MOEE Annual Report 1992-93 / Rapport Annuel 1992-1993

50 Pages·1993·2.3 MB·English

by  Ontario Ministry of Environment and Energy

Annual Report
Ontario
Ministry of
Environment
and
Energy
92/93
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Annual Report
Ontario
Ministry of
Environment
and
Energy
92/93
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AnnualReport 92/93
Ontario
Ministry of
Environment
and Energy
TotheHonourableHenryN.R.Jackman,CM.,K.St.J.,B.A.,LL.B.,LL.D.
Lieutenant-GovernoroftheProvinceofOntario
May It Please YourHonour:
For the information ofYourHonourand the
Legislative Assembly ofOntario, it is myprivilege to
present the Annual Report ofthe Ontario Ministryof
Environmentand Energyfor thefiscalyearending
March 31,1993.
Respectfullysubmitted,
Hon.C. (Bud)Wildman
J.
Minister
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ill
1
MnMlryolEnMrorwiMniandEntrgy AiwuMRr|>o(t 9//9)
Contents
4 Minbt^smessage
5 DeputyMtnistef'smessage
6 Ontario:Canada'slar^fsti'nfr>;yustr
6 MinistryofHntTgyhighlights
8 MINISTRYOFENERGY ACTIVITIES
8 GreenIndustryStrate)^
9 IndustryProgranwBranch
1 EnergyEfficiencyBranch
74 BuildingEnergyUseBranch
15 EnergyResearcharviDevelopnientBranch
17 CommunicationsandCustomerServiceBranch
18 MINISTRYOFTHEENVIRONMENTACTIVITIES
22 RNANCIAL STATEMENTS
TTiisisIhelastannualreportoftheMintstryofEnerg\f.
ItcaverstheperwdfromApril1.1992toFebruary3.J993,
u<hentheministryausintegratedwUhthe
Ministryofth " •:.•
Ministry01 , v
Inlieu'oftheintC){ratton,//iisrrporicunciudrswith
stwirhi;^hlij(htsofMinistryoftheErwavnment
activiliesduring fiscal1992/93.
AnnualReport 92/93 MinistryofEnvironmentand Energy
Minister's Message
Whenourgovernmenttookofficeintheautumnof Thebenefitsareobvious.Undertheoldsystem,
1990,wepromised toleadOntarioinNewEnergy energyproposalswereforthemostpartformulated
Directionsbyplacingnewemphasisondemand byenergyplarmersandthenhelduptoenvironmen-
management,bytakingnewmeasurestoensurea talexamination.Now,energyandenvironmental
reliablesupplyofelectricityatreasonablecost,and considerationscanbeweighedtogetherfromthe
byexertingeveryefforttoprotecttheenvironment. verystart.Thisgivesplannersanunprecedented
NowthattheMinistryofEnergyhasjoinedhands abilitytoanticipateproblemsandheadthemoff.
withtheMinistryofEnvironmenttoformthenew Anotherbenefitofintegratedplanningisthatit
MinistryofEnvironmentandEnergy,Ithinkifs requiresplanner—stodealwiththefull costsof
importanttostressthatourcommitmenttothese energyoptions thatis,withthesocialandenvi-
originalgoalsremainsasstrongasever. ronmentalcostsaswellastheeconomiccosts.
Themergerhas,infact,strengthenedourability Operatingthetwoministriesasonealsosup-
tomeetourgoals.Whilethemovetookplaceaspart portsthegovernment'scommitmenttosustainable
ofabroadgovernmentreorganizationaimedprima- development,whichrequiresustomeetoursocial
rilyatcost-cutting,thefactremainsthatcombining andeconomicneedsinwaysthatrespjecttheright.of
thesetwoparticularministriesmadeverygoodsense futuregenerationstoahealthyeconomyandhealthy
initsownright. environment.Abroadlybasedapproachtoenergy
Therehasalwaysbeenanoverlapbetween andenvironmentalplanningisfarmorelikelyto
leadtochoicesthatwecanlivewith,andthatour
energyissuesandenvironmentalissues,owingtothe
heirscanlivewithaswell.
