Item - 2021.IE24.9

The Infrastructure and Environment Committee recommends that:

1. City Council authorize the Deputy City Manager, Corporate Services, the Chief Financial Officer and Treasurer and the Mayor to enter into a grant and loan agreement with the Federation of Canadian Municipalities to accept a loan in accordance with Chapter 30 (Debenture and Other Borrowing) of the City of Toronto Municipal Code of up to $9,712,000 and a grant of up to $4,856,000 under the Federation of Canadian Municipalities Green Municipal Fund Program, upon terms satisfactory to them and in a form acceptable to the City Solicitor, to support energy-efficient retrofits through the Home Energy Loan Program, in accordance with the report (August 30, 2021) from the Acting Director, Environment and Energy.
 

2. City Council amend the 2021–2030 Capital Budget and Plan for the Environment and Energy Division by increasing the total project cost of the Home Energy Loan Plan capital project by $9,712,000 to $26,612,000 in recoverable loans with cash flows of $438,664 in 2021, $1,890,026 in 2022, $3,131,877 in 2023 and $4,251,433 in 2024, subject to finalizing negotiations with the Federation of Canadian Municipalities.

 
3. City Council amend the Residential Retrofit Program By-law (By-law 1105-2013) to:

a. expand the category of eligible measures to align with Federation of Canadian Municipalities' list of eligible measures which would allow for inclusion of ancillary supports for secondary units and health and safety measures when combined with primary decarbonization and energy efficiency retrofits, with ancillary supports capped at 30 percent of total project costs;

b. authorize the increase of the current cap on the Special Charge to a maximum of $125,000 for the Home Energy Loan Program;

c. authorize changes to the Local Improvement Charge program by-law and associated program guidelines to allow tax-exempt property owners to participate in the program; and

d. authorize the disbursement of grants and incentives to property owners as an eligible withdrawal using grant funding provided by the Federation of Canadian Municipalities.

Through the Home Energy Loan Program, the City offers low-interest loans to help homeowners make their homes more energy efficient and reduce greenhouse gas emissions, in support of the City’s TransformTO climate action strategy and net-zero emissions target. Further developing Home Energy Loan Program program offerings will advance the Council-approved greenhouse gas reduction efforts established by TransformTO, Toronto's climate action strategy and the net zero ambitions outlined in the Climate Emergency Declaration. This support provided by Federation of Canadian Municipalities will also help advance the goals of the Net Zero Existing Buildings Strategy adopted by City Council at the July 2021 meeting.  

The Federation of Canadian Municipalities Community Efficiency Financing program has approved the City of Toronto, through the Home Energy Loan Program, for up to $9,712,000 in financing and $4,856,000 in grants to support energy-efficient retrofits and pathways to net zero for single-family homes in Toronto. Initial discussions with Federation of Canadian Municipalities indicate favourable terms for repayment. The funding will be used to enhance the City's current Home Energy Loan Program program and help Toronto homeowners undertake home energy efficiency retrofits and support the local economy.

The purpose of this report is to provide the outcomes of the Federation of Canadian Municipalities application made by the City; authorize the City to enter into an agreement with Federation of Canadian Municipalities to accept the loan and grant funding; and reflect those funds in the 2021-2030 Capital Budget and Plan.

The financing and the grant funding provided by Federation of Canadian Municipalities through Community Efficiency Financing will allow the City to enhance current Home Energy Loan Program program offerings and support broader decarbonization efforts in the single-family residential sector.

To enable implementation, this report seeks approval to introduce changes to the residential single-family homes stream of the Residential Energy Retrofit Programs, specifically the Home Energy Loan Program, and authorize amendments to the existing Program By-law 1105-2013 in accordance with Appendix B.