Keeping the Lights On

1. 0 Keeping the Lights On Energy Conservation and Procurement in Ontario’s Social Housing SectorSocial Housing Service CorporationPresentation to ENERGY STAR Participants Meeting on May 4-5, 2006 Toronto

2. What are we here to talk about? 0 • Energy Conservation in Ontario • Social Housing and Energy • The Sectoral Approach to Energy Conservation • Measuring • Financing • Procurement

3. Energy Conservation in Ontario • Converging Conservation • Minister’s Directive to conserve 100 MW in Low Income and Social Housing • Bill 21: Energy Conservation Leadership Act Omnibus bill - energy leadership planning in the public sector • Time of Use rates coming into effect enabled by Smart Meters • Proposed changes to the Ontario Building Code to increase energy efficiency • Conservation incentives and plans in place for utilities

4. Who is SHSC? • Not-for-profit corporation set up to help social housing landlords and municipal funders • 15 member board • 8 municipal reps • 5 housing provider reps • 2 provincial appointees • Management of province-wide programs: • natural gas purchasing program • insurance program • pooled investment program • research and good practices

5. Social housing – the stock • 250,000+ homes across the province, in almost every municipality • Older buildings – most around 30-40 years old • 3-stories or less to high-rise (average 50 units) • High percentage is electrically heated

6. Energy consumption in social housing • Over $400 million/yr, 40% of budget for utilities • Low-income households have high share of electric heat • Between 25-60% of apartment units have electric heat • Costs to housing providers • 84-90% of providers pay electricity in apartment units • Costs to residents • Up to 15.5% of after-tax income spent on electricity

7. Housing Providers’ Challenges • Provincial benchmarking limits operating budget • Rising energy costs • Lack of information on energy efficient standards • Lack of bulk-buying capacity • Lack of capital for large scale implementation

8. How can SHSC help Housing Providers? • Provide access to funding to implement energy efficiency measures • Centralize procurement - products and services • Create and deliver tools for staff training and resident awareness • Monitor and report pre, post, and ongoing utility data consumption and savings

9. Centralized approach to energy management 0 • Help address rising energy costs • Ability to deliver province-wide services • Offer coordinated approach • With Housing Providers • With Service Managers • With funders for energy incentives • With suppliers of energy efficient products

10. Stacking Incentives and Loans 0 • Incentives accessible through public programs and the private sector, including • Canada Housing and Mortgage Corp. • Natural Resources Canada • Ontario Power Authority-Conservation Bureau • Local Delivery Companies • Gas Utilities • Revolving Loan for access to financing for implementation

11. Incentives Simplified • SHSC awarded $1.9 million through “Opportunities Envelope” • Social housing eligible for various NRCan / CMHC incentives (EnerGuide) • $1.5 million from Hydro One for up to $500 per housing unit for retrofits • OPA Conservation Bureau financing facilities • Other hydro, gas, water utility incentives

12. Revolving Loan Fund 0 • Access to financing, low rates (below prime) to get retrofits started • Loan terms averaging 10 years (will match the expected payback on the measures) • Combination of interest rate buy-down and % of capital cost write-down for pilot providers • Minimize paperwork for providers • Loan not registered on title - unencumbered • Overcame legislative issues for housing providers

13. Sample Building:Midrise, 20 units, pre-1980Retrofit Total: $200,000Location: Urban served by Electricity and Gas utilities

14. Sample Building – Energy Financial Plan through SHSC

15. Energy Product Procurement 0 • Why is it important? • Transform market, push for ENERGY STAR standards • Tender for best price-points • How is SHSC helping? • Created Triple E Working Group to set standards for energy efficient equipment • Set up Order Desk with Co-op Housing Federation and Ontario Non-Profit Housing Assoc.

16. Triple E Working Group 0 • What is it? • Set standards for energy efficient equipment • Who’s on first? • ENERGY STAR Initiative, NRCan • SHSC • Region of Peel • Toronto Community Housing Corp. • Victoria Park Community Homes • Windsor and Essex County Housing Corp.

17. What have we learned? 0 • Limited selection for small size ENERGY STAR qualified refrigerators available • Limited selection for certain ENERGY STAR qualified product lines • ENERGY STAR standards keep on improving • More ENERGY STAR qualified products on the market over time • Limited market penetration in social housing sector

18. Procurement Opportunities 0 • Develop energy efficient product list • Integrate ENERGY STAR standards • Identify vendors list • Establish product specifications • Procure products • Establish change-out decommissioning protocol

19. Challenges Ahead 0 • Establishing new business model • Sourcing products that fit dimensionally that are ENERGY STAR rated • Getting best price-points for a large range of products • Set up one-stop Order Desk

20. Know Your Energy 0 Thank you! Social Housing Services Corporation Lindsey Reed, Executive Director lreed@shscorp.ca Phone: (416) 594-9325 Website: www.shscorp.ca