By Pepper Parr
March 23rd, 2020
BURLINGTON, ON
Council decided to support the implementation of a small-scale home energy efficiency retrofit program that would include a virtual delivery centre/support for homeowners and loans through a Local Improvement Charge (LIC) mechanism.
The city has some 58,000 homes that do make efficient use of the energy needed to heat their homes.
Expect this one to become a major issue during the October municipal election. It’s big and it is important
The report setting out the details and the specifics will get back to Council in 2023 well after the 2022 municipal election.
Much of the ground work on this project came out of The Centre for Climate Change Management at Mohawk College (CCCM) where a feasibility study was completed for a home energy efficiency retrofit program.
Staff recommend a small scale home energy efficiency retrofit program with specific measures to reduce the carbon footprint in the residential sector.
There will be an interest-bearing loan program for up to $10,000 per household to cover the cost of an air source heat pump and leak sealing to improve energy efficiency.
Starting with a small scale program (about 20 households) will give staff the experience and knowledge required to work on scaling up a program to engage more homeowners.
As part of the 2023 budget process, staff will present a business case to include funding for an FTE (full time employee) to coordinate the program and allocate funding to support retrofit loans to homeowners.
A website (Better Homes Burlington) will also be launched as a one stop shop for homeowners.
The eventual goal is to scale up the program to support Burlington homeowners in completing energy efficiency retrofits of their homes; there are many variables which can impact the next steps:
• Competing priorities to be assessed during the 2023 budget process and final outcome;
• The level of demand by residents for a city loan (subject to interest) to finance their energy retrofit;
• The extent of interest and commitment of other municipalities to partner with Burlington on a regional program;
This came out of the decision by Council to declare a climate emergency in 2019 and a target for Burlington to become a net carbon neutral community by 2050.
Implementation of a home energy efficiency retrofit (HERO) program is one of the key program areas identified in the Climate Action Plan. The plan includes a target of over 50,000 existing homes (singles, semis and towns) requiring energy retrofits, including the installation of heat pumps. The challenge becomes how to educate, encourage and incent homeowners to undertake a retrofit to reduce their carbon footprint.
Council approved the $182,000 budget but also encouraged staff to apply to the Federation of Canadian Municipalities’ (FCM) Community Efficiency Financing (CEF) initiative for funding to support the HERO project.
Staff worked with the CCCM on a funding application and were successful in securing a $100,000 grant to support the project. FCM’s CEF initiative supports feasibility studies, program design, and project implementation for municipal HERO projects.
The city’s funding application was focused on assessing the feasibility of a home energy efficiency program with elements of program design included. It is important to note that the FCM funding primarily supports full program development (via homeowner loans offered through Local Improvement Charge (LIC) loans), scaling and implementation, but not pilots unless they are innovative and unique.
Home energy efficiency retrofit program:
Refers to a project or upgrade to a home that reduces energy use and/or greenhouse gas emissions (ie. adding insulation; upgrading heating and air conditioning equipment; and/or adding renewable energy options, etc.). Over the past few months, the CCCM with support from the Bay Area Climate Change Council, has developed a program based on these values:
• Support for upgrades with high emission reduction potential
• Manage (minimize) costs to reduce emissions
• Program equity to address energy poverty
• Promote transparency and consumer choice
• Create market confidence for home upgrades
The overall goal of the program is to implement a home upgrade program to reduce greenhouse gas emissions from Burlington homes. Co-benefits of a program include local employment opportunities; reducing energy poverty; and improved home comfort and enjoyment.
The idea certainly has merit – but it has a long way to go before it is ready for a full scale roll out.
The CCCM forecasts growth over a number of years in home energy efficiency, specifically related to the Burlington program air source heat pump conversions and leak sealing initiatives:
Program Year Homes Upgraded per Year
Some residents may pursue other programs offered through Enbridge Gas and Natural Resources Canada.
In the event that the budget business case (for 2023) is not approved to support the initial proposed program, staff will provide limited support to homeowners by continuing to promote options available and host informational webinars with community partners. However, individual support to homeowners would not be possible without a full time position to support the program. Staff will continue to discuss regional partnership opportunities with nearby municipalities with the potential to present a subsequent business case for consideration during the 2024 budget.
Strategy/process
The CCCM led the process to assess the feasibility of a HERO program for Burlington. It started with background research of best practices across many jurisdictions where home energy efficiency programs are offered. There was a coordinated effort with the Bay Area Climate Change Council to interview local stakeholder groups, city staff, municipal staff (from other communities), and 3rd party delivery agents. A homeowner survey was completed with both online and telephone respondents. Demographic and housing data was assessed along with home energy audit data (audits previously completed in Burlington) to help narrow down home energy efficiency measures for Burlington.
Regular updates were provided to a small staff team with the Executive Director of Environment, Infrastructure and Community Services; the Manager of Environmental Sustainability; and representation from the Finance department. Updates were also provided to the Community Stakeholder Advisory Committee for the city’s Climate Action Plan and the Bay Area Climate Change Council’s Implementation Team (focused on home energy efficiency retrofits) who provided guidance and acted as sounding boards.
Total Financial Impact
It is recommended that the city develop necessary measures to support a small scale program with LIC loans and communications and marketing. This is a preliminary budget and a business case will be submitted for the 2023 budget cycle to support the operational elements for a small scale program, including one full-time staff member to administer the program.
Feasibility and Program Design Budget:
Council approved $182,000 in September 2020 to support this project. In addition, staff were successful in securing an additional $100,000 in a grant from the Federation of Canadian Municipalities for a total of $280,000. Staff received council direction to transfer $60,000 to the development of the Climate Adaptation Plan (Climate Resilient Burlington), leaving $220,000 available for the HERO feasibility and program design project.
The agreement with CCCM for their work has a budget of $174,000, leaving $46,000 in available funding for climate related initiatives. The final remaining amount is subject to change based on the final review and reconciliation of expenses with FCM.
The Better Homes Burlington proposal is a key measure identified in the city’s Climate Action Plan. Support for homeowners to improve energy efficiency and reduce their carbon footprint will assist Burlington in becoming a net carbon neutral community and showing leadership on climate action.
Related news story:
It works – story of an example
