Progress Report | 2006

LEADING THE WAY ON CLIMATE CHANGE

Global climate change

represents a significant

challenge to Alberta’s

resource-based economy

and our future quality of

life. But it also offers an

important opportunity for

Albertans to focus on

innovative ways to address

the major environmental

issue of our time.

Climate Change Central’s audited financial statements are available by visiting

www.climatechangecentral.com

Climate Change Central

was created in 2000 after

the Alberta government

brought together leaders

from Alberta’s private

and public sectors to

discuss climate change

challenges. C3 is a not-for-

profit organization that

empowers Albertans

to take action on

climate change.

Opinion polls and media coverage tell the story. In the past year, the environment – specifically climate change – has

become the number one concern for Canadians.

We welcome this sense of urgency to a perch that has often felt lonely and isolated. For the past six years, Climate

Change Central (C3) has been taking practical, tangible action to reduce greenhouse gas emissions in Alberta. We’ve

been entrusted by governments, industry, entrepreneurs and individuals to be the lead agency in Alberta tackling this

issue. Every day, we work to strengthen this trust by communicating credible information to Albertans and building

dynamic partnerships that bring innovative programs, projects and technologies to fruition.

We’re continually launching new initiatives such as our cold weather biodiesel pilot and expanding successful

programs, like Car Heaven, to other parts of Alberta. Thanks to our clothes washer rebate programs, more than 400

million litres of water are being saved every year. Our industry experience in developing carbon offsets has increased

our standing in the national and international climate change community.

The great news for Albertans is that addressing climate change doesn’t have to limit our quality of life. Starting with

simple solutions like switching to compact fluorescent light bulbs or installing a front-loading clothes washer can

make a big difference. Make no mistake, the challenge is huge but the talent and technologies are here in Alberta to

make a difference. Join us and be part of the solution.

PRESIDENT’S MESSAGE

SIMON KNIGHTPresident and CEO

Just what does 33,000 litres of water a year look like? Try piling 33 large water cooler bottles in your laundry room every week.

Front-loading clothes washers are proving to be more than the latest home fashion trend in Alberta. When over 8,700 Albertans signed up to recycle their old clothes washers for ENERGY STAR®models in 2005, we knew our Soak Up the Savings program was making waves.

In 2006, we re-launched the program and another 5,100 Albertans made the switch with the help of a $50 rebate. The short-term incentive program ended in December, 2006.

For Brenda Cumming, who lives on an acreage near Vegreville, making the switch has brought unexpected benefits. “I absolutely love this machine! My clothes are cleaner, the fast-spin cycle wrings more water out of my clothes, and we have noticed huge savings.”

Combined, the 13,800 Albertans who made the switch through our program are now saving over 400 million litres of water and are cutting greenhouse gas emissions by 7,385 tonnes every year. That’s enough water to fill 160 Olympic-size swimming pools!

For the average family of four, making the switch will cut the utility bill by over $150 a year, drain water use by 33,000 litres a year and reduce greenhouse gas emissions by one tonne.

“The environmental and economic benefits from such a simple switch make front-loading clothes washers a win-win for consumers,” says Pamela Koss, Program Manager for the Soak Up the Savings program.

Install a low-flow

showerhead and cut

water use in half with no

change in performance.

A dripping tap will fill

100 bathtubs a year,

wasting 10,000 litres

of water.Check for toilet leaks

by placing a drop of

food colouring in your

toilet tank and see if

any seeps into the bowl.

SOAK UP THE SAVINGS

Got an old, gas-guzzling vehicle? It may be time to retire it to Car Heaven. To date, over 3,500 high-polluting cars have been recycled in Edmonton and Calgary. In fact, donations in Alberta actually doubled in 2006, and we’re now looking to expand the program to other parts of the province.

That’s big news in a province where half of transportation emissions come from private vehicle use. “Private vehicle owners, not just industry, produce significant emissions,” says John Rilett, Director of Energy Efficiency and Conservation at Climate Change Central.

The rewards for participating include a choice of $1000 towards a new GM vehicle,

up to $300 off the purchase of a bicycle or six months of transit passes. All participants also receive a $50 charitable receipt from the Kidney Foundation.

What do all of the donations mean? In 2006 alone, Alberta’s Car Heaven program reduced an estimated 8,400 tonnes of CO2 (average of 4.8 tonnes per vehicle) and 2,625 tonnes of smog-forming pollutants (average of 1.5 tonnes per vehicle).

