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Energy Action Plan for Novotel Hotels

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					Energy Action Plan
       for
 Novotel Hotels




                     Signature
      Approved by:
                     Title


                     Date
Prepared by: Finn Projects
             (Synchronicity Projects Inc.)
                                                                   TABLE OF CONTENTS

PART 1 EXECUTIVE SUMMARY .......................................................................................................................3

PART 2 ORGANIZATION PROFILE...................................................................................................................5

   2.1 PRIMARY FUNCTION .........................................................................................................................................5
   2.2 SIZE ..................................................................................................................................................................5
   2.3 ENVIRONMENTAL IMPACT................................................................................................................................6

PART 3 SENIOR MANAGEMENT SUPPORT ...................................................................................................8

   3.1     SIGNED STATEMENT OF ENDORSEMENT ............................................................................................................8
   3.2     COMMITMENT TO REGULAR REPORTING ...........................................................................................................8
   3.3     INTERNAL PRACTICES ON CLIMATE CHANGE ..................................................................................................10
   3.4     MANAGEMENT SYSTEMS DESCRIPTION...........................................................................................................10
   3.5     ENERGY EFFICIENCY MATRIX .........................................................................................................................11

PART 4 BASE YEAR QUANTIFICATION ........................................................................................................15

   4.1     BASE YEAR SELECTION ............................................................................................................................... ...15
   4.2     GHG BASE YEAR SELECTION METHODOLOGY ...............................................................................................15
   4.3     GHG EMISSIONS INVENTORY .........................................................................................................................17
   4.4     GHG EMISSIONS INVENTORY METHODOLOGY ...............................................................................................19

PART 5 PROJECTION .........................................................................................................................................21

   5.1 PROJECTED ENERGY CONSUMPTION & GHG EMISSION LEVELS ....................................................................21
   5.2 MAJOR SOURCES OF GHG EMISSIONS ............................................................................................................25

PART 6 TARGET SETTING ................................................................................................................................26

   6.1 TARGETS .........................................................................................................................................................26
   6.2 PROCESS FOR TARGET REVIEW .......................................................................................................................28

PART 7 MEASURES TO ACHIEVE TARGETS ...............................................................................................30

   7.1 VERIFIABLE ACTIVITIES & PROJECTS ..............................................................................................................30
   7.2 NON-VERIFIABLE ACTIVITIES & PROJECTS .....................................................................................................30

PART 8 RESULTS ACHIEVED...........................................................................................................................32

   8.1 RESULTS ACHIEVED IN REPORTING YEAR .......................................................................................................32
   8.2 RESULTS ACHIEVED SINCE 1990.....................................................................................................................32
   8.3 VERIFICATION .................................................................................................................................................34

PART 9 EDUCATION, TRAINING AND AWARENESS .................................................................................35

   9.1     OUR CORPORATE RESPONSE TO CLIMATE CHANGE ........................................................................................35
   9.2     CLIMATE CHANGE & OUR EMPLOYEES...........................................................................................................35
   9.3     CLIMATE CHANGE AND OUR EXTERNAL CONTACTS .......................................................................................36
   9.4     OUR PUBLIC EDUCATION ON CLIMATE CHANGE .............................................................................................36

APPENDIX A: LETTER TO MINISTER OF NATURAL RESOURCES .........................................................38

APPENDIX B: DESCRIPTION OF PILOT PROJECT ......................................................................................32
PART 1 EXECUTIVE SUMMARY

                  As part of the multi-national firm Accor that operates 330 Novotel
                  Hotels in 54 countries, Accor-North America owns four Novotel
                  Hotels and manages two additional Novotels in Canada.


                  Accor depends on effective management in order to maintain its
                  success in being recognized as a leader in meeting guest expectations
                  and delivering superior financial performance in the highly
                  competitive hospitality field. A dynamic and innovative CEO and
                  management team manages the Novotel Hotels.


                  The four hotels owned by Novotel have a total area of approximately
                  83,600 square metres (900,000 square feet) with an average floor area
                  of 20,900 m2 (225,000 ft2). The total annual energy bill for these four
                  hotels is approximately $1.2 million, which corresponds to CO2e
                  emissions of 2,170 tonnes.


                  Novotel plans to implement a world-wide standard for energy
                  efficiency for all of its hotels by the year 2005. The following is a
                  partial list of the measures to be included in the standard:
                  •   Revolving doors at public entrances
                  •   Electronic ballasts with fluorescent or compact fluorescent
                      lighting in all guest areas
                  •   Digital thermostats
                  •   Pre-set lighting controls for all conference rooms
                  •   High-efficiency elevators
                  •   Electronic flush valves for all public area toilets


                  As part of a $3.2 million redesign of the Mississauga Novotel Hotel,
                  Accor will install over $1 million worth of energy efficiency
                  equipment. The projected annual energy savings are $50,000,
                  approximately 17% of the annual energy bill, equating to a reduction
                  in energy consumption of 800,000 ekWh, and reducing annual CO2
                  emissions by 145 tonnes.




                                       3
The energy efficiency measures include the measures listed above in
Novotel’s world-wide standard as well as the removal of unnecessary
baseboard heaters, glazing upgrades and a new chemical system for
treating the cooling tower water. An additional measure to be
undertaken is the installation of a ceiling in the pool area. The
addition of the ceiling to the area, previously open to the lobby on the
floor above, will result in reduced water loss from the pool, reduced
pool water heating requirements and reduced air-conditioning loads
for the lobby.


Upon completion of the pilot project, Accor plans to replicate the
energy efficiency measures of its world-wide standards to the rest of
the Novotel hotels for a further savings of approximately $130,000
annually, equating to a reduction in energy consumption of 1.2
million ekWh, and reducing CO2e emissions by 220 tonnes.




                     4
PART 2 ORGANIZATION PROFILE


2.1 Primary Function
                       Accor-North America owns four Novotel Hotels, and manages two
                       additional Novotels in Canada, as part of the multi-national firm
                       Accor that operates 330 Novotel Hotels in 54 countries.


                       The four hotels owned by Novotel have a total area of approximately
                       83,600 square metres (900,000 square feet) with an average floor area
                       of 20,900 m2 (225,000 ft2). The hotels vary in age from ten to fifteen
                       years old.



