Item - 2025.IE19.8

The Infrastructure and Environment Committee recommends that:  

1. City Council amend City of Toronto Municipal Code Chapter 367, Building Emissions Performance, as follows:

a. delete §367-2.1.A.(2) and replace it with the following, in order to postpone the reporting of property owners of buildings with a gross floor area equal to or exceeding 929 square metres (~10,000 square feet) but less than 4,645 square meters (~50,000 square feet) to 2026:

(2) In 2026 if their property contains a building with a gross floor area equal to or exceeding 929 square metres.

b. add a new subsection to §367-2.4.B., that includes the following provision, in order to change the reporting extension and exemption deadline in 2025:

On or before July 2, 2025 for the 2025 reporting year.

2. City Council direct that the amendments to the City of Toronto Municipal Code Chapter 367, Building Emissions Performance, described in Part 1 come into force on March 31, 2025.

3. City Council authorize the City Solicitor, in consultation with the Executive Director, Environment, Climate and Forestry, to prepare the necessary bill required to give effect to City Council’s decision and to make such clarifications, minor modifications, technical or stylistic refinements as may be identified by the City Solicitor.

4. City Council request that the Government of Ontario help the City of Toronto streamline property owner compliance with Municipal Code 367, Building Emissions Performance by enabling any reported data under O. Reg. 506/18: REPORTING OF ENERGY CONSUMPTION AND WATER USE to be provided to the City of Toronto.
 

5. City Council request that the Government of Ontario help streamline access to and simplify reporting of utility data, including by authorizing utilities to provide data directly to the City of Toronto and by enabling utilities to provide property owners with the option to enable automated uploads of utility data to Energy Star Portfolio Manager.

In December 2023, City Council adopted a resolution to create a new City of Toronto Municipal Code Chapter 367, Building Emissions Performance (2023.IE9.5), which requires property owners of large buildings in Toronto to report their buildings' energy and water use to the City annually (the By-law).

The first reporting deadline under the By-law was October 31, 2024 and applied to property owners of buildings with a gross floor area equal to or exceeding 4,645 square metres (~50,000 square feet). This deadline was extended for 2024 from the original reporting deadline of July 2, 2024 to allow for implementation delays and ensure property owners were notified of their obligations. Property owners submitted over 3,400 energy and water use reports to the City as required under the By-law, corresponding to greater than 64 percent compliance.

Environment, Climate and Forestry is working through further implementation of the By-law, including working on putting in place direct supports to facilitate reporting for property owners who have never before submitted energy and water use reports to the City, and working to provide options for streamlined access to utility data.

Environment, Climate and Forestry is proposing that the City postpone the first reporting year for property owners of buildings with a gross floor area equal to or exceeding 929 square metres (~10,000 square feet) but less than 4,645 square meters (~50,000 square feet) under the By-law from 2025 to 2026 to allow additional time for implementation of property owner supports. This will allow additional time for 1) Environment, Climate and Forestry to put in place a reporting help centre which will provide direct support for property owners, and 2) water, electricity and natural gas utilities to streamline access to aggregated whole-building utility consumption data.

This report proposes to amend Municipal Code Chapter 367, Building Emissions Performance, as follows:

1.  postpone the first requirement to report energy and water use annually from 2025 to 2026 for property owners of buildings with a gross floor area equal to or exceeding 929 square metres (~10,000 square feet) but less than 4,645 square meters (~50,000 square feet), and,

2.  for 2025, change the deadline for property owners to request reporting extensions and exemptions to July 2, 2025 (i.e. the 2025 report deadline).

Environment, Climate and Forestry is working through further implementation of Toronto Municipal Code Chapter 367, Building Emissions Performance, and plans to report back further on implementation progress, and on potential changes to the By-law, in upcoming reports to Council, including in alignment with the development of Building Emissions Performance Standards.

The implementation of the proposed amendments will have no financial impact.

The financial impacts associated with the first year of by-law implementation are described in the financial impact section of Item 2023.IE9.5, which was adopted by City Council on December 13, 14, and 15, 2023. The proposed amendments to the by-law reflect delays in implementation and the impacts have been incorporated through the 2025 budget process.

The Chief Financial Officer and Treasurer has been advised of the financial impacts associated with this report and agrees with the financial impact information presented.