Item - 2019.IE7.10

The Infrastructure and Environment Committee recommends that:  

1. City Council authorize the implementation and monitoring of two wastewater energy transfer pilot projects with Noventa Energy Partners Inc. ("Noventa") (the "Pilot Projects") on the following conditions:

a. The General Manager, Toronto Water, in consultation with the Director, Environment and Energy, and the City Solicitor, be authorized to implement, conduct, administer and monitor the Pilot Projects including the authority to develop all related procedures, and to negotiate, enter into and execute any agreement(s) necessary to give effect to the Pilot Projects, or any one of them, including any amendment, renewal or extension thereof, on  terms and conditions  acceptable to the General Manager, Toronto Water and in a form acceptable to the City Solicitor.

b. The Pilot Projects be undertaken by Toronto Water for a minimum of two years and that any access to the City's sewer infrastructure for the purposes of the Pilot Projects, and, specifically, access to the excess waste heat (thermal energy) generated by the City's wastewater distribution system provided to Noventa be limited to support only the Sunnybrook Hospital and the Humber College, North Campus and/or William Osler, Etobicoke General Hospital, at HWY 27/Finch Ave. locations.

c. The General Manager, Toronto Water, is satisfied that the Pilot Projects, or any one of them, are technically feasible.

d. An energy transfer fee for such access, the basis and amount of which is to be determined by the General Manager, Toronto Water, is paid to Toronto Water by Noventa for the duration of the Pilot Projects.

e. Any related capital and operating costs associated with the installation, operation and maintenance of the wastewater energy transfer systems needed for the Pilot Projects are at Noventa's expense.

f. Any risk of the Pilot Projects is assumed by Noventa and, specifically, that any access is provided by the City on an "AS IS" and "WHERE IS" basis with no guarantee of an energy supply.

g. The General Manager, Toronto Water report back to the Infrastructure and Environment Committee on the outcome of the Pilot Projects and the development of a wastewater energy transfer policy as requested by City Council.

2. In the event the Pilot Projects are successful, as determined by the General Manager, Toronto Water, in the General Manager's sole discretion, City Council further authorize the General Manager, Toronto Water, in consultation with the Director, Environment and Energy, and the City Solicitor, to extend the term of any agreement for the Pilot Projects with Noventa, as referenced in Recommendation 1.a. above, to allow the Pilot Projects, or anyone of them, to continue beyond the initial duration of the Pilot Projects, on  terms and conditions acceptable to the General Manager, Toronto Water, and in a form acceptable to the City Solicitor.

The purpose of this report is to provide recommendations on the advancement of strategic pilot projects for wastewater energy transfer as requested by City Council with its adoption of Notice of Motion MM9.13 at its meeting on July 16, 2019 and to seek authority to proceed with two wastewater energy transfer pilot projects with Noventa Energy Partners Inc. ("Noventa") as set out in this report. It is intended that the outcome of these two pilot projects will serve to inform the future development by staff, and a further report back in 2020, of a wastewater energy transfer policy as also requested by City Council.