STRATEGY 6

Define the Value Proposition

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Define how the CEP will generate value for community stakeholders

While CEPs are often led by local governments, they are implemented by the community. Early and meaningful collaboration and coordination with community stakeholders is critical for fostering buy-in, ownership and accountability for implementation.

Before engaging with stakeholders, it may be helpful to identify ways in which the CEP can add value to their business models. Some of the stakeholders most central to the success of the CEP include:

Electric, natural gas and thermal energy distributors
The real estate sector (including developers, homebuilders, building owners and operators, architects, and real estate agents)
Provincial/territorial government
Large energy users in the industrial commercial and institutional sector
NGOs

The value of community energy planning to each of these stakeholders is described in the following subsections.

Other stakeholders to engage include, but are not limited to:

Local chambers of commerce
School boards
Fuel suppliers
Engineering and planning consultants
Other local governments
The public
Others

Engaging Energy Distributors

Electricity, natural gas and thermal energy distributors are critical partners for CEP development and implementation as they have technical expertise in managing infrastructure and experience delivering programs and building projects.

The business models of energy distributors are evolving. Some of the factors influencing this shift include, but are not limited to:

The introduction of ambitious conservation targets
The installation of smart meters in several jurisdictions and resulting data and IT management
Increased adoption of new technologies, including distributed energy resources and alternative fuel vehicles, as well as the introduction of policies encouraging their uptake

Table 9 summarizes how a CEP can add value to the evolving business models of energy distributors.

Table 9 – The Value Proposition of Community Energy Planning to Energy Distributors

Considerations	CEP Value
Electric, natural gas and thermal energy distributors are focused on delivering energy to end users as reliably and as cost-effectively as possible	By participating in the community energy planning process, energy distributors can inform the development of programs and projects that complement infrastructure planning
Ambitious demand side management (DSM) or conservation and demand management (CDM) targets	The CEP aims to reduce overall energy consumption and GHG emissions and as a result can act as a direct pathway to allow energy distributors to expand DSM/CDM efforts and meet targets
Uptake of distributed energy resources and alternative fuel vehicles that must be integrated with the distribution system	The community energy planning process can lead to discussions about distributed energy resources, electric vehicle charging, etc.
Missing data needed for load forecasting	Local governments have access to development data that may not be available to energy distributors. Partnering on community energy planning can provide insights with respect to future land use as well as opportunities for integration
Alignment of infrastructure planning	CEPs aim to enhance the reliability and cost-effectiveness of energy supply by integrating energy networks and therefore align with the central focus of distributors Energy distributors can inform CEP actions that reduce community-wide energy use during peak demand Energy distributors can collaborate with public works committees to aligning timing of infrastructure investments, etc.

Consider the following when engaging with the energy distributors.

Who to engage	When to engage them
Executive leaders DSM/CDM staff Energy planning staff (if applicable)	Engage executive leaders and DSM/CDM staff as early as possible in the CEP process
Why engage them	How to engage them
What the CEP can provide: CEPs have the potential to enhance the business models of energy distributors. Senior staff should be engaged to participate in strategic level discussions about the CEP DSM/CDM staff should be engaged to act as a liaison between large energy users and the CEP team What is required from distributors for the CEP: Energy end use data by postal code to develop energy inventories and if applicable, energy maps³⁶ If applicable, funding for CEP development and/or staffing resources and/or program and project implementation	Reach out to executive leaders with an invitation for a one-on-one meeting If there are many distributors in your jurisdiction establish a recurring in-person meeting to align on needs, data availability, etc. Energy distributors often have strong relationships with facilities departments. This may be a good entry point for communication if your utilities does not yet have a community energy planning contact person. Refer to the checklist in Table 11 (in Strategy 7) for a list of approaches on how to maintain engagement with energy distributors

Engaging the Real Estate Sector

Business models within the real estate sector are evolving. Some of the factors influencing this shift include, but are not limited to:

The evolving preferences of home buyers and businesses. There is a growing mismatch between the high demand for energy efficiency buildings and homes and the supply. Similarly, there is a growing demand for compact, mixed-use neighbourhoods and communities
Increasing concerns from building owners and operators about the growing cost of energy as a proportion of overall building operating costs
Federal, provincial and territorial policies evolving in favour of energy efficiency, integrated land use and transportation and distributed energy resources
Significant, untapped opportunities for integrating distributed energy resources into building design

These changes have impacts on real estate developers, building owners and operators, architects and real estate agents and while some organizations are taking the lead when it comes to community energy projects, many have yet to catch up. Table 10 summarizes some of the realities the real estate sector is facing and describes how participating in the community energy planning process can add value to their business models.

