COUNCIL REPORT - 2017 CLIMATE ACTION REVENUE INCENTIVE PROGRAM
Report on the Town's 2017 greenhouse gas emissions and the recommended purchase of carbon offsets to achieve carbon neutrality.
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Mayor and Council DATE: May 9, 2018 FROM: Jeff Chow, MCIP, RPP, Senior Planner MEETING DATE: May 15, 2018 FILE NO: 1855-03-11450 Climate Action Revenue Incentive Program 2017
2017 CLIMATE ACTION REVENUE INCENTIVE PROGRAM
RECOMMENDATION:
THAT the May 9, 2018 report from the Senior Planner titled “2017 Climate Action Revenue Incentive Program” be received for information.
AND THAT up to $3000.00 in carbon offsets be purchased from an accredited provider by June 1, 2018 so that the Town can be officially carbon neutral in operations for the 2017 reporting year.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS: I concur with the recommendations.
DIRECTOR OF FINANCE’S COMMENTS: I concur with the recommendations.
DIRECTOR OF DEVELOPMENT SERVICE’S COMMENTS: I concur with the recommendations.
PURPOSE OF REPORT
- To present the 2017 Climate Action Revenue Incentive Program Actions Survey.
- To report on the Town’s 2017 Green House Gas emissions from corporate operations.
- To consider the potential purchase of carbon offsets so that the Town can be carbon neutral in operations for 2017 reporting year.
EXECUTIVE SUMMARY:
Green House Gas (GHG) emissions from municipal operations increased in 2017 to 398.5 Tonnes from 349.7 Tonnes in 2016. At the same time, offsetting GHG reductions from organic waste diversion programs decreased to 253.8 Tes from 305.7 Tes due to lower volumes of organic waste collected and a permanently lower GHG offset ratio for composting (landfills have been mandated to be more efficient at recovering GHG). 145 tonnes of carbon offsets that can cost $2900-$4350 would have to be purchased to balance the Town’s GHG emissions.
While the 2018 budget provides $1,100 for the purchase of carbon offsets, the Town is eligible to receive a carbon tax refund of $3173.67. To meet Climate Action Charter commitments for carbon neutral operations in 2017 and to stay cost neutral or better, it is recommended that up to $3000 of carbon offsets be purchased from an accredited offset provider.
BACKGROUND
The Climate Action Revenue Incentive Program (CARIP) The Climate Action Revenue Incentive Program (CARIP) is a conditional grant program that returns one hundred percent of the carbon tax paid for in fuel purchases. To be eligible for the CARIP grant, local governments must:
A. Sign on to the BC Climate Action Charter and by doing so commit to take action and develop strategies to achieve the following three goals:
- Become carbon neutral in their corporate operations by 2012 The Town’s status was “making progress” in 2012 as permitted by the Province. The Town has achieved carbon neutral operations every year since then by actively working to minimize greenhouse gas emissions and by purchasing a small amount of carbon offsets.
- Measure and report on their community Green House Gas (GHG emission) profile The 2010 Community GHG emission profile was published January 2013 and is a baseline for comparison future years to measure progress. Data is only available every few years.
- Create complete, compact, energy efficient rural and urban communities The Town continues to work towards this goal through continued implementation of the Official Community Plan and other plans and programs. B. Report publicly on their plan and progress towards meeting their climate action goals. The Climate Actions Survey is a provincial template to describe actions undertaken by the Town in 2017 and planned for 2018. The Carbon Neutral Progress Survey provides an analysis of net greenhouse gas emissions from municipal (including contracted) operations.
Carbon Neutral Operations
To be carbon neutral in corporate operations means the following:
| Amount of GHGs generated | = | Project reductions (Options 1 & 2) | + | Offsets (Option 3) |
|---|
Where:
- Amount of GHGs generated is the tonnes of GHG produced from the consumption of fossil fuels, e.g. heating buildings, running vehicle fleets.
- Project reductions is the reduction of GHG emissions through:
- Option 1: Investing in any of four pre-approved UBCM Green Communities Committee (GCC) Supported Projects, which consist of the following:
- energy efficient building retrofits / fuel switching
- solar hot water
- household organic waste composting
- low emission vehicles
- Option 2: Investing in Alternate GCC-supported projects, i.e. creating an independent GHG reduction project that meets eligibility requirements and is verified by an accredited third party.
