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HAY RIVER - Going green may help the Town of Hay River save thousands of dollars.

To determine the possible cost savings of a more environmentally friendly town a community energy plan is in the works.

Hay River Mayor Jean-Marc Miltenberger looks over the ammonia compressor at the town's arena, where a new system will be installed this year to recover heat from the ice-making process. Miltenberger said the project will save the town an estimated $160,000 a year in heating costs and is one example of savings that might be found by creating a community energy plan. - Paul Bickford/NNSL photo

On Jan. 19, town council voted to form a community energy planning committee and authorized spending up to $200,000 to support the committee in creating the plan.

Mayor Jean-Marc Miltenberger said the plan will be worth every penny the town spends on it.

The plan would look at energy usage and find ways to reduce consumption and improve efficiency.

One example is incorporating alternative energy sources such as wind or solar power.

"We're in changing times and doing an energy plan is part of it," he said.

The mayor said the community energy plan is not just for municipal operations, but for all aspects of the town, including businesses and residences.

"Everybody is affected by this," he said.

A co-ordinator will be hired to oversee the planning process with the committee, which will include members from a cross-section of the community, including the municipality, businesses, schools, government agencies and more.

The community energy plan is part of a process by which the town receives federal gas tax funding under the New Deal for Cities and Communities (NDCC) program.

Established in the 2005 federal budget it dedicated $5 billion in federal gas tax funding over five years to provide financial assistance to municipal governments for sustainable capital infrastructure.

Northwest Territories communities will receive a total $37.5 million over the five years, which ends in the 2009/2010 fiscal year.

Hay River will receive a little more than $1 million in 2009-2010. The GNWT is overseeing distribution of the funding.

As part of the agreement, community governments are required to develop an integrated community sustainability plan by March 31, 2010.

That integrated plan must include four components - a community strategic plan, a capital investment plan, a community energy plan and a human resource plan.

Miltenberger said the plans, when completed, will be added to the town's general plan. Hay River is doing the community energy plan first because it will be the most time consuming, he said. "We've chosen to do the most cumbersome first."

Miltenberger said all communities in Canada are going to have to do a community energy plan to get the gas tax funding. So far, he knows of just two NWT communities which have completed their plans - Yellowknife and Whati.