factthattheproduction,transportationandcon-
sumptionofenergyhaveapowerfulimpactonthe Intheend,themarriagebetweenEnergyand
ecosystem.Thisissomethin—ggovernment EnvironmenthasproducedwhatIbelievetobethe
policy—makersinbothfields energyandenviron- bestpossiblesetofresults:betterenergyplanning,
ment havehadtokeepconstantlyinview.But betterenvironmentalplanning,andatlesscosttothe
withthemergeroftheEnergyandEnvironment taxpayersofOntario
ministries,whatusedtobeaparallelplanningand
decision-makingprocesshasnowbecomeasingle,
^tOè
integratedone. /^fui luiL^
Hon.C.J.(Bud)WUdman
Minister
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MMMryolttnMonmaMandEnwgy AnniMlRrpofl 9//VJ
Deputy Minister's Message
Dtcnmin^jxirtofthi*nt'wMinistryofPnvinmmcnt I'heseactivitiesnvide.intmportnntrnntrdnitjon
aiv I'fbnury I'wlwastf' !>; tolhegoven .-.hrh
e\i: >Ia-nwlyactiveandprt» irfor ishelpingId! ns-
theformerMinistryoiEnergy. tainablegavnindustrystvtorinOntario Ihe
Inonevilalaiv—aofministryn^^porisibilily—tho agnrodwmtahdoeftahsisignneivf^ic^a4n.tvtaoirnctar*iabtuetdiostniltloftuhrethgeorvjeorbns-
electh«.-itysystem \H^/'^^markiviaturning ment'sea»nomicrenewalprogram.
pomt.OnlanoHydm'sZS-v^-arLX-nuiwISupply
Pbn,whkhhadoriginallyproposedbillionsof Anothermilestonein1W2/<nwastheexpansion
dollar.' worthtifnewpx)werstatioasandtransmis- ofn-gulationsurxJerOntaru) vAct,
sionlines,waswithdrawninrecognitionofthefact whichsetsminimumenergy < irdsfar
thattheprovincenowhasalargesurplusofgenerat- awiderangeofhixjseholdappliancesandother
ingcapacity. energy-usingpnxlucts.Theadditionofnewitems
Theutilityhasfollowedupwithamajora-or- baxjghtthetotalnumberofpnxluctscoveredurxier
theactto21.
ganizationaimedatsignificantlyreducingoperating
costs.This,aHjpledwithaaimmilmenttoholdthe Atthesametinu*theministrycontinuedto
lineonelectricityrale—s,helpedtorestoa*theconfi- administerafullrangeofpn)gramsdesignt^jto
denceofcons—umers particularlythoseinbusiness promot—eenergyefficiencyandconservationinall
andindustry inOntario'selectricitysystem. sectors commercial,industri—al,institutional,
governmentalandresidential whilesupporting
OntaIrtiwoagsaialnseodanyeewarmionmwehnicthumtheungdreerentihnegmoifnis- thedevek)pmentofpn)misingnewtechrx)logiesfor
try'sleadership.Thi'GavnCommunitiesInitiative, a-ducingfuelainsumptionintransportation.
whichsupfx>rtskxrallyKisedenergyefficiencyand Asinthepast,thesevariedactivitiesmadean
cons4?rvationpn>grams,wasexpandedfromfour invaluableattributiontoenergyefficiencyarxi
communitiestoseven.Atthesametime,thegavn conservation,environmentalprotectionandthe
homeassessmentscarriedoutaspartoftheinitiative overallwell-beingofthepeopleofOntario.Person-
resultedinef>ergyefficiencyandconservation nelatalllevelshadagreatdealtobepnxidofasthe
nrtmfitsthatbix>stedUx-alecorwmiesandcreated MinistryofEnergya>mpletedits20thyear
jobs.
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RichandDicvmi
IX'putyMinister
Annual Report 92/93 Ministry of Environment and Energy
Ontario: Canada's largest energy user
OntarioisCanada'slargestenergyconsumer,accountingforroughlyone-thirdof
ournationalenergyconsumption. Lastyear,Ontario'senergybillof$14.7billion
wasequivalenttoaroundfivepercentofthevalueofallgoodsand services
produced intheprovince.
Thisconsumption representeda slightgainof0.8percentovertheprevious
yearasOntario'seconomicrecoverybegan tomakeitselffelt. Butitwasstill five
percentbelow thepeakconsumptionreached in1989.
In1992,oilsupplied37percentofOntario'send-useenergy,whichrepre-
sente—dagainof1.5percentoverthepreviousyear. Naturalgassupplied32per
cent up1.1 percentfrom thepreviousyear,duemainlyto increased consump)-
tionintheresidentialandcommercialsectors(industrialconsumptionincreased
onlyslightly). Electricitydemand fell0.9percentto19 percentofthetotal.Coal
accounted fora furthersixpercentofconsumption,followedbywood (fourper
cent)and naturalgasliquids (threepercent).
Theyearwasmarkedbyunevenpriceperformanceamong fuels.Average
gasoUnepricesfellbyfivepercentcompared to1991 and averageheatingoil
pricesdeclinedbysixpercent. Residentialnaturalgaspricesremainedvirtually
unchanged. However,OntarioHydro'selectricityratesrosebyanaverageof11.8
percentcompared tothepreviousyear.