- Option 1: Investing in any of four pre-approved UBCM Green Communities Committee (GCC) Supported Projects, which consist of the following:
- Offsets is the offsetting of carbon neutrality through Option 3, the purchase of carbon offsets from an approved provider that are used to fund projects that reduce GHGs elsewhere.
Note: to calculate GHG emissions, the Town uses a spreadsheet produced by the Capital Regional District and updated each year or two in accordance with the methodology set out by the Province. Other similar sized communities have to pay for reporting tools that would cost approximately $750 for the first two years followed by an annual service agreement.
DISCUSSION
To fulfill the Town’s Climate Action Charter commitments, the following is presented for Council’s information and consideration:
- 2017 CARIP Climate Action/Carbon Neutral Progress Survey
- Summary of GHGs produced by the Town’s corporate operations
- GHG emission reductions from composting
- Achieving carbon neutrality – purchasing offsets
- Reporting requirements
1. 2017 CARIP Climate Action/Carbon Neutral Progress Survey
The draft survey reporting on the Town’s actions to address climate change in its operations and community support can be found in Attachment 1. This survey would be submitted to the Province and also published to summarize the Town's completed and proposed actions towards reducing community GHG emissions and achieving or maintaining carbon neutrality in the Town's corporate operations.
2. Corporate Green House Gas Emissions
The Town’s GHG emissions from operations are summarized in Table 1:
Table 1. Town of View Royal Corporate GHG Emissions from Operations and Composting
| Year | Municipal GHGs | Contracted GHGs | Total GHGs emitted | GHGs reduced by Household composting projects | Offsets to balance |
|---|---|---|---|---|---|
| 2013 | 84.4 Tes | 168.1 Tes | 252.5 Tes | 219.5 Tes | 33 Tes |
| 2014 | 75.5 Tes | 165.6 Tes | 241.1 Tes | 222.8 Tes | 19 Tes |
| 2015 | 105.7 Tes | 271.1 Tes | 376.8 Tes | 355.2 Tes | 22 Tes |
| 2016 | 112.0 Tes | 237.7 Tes | 349.7 Tes | 305.7 Tes | 44 Tes |
| 2017 | 127.7 Tes | 270.8 Tes | 398.5 Tes | 253.8 Tes | 145 Tes |
Municipal Emissions The municipal GHG emissions (Attachment 2) are based on the amount of fossil fuels used in the Town’s facilities, roads, and service operations, including the following:
- Vehicle use
- Traffic signals and street and ornamental lighting
- Building (heating, cooling and lighting)
- Sewer pump stations
- Park irrigation
The main factors that can affect the amount of GHGs emitted each year include the timing and amount of heating fuel used; the percentage of electricity that is generated from fossil fuels; and distance driven by the vehicle fleet. Key points for 2017 include the following:
- Increased use of natural gas at the Town Hall and Public Safety Building created an additional 10 Tes of GHG over 2016 figures. This is usually caused by low winter temperatures.
- The Town’s vehicle fleet generated an additional 21 Tes of GHG over 2016 figures. This can vary each year depending on the amount of vehicle travel and the timing of fuel shipments to fuel stations at the Public Safety Building.
- This is the first year that metered electricity consumption for overhead street lighting is available. Previous years’ data were estimated from tariffs assigned by BC Hydro.
- A heat pump in the Town Hall server room leaked 0.7 Tes GHG (1kg of refrigerant) before it was refilled and ultimately replaced with new equipment.
Contracted emissions Contracted emissions (Attachment 3) are generated by contractors engaged by the Town to provide standard municipal services such as solid and organic waste collection, road and boulevard maintenance, community water, recreation centres, and libraries. GHG emissions for water service have been addressed by the Capital Regional District in their calculations and the City of Victoria accounts for Town’s share of the Central Public Library’s GHG emissions. If the assistance provided by these two parties (who are consistently carbon neutral) were to end, the Town’s share of emissions from those operations will have to be accounted for in these calculations. 2017 highlights include the following:
- Natural gas consumption increased GHG emissions by 18 Tes (20%) at Juan de Fuca Recreation Centre, similar to the increase at the Town Hall and PSB.