To qualify, cars must be 1995 or older, drivable, registered and insured in Alberta for the past six consecutive months.

SEND YOUR CAR TO HEAVEN

Alberta taxis drive over 100,000 kilometres (km) every year. All this driving leaves behind a lot of greenhouse gas emissions (GHGs) and guzzles over 13 litres (L) of fuel for every 100 km. This costs drivers over $250 a week.

C3’s Hail a Hybrid program plans to change all this by introducing the benefits of hybrid vehicles to Alberta taxi drivers. In 2006, we handed out incentives to five drivers willing to purchase a hybrid vehicle and monitor its fuel use, maintenance and overall function for one year.

“Although the upfront cost of my hybrid taxi was higher, thanks to its fuel efficiency I spent about half what I normally would have on fuel last summer,” says Cliff, a taxi driver for Checker Cabs.

The results have overwhelmingly supported the value of hybrid taxis. So far, program test

vehicles are using only 6.5 L of fuel/100 km compared to a conventional taxi’s 13 L. In just six months, this efficiency has already saved drivers over $3,000 in fuel costs and has cut GHG emissions by 4.5 tonnes. Drivers are also reporting considerably less maintenance with their hybrid taxis.

“Our program is making a business case for hybrid vehicles,” says John Rilett, Director of Energy Efficiency and Conservation at Climate Change Central. “We hope these positive results will encourage more drivers to make the switch.”

To support Hail a Hybrid, use the services of participating taxi companies (Associated Cabs, Checker Yellow Cabs, MayFair Taxi) and ask if a hybrid is available.

www.hailahybrid.ca

HYBRID CABS IN YOUR CITY

Turn off the engine. Idling for more than

10 seconds uses more fuel than restarting. It’s also hard on your

car’s engine.

Maintain your car’s optimal tire pressure.

Remove roof racks when

not in use.

Plan your trips to avoid multiple short drives.

Ford’s Hybrid Escape taxi is expected to get 800 km per tank of gas. That’s double what a normal taxi gets.

Hybrid electric cars combine the internal engine of a conventional vehicle with an efficient electric motor. This dramatically cuts fuel consumption, maintenance, greenhouse gas emissions and smog. They require no plug-ins and give a performance equal to that of a conventional gas-powered vehicle.

Solar photovoltaic (PV) modules are popping up on municipal rooftops across Alberta as communities look for ways to support renewable energy.

As the sunniest city in Alberta, Medicine Hat was the first of 20 municipalities to sign up for the program. Now, fourteen solar modules are gleaming on the city’s library rooftop as a symbol of support for renewable energy and public education.

“These solar modules are about exploring the potential for grid-connected systems in Medicine

Hat,” says Russ Smith, Manager, Environmental Management. “We chose the library because we want the public to see what solar energy looks like and be directly engaged in the project.”

The goal of the project is to educate municipal leaders and citizens about the value of grid-connected systems and the positive impact renewable energy sources like solar can have in the community.

“Currently, most solar PV systems in Alberta operate off the grid,” says C3’s Simon Knight. “We needed examples of grid-connected solar to help decision-makers and installers see the benefits, so we decided to help build examples across the province.”

When all 20 municipalities have installed their one kilowatt systems, the program is expected to generate over 25 megawatt hours of electricity and reduce CO2 emissions by approximately 22 tonnes every year.

Although that seems small, program manager Janne Hicklin says energy production is not the point of the projects. “These small demonstration-scale installations showcase grid-connected systems in a low-risk setting. It’s hoped positive results will encourage decision-makers to go bigger with future projects.”

www.lassothesun.ca

LASSOTHE SUN

SOLAR COMMUNITYBASKING IN THE RAYS

The single-family homes are also built to R-2000 and Built Green Alberta™ Gold standards. To meet this rating, superior insulation and windows, energy- and water-efficient appliances and non-toxic and recycled building materials must be used.

Normally, captured solar energy is lost if not used almost immediately. The Okotoks housing development is the first in North America to store solar heat in an underground reservoir. This heat is then released in the winter for space heating.

Liz Reese and Lyle McRae didn’t need a sales pitch to convince them to buy a house in Canada’s first solar community.

“We found it on the Internet from our home in Seattle, and bought it sight unseen,” says Reese, who recently moved with her husband into Drake Landing, a new 52-house solar housing development in Okotoks, just south of Calgary.

