Local Air Quality

In large urban areas, such as the Greater Toronto Area, fuel use is a significant contributor to smog. As Canada's largest distributor of natural gas, Gas Distribution has taken a lead in promoting fuel efficiencies and greater use of natural gas as an environmentally preferred fuel for vehicle use and power generation.

During 2003, Gas Distribution, along with members of the Canadian Natural Gas Vehicle Alliance, participated in information sessions to the federal government, recommending policy changes to help increase demand for lower- emitting NGVs and encourage manufacturers to increase their production. Enbridge Gas New Brunswick also partnered with Agriculture Canada in Fredericton, New Brunswick, to launch a NGV demonstration project for government fleet vehicles.

And when the Ontario government called for proposals in 2003 to install new generation sites to provide backup electricity to the provincial grid, Gas Distribution worked with industry to install 117 MW of gas-fired generation at three sites in the Greater Toronto Area. We played a key role throughout the process,working with local distribution companies and government officials to lobby for natural gas and supporting generation suppliers by identifying suit- able sites and providing gas supply. The generators were later put to the test on August 15 when a power blackout occurred throughout most of the province. The generators operated continuously for about 150 hours while the province restored power. Without Gas Distribution 's facilitation role, virtually all of the 117 MW would have been diesel-fired.

Employee participation

During the year, we encouraged our employees to participate in innovative air quality improvement initiatives in Canada and the United States.

Last year, Gas Distribution launched a voluntary employee program called 20/20 The Way to Clean Air in partnership with the City of Toronto Public Health Department, Pollution Probe and Green$aver. Through lunch- and-learn sessions and an energy use planner, employees learned about energy-saving options and alternative ways to travel to and from work that can help save money and reduce summer smog levels.

Our Houston-based employees participated in the U.S. Environmental Protection Agency (EPA)'s Commuter Friendly Program. This national program promotes commuter choices such as car pooling and the use of public transit, which help to contribute to air quality objectives. For their efforts, the Houston office was recognized with the EPA's 2003 Best Workplaces for Commuters Award.

Criteria air contaminants

Criteria air contaminants are a group of common air pollutants reported to Canada's National Pollutant Release Inventory (NPRI) and released from sources across the country, including incineration, industrial production, fuel combustion and transportation vehicles.

2003 was Enbridge's first year for reporting criteria air contaminant emissions for our Canadian operations under the NPRI and new Ontario reporting regulations (Regulation 127).

During the year, we developed a baseline inventory of emissions in Gas Distribution and our Liquids Pipelines System to meet these reporting requirements. The air contaminants that were required to be reported to the NPRI for the 2002 reporting year were NOx, SO2, VOCs, carbon monoxide and particulate matter.

Results from our inventory show that SO2 and NOx emissions represented the largest share of criteria air contaminant emissions in Gas Distribution (about 1,300 tonnes or 69%of total criteria air contaminant emissions),while VOC emissions were the largest contributor in our Canadian Liquids Pipelines System (about 1,600 tonnes or 87%of the total).Using the inventory,we will evaluate the baseline data and develop strategies for improvement.

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