Item - 2013.EX31.15
Tracking Status
- City Council adopted this item on May 7, 2013 with amendments.
- This item was considered by the Executive Committee on April 23, 2013 and adopted without amendment. It will be considered by City Council on May 7, 2013.
- See also By-law 200-2016
EX31.15 - Revised Carbon Credit Policy and Revenue Opportunities
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on May 7, 8, 9 and 10, 2013, adopted the following:
1. City Council rescind the Carbon Credit Policies adopted in 1999 and 2005.
2. City Council adopt the Carbon Credit Policy attached as Appendix A, as amended, to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer, with Part 10 in Appendix A replaced with the following new Part 10:
10. Proceeds of sale from City divisions and service agencies will be allocated to a reserve fund for allocation towards financing corporate initiatives which reduce Toronto's emission of climate change gases.
3. City Council, with respect to the applicability of this policy to City divisions, agencies and corporations:
a. direct City divisions and service agencies to adopt the Carbon Credit Policy and apply it to their operations;
b. request the Toronto Board of Health, the Toronto Police Services Board and the Toronto Public Library to adopt a policy that is consistent with the Carbon Credit Policy in order to ensure a city-wide application of the policy objectives; and
c. direct City corporations to adopt a policy that is consistent with the Carbon Credit Policy adopted by City Council in order to ensure a city-wide application of the policy objectives.
4. City Council authorize the Chief Corporate Officer to:
a. determine and implement an appropriate method of transferring carbon credits and other environmental attributes in accordance with the policy in Appendix A, as amended, to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer;
b. negotiate and enter into agreements for the sale on voluntary markets of up to 50,000 tonnes of carbon dioxide equivalent offsets per year, on terms and conditions and in a form satisfactory to the City Solicitor, that is generally consistent with the sample term sheet, attached as Appendix B to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer; and
c. include in sales agreements, provisions to prevent a buyer from reselling carbon credits purchased from the City of Toronto to a third-party and provisions to ensure the retirement of carbon offsets by the purchaser.
5. City Council authorize the Deputy City Manager and Chief Financial Officer to:
a. establish a discretionary reserve fund called the “Carbon Credit Reserve Fund” to finance energy and environmental capital initiatives as outlined in Appendix C to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer; and
b. amend Municipal Code, Chapter 227 [Reserves and Reserve Funds] by adding the “Carbon Credit Reserve Fund” to Schedule No. 7 – Corporate Discretionary Reserve Funds as part of the Climate Change Reserve Fund Group.
6. City Council direct the Director, Environment and Energy Office to report back to City Council on the outcome the City's effort in marketing and selling carbon credits, and impacts on the City of Toronto arising from inclusion of the Province of Ontario or the Government of Canada in a cap-and-trade partnership, such as the Western Climate Initiative, or other related public policy or regulatory measures.
7. City Council receive the information in Confidential Attachment D to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer concerning the estimated value of the City of Toronto Carbon Credit Portfolio, pursuant to Section 190 (2) of the City of Toronto Act.
8. City Council direct that the contents of Confidential Attachment D to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer be kept confidential in its entirety after the consideration of this Item by Council for reasons involving the security of the property belonging to the City, pursuant to Section 190 (2) of the City of Toronto Act.
9. City Council authorize the City Solicitor submit the necessary bills to City Council required to implement Council's decision.
Confidential Attachment D to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006 as it pertains to the security of the property belonging to the City.
Confidential Attachment - The security of the property of the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-57449.pdf
Confidential Appendix D - City of Toronto Carbon Credit Portfolio
Communications (Committee)
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-36245.pdf
Motions (City Council)
That City Council delete Part 10 in Appendix A, Proposed City of Toronto Carbon Credit Policy, attached to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer:
Part to be deleted:
10. Proceeds of sale from City divisions and service agencies will be allocated to a reserve fund for allocation towards financing corporate energy and environmental capital initiatives, including, but not limited to, energy efficiency retrofits, conservation demand management and renewable energy production.
and replace it with the following:
10. Proceeds of sale from City divisions and service agencies will be allocated to a reserve fund for allocation towards financing corporate initiatives which reduce Toronto's emission of climate change gases.
Vote (Amend Item) May-07-2013 6:54 PM
| Result: Carried | Majority Required - EX31.15 - Perks - motion 1 |
|---|---|
| Total members that voted Yes: 32 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Ron Moeser, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Kristyn Wong-Tam |
| Total members that voted No: 4 | Members that voted No are Mike Del Grande, Mark Grimes, Peter Milczyn, John Parker |
| Total members that were Absent: 9 | Members that were absent are Josh Colle, Vincent Crisanti, John Filion, Doug Ford, Rob Ford, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, Adam Vaughan |
Vote (Adopt Item as Amended) May-07-2013 6:56 PM
| Result: Carried | Majority Required - EX31.15 - Adopt the item as amended |
|---|---|
| Total members that voted Yes: 37 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 8 | Members that were absent are Josh Colle, John Filion, Doug Ford, Rob Ford, Giorgio Mammoliti, Denzil Minnan-Wong, Cesar Palacio, Adam Vaughan |
EX31.15 - Revised Carbon Credit Policy and Revenue Opportunities
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Confidential Attachment - The security of the property of the municipality or local board
Committee Recommendations
The Executive Committee recommends that:
1. City Council rescind the Carbon Credit Policies adopted in 1999 and 2005.
2. City Council adopt the Carbon Credit Policy attached as Appendix A to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer.
