Efficiency Manitoba Regulation

Efficiency Manitoba Regulation, M.R. 119/2019 The Efficiency Manitoba Act , C.C.S.M. c. E15 Regulation 119/2019 Registered August 9, 2019 bilingual version (HTML) Table of Contents Section 1 Definitions ADMINISTRATIVE MATTERS 2 Commencement date 3 Deadline to submit efficiency plan to PUB 4 Measures not considered demand-side management initiatives ADDITIONAL POWERS OF EFFICIENCY MANITOBA 5 Demand for electrical power 6 Fossil fuels other than natural gas 7 Other powers DETERMINATION OF SAVINGS 8 When savings may be counted 9 Savings targets based on fiscal year 10 Net savings to be weather-adjusted REVIEW OF EFFICIENCY PLANS 11 Additional factors to be considered by PUB 12 Determining cost-effectiveness INDEPENDENT ASSESSMENT 13 Additional matters to be assessed AFFORDABLE ENERGY FUND 14 Use of the Affordable Energy Fund TRANSITIONAL AND COMING INTO FORCE 15 Furnace Replacement Program 16 Coming into force Definitions 1 The following definitions apply in this regulation. "Act" means The Efficiency Manitoba Act . («  Loi ») "Centra" means Centra Gas Manitoba Inc. (« Centra ») "fossil fuel" means a hydrocarbon derived from living matter of a previous geologic time. (« combustible fossile ») ADMINISTRATIVE MATTERS Commencement date 2 The commencement date is prescribed to be April 1, 2020. Deadline to submit efficiency plan to PUB 3 Efficiency Manitoba must submit each efficiency plan to the PUB under section 10 of the Act no later than five months before the plan is to come into effect. M.R. 132/2019 Measures not considered demand-side management initiatives 4 A switch from one type of fossil fuel to a different type of fossil fuel used for the same purpose is excluded from the definition "demand-side management initiative" in section 2 of the Act. ADDITIONAL POWERS OF EFFICIENCY MANITOBA Demand for electrical power 5 Efficiency Manitoba may, at the request of Manitoba Hydro and at Manitoba Hydro's expense, undertake initiatives to reduce the demand for electrical power in areas of Manitoba that experience or may experience capacity constraints. But if those initiatives are not intended primarily to reduce the consumption of electrical energy, they are not to form part of an efficiency plan and Part 3 of the Act does not apply to them. Fossil fuels other than natural gas 6 Efficiency Manitoba may undertake initiatives to reduce the consumption of fossil fuels other than natural gas in Manitoba, but unless those initiatives qualify for the use of the Affordable Energy Fund under section 14, they are not to be funded under an efficiency plan and Part 3 of the Act does not apply to them. Other powers 7 Efficiency Manitoba may (a) participate in the development and updating of building or energy codes, standards and regulations, including model codes, standards or regulations, in respect of matters relating to energy efficiency; (b) assist various levels of government in consulting with Manitoba stakeholders for the purpose of developing or updating building or energy codes, standards and regulations in respect of matters relating to energy efficiency; (c) develop and implement programs to improve building designs, building techniques and building technologies to increase energy efficiency; (d) undertake education and training initiatives with respect to building and energy code requirements relating to energy efficiency; and (e) assist the government, a municipality or local government district, or a community as defined in The Northern Affairs Act , in the review of building and construction plans with respect to codes, standards and regulations relating to energy efficiency. DETERMINATION OF SAVINGS When savings may be counted 8(1) Net savings in the consumption of electrical energy or natural gas count towards the respective savings target established in section 7 of the Act if the net savings are reasonably attributable (a) to a demand-side management initiative undertaken by Efficiency Manitoba or on its behalf; (b) to incremental savings resulting from a demand-side management initiative undertaken by Manitoba Hydro if (i) the initiative is included in an approved efficiency plan, and (ii) Efficiency Manitoba provides operational support or an operating incentive in respect of the initiative that is necessary to achieve the incremental savings; (c) to a code, standard or regulation to which Efficiency Manitoba or Manitoba Hydro has made a material contribution; or (d) to a rate to which Efficiency Manitoba has made a material contribution. 8(2) Savings in the consumption of electrical energy that result from an initiative undertaken by Efficiency Manitoba under section 5 count towards the electrical energy savings targets. 