- GHG emissions from vehicle usage increased by 21 Tes (10%) over 2016 emissions; however it should be noted that 2016 emission were below average.
3. Green House Gas Reduction Projects
A total of 191.6 + 62.2 = 253.8 Tes can be claimed for GHG-reduction from two projects that divert household and yard organic waste from Hartland Landfill into composting programs. In 2016, Provincial Landfill Gas Regulations came into effect, requiring 75% of the gases emitted by organic materials in landfills to be captured. This requirement means that GHG reduction figures for organic waste diversion from 2016 onwards will be smaller because the amount of GHG credit that can be claimed per kg will be relatively less than in prior years.
a. Town of View Royal Household Organic Composting Project The project includes curbside collection of household organic waste, seasonal yard waste curbside pickups, and the yard waste drop-off location in Esquimalt. 191.6 Tes GHG were recovered in 2017 by this program (Attachment 4).
b. CRD ICI Household Organic Composting Project This project includes collection and diversion of organic waste from Industrial, Commercial and Institutional (ICI) properties. These are properties for which the Town does not provide garbage and compost collection service and includes apartments, townhouses and other multifamily properties. The CRD coordinates the program, assigns the credits to its member municipalities based on population and certifies that the credits were not claimed by the companies that create or collect the organic waste. 62.2 Tes of GHG reduction credits are available for the Town to claim for 2017 (see Attachment 5), down by almost 33% from 92.2 Tes in 2016. Two possible reasons are that either the volume of reported ICI organic waste collected is down, or that more GHG credits are being claimed by the companies that generate or haul the organic waste.
4. Achieving Carbon Neutral Operations for 2017 - Purchasing Offsets
GHG emissions increased in 2017. At the same time, GHG reductions from composting programs decreased due to lower volumes and a permanently lower GHG offset ratio because landfills have been mandated to be more efficient. To balance the Town’s GHG emissions, 398.5 – 253.8 = 145 tonnes of carbon offsets would have to be purchased. Carbon offsets usually range in price from $20 – $30 per tonne depending on the scale and certification level of different programs.
To meet Climate Action Charter commitments and stay cost neutral or better, it is recommended that up to $3000 of carbon offsets be purchased from an accredited offset provider such Offsetters.ca. While the 2018 budget provides $1,100 for the purchase of carbon offsets, the Town is eligible to receive a carbon tax refund of $3173.67.
If Climate Action Charter commitments for carbon neutral operation are not met, future eligibility for the grant could be in question if there is no demonstrated continuing progress towards carbon neutral operations. If the Town does not wish to purchase offsets, the survey report would be modified to exclude the purchase of offsets and the Town’s level of recognition from the Provincial-UBCM Green Communities Committee (GCC)’s Climate Action Recognition Program would drop from the highest level “Level 4 - Achievement of Carbon Neutrality” to lower levels, and may compromise the Town’s commitment to the BC Climate Action Charter.
5. Reporting Requirements
To meet provincial requirements for carbon neutral operations for the 2017 reporting year, the following is required by June 1, 2018:
- Publication of the final 2017 CARIP Carbon Neutral Progress Survey report on the Town website
- Publication of the 2017 report on Organic Waste Diversion
- Purchase 145 tonnes of carbon offsets.
- Submission of documentation to the Province
RECOMMENDATION
THAT the May 9, 2018 report from the Senior Planner titled “2017 Climate Action Revenue Incentive Program” be received for information.
AND THAT up to $3000.00 in carbon offsets be purchased from an accredited provider by June 1, 2018 so that the Town can be officially carbon neutral in operations for the 2017 reporting year.
SUBMITTED BY: Jeff Chow, MCIP, RPP, Senior Planner REVIEWED BY: Lindsay Chase, MCIP, RPP, Director of Development Services
ATTACHMENTS
- 2017 Climate Actions Survey (14 pages)
- 2017 Town GHG Emissions
- 2017 Contracted GHG Emissions
- 2017 Organic Waste Composting figures
- E-mail from CRD - CARIP Reporting: Carbon Neutral Balancing Credits (ICI Kitchen Scraps) 2017, May 2, 2018
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