Appendix E Five possible pathways for labelling

In the process of drafting this strategy plan, we considered five plausible pathways towards broad adoption of home energy labelling. This Appendix summarizes these five pathways and their respective pros and cons. The suggested pathway that is outlined in this document evolved from Pathway 2, “Building code to point of sale”.

Figure 15 summarizes the five pathways. Key enablers are indicated at the top. They include: a robust ERS delivery network, the availability of retrofit incentives, and the availability of incentives for ‘better than code’ homes to bridge the gap between labelling programs and the energy upgrades that yield energy efficiency improvements.

The independence and validity of the EnerGuide rating will need to be maintained by NRCan through market transformation and beyond, including improvements to the system. However, as assessments become part of standard permitting and sales processes, the ERS delivery network should cease to be dependent on incentives. Similarly, assessment incentives should be phased out once the market integrates labelling tools into business-as-usual operations.

The length of the bars at the top of the figure indicates roughly when we expect these enablers to be phased out. It is important for public acceptability to avoid removing the incentive right after a mandatory requirement is put into place. Incentives for high performance new homes should be continued for a transition period after energy labelling for new homes is made mandatory.

Similarly, incentives for retrofits and assessments should be available during a transition period with a policy requiring labelling at point of renovation and sale.

Figure 15 also summarizes other key elements needed to meet the desired outcomes. Necessary pre-conditions are elements that must be in place for successful programs to advance, as raised in the critical success factor section.

Activities and programs needed to help meet these pre-conditions are represented by the ‘preparing the ground’ box, which is the common first step for all pathways.

The five pathways for consideration are distinguished by coloured arrows and discussed below. After reviewing their respective advantages and disadvantages, we articulate the path we deem most likely to deliver broad-scale labelling within reasonable time frame and highlight key milestones along this path.

Five possible pathways for labelling

Figure 15. Pathways to desired outcomes and market transformation

1. Direct to Point of Sale 2. Building Code to Point of Sale 3. LG bylaw(s) to PG 4. LG bylaws, replicated 5. Non- regulatory

Enablers Robust ERS delivery network: service organizations, quality insurance, certified energy advisors; NRCan - ongoing ERS development and support Utilities incentive programs for existing building retrofits: e.g. HERO

Utilities incentive programs for new building energy efficiency

Education & incentives Required for new

homes Required for existing homes Required for both homes

Market transformation

Desired Outcomes Critical mass of rated

homes + Disclosure: Energy ratings posted

in-house and on MLS + Data available for benchmarking and

planning

MARKET TRANSFORMATION Broad use of labelling information Impact on house values Energy savings Repeat across

multiple LG’s Repeat across multiple LG’s Preparing the ground

Provincial/utility funding for incentives Local government staff champions Real Estate Board engagement Pilot programs: Homeowner education/incentive programs Realtor incentives/ education Builder incentives/ education Green realtors Green builders B.C. Building Code

Need critical mass of LG’s + number of homes labelled

DRAFT

Direct? How many LG’s needed

to set precedent?

REPEAT REPEAT

Impeded by: • High administrative costs • High # of buyers/owners to

educate

• Onus on realtors and builders to drive process

• Limited demand from clients

High home buyer demand for energy efficiency Realtors/ builders use rating to promote houses

This path by itself cannot produce the desired outcomes, but when coupled with regulations can create conditions for market transformation Point of Renovation bylaw

Pre-conditions Provincial political vision Provincial political champions Local political champions MLS has rating field Familiarity with rating system (staff, realtors, builders) Support demonstrated Champion realtors Champion builders with voluntary disclosure

Provincial Point of Sale

How many LG’s needed to set precedent? On-going incentive programs Industry leadership

For New bylaw

1. Direct to Point of Sale 2. Building Code to Point of Sale 3. LG bylaw(s) to PG 4. LG bylaws, replicated 5. Non- regulatory Desired Outcomes Critical mass of rated