Item - 2019.IE6.5

The Infrastructure and Environment Committee recommends that:

1.  City Council authorize the extension of the Home Energy Loan Program (HELP) and the High-rise Retrofit Improvement Support (Hi-RIS) programs to December 31, 2021 using existing resources in the Local Improvement Charge Energy Works Reserve Fund and any LIC repayments (HELP and Hi-RIS) to support project and programming funding needs, including extension of one temporary project manager for the Hi-RIS program, and one temporary research analyst for the HELP program and direct the Director, Environment and Energy and Executive Director, Social Development, Finance and Administration to report back on key Program's outcomes through regular TransformTO reports to Council.

2.  City Council authorize terms to maturity of up to 20 years from the current 15 year maximum for qualifying single-family Home Energy Loan Program projects to be consistent with the High-rise Retrofit Improvement Support program terms and aligning with asset lifecycle.

3. City Council amend the Residential Retrofit Program By-law (By-law 1105-2017) to expand the category of eligible measures to include energy efficient electric vehicle (EV) chargers and associated works, energy storage technology, and energy efficient resilience measures, as well as allow program participants to include the costs of an energy assessment as eligible project costs.

4. City Council authorize the Director, Environment and Energy Division and Executive Director, Social Development, Finance and Administration to develop a listing of contractors that have completed projects under the Programs, including a disclaimer that the City does not recommend, endorse or warranty the work of the contractor.

5. City Council authorize the Director, Environment and Energy Division and Executive Director, Social Development, Finance and Administration to negotiate and enter into all necessary agreements with Toronto Hydro, Enbridge Gas Distribution, Natural Resources Canada, Federation of Canadian Municipalities and other partners, in forms satisfactory to the City Solicitor, to support implementation of the Programs, as required.

6. City Council request the Government of Canada (the Minister of Finance and the Minister of Environment and Climate Change) to direct Canada Mortgage and Housing Corporation (CHMC) to provide guarantees for Local Improvement Charge (LIC) financing programs to support broader program participation by property owners with default-insured mortgages as outlined in Recommendation 13.5 of the Final Report of the Expert Panel on Sustainable Finance - Mobilizing Finance for Sustainable Growth.

This report seeks City Council authorization to extend the Residential Energy Retrofit Programs until December 31, 2021 to authorize program enhancements including the expansion of eligible measures funded through the program. An update on program uptake and results is also provided in this report. Staff will report back with a plan for the continuation of the Programs until 2024 through the TransformTO 2021-2024 Implementation Plan in Q4 2019 and subsequently provide regular updates on the Programs through this consolidated process.

Launched in 2014, the Residential Energy Retrofit Programs have provided financing to support capital improvements (retrofits) for residential properties with energy efficiency and water conservation benefits. The Programs operate as two streams: the Home Energy Loan Program (HELP) for eligible houses; and the High-rise Retrofit Improvement Support Program (Hi-RIS) for multi-unit residential buildings. To date, almost $14.9 million in financing has been committed to projects with over 202 properties participating in the program, which has resulted in an emissions reduction of over 4,000 tonnes of CO2 equivalents.

By enabling energy efficiency, these Programs are also achieving a range of socioeconomic and environmental objectives identified in TransformTO, the Poverty Reduction Strategy and other key City of Toronto objectives including Tower Renewal. Through these programs, property owners have been able to undertake deeper, more comprehensive energy retrofits, thereby significantly reducing emissions while improving the quality of housing and maintaining affordability.