Transforming Income-Qualified Home Energy Retrofit Programs in - BC
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Transforming Income-Qualified Home Energy Retrofit Programs in BC JURISDICTIONAL SCAN AND BETTER PRACTICES Written by: Laura MacTaggart, UBC Sustainability Scholar, 2020 In collaboration with: Dylan Heerema, Ecotrust Canada Allison Ashcroft, Canadian Urban Sustainability Practitioners MARCH 2021
Acknowledgements
We would like to acknowledge the first peoples whose lands we reside on as uninvited guests. The Glossary of terms
UBC Point Grey (Vancouver) campus is located on the traditional, ancestral and unceded territory
of the xʷməθkʷəy̓əm (Musqueam) First Nation. Ecotrust Canada recognizes its Vancouver presence
on xʷməθkʷəy̓əm (Musqueam), Skwxwú7mesh (Squamish) and Tsleil-Waututh Nation lands, and its Equity: acknowledges the advantages and barriers that exist that limit people
Prince Rupert presence on Coast Ts’msyan lands. The offices of the Canadian Urban Sustainability from having equal opportunities. Equity is a process that works to correct this
Practitioners (CUSP) network are located on unceded and occupied lək̓ʷəŋən (Lekwungen) traditional imbalance so that all people have the opportunity to grow, contribute and
territory of the Songhees and Esquimalt First Nations. develop regardless of their identity1.
Contributors Inclusion: the intentional act to ensure people with different identities are able to
fully participate in all aspects of an organization or activity.
Supported by the Sustainability Scholars Program at the University of British Columbia (UBC), the
Diversity: the presence of differences within a given setting which may
intent of this report is to outline best practices in income-qualified retrofit program design and make
include gender, race, ethnicity, religion, nationality, sexual orientation, place of
recommendations for program improvements in British Columbia. Further support is provided by
practice, and practice type2.
the Real Estate Foundation of B.C. and the Koerner Foundation. This report was made possible by
the generous contribution of time, knowledge sharing and collaboration from people across various Accessibility: providing equal access to an opportunity, resource, and public good or
service to everyone despite their ability or experience.
sectors. Sincere thanks go to each person who participated in an interview and contributed to this
report, including: Rural community: has no access to the natural gas distribution network and
experiences higher overall energy costs due to a reliance on more expensive
Art Ladd – Efficiency Manitoba
energy sources, such as electricity3.
Amy Seabrooke – BC Hydro
Amy Tuck – Efficiency Manitoba Remote community: has no natural gas or electrical grid access and is
Areef Abraham – Community Power typically powered by a micro-grid, often using diesel fuel4.
Brenda Willington – BC Hydro
Carmen Proctor – Nelson Hydro Transactional change: work within an existing set of institutional
Carol Suhan – FortisBC arrangements to reform or eliminate a single barrier to free groups to achieve
Chuck Belk – California Department of Community Services and Development the universal goal5.
Ian Cullis – BC Non-Profit Housing Association Jennet Poffenroth – Nelson Hydro
Transformative change: to restructure the system itself rather than one
Ned Georgy - FortisBC
Randy Drury – 3E Thermal relationship or action within the system6.
Samantha Chan – BC Hydro
Sarah Hill – California Association for Energy Affordability
Sonia Smith – Nova Scotia HomeWarming Program
Warren Lister – AffordAbility Fund Trust
Yasmin Abraham – EmPower Me
Yvonne Di Tullio – Ontario Ministry of Energy, Northern Development and Mines
2 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 3
Content
Recommendations
Executive summary 6
PROCESS-BASED RECOMMENDATIONS
Introduction 9
1 Design program recruitment for the customers the program is trying to
Energy poverty in British Columbia 9 reach and the barriers they face in accessing the program.
Home Energy Use in B.C. 10 2 Create a program application process that is quick, easy, and accessible
for eligible applicants.
Rural energy efficiency gap 13
3 Have regional program coordinators and contractors available to provide
Equity-based energy programs 14
quick, efficient, and informed support throughout the application and
installation process.