2.2 Size
                       Facility and Energy Use
                       The following table outlines the locations and total floor areas of the 4
                       Novotel hotels.


                        Province                  Number        Number of        Total Floor
                                                 of Hotels     Guestrooms         Area (ft2)
                         Ontario                     4             1,047           910,000




                       Energy Use
                       Accor is aware that utilities are high on the list of expenditures at a
                       cost of over $1,200,000 per year.


                       The following breakdown illustrates the amount of energy use by
                       various systems in a typical hotel.



                       Energy Breakdown by Type of Use
                       Lighting                   11%
                       HVAC                       40%
                       Vertical Transportation      6%
                       Domestic Hot Water         25%
                       Misc. Equipment            18%


                                            5
                       Across Canada, electricity is typically four to five times more costly
                       than natural gas. Most hotels use natural gas for the majority of their
                       heating needs, with the addition of electric heating in some locations.
                       Water consumption will depend on the number of rooms, pool
                       facilities, amount of lawn watering and whether laundry is done on-
                       site. The following table outlines the estimated utility consumptions
                       for all of Novotel’s facilities combined.


                           Fuel Type               Estimated       Annual Cost        GHG
                                                     Annual                        Emissions
                                               Consumption                       (tonnes CO2e)
                           Electricity         12,020,000 kWh       $821,000          2,170
                           (kWh)
                           Natural       Gas       1,236,000 m3     $218,000          2,333
                           (m3)
                           Water (m3)              213,000 m3       $179,000
                           TOTAL                                    $1,218,000        4,503



2.3 Environmental Impact

                       Accor is undertaking an energy efficiency pilot project at the Novotel
                       Mississauga in Mississauga, Ontario as part of its initiative to reduce
                       energy consumption, operating costs and greenhouse gas emissions.
                       As part of a comprehensive $3.2 million renovation to the Novotel
                       Mississauga, approximately $1 million worth of energy efficiency
                       measures are to be installed. The project will generate savings of
                       $50,000/year and a reduction of 800,000 ekWh/year reducing CO2
                       emissions by 145 tonnes.


                       The pilot project’s energy efficiency measures include revolving doors
                       at public entrances, electronic ballasts with fluorescent or compact
                       fluorescent lighting in all guest areas, digital thermostats, pre-set
                       lighting controls for all conference rooms, high-efficiency elevators,
                       electronic flush valves for all public area toilets, glazing upgrades,
                       removal of unnecessary baseboard heaters and a new floor between
                       the pool room and the lobby.




                                               6
The pilot project will be replicated in the three other Novotel Hotels
in Canada for projected annual savings of $130,000; 1,200,000 ekWh
reducing CO2e emissions by an additional 220 tonnes.




                    7
PART 3 SENIOR MANAGEMENT SUPPORT

3.1 Signed Statement of Endorsement

                       On behalf of Accor North America, I am pleased to register our
                       Action Plan to the Voluntary Climate Change Challenge and Registry
                       (VCR). We are committed to being a part of Canada’s solution to
                       climate change, and as such, support the VCR Program as a
                       mechanism with which we, in the private sector, can work voluntarily
                       towards reductions in greenhouse gas emissions. Voluntary
                       measures will play an important role in Canada’s response to the
                       Kyoto Protocol.


                       Our submission has been formatted to the meet the requirements
                       detailed in the Registration Guide 1999, as issued by Canada’ Climate
                       Change, Voluntary Climate Change Challenge and Registry Inc. Our
                       Action Plan details the measures that we plan to undertake, and
                       quantifies our consumption reduction targets for 2000 and beyond
                       and provides a comparison against the “business as usual“ or
                       baseline scenario.


                       Accor North America is committed to implementing the measures
                       detailed in our Action Plan, which will provide the framework for our
                       investment in energy efficiency and consequent reduction in GHG.
                       We believe voluntary measures can be an important part of Canada’s
                       response to climate change and can achieve environmental objectives
                       without harming Canada’s economic position. Our company
                       strongly supports the Climate Change Voluntary Challenge and
                       Registry program.


3.2 Commitment to Regular Reporting

                       Accor will monitor and issue internal reports on its energy reduction
                       program on a monthly basis. We intend to update the Action Plan on
                       an annual basis and will be submitting this update to the VCR Inc.




                       Signed: ____________________________________

                                            8
         for Accor North America


Name: ____________________________________


Title:   ____________________________________


Date:    ____________________________________




                   9
3.3 Internal Practices on Climate Change

                         Accor depends on effective management in order to maintain its
                         success in being recognized as a leader in meeting guest expectations
                         and delivering superior financial performance in the highly
                         competitive hospitality field. A dynamic and innovative CEO and
                         management team manages the Novotel Hotels.


                         The comprehensive Novotel team recognizes the company's high
                         profile in community affairs and strives to mix good business
                         practices with community support. Because the team is composed of
                         company stakeholders at an executive level, its energy management
                         initiatives, once approved, are solidly supported.


                         A comprehensive staff-training program is being implemented
                         throughout the Novotel hotels to provide employees at all levels of
                         the organization with the knowledge to manage energy use in their
                         respective departments. Also being initiated at a company wide level
                         is an employee awareness campaign to encourage buy-in into the
                         energy efficiency process and to celebrate progress and successes.


                         Accor is aware that utilities are high on the list of expenditures at a
                         cost of over $1.2 million per year.        Accor engages in energy
                         management activities in order to improve productivity, to reduce the
                         environmental impact of the by-products from energy use, to reduce
                         the cash flow out of the organization related to energy purchases, and
                         to ensure that energy efficient technologies are installed in our
                         facilities. Energy Management is a key focus in the efforts of Accor to
                         maintain a competitive position in the market place.


3.4 Management Systems Description

                         Accor North America is committed to continually improving
                         operational energy efficiency, optimizing energy procurement
                         processes, and minimizing environmental impacts. To meet these
                         responsibilities, Accor will:
                         •   Implement energy monitoring & management technology, energy
                             information systems, energy awareness training, and operational
                             assessment processes.