The Drake Landing project is harnessing the sun’s power with 800 solar collectors on garage roofs to provide an estimated 90 per cent of space heating and 60 per cent of domestic hot water for each house.

Every Drake Landing home is expected to cut greenhouse gas emissions by five tonnes every year and is at least 30 per cent more efficient than a conventional new home.

Climate Change Central provided strategic assistance to the main project partners during the development of the project.

www.dlsc.ca

WHAT’S A FISH TANK GOT TODO WITH CLIMATE CHANGE?

How much energy does it take to power a dairy, poultry or swine operation in Alberta? Climate Change Central’s OnFarm program aims to find out with 100 energy efficiency audits in Alberta’s SouthGrow Region.

“The audits will give producers personal profiles of their operations, so they can see exactly how much energy their equipment, buildings and management practices use,” says Rick Atkins, Engineering Manager, Agtech Centre, Alberta Agriculture and Food (AF).

With this knowledge, producers can make more effective business decisions. “If the audit shows that a piece of equipment uses a lot of energy, a producer can now clearly see the costs associated with that use and replace it with a more energy-efficient option. It really all comes down to the fact that you can’t manage what you don’t measure.”

C3 partnered with AF to develop the $1-million program. Audits are now set to get underway. Participating producers will pay only $200 of the $1,800 audit which will include recommendations for reducing energy use.

The program goes far beyond energy audits. The long-term goal is to develop a regional network that increases producers’ access to the equipment, supplies and financing services they need to make long-term energy efficiency improvements on their farms.

CUTTING ENERGY IN THE BARN

www.onfarmenergy.ca

Solar PV systems enable people to generate their own power anywhere

in the world. They are also silent, produce no harmful emissions and require

no fuel source—only sunlight.

The size of aeration bubbles is not a big energy deal in a fish tank. But when it’s a sewage treatment plant moving millions of litres of water a year, as the City of Lethbridge discovered, you can save a lot of energy and greenhouse gas emissions if your aeration system is 50 per cent more efficient.

Lethbridge’s Waste Water Treatment Plant recently replaced its coarse bubble aeration system with a fine bubble system. Smaller bubbles rise more slowly to the surface, maximizing the process of oxygen transfer

to the water and reducing the amount of air needed. The resulting energy savings in air production are expected to be at least 2,000 megawatt hours per year.

This project was supported with a $2.6 million interest-free loan from the Government of Alberta. The loan program, administered by Alberta Municipal Affairs and Housing and Climate Change Central, encourages Alberta municipalities to reduce greenhouse gas emissions and increase energy efficiency.

“Municipalities play a pivotal role in achieving large-scale GHG reductions within Alberta,” says Fred Walter, Program Manager at Climate Change Central. To date, the 67 projects currently supported by the Alberta Government program will result in $2.8 million in energy savings and reduce greenhouse gas emissions by 39,600 tonnes annually.

Guy BoutilierMinister of Environment(until December, 2006)(Co-Chair)

Sen. Elaine McCoy, Q.C.President, Macleod Institutefor Environmental Analysis(Vice Co-Chair)

Bruce BeattieWest Hawk Holsteins Ltd.

Len BolgerCo-ChairAlberta EnergyResearch Institute

Paul Griss

Bob HawkesworthAldermanCity of Calgary

Bill HunterNorthern OpportunitiesFacilitation

Charles FischerPresident and CEONexen Inc.(Co-Chair)

David CouttsMLA, Livingstone-Macleod(Vice Co-Chair afterDecember, 2006)

Lewis NakatsuiPresidentLincolnberg Homes Ltd.

David PollockPresident Pollock Management and Advisory Services

Jim PopowichPresident and CEOElk Valley Coal Corp.

Ross RisvoldPresident, NorthAlta Information Systems Ltd.

Vince SmithRetired Past President and CEODow Chemical Canada Inc.

Hung PhamMLA, Calgary-Montrose(Vice Co-Chair untilDecember, 2006)

Darshan KaillyPresident and CEOCanadian Freightways Ltd.

Don LowryPresident and CEOEPCOR Utilities Inc.

David Lynch, Ph.D.Dean, Faculty of EngineeringUniversity of Alberta

Patricia McCunn-MillerExecutive Vice-PresidentCorporate ResponsibilitySynenco Energy Inc.

Anne McLellanCounselBennett Jones LLP

SIMON KNIGHTPresident and CEO, Acting(until November, 2006)President and CEO(after November, 2006)

BOARD OF DIRECTORSOur Board of Directors includes experienced leaders from major industry sectors, non-governmental organizations, secondary institutions, municipalities and the Government of Alberta. The Board provides direction to Climate Change Central’s strategic plans and objectives.