Table 10 – The Value Proposition of Community Energy Planning to the Real Estate Sector

Real Estate Sector Factors	CEP Value
The real estate sector is primarily focused on constructing and selling homes and businesses that are as affordable as possible	The result of effective community energy planning is often a shift from focusing on the upfront costs of implementing energy efficient buildings and/or distributed energy solutions, to the long-term reduction in costs to operate buildings
The demand for energy efficient homes and buildings is growing	There is an untapped opportunity for developers and homebuilders to grow sales by enhancing the level of energy efficiency within new and existing building stocks Community energy planning provides an opportunity for stakeholders within the real estate sector to engage among one and another to share best practices Developers that own buildings will experience a reduction in the cost per square foot of operating a building in the long-term by incorporating energy efficiency and distributed energy measures. Community energy planning can provide a platform upon which stakeholders within the real estate sector can learn about and/or promote the marketability of energy efficient homes³⁷
The demand for compact, mixed-use communities is growing	The community energy planning process can provide developers, builders and building owners and operators with new insights on land use and transportation trends and opportunities within the community
A growing number of policies are being introduced in favour of energy efficiency, integrated land use and transportation and distributed energy resources	The community energy planning process can provide developers, builders and building owners and operators with a platform upon which to navigate emerging standards, policies and guidelines around energy efficiency Developers, homebuilders, building owners and operators and others can use the community energy planning process as an opportunity to present policy alternatives that can support CEPs³⁸ For example, an effective community energy planning process could find ways to increase flexibility with minimum parking requirements, thus increasing affordability of new developments

Consider the following when engaging with the real estate sector.

Who to engage	When to engage them
Developers and homebuilders Distinguish between those perceived to be progressive versus those that are perceived to be traditional Building owners and operators Architecture firms Real estate agents Consider reaching out to executives and senior/junior staff. Consider reaching out to those with an engineering, architecture and/or planning designation	Early in the process and on an ongoing basis throughout CEP development and implementation
Why engage them	How to engage them
Commitment to implement projects that align with the CEP, such as energy efficiency projects, distributed energy resource projects, and projects that encourage integrated land use and transportation The implementation of demonstration projects	One-on-one meetings with senior executives. Non-prescriptive, performance-based requirements and/or incentives for building efficiency, distributed energy resources and integrated land use and transportation, will enable developers to incorporate cost effective and contextually appropriate technologies into developments Refer to the checklist in Table 11 (in Strategy 7) for a list of approaches on how to maintain engagement with the real estate sector

Engaging Provincial and Territorial Governments

Provincial and territorial governments are essential in the community energy planning process:

Increasingly, provincial and territorial governments and their respective agencies are placing a growing emphasis on energy and emissions.³⁹ Community energy planning offers a platform to achieve deep energy and GHG reductions while facilitating economic growth and can directly help achieve provincial and territorial objectives
Health care costs represent a large, and increasing portion of most provincial/territorial budgets and community energy planning can help to reduce these costs
They also oversee policies and programs that may impact or be impacted by community energy planning.
They may also have technical expertise needed for CEP development and implementation
They may have energy end use data and
Key Performance Indicator data needed to monitor implementation progress

Consider the following when engaging with provincial and territorial governments.

Who to engage	When to engage them
Manager-level staff in ministries including but not limited to energy, land use/municipal affairs, environment and economic development Ongoing engagement with the manager and/or appointed staff person	Early in the CEP process and on an ongoing basis throughout CEP development and implementation
Why engage them	How to engage them
What provincial/territorial governments may need from communities: Commitment to deep energy and GHG emissions at the local level Commitment to create the conditions for the implementation of energy projects across the community What communities may need from provincial/territorial governments: Technical expertise on energy planning (e.g. energy distribution planning, transportation planning, etc. if applicable) Energy end use data Key Performance Indicator data for anything tracked at a provincial/territorial level Introduce/amend policies to encourage, support or require widespread CEP implementation⁴⁰	Reach out to any contacts you may have in the provincial/territorial government and their respective agencies with a mandate related to community energy. If you do not have a contact check your provincial/territorial government directory Refer to the checklist in Table 11 (in Strategy 7) for a list of approaches on how to maintain engagement with provincial and territorial staff

Engaging Non-Governmental Organizations

Who to engage	When to engage them
All NGOs with a mandate related to community energy including but not limited to: Climate action Environmental projection Alternative transportation Active transportation Others Consider organizations with capacity to engage with elected officials, community stakeholders and the public Consider organizations with capacity to provide research support to support CEP implementation (e.g. measuring and monitoring the impacts of implementing certain energy projects) Consider organizations listed in Appendix IV Appendix IV – Provincial/Territorial Organizations and Communities of Practice that may have Community Energy Planning Resources	Early in the CEP process and on an ongoing basis throughout CEP development and implementation
Why engage them	How to engage them
NGOs may be well-positioned to: Measure and communicate measurable impacts of CEP implementation. Communicate the need for CEP support with provincial/territorial government Develop/implement CEPs Engage with elected officials, community stakeholders and the public to advance the implementation of actions	Refer to the checklist in Table 11 (in Strategy 7) for a list of approaches on how to maintain engagement with NGOs

Engaging the Public

CEP implementation requires residents and businesses to change the way they consume energy. But when and how should the public be engaged, and what for?