Approach and methodology 17
Jurisdictional scan 17 4 Offer funding for comprehensive home retrofits capable of shifting
homeowners and renters out of energy poverty.
Customer journey map 17
5 Offer curating and navigating support for program participants so they
Metrics 17 can access and benefit from other complementary rebates and energy
saving programs.
Data gaps and assumptions 18
Two types of recommendations 18
OUTCOMES-BASED RECOMMENDATIONS*
Research summary 19
6 Establish per-home targets for reductions in energy use and energy cost
Programs to reduce energy poverty in B.C. 19 burden. Measure and report performance specific to these targets.
Findings 25 7 Create program goals that align with provincial/state mandates on energy
efficiency, climate change, and poverty reduction.
Journey map of ECAP customer experience 25
8 Make the four dimensions of equity central in program design,
ECAP strengths 32 implementation and evaluation.
ECAP weaknesses 32
Discussion 34
* For important outcomes-based recommendations that were outside the scope of this
Recommendations 34 report, see Approach and Methodology.
Lessons learned 41
Conclusion and next steps 43
Appendices 44
Endnotes 56
4 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 5
For an income-qualified program to be Our in-depth analysis of ECAP reveals the
successful, it must 1) recruit and enroll program is not achieving meaningful reductions
Executive summary the highest possible percentage of eligible
households, 2) deliver energy savings that result
in household energy bills, energy usage, or
carbon emissions. ECAP customers face barriers
in lasting and measurable cost savings for those in the program application and approval
paying the utility bill and 3) improve household process, which keeps them from accessing the
comfort. Thus far, programs designed and program altogether or accessing the extent of
Energy poverty is experienced by households more factors than a household’s pay cheque administered by utilities in B.C. and most other retrofits they need for meaningful and lasting
who struggle to meet their home energy needs determine whether a household is likely to jurisdictions have not achieved widespread relief from their high energy cost burdens.
including thermal comfort, lighting, water experience energy poverty and to what extent. participation, nor significant bill savings for the Several procedural problems emerged during
heating, and cooking7. Households with low While more current statistics are not available, bill holder. our research, including: the ECAP application
and moderate incomes (LMI) are more likely higher unemployment rates and increased and proof of income requirements; the
This research project identifies common
to experience energy poverty than those with home energy consumption associated with the complex program steps and various program
limitations and deficiencies of these utility-
higher combined household incomes; however, COVID-19 pandemic are reasonably assumed administrators; and the program recruitment
funded, income-qualified programs in achieving
energy is only one side of the energy poverty to have increased the incidence and gravity of strategy that is reactive rather than active to find
stated outcomes and impact and highlight
equation. Disproportionately high energy energy poverty across the province. qualified customers. Our analysis also reveals
programs that are successfully addressing
costs caused by inefficient equipment, poorly several outcomes-based deficiencies common
A variety of home retrofit programs exist in B.C. energy poverty in their region.
insulated homes, and/or a high cost fuel source to ECAP and similar programs. These include:
to support homeowners, renters, landlords, This project involves a jurisdictional scan and performance metrics that are disconnected
are also significant determinants for households
Indigenous communities and non-profit housing interviews with administrators of income- from and thus meaningful decreases in energy
experiencing energy poverty.
providers to reduce the cost of their energy bills, qualified home retrofit programs across North poverty are not occurring for the participants
Specific to British Columbia (B.C.), degrease greenhouse gas (GHG) emissions and America. Particular attention is given to analyzing who manage to proceed successfully through
approximately 15%, or 272,0008 households decrease energy consumption. Although the BC Hydro and FortisBC’s Energy Conservation the gauntlet of application and approval;
experience energy poverty. These households target technology varies, programs commonly Assistance Program (ECAP) — a longstanding program goals that are not ambitious enough
experience a median energy cost burden of offer one or a combination of energy efficient income-qualified energy efficiency program to contribute to provincial energy efficiency and
9.3%, three times that of all B.C. households. item installation, weatherization, and energy in B.C. A literature review and interviews with poverty reduction targets; and, programs that
Despite having one-half the income levels, B.C. coaching. Program structure varies by fund ECAP administrators and users informs a journey are designed, implemented, and monitored
homes in energy poverty also have home energy source and level of funding, administrator, target map of a homeowner’s experience through the inequitably.
