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HomeMy WebLinkAboutFCS-13-150 - Residential Energy Efficiency Program (REEP) Green Solutions - 2014 Funding Request REPORT TO: Finance & Corporate Services Committee DATE OF MEETING: September 30, 2013 SUBMITTED BY: Environmental Committee PREPARED BY: Daphne Livingstone, Committee Administrator, 519-741-2200 ext. 7275 WARD(S) INVOLVED: All DATE OF REPORT: September 20, 2013 REPORT NO.: FCS-13-150 SUBJECT: ENVIRONMENTAL COMMITTEE RECOMMENDATION: WATERLOO REGION GREEN SOLUTIONS (REEP) - ANNUAL REQUEST FOR FINANCIAL SUPPORT RECOMMENDATION: That subject to the 2014 budget deliberations, $27,500. be allocated to the Waterloo Region Green Solutions, Residential Energy Efficiency Project (REEP), as part of the Environmental Committee’s 2014 Operating Budget. BACKGROUND: Founded in 1998, the Residential Energy Efficiency Project (REEP) provides residents with tools for sustainable resource use, energy conservation and efficiency, and renewable energy applications through the facilitation of environmental programs and services, public education, research and community partnerships. In early 2006, REEP became incorporated as a project of Waterloo Region Green Solutions (WRGS), a community-based non-profit environmental organization that is funded by a combination of local partners, provincial contracts, grants and client fees. In addition to the funding provided through the Environmental Committee’s Operating Budget, since 2002 Kitchener Utilities has contributed $60. towards the cost of each home energy evaluation conducted by REEP; and, $40. towards the follow-up visit to reduce the cost to local residents. The City has also provided REEP with the following Local Environment Action Fund (LEAF) grants: in 2009 to assist with costs related to the REEP House for Sustainable Living; in 2011 for the Kitchener Home Energy Improvement Program; and, a further allocation for the RAIN Program, which was used to leverage funding from the Provincial Government. REPORT: At the September 19, 2013 Environmental Committee meeting, the Committee considered a request from REEP, for a grant of $27,500.; which would represent the City of Kitchener’s contribution to the group’s 2014 core operating budget. Ms. Mary Jane Patterson, Executive Director of REEP and Mr. Dave Blake, Business Development Manager, reviewed the organization’s achievements in 2012/2013 and their goals for 2014. Ms. Patterson stated that REEP continues to work towards healthier homes and sustainable communities, with a mandate to go beyond home energy evaluations into a broader environmental programming based on community need. Mr. Blake highlighted that REEP is engaged in the following programs: REEP House for Sustainable Living; ClimateAction WR plan; RAIN: an ecological approach to stormwater management; Home Energy Efficiency; REEP Corporate Partnership Program to help employees of organizations live more sustainably; and, the Home Assistance Program geared towards energy poverty and electricity conservation. The Committee was advised that as Federal and Provincial financial incentives for home energy retrofits has been eliminated, REEP is examining Community Scale Retrofts (CSRs) and Local Improvement Charge (LIC) financing. Ms. Patterson elaborated on the programs indicating that the twin programs of CSR & LIC would motivate residents to upgrade their homes on a neighbourhood-wide basis with low cost financing available through Local Improvement Charges. She noted that REEP is examining the launch of a pilot program in 2014 with other local area municipalities. The Committee was advised that annually REEP’s funding comes from a combination of client fees, contracts, local support, and grants (outlined in the chart below): Fees for Service Local Provincial Federal Other 2010 53% 16% 13% 11% 7% 2011 51% 24% 19% 1% 6% 2012 26% 25% 45% 2% 1½ % 2013 31% 17% 51% 1% ½ % Ms. Patterson advised that with the City’s continued support, REEP has been able to provide home energy audits from 1999-2012, benefiting homeowners by: saving money on their energy bills; increasing home health and comfort; reducing their environmental impacts; and, increasing the value of their homes. The benefits to the community equals: 23,767 tonnes of CO2 emissions; $5.8 million in energy savings; $15 million in grants received; and, $40.1 million in local spending. The following are the ecoENERGY results from 2011, 2012 and the cumulative results for the program: City of Kitchener 2011 2012 1999-2012 Initial evaluations 7379714,069 Follow-up evaluations 1,1655627,817 ecoENERGY grants $2,621,253$1,261,870$14,985,884 Energy savings $864,750$421,500$5,817,750 Local economic stimulus$6,918,000$3,372,000$40,914,000 CO2 reduced, tonnes 3,782 1,843 23,767 Assumptions as per Natural Resources Canada: - 3.28 average CO2 savings per house (tonnes per annum) - $6,000 average homeowner spending per house (estimated) - $700 in energy savings per retrofitted home Mr. Blake stated that interest in sustainable living continues to increase and REEP strives to remain nimble in times of economic change. He stated that the City of Kitchener’s support is vital to REEP’s continued operation and serves to leverage funding to provide programs and services at a lower cost. Accordingly, the Environmental Committee is requesting Council’s endorsement of the recommendation outlined herein. A copy of REEP’s funding request, their 2012 Annual Report and their estimated 2014 budget have been attached as references. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Endorsing the Environmental Committee’s recommendation to allocated funding to Waterloo Region Green Solutions, Residential Energy Efficiency Project (REEP) would align with the Strategic Plan by supporting the City’s commitment to conserve, protect and improve the environment, which has been identified as a Community Priority. FINANCIAL IMPLICATIONS: The requested funding of $27,500. would represent the City of Kitchener’s contribution to REEP’s 2014 core budget. Starting in 2000, the City allocated a $5,000. grant to REEP through the Environmental Committee’s Operating Budget. Over the past 13 years the grant amount has escalated to its current level, with a total of $267,500. being provided since the inception of this grant funding. COMMUNITY ENGAGEMENT: CONSULT - Through the September 19, 2013 Environmental Committee agenda, the Waterloo Regional Green Solutions (REEP) grant funding request and annual report were made available for review on the City’s website as of September 9, 2013. At the September 19, 2013 Environmental Committee meeting, the Chair informed all those in attendance that any recommendation arising from the Committee would be considered at the September 30, 2013 Planning & Strategic Initiatives Committee meeting. ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance & Corporate Services