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Home My WebLink AboutDSD-18-080 - Community Energy Investment Strategy - ImplementationREPORT TO: Community & Infrastructure Services Committee DATE OF MEETING: August 13, 2018 SUBMITTED BY: Justin Readman, General Manager, Development Services Department,519-741-2200 ext. 7646 PREPARED BY: Brandon Sloan, Manager, Long Range & Policy Planning, 519-741-2200 ext. 7648 WARD (S) INVOLVED: All DATE OF REPORT:August 2, 2018 REPORT NO.: DSD-18-080 SUBJECT: Community Energy Investment Strategy - Implementation RECOMMENDATION: THAT funding of $20,000 per year (plus inflation) towards a collaborative approach to implement the approved Community Energy Investment Strategy from 2019-2021 be referred to the 2019 Budget process; and THAT the Mayor and Clerk be authorized to enter into a Memorandum of Understanding and any related agreements (including updates) with the Region of Waterloo, area municipalities, and local electricity and natural gas utilities to implement the approved Community Energy Investment Strategy, subject to the satisfaction of the City Solicitor. BACKGROUND: In February of this year, Kitchener Council along with the Region of Waterloo (the “Region”) and other area municipalities unanimously endorsed a Community Energy Investment Strategy (“CEIS”) for Waterloo Region. The plan focuses on addressing the challenges and identifying the opportunities related to meeting local energy needs in a reliable and cost-effective manner. The big picture perspective is that understanding our energy usage and investing in its optimization can enhance economic prosperity, promote more sustainable communities and help mitigate and adapt to climate change. Community energy planning is guided by an integrated energy approach, which takes municipal, utility, transportation and other public and private infrastructure investments into consideration. The goals of the Strategy include: Significantly Improve the Energy Performance of Buildings Enhance Local Energy Generation and Security Transition to a Low-Carbon Local Transportation Network Cultivate a Supportive and Innovative Environment for Energy Investments One of the recommended actions is to create a Governance Committee to oversee the implementation of the CEIS; including the preferred resourcing, administration andongoing management. This report summarizes the direction agreed to in principle by the committee and recommends to authorize moving forward with a Memorandum of Understanding/Agreement. *** This information is available in accessible formats uponrequest. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 5 - 1 REPORT: Energy investment and security should stay in Waterloo Region. Our local utilities are key partners in our energy future. To provide guidance and oversight for the ongoing implementation of the goals and recommended actions within the approved Community Energy Investment Strategy (CEIS), a Governance Committee was formed.This group includes senior level staff from the following: Region of WaterlooKitchener-Wilmot Hydro City of CambridgeWaterloo North Hydro City of KitchenerEnergy+ City of WaterlooKitchener Utilities Representative of all TownshipsUnion Gas Limited The recommended approach for implementation includes the development of a Memorandum of Understanding (MOU) and related collaborative agreement toestablish the mandate for carrying on the work of the Governance Committee and a dedicated CEIS resource position. The preferred approach is to create a Community Energy Manager position that would be hosted by Grand River Energy Inc. (GRE) – which is owned by the local electric utilities. The salary, benefits, overhead, etc. would be cost-shared amongst all of the CEIS partners for an initial three year period (late 2018-2021). The Governance Committee has agreed, in principle, to the primary directives for the Memorandum of Understanding such as the representation, mandate, the term and any notice to terminate, chair and meeting logistics, decision-making, resource position, financial contributions, approach to work plan priorities and other operational details. The next step is for municipal Councils and Utilities to authorize moving forward with this collaborative arrangement, subject to a review by legal staff for all parties involved. This is occurring in August and September with the intent to hire and begin implementation this fall, if possible. The costs and benefits of individual projects referenced within the Strategy will be analyzed and implemented through typical organizational budgeting cycles and preparation of project-based action plans and feasibility studies on a case-by-case basis. Access to federal, provincial and other external grant programs will be actively sought with consideration of joint applications amongst partners as appropriate. In addition, business models involving third party asset management and ownership may also be considered where suitable and partner interests are cost-effectively served.Having a dedicated position will not only provide a resource to pursue funding options for implementation but will also allow for greater community and stakeholder engagement through each of the action items. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Strategic Priority #4 – Sustainable Environment and Infrastructure. Business Plan ID# NB20 – Community Energy Investment Strategy FINANCIAL IMPLICATIONS: The CEIS Governance Committee has discussed a cost-sharing arrangement amongst the municipalities and utilities. The Kitchener contribution (including Kitchener Utilities) would be $20,000 for each of three years (note: the Regional amount would be $60,000 per year). This will be addressed via a budget issue paper starting at the administrative level. Any nominal amount that may need to be contributed before the 2019 fiscal year would be through existing approved account(s). The contribution for this initiative would be leveraged to have a total of $200,000 from all contributing partners towards a dedicated community energy manager position along with covering operating and other costs. 5 - 2 COMMUNITY ENGAGEMENT: INFORM – this report has been posted to the City’s website with the agenda in advance of the committee and council meeting. CONSULT and COLLABORATE – The Governance Committee includes representatives from the Region, area municipalities and local utilities who have collaborated on the recommended direction for implementation of the strategy and on the principles of the memorandum of understanding for moving forward. The preparation of the CEIS involved significant stakeholder engagement as well as consultation with Advisory Committees. The proposed approach will allow for ongoing stakeholder and community collaboration to implement the recommended actions. PREVIOUS CONSIDERATION OF THIS MATTER: CSD-15-072 (August 12th, 2015) - Authorization to Sign Collaborative Agreement Community Energy Investment Strategy CSD-17-062 (June 16, 2017) - Authorization to Sign Collaborative Agreement Amendment - Community Energy Investment Strategy CSD-18-004 (February 5, 2018) - Community Energy Investment Strategy for Waterloo Region CONCLUSION: The CEIS focusses on collaborating with community partners, engaging proponents and attracting investment towards energy related projects that will provide the most economic, environmental and social benefits to Waterloo Region. REVIEWED BY: Greg St. Louis, Director, Kitchener Utilities ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services 5 - 3