costs that are 50% higher than the provincial technology, target audience, and more. program (note that ECAP is available to renters,
average. One-quarter of households in energy Our research findings reveal common barriers
This project focuses on analyzing existing Indigenous communities and non-profit housing
poverty earn more that $40,000 per year to success, including lack of trust in program
income-qualified and utility ratepayer-funded providers, but is administered and delivered
after-tax, meaning they would not fall within administrators (especially utilities and
home retrofit programs across North America differently so is not within the scope of this
the general classifications of low-income nor government), ineffective recruitment strategies,
and considers an improved delivery model for project). These interviews, the literature review
qualify for income-qualified energy efficiency complex and time-consuming application and
energy cost burdened bill holders in B.C. and the journey map inform process-based and
program support. Energy poverty rates are also approval processes, and insufficient retrofit
outcomes-based recommendations to improve
higher among the traditionally marginalized support for achieving meaningful reductions in
This project focuses on principles of equitable the reach and effectiveness of ECAP in B.C. Similar
communities of Indigenous, racialized, recent energy poverty and energy usage. Regulation and
program design and recommends centring home retrofit programs across North America,
immigrant, and lone parent households.9 policy are also key barriers to program success,
equity and energy poverty in program design,10 of which there are many, should also find these
however these are beyond the scope of this
structure, implementation and evaluation of lessons learned and recommendations to be
These statistics are all to say that energy report.
these income-qualified home retrofit programs. transferrable.
poverty does not equal income poverty; far
6 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 7
We outline a series of recommendations for
the improvement of income-qualified home
retrofit programs with the goal of decreasing
the prevalence and extent of energy poverty Introduction
in B.C. and transferring these lessons to other
Canadian jurisdictions. ECAP is a longstanding
program that has been replicated across
North America, most recently, in Ontario with Energy poverty in British definition of low-income or qualify for most any
income-qualified energy efficiency program
the launch in 2021 of the Energy Affordability Columbia support. Energy poverty rates are also higher
Program, which replaced the Home Assistance
Energy poverty is the experience of households among those traditionally marginalized –
Program and the AffordAbility Fund Trust;
that struggle to meet their home energy needs Indigenous, racialized, recent immigrant, lone
this former Ontario program is studied in this
including thermal comfort, lighting, water parent households.13 Nearly 18,000, or 6.6% of
report and is the source of some better practice
heating, and cooking.11 In Canada, energy households in energy poverty are Indigenous;
recommendations. Report recommendations
poverty statistics12 are available through the research by Ecotrust Canada, a collaborator
are supported by detailed explanations and by
Equity and Energy Poverty Explorer, a tool to this report, finds an even numbered split
case studies, which identify trends and better
produced and published by the Canadian of these households between urban and rural
practice examples.
Urban Sustainability Practitioners (CUSP), areas, however notes that households on First
The purpose of this project is to identify a collaborator to this report. Households in Nation reserves are up to three times more likely
improvements and alternatives to widely energy poverty are measured by CUSP to be to experience energy poverty than off-reserve
accepted program shortcomings and those households spending more than 6% of households.14
recommend a viable path forward for an their after-tax income on home energy bills;
improved income-qualified retrofit program. An this energy cost burden threshold represents Some B.C. households face disproportionately
income-qualified retrofit program, which centres twice the national median, a commonly used high energy bills due to remoteness, housing
equity and energy poverty in its mandate and threshold for defining quantitative measures of quality, high energy costs, bills in arrears and
its execution, has the potential to catalyze energy poverty. inability to improve home energy performance.15
significant retrofit activity in B.C., decrease Many of these are exacerbated by underlying
Specific to British Columbia (B.C.), societal inequities such as race, ethnicity,
energy emissions, decrease energy poverty and
approximately 15%, or 272,000 households citizenship, age, ability, and fluency with the
improve comfort, health and well-being for a
experience energy poverty based on CUSP’s dominant language and social norms.16 Energy
significant number of households historically
calculations. B.C. households in energy poverty poverty may be experienced by renters and
underserved by ratepayer funded retrofit
have a median after-tax income of $27,000 and homeowners alike as both may experience
programs.
