Rethinking Energy Conservation in Ontario – Results:Municipal Eco Challenge Fund (MECF)
| In November, 2010, the ECO released volume 2 of its Annual Report on the progress of activities in Ontario to reduce or make more efficient use of electricity, natural gas, propane, oil and transportation fuels. Click here for more information on this report, including videos and communications materials. | |||||
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Ontario’s municipalities can play a significant role in reducing Ontario’s energy demand. In providing basic services, municipalities annually spend approximately $680 million for electricity, more than four per cent of the total provincial consumption, and $275 million on natural gas.
In June 2007, the government announced the Municipal Eco Challenge Fund (MECF) to help municipalities reduce energy consumption and GHG emissions. The MECF was to provide $20 million to audit and retrofit municipal buildings. The program had two components: $14 million for infrastructure projects; and, $6 million to support municipal capacity building. Municipalities could apply for up to $10,000 for an energy audit, $100,000 for a standard retrofit project and up to $500,000 for a showcase retrofit project demonstrating emerging technologies. As part of the MECF, the Association of Municipalities of Ontario’s Local Authority Services (LAS) received a $3.9 million funding agreement for municipal capacity building programs.
In March 2009, the former Ministry of Energy and Infrastructure (MEI) notified applicants that the program was cancelled and no further grants would be awarded. In response to an information request from the ECO, the ministry indicated that funding for the MECF was removed from the ministry’s 2009/2010 budget as part of the government’s saving strategy.
Municipal applications were solicited in two rounds. In the first round of funding, 30 energy audits, 63 standard retrofit projects and 5 showcase projects received funding. Due to the program’s cancellation, none of the 58 applications from the second round received funding. In total, the MECF provided $2.6 million of the $14 million to 53 municipalities.
| MECF’s Capacity Building – Measure to Manage |
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| The Association of Municipalities of Ontario’s Local Authority Services undertook an energy benchmarking project using $720,000 from the Municipal Eco Challenge Fund’s (MECF) capacity building component. The Municipal Energy Performance Benchmarking Project enabled municipalities to compare the energy performance of their facilities to various benchmarks and provided an overview of how the sector performs in managing energy. Four performance metrics (energy use, technical, organizational and management best practices) were examined in 393 facilities (e.g., offices, social housing, sports complexes) from 120 municipalities. Results showed significant unrealized energy savings potential: the average facility in each building category had an energy intensity 21 per cent greater than its best-in-class benchmark target. The project showed the need for program and policy support from senior levels of government, as most municipalities have little capacity to address energy efficiency. With the government’s abrupt cancellation of the MECF without a program evaluation, it remains to be seen whether this support will be forthcoming and the identified conservation benefits will be realized. |
Program Results
Of the 63 standard retrofit projects funded, approximately 10,527 MWh of annual electricity consumption savings, and 463,380 m3 of natural gas savings were reported by municipalities to the ministry. The ministry calculates these retrofits will result in annual carbon dioxide (CO2) reductions of approximately 7,497 tonnes based on projected energy savings reported by the municipalities.
Issues and ECO Comment
The ECO disagrees with the ministry’s decision to cancel the MECF program without a program evaluation. Based on the rapid uptake and initial results, the program seemed to be meeting its objectives. In the 2007 Go Green: Ontario’s Action Plan On Climate Change report, the government expected eight per cent of the 2014 emissions reductions target would be achieved through the “Municipal Eco Challenge and other actions.” The municipal sector remains a significant source for potential energy and GHG reductions.
The ECO urges the Ministry of Energy to provide municipalities with support to improve their energy efficiency. The ECO suggests, given budgetary constraints, that policy and regulation to assist capacity building be provided. The government has the authority to require municipalities to prepare conservation plans and meet targets under the Green Energy Act, 2009. The ECO believes the government should proceed immediately with such a regulation, and add any amendments, for example related to water conservation, at a later date.