                                             10
                         •     Identify and quantify the use of various forms of energy, analyze
                               consumption patterns, establish reduction targets, and take action
                               to improve energy intensity.
                         •     Inform and motivate employees at all levels of the organization to
                               participate in energy consumption reducing actions and to
                               communicate results to the stakeholders.
                         •     Ensure that energy efficiency alternatives are thoroughly searched
                               out and evaluated when considering the purchase of a new piece
                               of equipment.


                         Accor wishes to combine no/low-cost energy savings measures, staff
                         awareness and training with capital upgrades to its buildings or
                         equipment. The short-term savings from the no/low cost measures
                         will be bundled with longer payback of the capital projects to provide
                         an attractive overall payback on the entire energy management plan.


                         Accor’s planning team members are:


                             Name                    Title
                             Didier Obeuf            Regional Manager
                             Denis Beauchamp         Resident Manager
                             Jerry Luker             Project Manager
                             Barry Woods             Director of Engineering



3.5 Energy Efficiency Matrix

                         A needs analysis has been undertaken to evaluate the organization’s
                         current approach to energy management.           An Energy Efficiency
                         Matrix and an Energy Efficiency To Do List have been generated from
                         the results.


                         Accor rated very high in its Energy Efficiency Matrix, receiving
                         platinum ratings for the categories of Planning & Implementation and
                         Communications indicating that Accor is a leader in its ability to
                         organize, implement and communicate the results of any energy
                         efficiency projects that are undertaken.




                                               11
Accor was awarded gold ratings in the Commitment, People and
Financing categories indicating that although Accor is dedicated to
energy efficiency, employee awareness and financing of energy
efficiency projects, there is still some potential for improvement.
Finally, Accor received a bronze in the Tracking category indicating
that more effort should be made to track energy savings to show
stakeholders the results of energy savings measures and generate
incentive for future measures.


Both the Energy Efficiency Matrix and the Energy Efficiency To Do
List are included on the following pages.




                   12
Energy Efficiency Matrix




                           13
Energy Efficiency To Do List




                               14
PART 4 BASE YEAR QUANTIFICATION

4.1 Base Year Selection

                          1990 has been chosen as the preliminary base year for greenhouse gas
                          emissions for Novotel. Comparisons to the base year should be made
                          on a kg of CO2e/m2 basis. Any comparisons to total GHG emissions
                          in 1990 should take into account the addition of the 26,000 m2 Novotel
                          Toronto Airport in 1992.


                          Please note that 1998 has been chosen as the baseline for application
                          to the Energy Innovators Plus pilot retrofit incentive with
                          adjustments to be made for cooling degree-days, heating degree-days
                          and occupied rooms/month.


4.2 GHG Base Year Selection Methodology

                          The utility data listed in Tables 1A, B & C was obtained directly from
                          the utility bills for all of the Novotel Hotels.


                          Table 1A: Annual Electricity Consumption
                           Year     Electricity            Total Bldg. Consumptio
                                                    Electricity
                                                                             n
                                   Consumption Consumption    Area       per Area
                                      (kWh)      (ekWh)       (m2)      (ekWh/m2)
                           1990      7,917,500   7,917,500    58,693         134.9
                           1991
                           1992     10,337,500      10,337,500       84,552    122.3
                           1993
                           1994
                           1995
                           1996
                           1997
                           1998     12,055,600      12,055,600       84,552    142.6




                          Table 1B: Annual Natural Gas Consumption
                            Year    Natural Gas             Total Bldg. Consumptio
                                                    Natural Gas
                                                                              n
                                   Consumption Consumption     Area       per Area
                                       (m3)      (ekWh)        (m2)      (ekWh/m2)
                            1990       855,600    8,983,800    58,693          153.1
                            1991
                            1992      1,035,60015    10,873,800       84,552    128.6
                            1993
                            1994
                            1995
    Table 1C: Total Energy
    Consumption
     Year     Total Energy Consumption
              Consumption    per Area
                (ekWh)      (ekWh/m2)
     1990       16,901,300        288.0
     1991
     1992       21,211,300       250.9
     1993
     1994
     1995
     1996
     1997
     1998       25,035,606       296.1




Notes for Tables 1A, B & C
•    Total Energy Consumption (ekWh) = Electricity Energy
     Consumption (ekWh) + Natural Gas Energy Consumption
     (ekWh)
•    The energy content of natural gas was assumed to be 37.8 MJ (10.5
     ekWh) per cubic metre.




                     16
4.3 GHG Emissions Inventory

                       The annual GHG emissions for 1998 were:


                        Indirect CO2e Emissions          2,170 tonnes CO2
                        Direct CO2 Emissions             2,324 tonnes CO2
                        Direct CH4 Emissions                53 kg CH4
                        Direct N2O Emissions                25 kg N2O
                        Total Direct Emissions           2,333 tonnes CO2e
                        Total Emissions                  4,503 tonnes CO2e


                       Note: 1 tonne = 1,000 kg


                       A more complete inventory of energy consumption and GHG
                       emissions, in total and on a per square metre basis, are included in
                       Tables 2A, B & C on the following page.




                                           17
Table 2A: Annual Indirect GHG Emissions from Electricity Consumption
                                                                  A
                                                             Indirect CO2     CO2         Comparison To
                                                              Emissions     per Area        Base Year
                                                               (tonnes)     (kg/m2)          (kg/m2)
 1990     7,917,500                                                1,425         24.28     0.00   0.00%
 1991
 1992    10,337,500                                                1,861          22.01    -2.27   -9.37%
 1993
 1994
 1995
 1996
 1997
 1998    12,055,600                                                2,170          25.66   +1.38    +5.70%
 1999

Table 2B: Annual Direct GHG Emissions from Natural Gas Consumption
                        B              C            D             E
 Year   Natural Gas Direct CO2     Direct CH4   Direct N2O   Total CO2e      CO2e         Comparison To
        Consumptio Emissions       Emissions    Emissions    Emissions      per Area        Base Year
           (m3)        (kg)           (kg)         (kg)       (tonnes)      (kg/m2)          (kg/m2)
 1990      855,600   1,608,528             37           17         1,615         27.51     0.00   0.00%
 1991
 1992     1,035,600    1,946,928          45           21          1,954          23.11    -4.40   -15.98%
 1993
 1994
 1995
 1996
 1997
 1998     1,236,191    2,324,039          53           25          2,333          27.59   +0.08    +0.29%
 1999