spend $2,500 on their home energy bills, an challenges in paying their home energy bills.
energy cost burden of 9.3% (3x the median for
all B.C. households of 2.7%). But, while these Mould, inadequate heating and cooling, and
households have income levels 56% below the poor air quality in homes experiencing energy
average B.C. household, they also have home poverty can have serious health impacts
energy costs that are 50% higher, spending including increased incidence of asthma,17
$830 more per year. One-quarter of households mental illness18, and cardiovascular disease.19
in energy poverty earn more than $40,000 per Factors such as dwelling size, age, efficiency,
year after-tax and would not fall within the and proximity to the electrical and natural
8 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 9
gas networks can cause a moderate-income plan25 to reduce household energy consumption FIGURE 1: FORTISBC SERVICE AREA
household to experience energy poverty. The and GHG emissions. Provincial rebates exist to help
age, design and efficiency of a house will impact subsidize the cost of purchasing an electric heat
its energy needs and comfort.20 For example, pump.
an individual living in a home built before 1960,
or a mobile home, has the highest likelihood of
experiencing energy poverty.21
Natural gas distribution in British
Columbia
Natural gas distribution in B.C. is dominated by
FortisBC, with some distribution from Pacific
Home Energy Use in B.C. Northern Gas (PNG) through the northern part
Natural gas and electricity are the two primary of the province. B.C.’s most populated areas
fuels used for home heating, hot water, and are serviced by natural gas, including Metro
cooking. Space heating accounts for approximately Vancouver, Southwestern Vancouver Island, the
50% of home energy use in B.C., making heating Okanagan, Highway 97 corridor, Highway 16
fuels and appliances a key factor in determining corridor, Fort St. John, and Fort Nelson. There
energy costs. 2011 data from Statistics Canada is a notable lack of natural gas connectivity in
revealed that 52% of homes in B.C. are heated with many less populated areas of B.C., making rural,
natural gas and 28% are heated with electricity.22 remote, and Indigenous communities reliant
Moving from natural gas-fired heating to energy- on more expensive sources of heat such as
efficient electrical heating can significantly reduce electric baseboard heaters, propane, or diesel
GHG emissions while maintaining comparable fuel. The cost of natural gas is approximately Source: https://www.fortisbc.com/about-us/our-service-areas
yearly energy spending.23 Since homes heated one-third the cost of electricity in B.C., making
with a natural gas furnace can produce up to 40 it the lowest-cost heating choice unless energy- FIGURE 2: PACIFIC NORTHERN GAS (PNG) SERVICE AREA
times more carbon pollution each year than an efficient electric heat pumps are used.26
electric heat pump,24 electrification of household
heating is a central component of the CleanBC
Source: https://png.ca/residential/locations/
10 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 11
FIGURE 3: INTERSECTION OF NATURAL GAS DISTRIBUTION AND FIRST NATIONS, MÉTIS AND INUIT FIGURE 4: BC HYDRO SERVICE AREA
COMMUNITIES IN CANADA
Source: https://ecotrust.ca/wp-content/uploads/2020/03/2019-Policy-Report_EC_lowres.pdf
Electricity distribution in British Columbia
Electricity production and distribution in B.C. is dominated by the crown corporation BC Hydro. All Source: https://www.bchydro.com/content/dam/hydro/medialib/internet/documents/safety/pdf/safety_pest_control_
map.pdf
areas of the province are served by BC Hydro with the exception of the FortisBC service areas in the
Okanagan, Similkameen, Central Kootenays and Boundary regions, and a handful of municipalities
that operate their own electric utility. Rural energy efficiency gap
Rural and remote households are more likely to experience energy poverty due to higher energy
transmission costs, less choice of heating fuel, and larger household size27. Furthermore, these
households face geographic, financial and awareness barriers that make it difficult to invest in home
efficiency upgrades28.