PREMIER RALPH KLEIN(Executive Chair)

This year was one of transition for Climate Change Central with Simon Knight taking his position as the new President and CEO. In a year of such change comes an opportunity to look at your work through new lenses. And that’s just what C3 has done.

Focus group sessions with stakeholders in 2006, revealed a deep respect for the work C3 has accomplished over the past six years. Tied to this encouragement was an expectation for the organization to look for even bigger opportunities to reduce greenhouse gas emissions in Alberta.

This organization has taken the challenge head on with its commitment and ability to move projects from initial stages to full-fledged, highly successful programs. It is with this commitment that projects like C3’s own EnviroTech Solutions, an organization that commercializes and markets environmental technologies, take shape.

This success, along with those profiled in this year’s progress report, are all about partnerships. Credibility with diverse stakeholders is what makes these projects so successful, and big plans are on the horizon for C3 in the coming year. We’re excited to be a part of the process.

CO-CHAIRS’MESSAGE

CHARLES FISCHERPresident and CEO Nexen Inc.(Co-Chair)

HONOURABLE ROB RENNERMinister of Environment(Co-Chair)

Take a virtual tour of Climate Change Central’s green office in Calgary’s Beltline, a short walk from the LRT. C3’s office was just the second in Canada to be certified under the EcoLogo Program, meeting stringent environmental criteria.

Highlights include:• A shower for staff choosing to bike or

walk to work. • Super-efficient lighting saves on our energy

bills and cuts our carbon footprint by 21 tonnes a year. Motion detectors turn lights off in empty rooms.

• Organic fabric on chairs.• Wood from eco-certified forests. Maple

veneer on the reception desk was salvaged from logs in the Great Lakes.

• Eco-efficient carpeting, paints and building materials contain no toxic materials and can be recycled.

Other things we’re doing:• Provide bus passes to encourage staff to

commute sustainably.• Invest in high-quality offsets to reduce our

travel emissions (greenmyflight.com).• Purchase wind power.• Encourage tele-commuting by staff. • Recycle all of our cardboard, plastics,

metals and paper.• Shut down all computers and electronics

at night.

What are you doing to be more energy efficient at home or work? Let us know at contact@climatechangecentral.com and we’ll enter your name in our bi-monthly draws for cool stuff.

OUR GREEN OFFICE

TECHNOLOGY

C3 EnviroTech Solutions – Climate Change Central worked with Western Economic Diversification Canada to establish an entity to accelerate the commercialization of environmental technologies in Western Canada.

Other – C3 wrote several discussion papers on technologies and issues related to climate change. Available at www.climatechangecentral.com

ENERGY EFFICIENCY

Energy Efficiency for Newcomers – Climate Change Central and Calgary Immigrant Aid Society received funding from The Calgary Foundation to prepare an energy efficiency newsletter forimmigrants to Alberta.

Mow Down Pollution – C3 partnered with the Clean Air Foundation and Home Depot to provide incentives to homeowners willing to recycle their old, polluting lawnmower or trimmer for a more environmentally-friendly option.

Sponsorships – Eco-Solar Home Tour, Emerald Awards, EcoLiving Fair, Sustainable Alberta Association, Canada Green Building Council, carpool.ca, Evergreen Theatre’s Full of Hot Air, Sustainable Building Symposium, Cochrane High School’s Solar Scoreboard.

OFFSETS AND INDUSTRY OUTREACH

Emissions Offsets – Climate Change Central continued to act as secretariat for the National Offset Quantification Team, which provides policy analysis and quantification protocol development for GHG emission reductions and removals in Canada. C3 supported and helped facilitate an industry/provincial working group to provide input to the federal government on offset development in Canada.

Industry Outreach – C3’s subscription newsletter, insight, featured information on climate change policy, technologies and corporate actions. C3 provided Point Carbon with updates regarding Canadian climate change issues and analysis.

FOSTERING STEWARDSHIP

Net-Zero Energy Home (NZEH) Coalition – As a founding member, C3 supported four Alberta projects that received national funding to demonstrate the value of homes that, at a minimum, supply electricity equal to what they draw from the grid.

Canada Green Building Council – C3 was instrumental in establishing an Alberta chapter for the Council, which encourages home builders, architects and land developers to use energy-efficient design and building practices. Simon Knight was the chapter’s president in 2006.

