ENERGYMINISTRY OF

Large Building Energy and Water Reporting and Benchmarking

LEED Breakfast Meeting

April 2016

Prepared by: Conservation and Renewable Energy Division

Recognizing Great Work

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Ontario Electricity Sector

• Operates the Province’s generation assets (Hydro, Nuclear, Biomass) –generating approximately two-thirds of Ontario's electricity.

www.opg.com

• Plans and operates theProvince’s transmissionsystem and generationwholesalemarket.

• Designs/coordinatesconservation programs.

• Acts as the Province’ssmart metering entity.

• Chairs Smart Grid

Forum

www.ieso.ca

• An independent economic regulator –regulates Local Distribution Companies and other energy agencies.

• Protects consumers.

www.ontarioenergyboard.ca

• Operates the Province’s transmission and rural distribution assets.

www.hydroone.com

Ministry of Energy

• Develops governanceframework

• Oversees agencies and the

sector

http://www.energy.gov.on.ca

• 75 Local Distribution Companies

• Municipally-owned distribution asset operators

• Ex: Toronto Hydro; Powerstream

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Energy Efficiency in Ontario

• Conservation and demand management reducesdemand for electricity, saves consumers money on their utility bills and lessens the need to invest in new generation, transmission and distribution infrastructure.

• Conservation is achieved through utility conservation programs, improved building codes, equipment standards, and demand management initiatives.

Key Facts:

Historically, for every $1 invested in conservation, Ontario has avoided $2 costs to the electricity system

Conservation costs~$40/MWh, cheaper than most forms of new supply

Majority of savings come from the commercial sector

Key Players

Ministry/Government: sets policy; offers programs; establishes energy standards for equipment

OEB: monitors requirement for utilities to deliver conservation; funds and approves natural gas utility conservation plans and programs

Utilities develop/ deliver conservation programs; meet targets

IESO: (merged with OPA on Jan 1, 2015) funds and approves LDC conservation plans and programs; responsible for demand management initiatives

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Putting Conservation First, Where Cost Effective

Conservation First Policy

Conservation First

Framework

Demand SideManagementFramework

BuildingBenchmarking

Green Button

Net Metering

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Large Building Energy and Water Reporting andBenchmarking (EWRB)

• Large building owners can play an important role in helping Ontario meet its conservation and GHG reduction objectives through EWRB.

o Buildings accounted for 19% of Ontario’s total GHG emissions in 2013.

• Can benefit building owners by providing them with tools and information to:

o Better manage energy and water use and costs;

o Identify best practices and energy and water-saving opportunities;

o Set goals by providing a benchmark;

o Evaluate results by comparing to similar facilities across the province;

o Measure improvement over time; and

o Value energy efficient and water efficient buildings.

• Disclosure of building data allows market to valueefficiency in purchasing/leasing/lending decisions.

“When there’s a scoreboard, people play differently”

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- Ben Myers, Sustainability Manager, Boston Properties

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Large Building Energy and Water Reporting &Benchmarking

• The Ministry of Energy held consultations over a six-month period from January 2015 to June 2015 and met with a broad range of stakeholders

• Based on stakeholder feedback, the ministry developed legislative amendmentsand a regulatory proposal for implementation of the initiative.

• On October 28, 2015 the government introduced amendments to the Green Energy Act, 2009 (Bill 135) that, if passed, would enable the implementation of the initiative through a subsequent regulation.

• On February 25, 2016 the Ministry of Energy posted its regulation proposal to the Environmental Registry and Regulatory Registry.

• The proposal provides stakeholders with another opportunity to provide feedbackand will be posted for 45 days.

o Comment period ends April 10, 2016.

• Feedback received will be considered in the development of the regulation, pending passage of the proposed legislation.

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Regulation Proposal

POLICY ELEMENT POLICY PROPOSAL

Building Types Commercial, multi-unit residential buildings ≥50K sq ft to be included. Most industrial buildings, i.e. manufacturing facilities and all agricultural facilities would not be included.

Annual Reporting ENERGY STAR Portfolio Manager to be used to report building data on an annual basis, including monthly energy and water consumption (and performance data where available), GHG emissions, building characteristic information such as gross floor area.

Phased-in over three years, starting with the largest buildings. Require electricity, natural gas and water utilities to make whole building,

aggregated, consumption data available to building owners so they are able to comply with the requirement.

Annual Disclosure Public disclosure (on Ontario’s Open Data website) one year after initial reporting year for each of the three phases. Some data will not be disclosed publicly (e.g. site/source energy use, total GHG emissions and gross floor area on a building by building basis).

Data Verification Building owners would be required to confirm in Portfolio Manager that the reported data is accurate. Verification by a third party would not be required under the proposed regulation.

