REPORT TO

MAYOR AND COUNCIL

PRESENTED: JANUARY 19, 2009 - SPECIAL MEETING REPORT: 09-04

FROM: ENGINEERING DIVISION FILE: 5260-01
SUBJECT: REVIEW OF POTENTIAL FOR DISTRICT HEATING IN NEW NEIGHBOURHOODS

RECOMMENDATION(S):
That Council receive the Review of The Potential for District Heating in New Neighbourhoods
report; and

That Council approve a pre-feasibility study which will identify potential opportunities and
energy sources available to operate district heating systems within the Township of Langley at
an estimated cost of $15,000, to be provided from Council contingency.

EXECUTIVE SUMMARY:
A Council resolution on September 15, 2008 requested staff to investigate and report on the
potential for district heating systems in new neighbourhoods in the Township of Langley.
Through consultation with the Community Energy Association, Township staff is recommending
a pre-feasibility study as the first step. The study would identify all potential energy sources
available within the Township for use in the operation of district heating systems. These
sources might include ground/air/water source, biomass, biogas, waste heat recovery and solar
heat, among others.

Township staff is requesting approval to proceed with the pre-feasibility study. Timely
completion of the study would ensure that results are available to assist with related 2009
projects including:
• the development of the Community Energy and Emissions Plan, and
• identification of emission targets and reduction measures for the Township Official
Community Plan, (a new required content as per section 877(3) of the Local
Government Act).

PURPOSE:
To provide information on the potential for district heating in new neighbourhoods and to obtain
approval allowing for a pre-feasibility study to identify opportunities and potential energy sources
for district heating systems in the Township of Langley.

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BACKGROUND/HISTORY:
The Township of Langley is committed to reducing corporate and community greenhouse gas
(GHG) emissions through the following actions:

In January 2001, the Township joined the Federation of Canadian Municipalities (FCM) Partners
for Climate Protection Program (PCP). Through its involvement with the PCP program, the
Township has completed an inventory of its corporate emissions, implemented a corporate
GHG reduction plan complete with targets, and is about to begin work on a Community Energy
and Emissions Plan to facilitate reductions in community emissions.

In December 2007, the Township signed the Climate Action Charter with the Province by
committing to build “complete, compact, more energy efficient rural and urban communities”.

In June 2008, the Township adopted its Sustainability Charter, with an overall vision to build a
legacy for future generations by leading and committing the community to a lifestyle that is
socially, culturally, economically, and environmentally balanced. A goal of the Charter is to
reduce community-wide energy consumption.

On September 15, 2008, Council passed the following motion:

“Whereas the Township of Langley has signed the Climate Action Charter, produced a
Sustainability Charter, and continues to pursue ways of reducing greenhouse gas
emissions; and,

Whereas the heating of homes is a significant source of greenhouse gas emissions; and,

Whereas increasing heating costs are a growing burden on Township residents; therefore

Be it resolved the Township of Langley staff or consultants develop a report for Council
investigating the feasibility and suitability of implementing geothermal/geoexchange/ground
source heat pump district heating in new neighbourhoods; and further,

Be it resolved that the Township of Langley consider the possibility of operating the heating
district through either a utility or private-public partnership model; and further,

Be it resolved that the Township of Langley look at possible developments where a district
heating project could be piloted.”

DISCUSSION/ANALYSIS:
District heating systems are a primary mechanism through which renewable energy may be
incorporated into a community. The community benefits of renewable energy are:

• Significant GHG reductions, since space and water heating in buildings are major sources
of emissions;
• Local economic development through renewable energy job creation and infrastructure
development;
• Air quality benefits; and
• Increased local energy security.

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District heating systems generate heat at a central plant or reclaim waste heat from other
sources. This heat is distributed in water via a network of pipes to individual buildings where it
may be used for space and water heating. Once the heat is extracted, the cooled water is
returned to the heating plant to be recharged.

In many cases, it makes sense to consider integrating two or more heat sources into a district
heating system. The availability of heat sources will vary between communities, but could
include exchange of ground/air/water source, landfill and sewer gas, municipal solid waste,
woodwaste, waste heat from industry, refrigeration plants or ice rinks and solar heat.

Areas characterized by high-density development such as commercial areas or multi-unit

residential clusters are the best candidates for connection to a district heating system. Low-
density developments such as distributed single-family housing are less suitable due to the
larger distances over which heat must be distributed. Generally, buildings should be within 200
to 300 metres of each other and the plant no further than one or two kilometres from the largest
buildings.

There are many benefits to a district heating system. From an economic perspective, the ability
to use a variety of different fuel sources can allow for fuel switching ensuring the most
appropriate fuel may be chosen at a particular time. From a system-efficiency perspective, a
large central plant is typically more efficient than small individual heating plants. From a
resident’s perspective, district heating could mean lower heating, cooling and equipment
maintenance costs and less space required for heating systems. However, the greatest benefit
of district heating systems could be to the environment. This is because district heating allows
for the incorporation of renewable energy sources reducing reliance on fossil fuels and
decreasing greenhouse gas emissions.

Staff has met with the Community Energy Association and is recommending a pre-feasibility
study in order to:

• Identify existing community heat sources,

• Determine what opportunities exist for district heating systems,
• Evaluate the opportunities and recommend specific projects for investigating in greater
detail through a full feasibility study, and
• Identify potential project partners/stakeholders.

The results of the pre-feasibility study will be used for the development of the Community
Energy and Emissions Plan and the identification of emission targets and reduction measures
for the Official Community Plan.

Legislation:
In 2008, the Local Government Act (LGA) was amended to incorporate changes introduced as
part of Bill 27: Local Government (Green Communities) Statues Amendment Act. As a result of
the amendment, section 877(3) of the LGA requires an Official Community Plan to include
targets for the reduction of greenhouse gas emissions in the area covered by the plan, as well
as policies and actions to achieving those targets. In addition, the amendments give additional
powers to local governments to designate development permit areas in order to provide for
energy and water conservation and the reduction of greenhouse gas emissions.

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Legal Implications:
One of the most significant regulations associated with district heating is the BC Safety
Standards Act requirement for boiler staffing. The regulation requires continuous staffing of
boilers over a certain size. System staffing requirements will be examined in the pre-feasibility
study.

Other regulations to be considered are regional emission requirements, local zoning bylaws,
and possible requirements to form a utility. These requirements would be investigated at the full
feasibility study stage.

Cost and Resource Allocations

The cost of the pre-feasibility study is anticipated to be $15,000 or less. Staff is requesting early
budget approval in order to proceed with the study using Council contingency. Timely
completion of the study would ensure that results are available to assist with related 2009
projects including the development of the Community Energy and Emissions Plan and the
identification of community emission targets and reduction measures for the OCP.

Respectfully submitted,

Ryan Schmidt
ENVIRONMENTAL COORDINATOR II
for
ENGINEERING

This report has been prepared in consultation with the following listed departments.

CONCURRENCES
Division Name
Community Development Jason Chu
Finance Derrick Sparks

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