While the CEP should be undertaken with the public interest in mind, public engagement may not be needed before a CEP is developed
Public engagement may be most effective once programs have been developed, whereby targeted educational materials and calls to action can be presented to residents and businesses
Engagement is often most powerful when you go to the community, instead of waiting for the community to come to you. There are many tried and tested alternatives to public engagement meetings
When communicating with the public, emphasize person benefits such as cost savings
Use visually compelling materials such as infographics and energy maps⁴¹
Engage youth to solicit ideas for change. Engage students to act as ambassadors for the CEP

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Relevant Resources

National Report on Community Energy Plan Implementation

National Report on Policies Supporting Community Energy Plan Implementation

Community Energy Planning: The Value Proposition

Policies to Accelerate Community Energy Plans: An analysis of British Columbia, Ontario and the Northwest Territories

Canada Green Building Council Municipal Green Building Toolkit

Vancouver Island Real Estate Energy Efficiency Program

Case Studies

Case Study 2

Measuring the Widespread Economic Benefits in the City of London, Ontario

The City of London, Ontario has conducted an economic analysis to measure various economic impacts and potential benefits of implementing their Community Energy Action Plan (CEAP). The analyses, conducted in-house, demonstrate community-wide energy spending, the proportion of energy spending leaving the local economy and the potential to recirculate energy spending based on the implementation of their plan.

The approach undertaken and resources are available here:

Energy spending analysis
Video supporting energy spending analysis: Turning energy data into energy dollars
The City of London has also produced infographics based on the analyses, available here

Case Study 3

Measuring Green Jobs in Durham Region, Ontario

The Region of Durham Community Climate Change Local Action Plan highlights the estimated environmental, economic and social impacts of implementation. The plan is available at: Durham Region (2012). From Vision to Action Region of Durham Community Climate Change Local Action Plan.

Case Study 4

Measuring the Impacts of Sustainable Communities on Local Retail Sales New York City, New York

The New York City Department of Transportation created a methodology for measuring the economic impacts of improved streetscapes and active transportation infrastructure on retail sales. The study is available here: New York City Department of Transportation (December 2013). The Economic Benefits of Sustainable Streets. http://www.nyc.gov/html/dot/downloads/pdf/dot-economic-benefits-of-sustainable-streets.pdf

Case Study 5

Framing the Value Proposition, Edmonton, Alberta

The City of Edmonton, Alberta (population 812,000) adopted Edmonton’s Community Energy Transition Strategy in April 2015 and a corresponding City Policy C585 in August 2015.78 The Strategy, which represents a renewal and upgrade of their 2001 plan, was approved unanimously by City Council. Based on extensive citizen consultation, the strategy includes twelve strategic courses of action and an eight-year action plan with more than 150 tactics.

There is a lesson to be learned in how Edmonton’s Sustainable Development Department communicated the need for the strategy. First, it was framed as a risk management strategy designed to protect Edmonton’s quality-of life from climate and energy risks. Secondly, it provided a compelling economic business case involving ten community-scale programs (for advancing energy conservation, energy efficiency and renewable energy uptake) that would deliver a net public benefit of $3.3 billion over 20 years.

Case Study 6

Establishing a Committee of Council in Yellowknife, Northwest Territories

The Community Energy Planning Committee was established by City Council on September 10, 2007, following the completion of the Community Energy Plan (CEP).⁷⁹ The Committee is chaired by the Mayor and includes representatives from across the Community. The primary purpose of the Committee is to assist the City of Yellowknife in an advisory capacity to ensure the CEP is implemented and evolves in an effective manner. The scope of the Committee is to report and make recommendations to City Council through the appropriate standing Committee of Council on the progress and direction of the CEP implementation.⁸⁰

Case Study 7

Establishing a Governance Framework for Edmonton’s Community Energy Transition Strategy, Edmonton, Alberta

Edmonton City Council formed an Energy Transition Advisory Committee.81 Committee members serve two year terms and sets out to encourage and promote the strategy, provide advice to Council regarding the implementation of the strategy and assist Council in developing performance measures.