Reports ENERGY to publish reports summarizing key data findings.

CDM Plans No requirement for Conservation and Demand Management (CDM) Plans in initial years of reporting.

Will consider requiring CDM Plans on a targeted basis in future years based on results.

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Proposed Building Types

• The following buildings types (as defined by Municipal Property Assessment Corporation (MPAC)* codes) 50,000 sq ft and above would report annually:

o Commercial

o Multi-unit residential

o Some industrial buildings/properties (i.e., warehouses, industrial condominiums/malls and truck terminals)

• The following building types would not be required to report:

o Manufacturing, farm and agriculture facilities

o Multi-unit residential buildings with fewer than 10 residential units

o Data centers and communication towers

o Government owned, broader public sector and buildings currently reporting GHGs to MOECC.

*MPAC is an independent, not-for-profit corporation that assess and classifies all properties in Ontario according to the Assessment Act and regulations established by the Ontario Government.

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Reporting Tool: ENERGY STAR Portfolio Manager

• Building owners would report using the ENERGY STAR Portfolio Manager (PM).

• PM is a free, secure, web-based building rating tool created by the U.S. EPA that compares energy and water consumption, as well as GHG emissions, across a single building or a portfolio of buildings.

• In August 2013, NRCan in collaboration with the U.S. EPA launched a major update of the tool for Canada that included Canadian source energy, GHG emissions factors, and weather data.

o The “Canadianized” version is managed by NRCan.

• PM is the tool of choice among U.S jurisdictions that have already passed benchmarking laws.

o 40% of U.S. commercial building space is already benchmarking using PM.

• Many large building owners in Ontario are already using PM to track and manage their energy and water consumption voluntarily.

o NRCan reports there were 3,530 Ontario buildings in PM as of March 2014.

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Reporting and Disclosure of Building Data

• Building owners would report and disclose the following types of building data:

Data Element Type Collect Disclose

Property Identification ✓ ✓

Energy Star Score ✓ ✓

Energy, Water and GHG Performance

✓ ✓

Current Green Building Certifications

✓ ✓

Property Use Details ✓

Energy (by Fuel Source) and Water Use

✓

Greenhouse Gas (GHG) Emissions

✓

• Electricity, natural gas and water utilities would be required to provide whole building, aggregated consumption information to building owners upon request so they can comply with reporting requirements.

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Phase-In Approach

• The Ministry of Energy is proposing that the requirement to report be phased in over a three-year period according to the schedule below.

• The first reporting date of July 1 2017 would allow building owners time to prepare forthe requirement.

• Building owners would be required to report 1 year of data ending 6 months prior to the required reporting date:

o Year 1: January 2016 – December 2016

o Year 2: January 2017 - December 2017

o Year 3: January 2018 - December 2018

• Building data would be disclosed one year after initial year of reporting for each of the three phases of reporting.

Year Reporting

Commercial /Institutional /Special /Industrial Buildings

Multi-Unit ResidentialBuildings

Year 1 250,000 sq ft and larger

Year 2 100,000 sq ft and larger 100,000 sq ft and larger

Year 3 50,000 sq ft and larger 50,000 sq ft and larger

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Outreach, Support and Engagement

• Support and engagement is essential to ensuring building owners and their representatives understand and undertake reporting requirements.

• Other jurisdictions have leveraged partnerships with key industry and non-government associations to undertake their outreach activities.

• Stakeholders have expressed a preference for using existing channels for the delivery of information and training to building owners.

• Many organizations, including other levels of government, have offered to partner with the Ministry of Energy to undertake outreach /engagement.

• The Ministry of Energy will work with these organizations to establish partnerships to support building owners in meeting reporting requirements.

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Next Steps

March-April 2016

• Stakeholder comment period on EWRB Environmental andRegulatory Registry Posting

• Comment period ends April 10, 2016

May-June 2016

• Draft regulation

July 2016

• Regulation expected to take effect (pending legislative andregulatory approvals)

July 2017

• First reporting date for largest building owners

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Environmental Registry and Regulatory RegistryPostings

• Further details on each of the proposed elements of the regulation are outlined in the Environmental Registry and Regulatory Registry postings.

• We welcome your feedback on all of the elements of the proposal and encourage you to review the posting, which can be found at the following links:

o Environmental Registry: http://www.ebr.gov.on.ca/ERS-WEB-External/displaynoticecontent.do?noticeId=MTI3ODY0&statusId=MTkz MTc3&language=en

o Regulatory Registry: http://www.ontariocanada.com/registry/view.do?postingId=21082&lan guage=en

ENERGYMINISTRY OF

Thank you

Usman Syed

Director Conservation and Energy Efficiency

Usman.syed@ontario.ca

416-325-6651