Table 2C: Annual Total GHG Emissions
                                                                  F
 Year   Total Energy Direct CO2 Direct CH4      Direct N2O   Total CO2e       CO2e        Comparison To
        Consumption Emissions Emissions         Emissions    Emissions      Base Year       Base Year
           (ekWh)        (kg)      (kg)            (kg)       (tonnes)       (kg/m2)         (kg/m2)
 1990     16,901,300  1,608,528         37              17         3,040          51.79    0.00   0.00%
 1991
 1992     21,211,300   1,946,928          45           21          3,815          45.12    -6.67   -12.88%
 1993
 1994
 1995
 1996
 1997
 1998     25,035,606   2,324,039          53           25          4,503          53.26   +1.46    +2.83%
 1999




        Column
           A      = kWh x provincial indirect emission factor (see Table 3)
           B      = m3 of natural gas x 1,880 g CO2/m3 x 1 kg/1000 g
           C                                     18
                  = m3 of natural gas x 0.043 g CH4/m3 x 1 kg/1000 g
          D       = m3 of natural gas x 0.02 g N2O/m3 x 1 kg/1000 g
           E      = column B + [column C x 21 Global Warming Potential] + [column D x 310
4.4   GHG Emissions Inventory Methodology

                    The greenhouse gas emissions for the Novotel hotels were calculated
                    using the direct/indirect emission factors and global warming
                    potentials provided in the VCR Inc. Registration Guide 1999, Section
                    5.


                    Indirect Emissions
                    Indirect GHG emissions from electricity consumption were calculated
                    in Table 3 by applying the provincial indirect emission factors (kg of
                    CO2e/kWh) to the 1999 annual electrical consumption for the
                    facilities in each province. The total indirect emissions of 8,017 tonnes
                    of CO2e, were then transferred to the row for 1998 in Table 2A.



              Table 3: 1999 Electricity Consumption & Indirect GHG Emissions by
              Province

               Province    Electricity        Number       Provincial Indirect   Indirect CO2
                          Consumption            of         Emission Factor       Emissions
                             (kWh)            Facilities    (kg CO2e/kWh)          (tonnes)
               Ontario      12,055,600            4             0.1800               2,170
                Total       12,055,600            4                                  2,170



                    Direct Emissions
                    Direct emissions of carbon dioxide (CO2), methane (CH4) and nitrous
                    oxide (N20) from the 1999 natural gas consumption were calculated
                    using the following formulas:
                    • kg of CO2 = 1999 gas consumption (m3) x 1,880 g CO2/m3 x 1 kg/1000 g
                    • kg of CH4 = 1999 gas consumption (m3) x 0.043 g CH4/m3 x 1 kg/1000 g
                    • kg of N2O = 1999 gas consumption (m3) x 0.02 g N2O/m3 x 1 kg/1000 g

                    The total direct GHG emissions from the combustion of natural gas in
                    1999 is the sum of the emissions of carbon dioxide, methane and
                    nitrous oxide times their respective global warming potentials of 1, 21
                    and 310. The global warming potential of a greenhouse gas converts
                    a quantity of that gas to the quantity of carbon dioxide gas with an
                    equivalent effect on the environment. The formula used to calculate


                                         19
total direct GHG emissions for 1999 in terms of equivalent carbon
dioxide was:
• kg of CO2e = (kg of CO2 x 1) + (kg of CH4 x 21) + (kg of N2O x 310)

Finally, the total GHG emissions for Accor for 1999 was the sum of
the GHG emissions from electricity and natural gas and entered in
Table 2C.




                     20
PART 5 PROJECTION


5.1 Projected Energy Consumption & GHG Emission Levels

                       As part of its commitment to energy efficiency and reduction in GHG
                       emissions, Accor is undertaking a pilot energy efficiency project at the
                       Novotel Mississauga in Mississauga, Ontario. In the near future, the
                       pilot project will be replicated at the other three Canadian Novotel
                       properties. The budgeted cost of the pilot energy efficiency project is
                       approximately $1 million with estimated energy savings of over
                       $50,000 per year and a reduction in GHG emissions of over 145 tonnes
                       of CO2e per year.


                       In order to estimate avoided energy consumption and GHG
                       emissions, a `business as usual’ scenario or ‘baseline’ has been
                       created. The baseline scenario for Accor projects what the energy use
                       and GHG emissions would be, if no energy efficiency projects were
                       undertaken. It has been assumed that future energy use will increase
                       by 0.5% per year as a result of aging equipment. The projected
                       electricity use and natural gas use from 1999 to 2012 are detailed in
                       Tables 4A, B & C. The projected GHG emissions for the same period
                       are detailed in Tables 5A, B & C. Tables 6A, B & C contain a 5 year
                       rolling total of the projected GHG emissions, both direct and indirect,
                       up to 2012.


                       The total GHG emissions for the year 2010 have been projected to be
                       4,757 tonnes (56.26 kg/m2) and the 5 year total GHG emissions for
                       the period 2008 to 2012 has been projected at 23,784 tonnes (or 281.30
                       kg/m2).


                       The projection and the baseline will be adjusted for changes not
                       related to energy efficiency work, such as opening or closing of
                       facilities or changes in facility use.