Case Study 8

Stakeholder Engagement in the City of Kelowna, British Columbia

In 2012, the City of Kelowna adopted a Community Climate Action Plan containing 87 actions to be implemented by 2020. Of those actions, 59 were assigned to the local government and 28 were assigned to community stakeholders, including utilities, provincial government and others. In an effort to ensure that community stakeholders understood their roles in the implementation of the plan, the City of Kelowna circulated letters to the organizations responsible for implementing actions in the plan. These letters enabled the City of Kelowna to move forward on implementing actions that are not within its jurisdiction.⁸²

Case Study 9

Stakeholder Engagement in Markham, Ontario

In 2014, the City of Markham began to develop a Municipal Energy Plan (MEP). As part of the MEP, the City created a Stakeholder Working Group.⁸³

The desired outcome of the Stakeholder Working Group is to provide recommendations and feedback on the development of Markham’s MEP including:

Identifying energy opportunities and solutions to increase local energy production and conservation
Identifying synergies between industry stakeholders to implement MEP recommendations

See the Municipal Energy Plan Stakeholder Working Group Terms of Reference here.

See the list of stakeholders participating in the MEP Stakeholder Working Group here.

Case Study 11

Public Engagement on Community Energy in London, Ontario

The City of London, Ontario has documented public engagement efforts in a document entitled Learning from People: A Background Document for the Community Energy Action Plan: https://www.london.ca/residents/Environment/Energy/Documents/Learning_from_People.pdf

As part of the development of the Community Energy Action Plan, the City of London undertook a campaign called ReThink Energy London. The City of London held a Community Energy Strategy Workshop and the London Roundtable on the Environment and the Economy to inform the development of the Community Energy Action Plan. Community Energy Strategy Workshop included an interactive energy mapping exercise that involved 31 participants from electrical, natural gas and thermal utilities, internal departments, environmental and transportation advisory committees and provincial staff, among other stakeholders. The city’s energy map was used to help stakeholders identify energy opportunities and risks, and to generated ideas and principles for energy actions in key areas such as buildings, transportation and low carbon energy generation in the City of London. Outcomes from the workshop can be found here: https://www.london.ca/residents/Environment/Climate-Change/Documents/London_FINALSummaryofWorkshop_May11.pdf

Case Study 12

City of Yellowknife Community Energy Plan Communications Plan, Northwest Territories

The City of Yellowknife Community Energy Plan Communications Plan describes a detailed approach for engaging with the public.⁸⁶ At the core of the plan, there is a recognition that in order to reduce GHG emissions across the community, Yellowknife residents and businesses must change current energy use practices. This requires a shift in awareness, attitudes and behaviour with respect to GHG emissions. The overall communication goal of the plan is to inform Yellowknife residents of changes that the City of Yellowknife will make and to implement communication programs that encourage ongoing reductions in Yellowknife GHG emissions.

Case Study 13

Fort Providence, Northwest Territories

In 2007 and 2008 the community of Fort Providence, Northwest Territories (population 735), in partnership with the Arctic Energy Alliance, developed an energy profile.⁸⁷

The objective of this exercise was to provide the community, and key decision makers, with a snapshot of energy use in the community.

The energy profile was developed to communicate a large quantity of energy data, including energy consumption, energy end use, cost of energy, and GHG emissions. Similar to any community that looks at energy use and costs per capita, the energy profile revealed significant opportunities to conserve energy and improve efficiency within the community.

Case Study 19

Community Energy Planning Alternatives for Small Communities – Eco-Ouest

Eco-Ouest, led in partnership with CDEM, SSD, has developed a program designed to help provide expertise to smaller municipalities in Manitoba, Saskatchewan and Alberta that face resource and capacity constraints for CEP development and implementation. Eco-Ouest has partnered with rural municipalities in each of these provinces to create energy and GHG emissions inventories and Climate Change Local Action Plans such as the inventory for the Rural Municipality of St. Clements and plans for the Rural Municipality of Saint-Laurent and Rural Municipality of Taché. CDEM also incorporates a regional perspective by comparing neighbouring communities’ energy and emissions performances and sharing successful projects and case studies.⁹²CDEM. (n.d.). Eco-West. Retrieved from CDEM Website: http://www.cdem.com/en/sectors/green-economy-1/eco-west

Case Study 20

Yukon Energy Solutions Centre

The Yukon Energy Solutions Centre is part of the Energy branch in the Government of Yukon Department of Energy, Mines and Resources.

The Energy Solutions Centre offers community-level energy services to such as:

Providing technical information and financial incentives to encourage the use of energy efficient appliances and heating systems at the local level
Providing comprehensive energy planning services, including energy baseline assessments and policy reviews
Providing training courses to build local technical capacity to implement community energy plans and projects
Participating in outreach and public education on the health, safety, economic and environmental benefits of energy efficiency and renewable energy

To learn more about the Energy Solutions Centre visit http://www.energy.gov.yk.ca/about-the-energy-branch.html