MARKHAM ENVIRONMENTAL ADVISORY COMMITTEE

MINUTES

April 16, 2009

ATTENDANCE

Members Philip Ling, Chair Mylene Bezerra Batista Joyce Chau Serena Chin Lloyd Helferty Erika Lontoc Helen Mack Brent Mersey Louis Priftakis Christopher Sauer Regrets Stephanie Chan Justin Chin Rini Ngai Tom Rado Deputy Mayor Jack Heath Staff Bev Shugg Barbeito, Committee Secretary

Guests Viive Sawlor Raj Mohabeer, Town of Markham John O’Gorman A Imlamer Kevin O’Connor, Friends of Rouge Watershed Alan Clarke, Toronto Renewable Energy Grp. Nory Takocta, Town of Markham Carrie Sally Denis Van Decker, Sarnia Lambton Enterprise Partnership Carolina Moretti, Councillor - Town of Markham Daniel Hoile, York University Erik Haltrecht, Toronto Renewable Energy Grp. Jeremy Kowdecka, Toronto Hybrid Group Marcus Smith Robert Smith Bruce Andel, Markham District Energy

1. CALL TO ORDER

The Markham Environmental Advisory Committee was called to order at 7:05 PM with Mr. Philip Ling presiding as Chair.

2. CHANGES OR ADDITIONS TO THE AGENDA

There were no additions to the agenda.

3. ADOPTION OF THE MINUTES OF THE MARKHAM ENVIRONMENTAL ADVISORY COMMITTEE HELD ON MARCH 19, 2009

This item was deferred to the next meeting in favour of the presentation by guest speaker, Marion Fraser.

4. PRESENTATION ON THE GREEN ENERGY ACT

Chair Philip Ling welcomed Marion Fraser, Senior Policy Advisor to the Ontario Government, who had been invited to attend the meeting to make a presentation on the Green Energy Act to Committee members and invited guests.

Ms. Fraser thanked the Chair. She briefly outlined her career of thirty years in the Energy sector which has prepared her for her current role in advising the Provincial government about formulating a “Green Energy Act”.

Ms. Fraser began the presentation by outlining how Ontario has reached the point where a Green Energy Act is needed.

- Ontario’s Renewable Energy Standard Offer Program (RESOP) was the most progressive green energy initiative in North America for more than twenty years. However, issues emerged which showed some limitations in the RESOP such as potential renewable energy producers unable to access the grid in certain areas of Ontario and communities having difficulty obtaining financing to investigate the feasibility of renewable resource projects in their area.

- The Integrated Power System Plan (IPSP) was a comprehensive long-range plan that covered many aspects of Ontario's electricity system. Yet the IPSP was limited in the way that it addressed distributed generation.

- In addition, Ontarians have been slow to change usage habits because of a belief large power grids are beneficial, and a traditional mindset that that’s “the way we’ve always obtained electricity”.

A Green Energy Alliance was formed to recommend fundamental changes to Ontario's Electricity System; the high profile alliance included, among others, Community Power Fund, Ontario Sustainable Energy Association, Environmental Defence, Ontario Federation of Agriculture, the First Nations Energy Alliance and the David Suzuki Foundation. The Alliance felt that Ontario needed a call to action to make it a global leader in clean, renewable energy and conservation, creating thousands of jobs, economic prosperity, energy security and climate protection.

In November 2008 the Green Energy Alliance met with Minister George Smitherman, Ontario Minister of Energy and Infrastructure to put forward and discuss ideas for a Green Energy Act; a formal presentation was made to the Minister in January 2009. Minister Smitherman introduced the Green Energy Act in February 2009.

Ms. Fraser outlined the Core Components of Ontario's Green Energy Act:

Conservation – There is a need to conserve and use energy efficiently. As a result, there will be research and development into all significant aspects of energy and a mandated commitment to a continuous improvement approach to conservation with a minimum 2.5% annual (compounding) reduction in energy resource needs from 2011 until 2027. In addition, Provincial ministries will be required to track and report on energy consumption and conservation.

Green Energy Procurement - An obligation for the responsible power purchase authority to grant priority and obligatory purchase of green energy projects, in addition to a system of Advanced Renewable Energy Tariffs as the primary procurement mechanism for renewable and clean distributed energy. To ensure the equal participation of community energy in the sustainable energy sector, the tariffs per kilowatt-hour of generation are based on key components of German plans: 

- To ensure projects are economically viable in communities across the province tariffs are differentiated on the basis of: technology, resource intensity, project scale and location

- Prices are set on the basis of cost and a reasonable return on investment 

- No cap on project size or program size 

- No cap on voltage: The tariff includes all behind the meter, all distribution and all transmission connected projects 

- 100% inflation protection at 2 levels: within the power purchase contracts, and within the tariff program

Obligation to Connect - An obligation for all utilities to grant priority grid access to green energy projects and an obligation for all utilities to connect green energy projects to the grid (within a reasonable limit to be determined by relative costs and goals related to the successful implementation of the Act). Related costs are to be spread equally across the entire rate base.

Engaging First Nations and Métis - In recognition of the additional and unique barriers they face, the direct participation of First Nations and Métis as developers and owners in energy projects is considered important so they benefit directly from the resulting economic development.

Financing Green Energy - The establishment of a Green Energy Debt Finance Program to raise the financial capital required to meet the financial market short falls in the development of eligible and viable projects to meet the GEA targets, and a Community Power Corporation to build the capacity of local communities to develop eligible and viable projects, provide early stage project funding, and to facilitate the development of financing mechanisms.

Grid Evolution - The adoption of smart grid technologies, including energy storage, is included in order to transform Ontario's energy system from highly centralized to more distributed.

Protection for Vulnerable Consumers - Electricity pricing will reflect its true cost and provide signals to consumers to manage their energy demand. However, it will be a priority to provide assistance for vulnerable consumers (including relevant industrial users) to reduce their energy burden through conservation, bill assistance, innovative utility policies and stronger consumer protection.

Standardizing Regulatory Processes – The Act includes streamlined regulatory and approvals processes that enable the rapid but prudent development of green energy projects across the province.

Ms. Fraser concluded the presentation and responded to questions from Committee members and guests.

5. ADJOURNMENT

The Markham Environmental Advisory Committee meeting adjourned at 8:30 PM.