                                            21
5.1           Table 4A: “Business as Usual” Projection for Electricity Consumption
      Year    Electricity Electricity Total Bldg.              Consumption
             Consumption Consumption     Area                    per Area
                (kWh)      (ekWh)        (m2)                   (ekWh/m2)
      1999    12,055,600  12,055,600    84,552                         142.6
      2000    12,115,878  12,115,878    84,552                         143.3
      2001    12,176,457  12,176,457    84,552                         144.0
      2002    12,237,340  12,237,340    84,552                         144.7
      2003    12,298,526  12,298,526    84,552                         145.5
      2004    12,360,019  12,360,019    84,552                         146.2
      2005    12,421,819  12,421,819    84,552                         146.9
      2006    12,483,928  12,483,928    84,552                         147.6
      2007    12,546,348  12,546,348    84,552                         148.4
      2008    12,609,080  12,609,080    84,552                         149.1
      2009    12,672,125  12,672,125    84,552                         149.9
      2010    12,735,486  12,735,486    84,552                         150.6
      2011    12,799,163  12,799,163    84,552                         151.4
      2012    12,863,159  12,863,159    84,552                         152.1



             Table 4B: “Business as Usual” Projection for Natural Gas Consumption
      Year    Natural Gas Natural Gas Total Bldg.   Ice Sheets Consumption
             Consumption Consumption     Area           in       per Area
                  (m3)      (ekWh)       (m2)       Operation (ekWh/m2)
      1999     1,236,191   12,980,006   84,552                         153.5
      2000     1,242,372   13,044,906   84,552                         154.3
      2001     1,248,584   13,110,130   84,552                         155.1
      2002     1,254,827   13,175,681   84,552                         155.8
      2003     1,261,101   13,241,559   84,552                         156.6
      2004     1,267,406   13,307,767   84,552                         157.4
      2005     1,273,743   13,374,306   84,552                         158.2
      2006     1,280,112   13,441,177   84,552                         159.0
      2007     1,286,513   13,508,383   84,552                         159.8
      2008     1,292,945   13,575,925   84,552                         160.6
      2009     1,299,410   13,643,805   84,552                         161.4
      2010     1,305,907   13,712,024   84,552                         162.2
      2011     1,312,437   13,780,584   84,552                         163.0
      2012     1,318,999   13,849,487   84,552                         163.8



             Table 4C: “Business as Usual” Projection for Total Energy Consumption
      Year                Total Energy                         Consumption
                          Consumption                            per Area
                            (ekWh)                              (ekWh/m2)
      1999                   25,035,606                                296.1
      2000                   25,160,784                                297.6
      2001                   25,286,587                                299.1
      2002                   25,413,020                                300.6
      2003                   25,540,085                                302.1
      2004                   25,667,786                                303.6
      2005                   25,796,125                                305.1
      2006                   25,925,105                                306.6
      2007                   26,054,731                                308.1
      2008                   26,185,00522                              309.7
      2009                   26,315,930                                311.2
      2010                   26,447,509                                312.8
      2011                   26,579,747                                314.4
       Table 5A: “Business as Usual” Projection for Indirect GHG Emissions from Electricity
                                           Consumption
Year     Electricity                                          Indirect CO2     CO2
        Consumptio                                             Emissions     per Area
           (kWh)                                                (tonnes)     (kg/m2)
1999     12,055,600                                                 2,170         25.66
2000     12,115,878                                                 2,181         25.79
2001     12,176,457                                                 2,192         25.92
2002     12,237,340                                                 2,203         26.05
2003     12,298,526                                                 2,214         26.18
2004     12,360,019                                                 2,225         26.31
2005     12,421,819                                                 2,236         26.44
2006     12,483,928                                                 2,247         26.58
2007     12,546,348                                                 2,258         26.71
2008     12,609,080                                                 2,270         26.84
2009     12,672,125                                                 2,281         26.98
2010     12,735,486                                                 2,292         27.11
2011     12,799,163                                                 2,304         27.25
2012     12,863,159                                                 2,315         27.38

       Table 5B: “Business as Usual” Projection for Direct GHG Emissions from Natural Gas
                                           Consumption
Year    Natural Gas Direct CO2   Direct CH4     Direct N2O    Total CO2e      CO2e
        Consumptio Emissions     Emissions      Emissions     Emissions      per Area
            (m3)       (kg)         (kg)           (kg)        (tonnes)      (kg/m2)
1999     1,236,191   2,324,039          53.2           24.7         2,333         27.59
2000     1,242,372   2,335,659          53.4           24.8         2,344         27.73
2001     1,248,584   2,347,338          53.7           25.0         2,356         27.87
2002     1,254,827   2,359,074          54.0           25.1         2,368         28.01
2003     1,261,101   2,370,870          54.2           25.2         2,380         28.15
2004     1,267,406   2,382,724          54.5           25.3         2,392         28.29
2005     1,273,743   2,394,638          54.8           25.5         2,404         28.43
2006     1,280,112   2,406,611          55.0           25.6         2,416         28.57
2007     1,286,513   2,418,644          55.3           25.7         2,428         28.71
2008     1,292,945   2,430,737          55.6           25.9         2,440         28.86
2009     1,299,410   2,442,891          55.9           26.0         2,452         29.00
2010     1,305,907   2,455,105          56.2           26.1         2,464         29.15
2011     1,312,437   2,467,381          56.4           26.2         2,477         29.29
2012     1,318,999   2,479,718          56.7           26.4         2,489         29.44

                Table 5C: “Business as Usual” Projection for Total GHG Emissions
Year    Total Energy Direct CO2 Direct CH4      Direct N2O    Total CO2e      CO2e
        Consumption Emissions Emissions         Emissions     Emissions      per Area
          (ekWh)         (kg)      (kg)            (kg)        (tonnes)      (kg/m2)
1999     25,035,606   2,324,039    53.2            24.7           4,503           53.26
2000     25,160,784   2,335,659    53.4            24.8           4,525           53.52
2001     25,286,587   2,347,338    53.7            25.0           4,548           53.79
2002     25,413,020   2,359,074    54.0            25.1           4,571           54.06
2003     25,540,085   2,370,870    54.2            25.2           4,594           54.33
2004     25,667,786   2,382,724    54.5            25.3           4,617           54.60
2005     25,796,125   2,394,638    54.8            25.5           4,640           54.87
2006     25,925,105   2,406,611    55.0            25.6           4,663           55.15
2007     26,054,731   2,418,644    55.3            25.7           4,686           55.42
2008     26,185,005   2,430,737    55.6            25.9           4,710           55.70
2009     26,315,930   2,442,891    55.9            26.0           4,733           55.98

