Local Improvement Charges for the ICI Sector + District Energy Systems Sonja Persram, BSc., MBA, LEED AP, Sustainable Alternatives Consulting Bob Bach, P.Eng., Sustainable Buildings Canada CaGBC Municipal Leaders Forum June 22, 2015 Outline Bizarro Cartoon by Dan Piraro Used with permission Local Improvement Charges (LICs) Background Partners Project Why are municipalities engaging in this LIC project Learning opportunities 2 1
Local Improvement Charges: Program designed to be at no net cost to municipalities Paid for by participating owners, not all taxpayers Easy for municipalities to facilitate 3 LIC Features + Benefits Up front financing Transferable so new owner continues payments Repaid on property tax bill Recourse: priority lien Longer terms: deeper upgrades Not a loan (re: MMAH) General obligation bond $: no impact on municipal debt total 4 2
The Project: Background Pembina Institute: Roger Peters et al. (2004, 2005) Sustainable Alternatives Consulting : Sonja Persram 2006 2015) Reports marketed to US and EU municipalities Consulted on LICs: Project manager, David Suzuki Foundation: Single family residential Collaboration: Canada & US; UK 28 municipalities engaged + 22 more interested 3 reports Advisor, City of Toronto: Quantitative research, preliminary analysis Comparison of LIC best practices with on bill financing 5 The Project: Background Sonja Persram, Sustainable Alternatives (2006 15) Consulted on LICs (cont d): Support requests for concept & reg change: Environmental Commissioner of Ontario Auditor General of Canada: NRCan public benefits Advised Councillor Layton, City of Toronto Reg change 2012 6 3
The Project: Background Sonja Persram Sustainable Alternatives Consulting (2006 15) Consulted on LICs (cont d): City of Toronto: LIC FAQs and LIC Primer City of Halifax: residential solar thermal program Nova Scotia DOE: residential EE program Another NS Municipality: LIC by law International interest 7 LIC Gaps to be Addressed Building types Industrial Commercial Institutional aka ICI 8 4
Measure Gaps to be addressed: District energy Low Impact Development Bizarro Cartoon by Dan Piraro Used with permission 9 LICs for the ICI Sector + District energy Systems Project Partners Sustainable Buildings Canada: Proponent Sonja Persram, Sustainable Alternatives Consulting: Project manager H. Robert (Bob) Bach: Project manager for Sustainable Buildings Canada Municipalities, their Conservation Authorities & LDCs: City of Guelph, City of London, City of Mississauga Team members: Peter Love, Bill Johnston, Stanley Makuch 10 5
LICs for the ICI Sector + District energy Systems Project Funders include: Municipalities, their Conservation Authorities, LDCs: City of Guelph, City of London, City of Mississauga IESO Enbridge Gas Distribution Bill Johnston NAIOP Greater Toronto Sustainable Buildings Canada 11 The Project: Building Types Policy Research Commercial Industrial Institutional Pilot 12 6
The Project: Measures Energy + water conservation retrofits Renewable energy system retrofits District energy systems Low Impact Development (LID) 13 Measures considered (not currently funded) Energy storage Onsite Community 14 7
The Project: Activities Legal Authority Analysis of comparable US programs Market demand/industry capacity analysis LIC Program Framework design District energy system LIC Framework design Supporting municipalities in pilots 15 Why are municipalities engaging in this Project Easy to administer Zero net cost to municipality Only municipalities can provide mechanism + benefits Addresses municipal goals and targets 16 8
Municipal goals & targets (cont d) Mitigation of + adaptation to climate change Bizarro Cartoons by Dan Piraro Used with permission 17 Municipal goals & targets (cont d) Jobs & local economy Savings on externalized costs to taxpayers: Flooding, water quality Energy/water/wastewater/ stormwater infrastructure Health impacts: from nonrenewable energy generation, water quality Quality of life Quality of the built environment 18 9
The program is a winner for citizens, governments, & future generations Bill Johnston, past President, Toronto Real Estate Board & President, Canadian Real Estate Association Bizarro Cartoon by Dan Piraro Used with permission 19 Sign-up sheet if you would like further information (no commitment) Sonja Persram, BSc., MBA, LEED AP Sustainable Alternatives Consulting Inc. T: 416.324.9388 sonja@sustainable-alternatives.ca www.sustainable-alternatives.ca Bob Bach, P.Eng. Energy Profiles Limited Sustainable Buildings Canada T: 416-645-2407 bbach@energyprofiles.com www.energyprofiles.net www.sbcanada.org 20 10