Emerald Foundation – C3 has sponsored the Emerald Foundation since 2000 in its efforts to recognize environmental excellence in Alberta. Paul Hunt, Vice President of Climate Change Central, has been chair of the Emerald Foundation board for the past four years.

Environmental Support – C3 continued to serve on Clean Air Strategic Alliance’s committees that make recommendations to reduce emissions in the province. C3 also sat on the National Advisory Council on Energy Efficiency, Alberta Chapter of the Canadian Energy Efficiency Alliance, the Energy Efficiency Working Group, Alberta Biogas Association, imagineCALGARY, among others.

COMMUNICATIONS

Websites – Climate Change Central helped build the following websites:Alberta Biogas Association (albertabiogasassocia-tion.com), Alberta BioFleet (albertabiofleet.ca), Net-Zero Energy Home Coalition (netzeroener-gyhome.ca), Industry Provincial Offsets Group (offsetsgroup.ca), E3 Fleet (e3fleet.com), Alberta Chapter of the Canada Green Building Council (abcagbc.org), and Sustainable Building Symposium (abcagbc.org/sbs). We also provided communications support to Emerald Hills Urban Village in the County of Strathcona.

Newsletters – enerclick is Climate Change Central’s free e-newsletter highlighting energy efficiency success stories, reaching 20,000 subscribers. C3 Views is our quarterly newsletter covering a wide range of issues and actions related to climate change. Go to www.climatechangecen-tral.com to subscribe to our free publications.

PROJECT SUMMARIES

Our online newsletter, enerclick, is packed full of practical, affordable tips to make your home, car and lifestyle more energy efficient. Read about the coolest new gadgets and see what other Albertans are doing — it’s free and you can unsubscribe at any time.

Sign up at www.climatechangecentral.comand be entered to win prizes like a solar iPod charger, solar garden lights and much more!

OUR PARTNERS

Climate Change Central thanks the following partners in our programs:

Soak Up the Savings:• Carbon Dioxide

Reduction Edmonton• City of Calgary• EPCOR• Natural Resources Canada • Town of Cochrane

Car Heaven:• Environment Canada • Clean Air Foundation

(supported by Imperial Oiland General Motors)

• City of Calgary • City of Edmonton• The Bike Shop • United Cycle • Pick-N-Pull Automotive Group • Kidney Foundation

Hail a Hybrid:• Alberta Transportation

Alberta Solar Showcase:• The Federation of Canadian

Municipalities (matches municipal contribution)

• Participating municipalities (pay half of the installation cost)

OnFarm:• Alberta Agriculture & Food’s

AgTech Centre• Alberta Advanced

Education and Technology• ATCO EnergySense• SouthGrow Regional Initiative• Agrium• Lethbridge Dairy Mart Ltd.• Dow AgroSciences

ME first!:• Alberta Municipal Affairs• Alberta Environment• Alberta Capital

Finance Authority• Alberta Urban

Municipalities Association• Alberta Association of Municipal

Districts and Counties

CalgarySuite 100, 999 - 8th Street S.W.Calgary, ABT2R 1J5Office: 403.517.2700Fax: 403.517.2727

Toll Free: 1.866.609.2700E-mail: contact@climatechangecentral.com www.climatechangecentral.com

EdmontonSuite 1560, 10303 Jasper AvenueEdmonton, ABT5J 3X6Office: 780.408.4580Fax: 780.408.4585

WHERE DO WE GO FROM HERE?In 2007, Climate Change Central will be launching new programs, expanding older initiatives and working with new partners. Here’s a taste of what’s on the horizon:

C3 EnviroTech Solutions – C3 will help small and medium-sized businesses commercialize and market new environmental technologies. www.tech-hub.ca

Car Heaven – Our vehicle retirement program will expand to more communities in Alberta. www.carheaven.ca

Alberta Biodiesel Demonstration – C3 is coordinating a $3 million cold-weather biodiesel demonstration project. Watch www.climatechangecentral.com for updates.

Offsets – C3 will develop environmentally-sound standards to enable a broad cross-section of society to generate and market carbon offsets. This will help facilitate and support an offset system in Alberta.

Communications – Keep an eye out for the launch of our revamped web site, www.climatechangecentral.com in early July. We’ll be adding a video component to our site so that our stories can tell themselves. We’re also partnering with mainstream media to engage Albertans in an active dialogue on how we can all make small changes that add up to big change.