                                               23
Table 6A: 5 Year Rolling Total for “Business as Usual” Projection
for Indirect GHG Emissions from Electricity Consumption
 Year    Electricity Indirect CO2  5 Year             5 Year
        Consumptio Emissions Rolling Total         Rolling Total
           (kWh)       (tonnes)   (tonnes)           (kg/m2)
 1999    12,055,600        2,170
 2000    12,115,878        2,181
 2001    12,176,457        2,192
 2002    12,237,340        2,203
 2003    12,298,526        2,214      10,959              129.61
 2004    12,360,019        2,225      11,014              130.26
 2005    12,421,819        2,236      11,069              130.91
 2006    12,483,928        2,247      11,124              131.57
 2007    12,546,348        2,258      11,180              132.23
 2008    12,609,080        2,270      11,236              132.89
 2009    12,672,125        2,281      11,292              133.55
 2010    12,735,486        2,292      11,348              134.22
 2011    12,799,163        2,304      11,405              134.89
 2012    12,863,159        2,315      11,462              135.56

Table 6B: 5 Year Rolling Total for “Business as Usual” Projection
for Direct GHG Emissions from Natural Gas Consumption
 Year   Natural Gas Total CO2e       5 Year           5 Year
        Consumptio Emissions      Rolling Total    Rolling Total
            (m3)     (tonnes)       (tonnes)         (kg/m2)
 1999    1,236,191        2,333
 2000    1,242,372        2,344
 2001    1,248,584        2,356
 2002    1,254,827        2,368
 2003    1,261,101        2,380         11,781            139.34
 2004    1,267,406        2,392         11,840            140.03
 2005    1,273,743        2,404         11,899            140.73
 2006    1,280,112        2,416         11,959            141.44
 2007    1,286,513        2,428         12,019            142.15
 2008    1,292,945        2,440         12,079            142.86
 2009    1,299,410        2,452         12,139            143.57
 2010    1,305,907        2,464         12,200            144.29
 2011    1,312,437        2,477         12,261            145.01
 2012    1,318,999        2,489         12,322            145.74

Table 6C: 5 Year Rolling Total for “Business as Usual” Projection
for Total GHG Emissions
 Year   Total Energy Total CO2e       5 Year           5 Year
        Consumption Emissions      Rolling Total    Rolling Total
          (ekWh)      (tonnes)       (tonnes)         (kg/m2)
 1999      25,035,606    4,503
 2000      25,160,784    4,525
 2001      25,286,587    4,548
 2002      25,413,020    4,571
 2003      25,540,085    4,594           22,740            268.95
 2004      25,667,786    4,617           22,854            270.30
 2005      25,796,125    4,640           22,968            271.65
 2006      25,925,105    4,663           23,083            273.01
 2007      26,054,731    4,686           23,199            274.37
 2008      26,185,005    4,710           23,315            275.74
 2009      26,315,930    4,733           23,431            277.12
 2010      26,447,509    4,757           23,548            278.51
 2011      26,579,747    4,781           23,666            279.90
 2012      26,712,646    4,804           23,784            281.30
                   24
5.2   Major Sources of GHG Emissions

                      The major sources of greenhouse gas emissions at the Novotel Hotels
                      is from the consumption of natural gas and electricity for the heating
                      and cooling of the hotels. Other significant sources of energy
                      consumption are lighting, domestic hot water and kitchen food
                      preparation.




                                         25
PART 6 TARGET SETTING


6.1 Targets
                  Energy Reduction Target
                  Accor is targetting to reduce its energy consumption by 17% below
                  1998 levels for the Novotel Mississauga Hotel, through the
                  implementation of a pilot retrofit project.


                  With the implementation of the Novotel Mississauga pilot project and
                  replication in its other 3 hotels, Accor will reduce its annual energy
                  consumption by approximately 17% over 1998 levels or 2,000,000
                  ekWh, which equates to reductions of $180,000 and 360 tonnes of
                  CO2e.


                                           Annual Energy Consumption per Square Metre
                            350
                                          Actual Consumption           "Business As Usual" Consumption
                            300


                            250


                            200
                  ekWh/m2




                            150


                            100                  Natural Gas
                                                 Electricity
                                                 Target
                             50


                              0
                              90


                                     92


                                            94


                                                    96


                                                                 98


                                                                        00


                                                                               02


                                                                                      04


                                                                                             06


                                                                                                    08


                                                                                                           10


                                                                                                                  12
                            19


                                   19


                                          19


                                                  19


                                                               19


                                                                      20


                                                                             20


                                                                                    20


                                                                                           20


                                                                                                  20


                                                                                                         20


                                                                                                                20




                  Greenhouse Gas Emission Reduction Target
                  Accor is committed to reducing GHG emissions per square metre
                  from its properties by 6% below the 1990 levels to help Canada meet
                  its international commitments at the Kyoto Protocol. The GHG
                  emissions in 1990 were 3,040 tonnes CO2e, or 51.79 kg CO2e/m2. In


                                                 26
order to meet the target level of emissions, Accor must reduce annual
GHG emissions to 48.68 kg CO2e/m2 by the year 2010.




                   27
                                          According to `business as usual’ projections in Table 5C, the total
                                          GHG emissions in tonnes per square metre for Accor for 2010 will be
                                          56.26 kg CO2e/m2, which is approximately 8.7% higher than the
                                          target level of emissions. However, if the pilot project is replicated
                                          fully to the other sites, the emissions levels for 2010 are projected to be
                                          46.46 CO2e/m2 which is below the target levels. The projected

                                                                            Annual GHG Emissions per Square M etre
                                         70
                                                                          Actual Emissions                        "Business As Usual" Emissions
                                         60


                                         50
                      tonnes CO 2e/m 2




                                         40


                                         30

                                                                                  Direct
                                         20
                                                                                  Indirect
                                                                                  Projected
                                         10                                       Target


                                         0
                                              1990
                                                     1991
                                                            1992
                                                                   1993
                                                                           1994
                                                                                  1995

                                                                                          1996
                                                                                                 1997

                                                                                                        1998
                                                                                                               1999
                                                                                                                      2000
                                                                                                                             2001
                                                                                                                                    2002
                                                                                                                                           2003
                                                                                                                                                  2004
                                                                                                                                                         2005
                                                                                                                                                                2006

                                                                                                                                                                       2007
                                                                                                                                                                              2008

                                                                                                                                                                                     2009
                                                                                                                                                                                            2010

                                                                                                                                                                                                   2011
                                                                                                                                                                                                          2012
                                          emissions levels based on the replication of the pilot project is
                                          represented by the red line in the chart below.




