Energy Conservation and Procurement in Ontarios Social Housing Sector Social Housing Service Corpora

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Energy Conservation and Procurement in Ontarios
Social Housing SectorSocial Housing Service
CorporationPresentation to ENERGY STAR
Participants Meeting on May 4-5, 2006 Toronto
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Keeping the Lights On
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What are we here to talk about?
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• Energy Conservation in Ontario
• Social Housing and Energy
• The Sectoral Approach to Energy Conservation
• Measuring
• Financing
• Procurement

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Energy Conservation in Ontario

• Converging Conservation
• Ministers 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

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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

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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

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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

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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

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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

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Centralized approach to energy management
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• 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

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Stacking Incentives and Loans
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• 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

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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

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Revolving Loan Fund
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• 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

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Sample Building Midrise, 20 units,
pre-1980Retrofit Total 200,000Location
Urban served by Electricity and Gas utilities
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Sample Building Energy Financial Plan through
SHSC
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Energy Product Procurement
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• 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.

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

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What have we learned?
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• 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

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

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Challenges Ahead
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• 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

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Know Your Energy
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• Thank you!

Social Housing Services Corporation Lindsey
Reed, Executive Director lreed_at_shscorp.ca Phone
[phone] Website www.shscorp.ca