3. City Council, with respect to the applicability of this policy to City divisions, agencies and corporations:
a. direct City divisions and service agencies to adopt the Carbon Credit Policy and apply it to their operations;
b. request the Toronto Board of Health, the Toronto Police Services Board and the Toronto Public Library to adopt a policy that is consistent with the Carbon Credit Policy in order to ensure a city-wide application of the policy objectives; and
c. direct City corporations to adopt a policy that is consistent with the Carbon Credit Policy adopted by City Council in order to ensure a city-wide application of the policy objectives.
4. City Council authorize the Chief Corporate Officer to:
a. Determine and implement an appropriate method of transferring carbon credits and other environmental attributes in accordance with the policy in Appendix A to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer;
b. Negotiate and enter into agreements for the sale on voluntary markets of up to 50,000 tonnes of carbon dioxide equivalent offsets per year, on terms and conditions and in a form satisfactory to the City Solicitor, that is generally consistent with the sample term sheet, attached as Appendix B to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer; and
c. Include in sales agreements, provisions to prevent a buyer from reselling carbon credits purchased from the City of Toronto to a third-party and provisions to ensure the retirement of carbon offsets by the purchaser.
5. City Council authorize the Deputy City Manager and Chief Financial Officer to:
a. Establish a discretionary reserve fund called the “Carbon Credit Reserve Fund” to finance energy and environmental capital initiatives as outlined in Appendix C to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer; and
b. Amend Municipal Code, Chapter 227 [Reserves and Reserve Funds] by adding the “Carbon Credit Reserve Fund” to Schedule No. 7 – Corporate Discretionary Reserve Funds as part of the Climate Change Reserve Fund Group.
6. City Council direct the Director of the Environment and Energy Office to report back to City Council on the outcome the City's effort in marketing and selling carbon credits, and impacts on the City of Toronto arising from inclusion of the Province of Ontario or the Government of Canada in a cap-and-trade partnership, such as the Western Climate Initiative, or other related public policy or regulatory measures.
7. City Council receive the information in Confidential Attachment D to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer concerning the estimated value of the City of Toronto Carbon Credit Portfolio, pursuant to Section 190 (2) of the City of Toronto Act.
8. City Council direct that the contents of Confidential Attachment D to the report (April 9, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer be kept confidential in its entirety after the consideration of this report by Council for reasons involving the security of the property belonging to the City, pursuant to Section 190 (2) of the City of Toronto Act.
9. City Council authorize the City Solicitor submit the necessary bills to City Council required to implement the above recommendations.
Origin
Summary
The purpose of this report is to propose revisions to the City of Toronto's carbon credit policy in order to help safeguard public ownership of carbon credits and potentially realize a new revenue stream.
Various types of activities – from improving energy efficiency in City facilities to collecting and utilizing methane gas at City landfills – can result in fewer greenhouse gases being released into the atmosphere. Where a tonne of those greenhouse gas reductions satisfies certain eligibility requirements, a carbon credit results that has monetary value and should be considered a financial asset and managed accordingly.
To achieve consistency across all City administrative units, it is recommended that the City Manager be authorized to require common administrative procedures on the part of the City's divisions, agencies and corporations regarding the management of carbon credits.
It is also recommended that the City engage in the sale of a limited number of carbon credits to parties acting on a voluntary, non-regulatory basis. Although not subject to any regulatory obligations, Canadian banks, accounting and legal firms are active in purchasing carbon credits to reduce their carbon footprint and demonstrate positive environmental values to their customers and employees. The City would play a role in supplying carbon credits to these types of buyers while in turn earning revenues to support energy and environmental initiatives.
Any sale of carbon credits would be conditional upon:
- prohibiting a purchaser from reselling carbon credits purchased from the City to a third-party;
- requiring a purchaser to retire carbon credits purchased from the City; and
- prohibiting the sale of carbon credits to any organization seeking to purchase carbon credits for the purpose of meeting regulatory obligations.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/ex/bgrd/backgroundfile-57449.pdf
Confidential Appendix D - City of Toronto Carbon Credit Portfolio
Communications
https://www.toronto.ca/legdocs/mmis/2013/ex/comm/communicationfile-36245.pdf