The Ontario Liberals and NDP are making similar pledges to inject more funding into the energy conservation programs that have been downscaled during the current provincial government’s tenure. Both parties have also affirmed targets to reduce greenhouse gas (GHG) emissions to 50 per cent below 2005 levels by 2030 and to achieve net-zero emissions by 2050. Broad strategies for doing so are outlined in their recently released campaign platforms, ahead of the June 2 Ontario election.
Meanwhile, the 2022 Ontario budget, which was introduced just before the provincial legislature adjourned for the election campaign, touts “energy transition and electrification” initiatives such as investing in the development of hydrogen-based generation and small modular nuclear reactors, as well as upgrading electricity transmission infrastructure and expanding natural gas delivery networks. There is a hint of a future voluntary registry for clean energy credits, which could support Ontario-based companies in efforts to meet their GHG-reduction and/or net-zero emission commitments, but no new spending is contemplated for energy efficiency or GHG reduction measures in buildings beyond the $692 million over four years that has been allocated for the 2021-24 conservation and demand management (CDM) framework.
The Liberals promise to “improve carbon pricing” and tie it to more aggressive emission performance standards, including a new standard for methane output. All proceeds would be matched with government funds and dispersed as grants, tax credits and loan guarantees for low-carbon initiatives. The NDP promises a new cap-and-trade system, from which 25 per cent of revenue would be channelled to low-income residents and rural and Northern Ontario.
Under its proposed conservation spending agenda, the Liberal party would allocate $300 million annually to help individuals and businesses cover low-cost energy retrofits and climate response measures. That’s envisioned as 100,000 grants of up $3,000 for investments such as “new windows, insulation, heat pumps and flood protection”.
Interest-free loans would be offered for “deeper retrofits” and $1,500 rebates would be available for the installation of electrical vehicle (EV) charging equipment. Across the broader public sector, the Liberals also target “schools, hospitals, colleges, universities, social housing and other public sector buildings” for energy and climate adaptive retrofits.
On the policy front, the Liberals promise to update the Ontario Building Code to meet “leading energy-efficiency and climate resiliency standards” by 2025 and to make it easier to build tall wood and prefabricated structures. They would also eliminate set-up connection fees for rooftop solar charging panels and bi-directional electric vehicle charging.
The Liberals would develop a long-term energy plan, establishing a targeted mix of nuclear, hydroelectric and other renewable sources of generation. The platform also affirms the Liberals would “renew the Ontario Electricity Rebate”, which currently provides a 17 per cent before- tax discount on residential and small business customers’ hydro bills.
The NDP is signalling more dramatic policy upheaval with its plans for an expert panel that would be charged with studying and recommending how to restore the electricity system to public ownership. Like the Liberals, the NDP is promising comprehensive energy planning with an emphasis on renewable generation and conservation. To enable the latter, it envisions “a single-window of service for energy efficiency and conservation planning, program promotion, delivery and upfront financing”.
While the Liberals estimate they will create 25,000 jobs through investments in energy efficiency and climate response, the NDP predicts a fourfold escalation of that tally as it pursues a goal to retrofit at least 5 per cent of Ontario’s building stock every year via an upfront- financing program. The NDP also promises to build a province-wide network of EV charging stations and — although not offering rebates specifically for EV charging equipment — its proposed $10,000 rebate for the purchase of a non-luxury electric vehicle is more generous than the Liberals’ pledge of $8,000.
Similar to the government’s in-progress consideration of discounted electricity rates during the overnight hours, the NDP proposes to “create measures to make better use of Ontario’s wasted off-peak surplus by making it available for the benefit of Ontarians”. Elsewhere, the Liberals voice support for green hydrogen generation, transportation and storage in line with the government’s position.
Turning to what’s new in current energy conservation options, Rob Edwards, business manager, private sector, with the Independent Electricity System Operator (IESO) recently sketched out the suite of existing and pending CDM programs during a webinar sponsored by the Building Owners and Managers Association (BOMA) of Greater Toronto. New incentives to encourage commissioning, recommissioning and retro-commissioning of existing buildings are expected to become available this fall. Realignment of the popular program that formerly subsidized salaries of in-house energy managers is set for next year.
“We’re going to be implementing, in 2023 and 2024, a strategic energy management program. It’s more along the lines of enhanced technical resources to any organizations that have a dedicated energy manager,” Edwards explained.
He suggests commercial landlords may also want to point their tenants to the newly launched incentive program for small businesses with fewer than 50 employees. It provides up to $4,500 to subsidize the cost of eligible upgrades, with a maximum of $2,000 available for lighting measures and up to $2,500 for HVAC and refrigeration equipment.
