Re-opening and Amending Item 2025.IE19.7 - Wastewater Energy Program Implementation - by Deputy Mayor Ausma Malik, seconded by Councillor Paula Fletcher

Toronto's first wastewater energy transfer project, currently being commissioned, serves Toronto Western Hospital. Staff are currently negotiating the Wastewater Thermal Energy Agreement for a second project, located at Exhibition Place, which is anticipated to serve 2.5 million square feet and reduce greenhouse gas emissions by ~90,000 tonnes over 30 years. There are several other potential projects under consideration across Toronto. The current Council authorization defines "agreement execution" as the commencement date and specifies a term of up to 30 years. However, since construction and commissioning - which all occur post-agreement execution - can take months or years to complete, the actual agreement term will be less than 30 years. This is inconsistent with the intent of the Wastewater Energy Program and creates a risk that project lenders will not release construction financing even after the agreements are executed. The Wastewater Thermal Energy Agreements for the project at Exhibition Place is the first project to proceed through the formal Wastewater Energy Program approved by Council, and therefore the first instance where this issue has come up. Staff are therefore recommending a technical amendment to a previous Council decision to clarify agreement terms, which will enable Wastewater Energy Program implementation, a key action in the TransformTO Net Zero Strategy, which aims to reduce Toronto's greenhouse gas emissions community-wide to net zero by 2040. There is no financial impact associated with this change. Requires Re-opening: Infrastructure and Environment Committee Item 2025.IE19.7 (March 26 and 27, 2025 Council Meeting) only as it pertains to Part 1f.

so that it now reads: f. the agreements may be for terms up to but not exceeding 30 years in duration commencing on the date that is one business day following delivery of the Notice of Acceptance of Commissioning by the General Manager, Toronto Water to the applicant(s), in accordance with the terms and conditions of the agreement and subject to any limitations under law.