6.2 Process for Target Review

                                          Accor’s energy consumption and greenhouse gas emission levels will
                                          be updated and reported annually in progress reports submitted to
                                          VCR Inc.’s registry of action plans. During the preparation of these
                                          reports, Accor’s progress towards established targets will be reviewed
                                          to determine if the targets are realistic, achievable and reflect the
                                          current circumstances and operations of the company.


                                          Once the pilot energy efficiency projects, detailed in section 7 of this
                                          report, have been completed, the energy consumption levels of the
                                          retrofitted facilities will be tracked on a monthly basis to provide
                                          concrete evidence of the performance of the various projects and
                                          whether they are as cost-effective as was expected. Over the next
                                                                                         28
several years, the energy savings performance of these facilities will
be used to review the target levels of energy consumption and
equivalent greenhouse gas emissions, that have been established in
this report.




                    29
PART 7 MEASURES TO ACHIEVE TARGETS


7.1 Verifiable Activities & Projects

                          Capital Upgrades
                          As part of a $3.2 million redesign of the Mississauga Novotel Hotel,
                          Accor will install over $1 million worth of energy efficiency
                          equipment. The projected annual energy savings are $50,000, 17% of
                          the annual energy bill, equating to a reduction in energy consumption
                          of 800,000 ekWh, and reducing CO2e emissions by 145 tonnes. The
                          energy efficiency measures include:
                          •   Revolving doors at public entrances
                          •   Electronic ballasts with fluorescent or compact fluorescent
                              lighting in all guest areas
                          •   Digital thermostats
                          •   Pre-set lighting controls for all conference rooms
                          •   High-efficiency elevators
                          •   Electronic flush valves for all public area toilets
                          •   Removal of unnecessary baseboard heaters
                          •   Glazing upgrades
                          •   New chemical system for treating the cooling tower water


                          An additional measure to be undertaken is the installation of a ceiling
                          in the pool area. The addition of the ceiling to the area, previously
                          open to the lobby on the floor above, will result in reduced water loss
                          from the pool, reduced pool water heating requirements and reduced
                          air-conditioning loads for the lobby.


                          The savings for the project will be tracked to verify projected savings.
                          By 2005 Accor will have replicated the energy efficiency measures of
                          its worldwide energy efficiency standard to the remaining Novotel
                          hotels.




7.2 Non-Verifiable Activities & Projects




                                               30
Although the energy savings and GHG emission reductions achieved
by the measures in the following areas are not verifiable, they will
provide additional savings towards the target savings levels.


Operating & Maintenance Practicies
Novotel will endeavour to reduce energy consumption and GHG
emissions by reviewing and improving operation and maintenance
practices to ensure that staff maintain the level of energy efficiency at
each facility. The following measures will be considered:
• Conduct regular preventive maintenance on the facility and
  equipment to ensure that equipment is kept in good operating
  condition.
• Establish start-up and shut-down schedules for equipment to
  minimize electricity consumption and peak demand.


Purchasing Policies
Purchasing policies at Novotel will be reviewed to ensure that they
incorporate energy efficiency wherever possible.          The following
measures will be considered:
• Research the most energy efficient replacement when preparing to
  remove any piece of equipment that is nearing the end of its useful
  life.
• Negotiate with utilities for optimal fuel rates.
• Investigate direct or bulk purchase of natural gas. Investigate
  options for purchasing electricity in provinces with deregulated
  markets.




                      31
PART 8 RESULTS ACHIEVED


8.1 Results Achieved in Reporting Year

                        The GHG emissions for the Novotel hotels in 1998 is at 53.26 kg
                        Co2e/m2, only 2.83% higher than the 1990 base year levels, and 9.4 %
                        above the target level of 48.68 kg Co2e/m2.


                        Energy savings for the pilot retrofit project at the Novotel
                        Mississauga Hotel will be calculated using the 1998 utility
                        consumption for the Novotel Missisauga as the base year, once the
                        project is complete. The energy savings will be reported on an annual
                        basis.




8.2 Results Achieved Since 1990

                        GHG emissions per square metre have increased by 1.46 kg CO2e/m2
                        vs the base year (1990). The greenhouse gas emissions will be
                        reduced due to the energy efficiency measures implemented at the
                        pilot retrofit site. Both energy savings and GHG emission reductions
                        will be improved again by the replication of the pilot project to other
                        Novotel sites.




                                            32
                                      Annual GHG Emissions per Square Metre
                   60


                   50


                   40




tonnes CO 2e/m 2
                   30


                   20
                                                                  Direct
                                                                  Indirect
                   10
                                                                  Target


                   0
                        1990   1991   1992   1993   1994   1995      1996    1997   1998   1999




                                        33
8.3 Verification

                   Energy Consumption Savings
                   The energy consumption savings for the pilot retrofit project at the
                   Novotel Mississauga have been projected by a third party consulting
                   firm. Future savings will be verified by Finn Projects, the third party
                   monitoring company, prior to submission of any reports to the
                   Energy Innovators Program.


                   Greenhouse Gas Emission Reduction
                   The GHG emissions from 1990 to 1998 have been compiled from the
                   available utility billing data by a third party consulting firm. Finn
                   Projects, the third party monitoring company, will verify all
                   emissions and emission reductions for the Novotel hotels prior to the
                   submission of the annual status reports to VCR Inc.




                                       34
PART 9 EDUCATION, TRAINING AND AWARENESS


9.1 Our Corporate Response to Climate Change

                       Accor North America supports the Climate Change Voluntary
                       Challenge and Registry Program as a mechanism with which all
                       sectors can work voluntarily towards reductions in greenhouse gas
                       emissions. Voluntary measures will play an important role in
                       Canada’s response to the Kyoto Protocol. Consequently, Accor will
                       continue to be part of the national response process to Kyoto, and the
                       development of a domestic climate change action plan which is
                       economically and environmentally sound. Accor will continue to
                       develop awareness among its employees about Climate Change and
                       Energy Efficiency by involving them in improvement plans and
                       educational activities.