8(3) Savings in the consumption of a fossil fuel other than natural gas that result from an initiative undertaken by Efficiency Manitoba under section 6 count towards the natural gas savings targets based on an equivalent heating value, but only if the savings (a) relate to space, water or process heating; and (b) do not result from switching from one type of fossil fuel to another type of fossil fuel. Savings targets based on fiscal year 9 The savings targets during each one-year period of an efficiency plan are to be calculated by reference to the consumption of electrical energy or natural gas during the previous fiscal year and not the previous calendar year. Net savings to be weather-adjusted 10 All net savings must be calculated on a weather-adjusted basis. REVIEW OF EFFICIENCY PLANS Additional factors to be considered by PUB 11 In addition to the factors set out in subsection 11(4) of the Act, the PUB must consider the following when reviewing an efficiency plan: (a) the appropriateness of the methodologies used by Efficiency Manitoba to select or reject demand-side management initiatives; (b) whether the plan adequately considers the interests of residential, commercial and industrial customers; (c) whether, if it is practical to do so, at least 5% of Efficiency Manitoba's budget for demand-side management initiatives is allocated to initiatives targeting low-income or hard-to-reach customers; (d) whether the portfolio of demand-side management initiatives required to achieve the savings targets is cost-effective; (e) if the plan includes demand-side management initiatives in excess of those required to achieve the savings targets, whether those initiatives are cost-effective; (f) whether Efficiency Manitoba's administration budget is reasonable when compared to similar organizations; (g) the impact of the efficiency plan on rates and average customer bill amounts; (h) the reasonableness of the projected savings and Efficiency Manitoba's ability to meet the annual savings targets and the 15-year cumulative savings targets; (i) Efficiency Manitoba's use of private-sector enterprises and non-governmental organizations to deliver demand-side management initiatives; (j) whether the efficiency plan adequately considers new and emerging technologies that may be included in a future efficiency plan; (k) for any efficiency plan after the first one, the reasonableness of Efficiency Manitoba's internal retrospective performance assessment; (l) whether Efficiency Manitoba has reasonably attempted to comply with the directions of the minister. Determining cost-effectiveness 12(1) For the purpose of clause 11(d), the cost-effectiveness of the portfolio of electrical energy demand-side management initiatives included or under consideration to be included in an efficiency plan must be determined by comparing (a) the levelized cost to Efficiency Manitoba of the electrical energy net savings resulting from those initiatives; with (b) the levelized marginal value to Manitoba Hydro of the net savings resulting from those initiatives, as determined by Manitoba Hydro based on a methodology consistent with its resource planning process, taking into account the timing and duration of the savings. 12(2) For the purpose of clause 11(d), the cost-effectiveness of the portfolio of natural gas demand-side management initiatives included or under consideration to be included in an efficiency plan must be determined by comparing (a) the levelized cost to Efficiency Manitoba of the natural gas net savings resulting from those initiatives; with (b) the sum of (i) the levelized marginal value to Centra of the resulting reduction or savings in the consumption of natural gas, and (ii) the natural gas transportation costs to the Manitoba border saved by Centra as a result of the gas not being consumed. 12(3) Subsections (1) and (2) apply, with necessary changes, to the assessment of the cost-effectiveness of individual demand-side management initiatives for the purpose of clause 11(e). INDEPENDENT ASSESSMENT Additional matters to be assessed 13 For the purpose of clause 16(1)⁠(c) of the Act, the following additional matters are prescribed as having to be assessed and reported on by Efficiency Manitoba's independent assessor: (a) the quantity of savings in the consumption of electrical energy that count towards the electrical energy savings targets under subsection 8(2); (b) the quantity of savings in the consumption of a fossil fuel other than natural gas that count towards the natural gas savings targets under subsection 8(3). AFFORDABLE ENERGY FUND Use of the Affordable Energy Fund 14 Efficiency Manitoba must use the Affordable Energy Fund only to undertake initiatives to encourage and realize efficiency improvements and conservation in the use of home heating fuels other than electrical energy or natural gas, and not for any other purpose. R.M. 119/2019 TRANSITIONAL AND COMING INTO FORCE Furnace Replacement Program 15(1) The following definitions apply in this section. "FRP account" means the segregated account for the Furnace Replacement Program established by Centra in accordance with Directive 20 of Board Order 99/07 of the PUB. (« compte du PRC ») "Furnace Replacement Program" means the Furnace Replacement Program established by Centra in accordance with Board Order 99/07 of the PUB. (« Programme de remplacement des chaudières ») 15(2) Effective April 1, 2020, (a) no further money is to be allocated to the FRP account; and (b) the residual amount in the FRP account as of April 1, 2020 is to be used to offset the cost of the natural gas demand-side management initiatives set out in an approved efficiency plan. 15(3) For certainty, subsection (2) does not limit the PUB's jurisdiction to determine how the residual amount is to be allocated between Centra's customer classes. 15(4) If the Furnace Replacement Program is continued under an approved efficiency plan, it is to be continued under the administration of Efficiency Manitoba and funded in accordance with section 18 of the Act. Coming into force 16(1) This regulation, except section 14, comes into force on the day it is registered under The Statutes and Regulations Act . 16(2) Section 14 comes into force on April 1, 2020.