adoption of “Change is in the Air,” Toronto’s Climate Change Action Plan, complete with progressive targets for greenhouse gas emission reductions and improved air quality.  To achieve those targets, a comprehensive energy strategy is required for the City of Toronto and the Toronto urban area, founded on conservation, renewable energy, and “smart” energy distribution.  This report and the strategy attached as Attachment A, entitled “The Power to Live Green:  Toronto’s Sustainable Energy Strategy,” together address that need through a four-track process of:

i.          meeting the energy requirements of our businesses and homes;

ii.         reducing dependence on fossil fuels;

iii.        investing in green technology, supporting the creation of green jobs and global marketing of sustainable energy goods and services, and

iv.        partnering with industry, businesses, institutions, non-profits, other levels of government, utilities, and residents.