9.2 Climate Change & Our Employees

                       Accor views the motivation of its employees to take energy
                       conserving actions through education and awareness initiatives as its
                       key response to Climate Change. Accor will continue to mount a
                       campaign to increase awareness re GHG, energy efficiency and the
                       Action Plan so that the staff members are aware of their role in
                       reducing energy waste and that Accor’s efforts are recognized by the
                       public. The following summary lists the energy awareness activities
                       that will take place within the corporation:
                       •   Once completed, the Action Plan will be presented to all general
                           managers and department heads in order to explain objective and
                           roles of all parties.
                       •   The general managers will make a presentation to all staff
                           members detailing the goals of the plan and the individual and
                           group contributions that the staff can make. Demonstrations will
                           be given of various technologies and specific procedures that the
                           staff are expected to follow.



                                             35
                        •   Accor will implement written policies, which will outline its
                            expectation with respect to the efficient operation of its facilities
                            and equipment.
                        •   Regular meeting review meeting with management and staff are
                            to be held to present achievements review the progress towards
                            the goals.
                        •   Local colleges will be contacted, if necessary, to conduct needs
                            assessments for training of the employees. A training plan will be
                            prepared to educate managers and/or maintenance on up-to-date
                            energy management practices.
                        •   It will be ensured all future maintenance personnel receive energy
                            training as part of, or after, their orientation/probation.
                        •   An energy/environmental newsletter will be distributed to all
                            facilities. Items to be included will be a description of the action
                            plan, savings achieved in terms of cost, energy and GHG, as well
                            as employees contributions & suggestions.
                        •   Success stories will also reported on a regular basis in internal
                            newsletters and bulletins.




9.3 Climate Change and Our External Contacts

                        Accor intends to communicate its endeavours and achievements with
                        respect to climate change with its suppliers and customers. Suppliers
                        will be encouraged to provide cost effective environmentally friendly
                        products and undertake energy efficiency projects as a means of
                        reducing both costs and GHG emissions.


9.4 Our Public Education on Climate Change

                        Accor will produce charts of the energy savings and GHG emissions
                        and display these in staff and public areas, together with posters and
                        bulletins. An energy awareness campaign will be mounted for Hotel
                        customers by placing tent-cards on tables in the guestrooms and
                        restaurant, which will contain information about energy savings
                        measures and GHG emissions.




                                             36
Accor will also work within its communities to encourage the
development of community awareness about the Climate Change
issue.




                37
APPENDIX A: LETTER TO MINISTER OF NATURAL RESOURCES




                               38
APPENDIX B: DESCRIPTION OF PILOT PROJECT


B.1 Lighting

Measure             Existing                                   Proposed
Exit Signs          Each exit sign is lit by two 15W           Exit signs will be retrofit with LED
                    incandescent bulbs                         panels using 1.5W-3W
Corridor Lighting   Over each guestroom door, a fixture        Each fixture will be retrofit with
                    containing four 60W incandescent           three 32W T8 lamps and electronic
                    bulbs operates for 24 hours per day        ballasts
Lobby Lighting –    The portion of the lobby area with         The incandescent bulbs will be
Low Ceiling Area    low ceilings (15 ft) is lit by a mixture   replaced with 30W compact
                    of 60W and 100W incandescent pot           fluorescent lamps
                    lights
Lobby Lighting –    The portion of the lobby area that is      The incandescent fixtures will be
High Ceiling        open to the floor above has a high         replaced with 50W MR-16 halogen
Area                ceiling (30 ft). This area is lit by a     fixtures
                    mixture of 100W and 150W
                    incandescent pot lights
Guestroom           Each of the 325 guestrooms is              The 40W and 100W incandescents
Lighting            equipped with six 40W and four             will be replaced by 15W and 30W
                    100W incandescents                         compact fluorescent lamps
                                                               respectively
Banquet Room        Each banquet room is lit by a              The incandescents in the pot lights
Lighting            mixture of incandescent bulbs in pot       will be retrofit with compact
                    lights and chandeliers                     fluorescents
Small meeting       Three small meeting rooms and the          Each area will be equipped with
rooms & gym         workout area for the guests are lit by     occupancy sensors to automatically
                    T8 lamps but are not controlled.           shut off lights when rooms are not in
                                                               use




                                                   32
B.2 HVAC

Measure          Existing                                 Proposed
Public Area      Existing 500W electric baseboard         Forty 500W baseboard heaters will
Heating          heaters in lobby and public areas are    be replaced with 400W heaters
                 oversized for heating loads
Thermostats in   Pneumatic thermostats are used in        Electronic thermostats will be
Public Areas     the public areas of the hotel.           installed allowing greater control of
                 Thermostats are locked allowing          area heating and cooling and
                 only staff to have access to them        reduced operating times for air
                                                          compressor
2nd Floor        An enclosed walkway joining the 2nd      The baseboard heaters will be
Walkway          floor of the Hotel to the building       removed and the walkway will be
Heating          across the street is heated by twelve    left unheated. Double-doors at the
                 500W electric baseboard heaters with     end of each walkway will prevent
                 no controls or shut-offs                 infiltration of unconditioned air into
                                                          either building




B.3 Building Envelope

Measure          Existing                                 Proposed
Lobby Glazing    A portion of the windows in the          The single-glazed windows will be
Upgrade          lobby area are single-glazed             replaced with double-glazed
                 windows                                  windows to reduce heating, cooling
                                                          and infiltration loads
New Floor in     A section of the floor of the lobby is   The floor of the lobby will be redone
Lobby            open to the swimming pool room           to separate the lobby from the pool
                 below                                    room and prevent moist air from the
                                                          pool room from entering the lobby.
                                                          Savings will result from reduced
                                                          cooling load in the lobby, reduced air
                                                          and water heating loads in the pool
                                                          room and reduced water loss from
                                                          the pool
Lobby Entrance   The existing entrance to the lobby is    The entrance will be converted to a
                 a set of double swing doors with no      revolving door to reduce heating and
                 vestibule                                cooling loads due to infiltration


                                               33
B.4 Other

Measure           Existing                           Proposed
Public            All fixtures in public area        Sinks, urinals and toilets will be
Washrooms         washrooms use standard manual      equipped with infra-red sensor
                  controls                           electronic valves
Elevator System                                      The elevators will be retrofitted to a
                                                     high-efficiency system




                                                34

				
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