Item - 2017.PE18.4

The Parks and Environment Committee recommends that:

1.  City Council extend the pilot period for the Home Energy Loan Program (HELP) to December 31, 2018, to align with a Council-approved extension of High-rise Retrofit Improvement Support Program (Hi-RIS), and direct the Chief Corporate Officer and Executive Director, Social Development, Finance and Administration to report back on both programs to the Parks and Environment Committee with an evaluation of outcomes and, if appropriate, a business case for a full-scale program.

2.  City Council amend the Residential Energy Retrofit Pilot Program to:

a.  increase the maximum special charge eligibility to be the lesser of 10 percent of the current value assessment of the property or $75,000 (single-family house)  and the lesser of 10 percent of the current value assessment of the property or $2,000,000.00 per building (multi-residential building).

b.  increase the initial disbursement to be up to 30 percent of the estimated cost of improvements for a single-family house pursuant to a property owner agreement, at the discretion of the Director, Environment and Energy.

c.  revise the program eligibility for the multi-residential program stream to include residential rental apartment buildings of three or more storeys and seven or more units.

d.  clarify that the sales tax portion of project costs is to be included as part of the special charge.

e.  expand the category of eligible measures to include renewable energy technologies.

3.  City Council amend the Residential Retrofit Program By-law (By-law No. 1105-2013) to reflect the changes to the Program recommended in Recommendation 2.

4.  City Council authorize the Director, Environment and Energy and the Director, Community Resources, Social Development, Finance and Administration to review and, where necessary, revise the Residential Energy Retrofit Pilot Program from time to time, solely for the purpose of integrating the City's program with new or existing Federal, Provincial and utility company energy, climate change and poverty reduction programs.

5.  City Council authorize the City Solicitor to bring forward the necessary bills to further amend the Residential Retrofit Program By-law to implement Recommendation 4.

6.  City Council authorize the Chief Corporate Officer and the Executive Director, Social Development, Finance and Administration to enter into any agreements with third party partners integral to implementing these recommendations, upon terms satisfactory to them and in forms satisfactory to the City Solicitor, to support implementation of the Residential Energy Retrofit Pilot Program, as required.

7.  City Council request the Government of Canada to address the legal and policy barriers that appear to contribute to lower participation in local improvement charge programs, particularly for property owners with default-insured mortgages.

8.  City Council request the Government of Canada and the Province of Ontario to initiate as part of their climate change strategies, incentives for building and home owners to undertake energy efficiency audits and retrofits that can work in conjunction with existing municipal and utility incentive programs.

9. City Council express its support for the Province of Ontario's home energy labelling plan as part of the Climate Change Action Plan.

The Parks and Environment Committee:

1.  Requested the Director, Environment and Energy, as part of the implementation of the TransformTO Short-term Strategies (PY2.1), to review innovative financing mechanisms, such as Local Improvement Charges financing to encourage and support energy and water conservation within the commercial and industrial building sectors.

The following gave a presentation to the Parks and Environment Committee on the Home Energy Loan Program and High-rise Retrofit Improvement Support Pilot Program Results:

-  the Supervisor, Environment Policy, Environmental Implementation and Support, Environment and Energy; and

-  the Manager, Tower and Neighbourhood Revitalization Unit, Social Development, Finance and Administration.

The Residential Energy Retrofit Pilot Program was adopted by City Council in 2013 and launched in January 2014. It supports residential property owners in undertaking energy efficiency and water conservation improvements through financing enabled by amendments to the City of Toronto Act's Local Improvement Charge regulation. The Program operates as two streams - the Home Energy Loan Program and the High-rise Retrofit Improvement Support Program - which apply to eligible single-family houses and multi-residential buildings in Toronto, respectively.

A third-party evaluation of the Residential Energy Retrofit Pilot Program was completed in 2017 to examine the successes and challenges of the Program and identify potential refinements that could increase program participation and impacts. This report seeks City Council authorization for program refinements as part of the continued implementation of the Home Energy Loan Program and the High-rise Retrofit Improvement Support Program.