Low Income Energy Efficiency Program for Canada Bruce Pearce Vice-chair, Green Communities Canada Peterborough 26 May 2006

Overview. 1. low-income energy burden 2. program design 3. the way forward

Energy and affordability. Green Communities are leaders in providing energy assistance to the “able to pay” market. We developed the retrofit incentive … But what about Canadians who aren’t middle class homeowners with the resources to invest in energy efficiency?

Energy burden; impacts.

Rapid growth in energy costs.

Growing energy burden.

Energy burden by province. burden of poorest quintile is highest in: burden of poorest quintile is highest in: NL per cent NL per cent NB per cent NB per cent SK per cent SK per cent burden of poorest quintile is lowest in: burden of poorest quintile is lowest in: AB per cent AB per cent QC per cent QC per cent BC - 12 per cent BC - 12 per cent

Energy poverty.  An estimated 2.3 million Canadian households are in “energy poverty,” i.e., they must spend ten per cent or more of household income on electricity and fuel for residential purposes.

Energy burden and income.

Some first quintile facts. rental/ownership split is 69:31 rental/ownership split is 69:31 46% in single family housing 46% in single family housing 15% in high rises 15% in high rises low-income housing is generally low-income housing is generally older older in poor repair in poor repair less energy efficient less energy efficient

Societal costs. energy waste: estimated at $1 Billion annually energy waste: estimated at $1 Billion annually poverty and poverty-related ills poverty and poverty-related ills demands on social safety net demands on social safety net health impacts, demand for services health impacts, demand for services drain of revenues from low-income areas drain of revenues from low-income areas costs to utilities (collection, disconnects) costs to utilities (collection, disconnects)

Costs to low-income Canadians. inability to pay, loss of service inability to pay, loss of service barriers to home ownership barriers to home ownership reduced rental affordability reduced rental affordability homelessness homelessness impacts on comfort, well-being, and health impacts on comfort, well-being, and health seniors impacts seniors impacts

Costs to housing providers. if tenants pay rent: if tenants pay rent: turnover, vacancies turnover, vacancies trouble collecting rents trouble collecting rents increased requirements for tenant screening increased requirements for tenant screening damage to units from freezing, burst pipes damage to units from freezing, burst pipes tenant complaints and concerns tenant complaints and concerns if landlord pays energy: if landlord pays energy: revenue shortfalls revenue shortfalls squeezed budgets for other activities squeezed budgets for other activities

A national program. unlike U.S., U.K. Canada had no national program unlike U.S., U.K. Canada had no national program EGLIH EGLIH 5 years, $500 million 5 years, $500 million Tories supported Bill C-66 in November ‘05 Tories supported Bill C-66 in November ‘05 terminated in May ‘06 terminated in May ‘06

What kind of program? EGLIH was “do-it-yourself” - barriers EGLIH was “do-it-yourself” - barriers application application audit audit contracting contracting identify and selection identify and selection agreements agreements supervisions supervisions payment payment

Integrated service model. program needs to address barriers program needs to address barriers all forms of tenure all forms of tenure money, absolute and competing priorities money, absolute and competing priorities language, literacy language, literacy capacity/knowledge/time capacity/knowledge/time ownership/split incentives ownership/split incentives access to contracting services access to contracting services institutional barriers institutional barriers

Integrated service model. program design: program design: proactive outreach, recruitment, partnerships proactive outreach, recruitment, partnerships automatic, simplified eligibility automatic, simplified eligibility targeting: highest burden, vulnerable targeting: highest burden, vulnerable free to low-income owners; cost-sharing with private and social landlords free to low-income owners; cost-sharing with private and social landlords

Integrated service model. program design: program design: options for measure installation: options for measure installation: participant-managed DIY participant-managed DIY turn-key service – integrated delivery agencies turn-key service – integrated delivery agencies ensure contractor capacity ensure contractor capacity quality assurance – third party quality assurance – third party

The way forward. broad agreement on design principles broad agreement on design principles back to the campaign back to the campaign we will prevail! we will prevail!