Ministry of Energy highlights of 1992/93
Energy Efficiency and provincialenergyutilities,municipalities,and
Conservation Policy Framework provincialgovernmentagenciesand continuesto
promoteimprovementsinenergystandards for
InJune1992,theMinistryofEnergyreleased the appliancesandbuildings.
EnergyEfficiencyandConservationPolicyFrame-
work,whichestablishescloserpartnershipsbetween
thegovenunentand privatesectoraimed atdevelop- Amendments to the Power Corporation Act
inga "green" industrywithinOntario. Inkeeping
withthegovernment'scommitmenttomakeenergy Inthesummerof1992,severalamendments
efficiencyandconservationapriority forenergy weremade tothePowerCorporation Act, which
policy,theframeworkidentifiesacomprehensive governstherelationshipbetweenthegovernment
rangeoftoolsand actionstoachievegreaterenergy and OntarioHydro.Theamendmentsdealwith
OntarioHydro'saccountability tothegovernment
efficiencywithinOntario.
and withensuring Hydro'sability tocarryout
Theframeworkcontainspolicydirectionsthat governmentpolicies,particularly thoserelating to
willenhanceenergyefficiencyintheoperationsof energyefficiencyand conservation.
Theamendments totheactrepresenta comer-
stonefortheimplementationofthegovernment's
NewEnergyDirectionspolicy.Thechangespermit
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MrtMfy Cm Envlionfiitnisno cnojy AnnuilRapoft 92/93
OnUhuHydrototncWM ilsdonand nurugement Independent generation
andamsiTvatkinacitvitinand permit theulUitylu
A
«for
carrycnjl pn>^ranv> pn)moting thi*Mjbblitulionof
other fi>rmsoffntT>;y forfWvtrkdlentT^jv whenthis electn> 'ê.ol
is in the inliTfiteofthi-fWvtricily syNlt-mand Ihe thi-Oniarkteainomy,
inicriivenu-nLsand th«
consumer.
and indepi*ndei
^t'iv^tJerabk'surplus ii> ^. >.< i.i>...^,v..^s>m>« v ..u-^
Ontario Hydro rate freeze quently,theneed fornew independentornon-uliUty
generatkm(NUG)declined andOntarxiHydmhad
IVtu.-.!» IWOand lW3C>itinoHydm'srates
todranvatkally scakback its purchase plans
irKna-A.'vi l>v 30 perci-nt. Rcflivting IhcRnvemmenr's
rt)nt\Tn fi>rrisingclectncitya»»b>and ihe weakt-ning TheMinistryoftnergyconcumsJ with theneed
ofOnUini)'»industrialaimpctHiveneto, the Minislfr tt)cut backon futureindependent pinverpurchases
ofïînerjçyask^.'dOntarioHydn)to"leavenostone toavokJ unnecevsary pa-ssureon rates Neverthe-
unturned" tobring HydnVsawtsundercontrol. kss,thegovernment hasmaintaintxi itscommitment
tothedevek)pmentofa stnmg independentelectric-
\iydrobegana majoreffort toreducea>stsand itygeneration sectorwithin thi*pon-incv.
stafflewis with theaimofkeeping rati-sas lowas
feasibk.» In March, 1993, theOntarxi IIydro Biunl of The minLstry has worked ck>sely withOntark)
Diavtorsagavd to freezeek.«ctricity rates for 1994at Hydro, munkipalekctricutihties, privatedevek>p-
1993 W-velsand to keep futun* incn'asesatorbelow ersand industryassociatksnstofacilitatethedevel-
the rateofinflation for thea'st ofthedecade opmentofnew, highlyeffkientandenvironmen-
tallysustainabkprivategeneratkinproiectsacms
Pnividinga rvlubk-supply ofelectrKityat
theprovincv.
acceptabk-a»t lsacentralchalk'nge fortheek-ctric-
itysystem. Rea^gnizing thato>mpetitiveratesare
essential toOntario'seconomk: n'newal,and tojob More products covered by the
creatkin efforts,thegovernment fullysupports
Ontario Energy Efficiency Act
OntarioHydai'seffortstocutawtswithoutcompn.>-
mising theessential serviceit pmvkies tothepeopk* Regulatk)nswevipassed toincivasethenumber
ofOntario. ofpnxJuctsa)vea>d by theact,and to raiseenergy-
efficiencvstandards forsomepnxluct^ .iln-idy
m
n'^iiLited It Lsestimated that ener
Appointment of Maurice Strong as hons<'hold appliances, himacx'san .iters
Ontario Hydro Chair and CEO coukJ totalS575peryearperhousehokj.
