LIC Energy Pilot Program Concept for GreenON Challenge Fund
Seeking feedback on a pilot LIC energy program concept aimed at overcoming barriers to energy efficiency, such as upfront costs and payback periods. The proposal includes creating a centralized entity to promote home energy retrofits and providing support for navigating available programs. Other recommendations involve establishing a loan loss reserve fund and focusing on building envelope incentives. The pilot program aims to work with municipalities to develop and implement LIC energy initiatives.
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Presentation Transcript
LIC Pilot Project Concept for LIC Pilot Project Concept for GreenON Challenge Fund GreenON Challenge Fund Seeking Feedback from CAP Board
Background on LICs Background on LICs Barriers to energy efficiency Upfront capital costs and longer term payback on energy efficiency that is often beyond the term of building occupancy In 2012 Ontario amended the LIC regulations to allow municipalities to enter into voluntary agreements with property owners in order to finance energy projects on their properties. At present only Toronto has an energy LIC program in place. CAP has undertaken consultations with municipalities to identify barriers to their participation in an energy LIC program.
Barriers/Issues/Opportunities Identified Barriers/Issues/Opportunities Identified Create a one stop location/entity that would promote and market home energy retrofits (and other energy and resilience actions to the public) and provide support to customers to help them navigate programs available to them, the incentives, informing them of their options for how they chose to manage and undertake their retrofit. Provide a centralized opt in LIC program for municipalities to participate in. Centralized model provide efficiencies of scale.
Other Recommendations Other Recommendations Create a Loan Loss reserve fund: addresses the financial risk that relates to the loan repayments between the time period a property goes into default to the time when that property and LIC is taken on by a new owner. Only needed where sale price is less than the mortgage and other liabilities associated with that property. Defaults only speak to the LIC repayments that would occur from default till sale of property where new owner takes on the LIC repayments. Ideally pool funds together to enable the LIC mechanism to be used not only for energy efficiency actions but also for audits, energy generation, fuel switching and climate change resilience actions. Need to ensure transparency, accountability and checks and balances to find the right balance between opening up the market while still maintaining quality control. Focus incentives are measures that address the building envelope.
Pilot LIC Energy Program Pilot LIC Energy Program Provide a 3rdparty centralized LIC energy program Work in conjunction with the Province and Green ON to develop such a program Gain the support of a pilot group of municipalities who will advance such a program within their municipality and their community Support and document the issues and challenges and processes Inform a LIC Toolkit to provide support for future municipalities to simplify their ability to advance an LIC energy program within their jurisdictions
LIC Energy Program Pilot LIC Energy Program Pilot Get Province/Green ON to set up loan loss reserve fund. Serve as the third party who plays a facilitating role with GreenON to provide capital, undertake marketing and outreach, contractor outreach, provide client support, undertake performance evaluation, and the compilation of the documenting of experiences. Gather a group of pilot municipalities that will participate in pilot project. The pilot municipalities would NOT need to commit to setting up a LIC mechanism but they DO have to commit to undertaking work to advance the LIC opportunity through their municipality and documenting any activities and insights. Target is for at least 50% of pilot municipalities to move onto setting up an LIC onto their property tax bill.
Goal: Programs in place and a strong focus on Goal: Programs in place and a strong focus on increasing uptake increasing uptake The pilot would try to advance marketing, outreach and program delivery aspects at a provincial scale but would be trying to understand what are the municipal and community opportunities to increase the market uptake and program delivery at the local level (bottom up opportunities to increase uptake) that can augment the top down higher level marketing and outreach that would be undertaken.
Program Questions Program Questions What are the issues and challenges that a municipality encounters as it goes through the process of advancing a LIC attachment to residents as part of this program? What are the additional municipal administrative requirements related to managing the energy-retrofit LICs over time? what are the additional municipal administrative requirements (staff time and financial) for managing energy-retrofit LIC repayments for the term of the LIC? what are the repayment mechanisms, challenges, issues? Who are the key players within the municipality and community that can help support the third-party delivery agent with program outreach and increase uptake locally what could these key local players do in order to increase program uptake what marketing and outreach avenues are available to these key local players to promote the program and increase uptake at the local level what mechanisms are available at the local level to reach out to contractors
Program Deliverables Program Deliverables Green Home program how to promote those that participate in program (blue-boxing energy efficiency). Green house label, signage on front yard, green address plaque Energy Concierge program unbiased energy support for customers Green ON or 3rd party? Contractor prequalification; Contractor outreach, promotion and training opportunities Partnerships/leverage points with contractors Home Depot/Rona/private sector partners/associations (identifying and advancing contractor training opportunities) Creation of web site where clients can rate contractors (creating transparency in experiences) taking government out of contractor verification. Developing testimonials and understanding customer experiences to improve program LIC Toolkit for municipalities Performance evaluation (Audits, pre and post energy bills) what other performance evaluation mechanisms are available? Provincial level municipal opt in LIC program Partnership between a 3rdparty plus government delivery model. Trying to find the best of what both those stakeholders can bring to the program.
