Low Income Energy Low Income Energy Efficiency Program for Efficiency Program for

CanadaCanadaBruce PearceBruce Pearce

Vice-chair, Green Communities CanadaVice-chair, Green Communities CanadaPeterboroughPeterborough26 May 200626 May 2006

Overview.Overview.

1.1. low-income energy burdenlow-income energy burden

2.2. program designprogram design

3.3. the way forwardthe way forward

Energy and affordability.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.Energy burden; impacts.

Rapid growth in energy Rapid growth in energy costs.costs.

%ge growth in prices since 1992 (CPI)

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005

Rental costs

Ownershipcosts

Utility costs

Growing energy burden.Growing energy burden.

0

2

4

6

8

10

12

14

Q1 Q2 Q3 Q4 Q5 All

Energy spending as a percentage of income, by household income quintile

19972003

Energy burden by province.Energy burden by province.

burden of poorest quintile is highest in: burden of poorest quintile is highest in: NL - 16.4 per cent NL - 16.4 per cent NB - 15.4 per cent NB - 15.4 per cent SK - 15.2 per cent SK - 15.2 per cent

burden of poorest quintile is lowest in:burden of poorest quintile is lowest in: AB - 10.5 per cent AB - 10.5 per cent QC - 11.4 per centQC - 11.4 per cent BC - 12 per centBC - 12 per cent

Energy poverty.Energy poverty.

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

Energy burden and income.Energy burden and income.

The Energy Burden Curve:Energy burden as a function of average quintile income

0

5

10

15

$-$50,000$100,000$150,000

Income

Energy spending as apercentage of income

Some first quintile facts.Some first quintile facts.

rental/ownership split is 69:31rental/ownership split is 69:31 46% in single family housing46% in single family housing 15% in high rises15% in high rises low-income housing is generallylow-income housing is generally

olderolder in poor repairin poor repair less energy efficientless energy efficient

Societal costs.Societal costs.

energy waste: estimated at $1 Billion energy waste: estimated at $1 Billion annuallyannually

poverty and poverty-related ills poverty and poverty-related ills demands on social safety netdemands on social safety net health impacts, demand for services health impacts, demand for services drain of revenues from low-income drain of revenues from low-income

areasareas costs to utilities (collection, disconnects)costs to utilities (collection, disconnects)

Costs to low-income Costs to low-income Canadians.Canadians.

inability to pay, loss of serviceinability to pay, loss of service barriers to home ownershipbarriers to home ownership reduced rental affordabilityreduced rental affordability homelessnesshomelessness impacts on comfort, well-being, and impacts on comfort, well-being, and

healthhealth seniors impactsseniors impacts

Costs to housing providers.Costs to housing providers.

if tenants pay rent:if tenants pay rent: turnover, vacancies turnover, vacancies trouble collecting rentstrouble collecting rents increased requirements for tenant screeningincreased requirements for tenant screening damage to units from freezing, burst pipesdamage to units from freezing, burst pipes tenant complaints and concernstenant complaints and concerns

if landlord pays energy:if landlord pays energy: revenue shortfalls revenue shortfalls squeezed budgets for other activitiessqueezed budgets for other activities

A national program.A national program.

unlike U.S., U.K. Canada had no national unlike U.S., U.K. Canada had no national programprogram

EGLIHEGLIH 5 years, $500 million5 years, $500 million Tories supported Bill C-66 in November ‘05Tories supported Bill C-66 in November ‘05 terminated in May ‘06terminated in May ‘06

What kind of program?What kind of program?

EGLIH was “do-it-yourself” - barriersEGLIH was “do-it-yourself” - barriers applicationapplication auditaudit contractingcontracting

identify and selectionidentify and selection agreementsagreements supervisionssupervisions paymentpayment

Integrated service model.Integrated service model.

program needs to address barriersprogram needs to address barriers all forms of tenureall forms of tenure money, absolute and competing prioritiesmoney, absolute and competing priorities language, literacylanguage, literacy capacity/knowledge/timecapacity/knowledge/time ownership/split incentivesownership/split incentives access to contracting servicesaccess to contracting services institutional barriersinstitutional barriers

Integrated service model.Integrated service model.

program design:program design: proactive outreach, recruitment, proactive outreach, recruitment,

partnershipspartnerships automatic, simplified eligibilityautomatic, simplified eligibility targeting: highest burden, vulnerabletargeting: highest burden, vulnerable free to low-income owners; cost-sharing with free to low-income owners; cost-sharing with

private and social landlordsprivate and social landlords

Integrated service model.Integrated service model.

program design:program design: options for measure installation:options for measure installation:

participant-managed DIYparticipant-managed DIY turn-key service – integrated delivery agenciesturn-key service – integrated delivery agencies

ensure contractor capacityensure contractor capacity quality assurance – third partyquality assurance – third party

The way forward.The way forward.

broad agreement on design principles broad agreement on design principles back to the campaignback to the campaign

we will prevail!we will prevail!