In November 1992, F'n-mier lk>bRaeannounciil
theappt)intmi-ntofMauncvSlning tothe positions
Gasoline prices rnonitored
ofChairand ChiefF-xtvuliveOfficerofOntario
\lydnv Mr. Stn>ng was formerhead ofthe I'ower Thn>ughtHJt 1992/'<3 theministry'soilandgas
Corporation,PetnvCanada antl theCanadian Inter- st^vtKm continued topn-parv wei'kly a-portson
national IX-vekipmenl Agency,and had most re- gasolinepricetrends Thesectionalsoparticipated in
cently servedassecretary-generalofthe 1992 United twoOntarioEnergy Boardconfen^ncxsanda puNk
Natk>nsConfea'nceon Envininmentand Devekip- hearing intodemand-sidemanagementaspectsof
ment. Integrated RescxjnrePlanning f«>rOnlark>'sthree
AsChairand CFOofOilarx) Il>xlr»>, Mr Stnmg majorgasutilitk's
ba)mmittt\j tohelp impk-rm-nt thegovernment's
plans tomakeOntariothe mostenergy-effick'ntand
CDst-cumpetitivejunsdkrtion inNorth America.
AnnualReport 92/93 MinistryofEnvironmentandEnergy
IntegrationoftheMinistryofEnvironmentandthe furtherintegratingandharmonizinggovernment
MinistryofEnergy policies,programsandinitiativesrelatingtoenergy
andtheenvironment.Themergerenablesthegov-
TheMinistryofEnergywasestablishedinJune ernmenttotakeenvironmentalconcernsfullyinto
1973inresponsetorecommendationsofseveral accountinthedevelopmentofenergypolicyand
committeesreviewingtherelationshipofOntario alsoensuresthattheimplicationsofproposed
HydrototheOntariogovernment.Twentyyears environmentalinitiativesforenergysupplyand
later,inFebruaryof1993,theministrywasmerged economicdevelopmentaretakenintoaccountwhen
withtheMinistryofEnvironmenttoformtheMinis- theseinitiativesarebeingdeveloped.Theresultwill
tryofEnvironmentandEnergy. besounderenergypoliciesandsounderenviron-
Theprincipalaimsofthemergerweretoreduce mentalpoUcies.
administrativecostsandtoprovideameansfor
—
Ministry ofEnergyActivities 1992/93
Green Industry Strategy Demand-sideactivitiesin1992/93included:
*
Expansionoftheministry'sGreenCommunities
TheGreenIndustryStrategywaslaunchedin1991 Initiative(describedelsewhereinthisreport).The
undertheleadershipoftheformerMinistryof initiativesupportsgreenhomevisitsthatencourage
Energytosupportthegovernment'seconomic homeownerstoundertakeenergyefficiencyand
renewalagenda.Thestrategyseekstobuildaglo- conservationretrofits.Thisexpandsthemarketfor
ballycompetitivegreenindustrysectormadeupof greenproductsusedintheretrofits.
manufacturersandsuppliersof"green"productsand * Launchofapilotprojectofferingindustrial
services. Theseareproductsandservicesthatpro- companiesasiteanalysistohelpthemreduceenergy
moteenergyefficiency,waterconservation,waste andwateruseandreducewaste.Ninegreenindus-
reductionandpollutionprevention. trialanalyseswerecompleted,whichcostthegov-
Thestrategyhastwobasicobjectives:tobuild ernmentatotalof$585,263andidentifiedatotalof
demandforgreenproductsandservicesbyidentify- $8.6millioninpotendalannualsavingsforthe
ingandencouragingmarketopportunitiesandto companies.Thecapitalinvestmentneededtoimple-
supportmanufacturersandsuppliersofgreen menttheseconservationandwastereduction
productsandservices. projectstotals$21million.
Greenindustryhasbecomeasignificantforcein Supply-sideactivitiesincluded;
theprovincialeconomy.Theenvironmentalprotec- * EstablishmentoftheEnvironmentBusiness
tionsectoralonenowemploysroughly30,000peo- DevelopmentUnit(BDU)attheformerMinistryof
ple,generatesannualsalesofmorethan$2.5billion, theEnvironmenttofocusonsuppliersofpollution
andisgrowingatarateofabouteightpercent preventionandwastereductionproductsand
annually. technologies.Theunitiscurrentlyworkingon23
industryprojectswhichholdthepotentialforstimu-
lating$73millioninnewinvestmentandcreadng
about600newjobs.ThisBDUcomplementsthe
workoftheOntarioHydroBDUwhichsupports
companiesproducingenergy-efficientelectrical
|||l"
products.