• Geographic barriers include isolation, distance from human and financial resources, lack of
economies of scale, lack of qualified contractors willing to serve rural and remote areas.
12 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 13
• Financial barriers include the high upfront Often, income-qualified energy programs are FIGURE 5: FOUR DIMENSIONS OF EQUITY TO INCLUDE IN ENERGY PROGRAM DESIGN
cost of energy efficiency (exacerbated by geared toward low-income households and
travel cost to remote areas), lower median use one of the following metrics to determine
income, unwillingness to take-on dept for applicant eligibility:
energy efficiency loans, on-bill financing Procedural equity The inclusive and authentic engagement and representation in program
• Low Income Cut-Off (LICO): a threshold and policy design and implementation.
options are usually unavailable in rural
determined by Statistics Canada that
areas. Distributional equity The fair distribution of program or policy benefits and burdens across
estimates the income where a household members of a community, prioritizing those with the highest need.
• Awareness and access barriers include a spends at least 20% greater than the
lack of traditional marketing channels, lack national average of their income on Structural equity A recognition of the historical, institutional, and cultural structures that
have disadvantaged certain members in society, resulting in chronic
of awareness of energy efficient technology necessities such as food and shelter30. Many subordinated groups.
and skepticism of existing resources. low-income programs across Canada use
LICO + 30% as an eligibility threshold, as the Transgenerational equity Decisions are made while considering their generational impact to not
This, in part, explains the slow uptake of energy unfairly burden future generations.
LICO thresholds are increasingly outdated.
efficiency products and services in rural and
remote communities even when the changes • Low Income Measure (LIM): the most
will save consumers money. In B.C., many rural commonly used measure of low income
and remote communities do not have access to around the world. LIMs are a fixed
12 principles of equitable clean energy program design1
natural gas and instead rely on more expensive percentage (50%) of median adjusted
options such as electric resistance radiators, household income, where “adjusted” 1. Listen and respond: Local governments should first listen to the communities
wood stoves, and propane furnaces. indicates that household needs and size they seek to serve. Program design should be as responsive as possible to the
are considered. LIMs recognize that a needs expressed by community members, and local government staff should
household’s needs increase as the number be transparent about their resources. Ideally, this would build from pre-existing
Equity-based energy of members increases31. community connections and engagement, and help define program goals.
programs 2. Partner with trusted community organizations: Local governments should
A 2018 report by the Urban Sustainability
There has been growing interest by government work with community organizations to design and deliver programs, and where
Directors Network (USDN) recommends that
and utilities to create programs that address applicable, help build the capacity of community organizations through the
a more equitable approach to determining
inequities in the energy system. For example, partnership.
eligibility for an energy program should support
in January 2021, the Government of British
both low- and moderate-income households, as
Columbia released a request for proposals for 3. Recognize structural racism: Programs targeting LMI households will not
the latter often have higher energy consumption
a new income-qualified energy efficiency and necessarily serve all disadvantaged populations. Racial analysis and baseline
patterns that may cause a high energy cost
electrification program. This program will have data must be part of an inclusive program design process to understand and
burden32.
a budget of $10,910,000 over two years with the address structural barriers that exist beyond income.
potential to be extended for an additional two
4. Efficiency first: Programs should ensure LMI households can access energy
years depending on program performance and
efficiency benefits as a key step to reducing energy burdens and increasing
the discretion of the province29. This program
household health and comfort.
will provide high-value incentives to LMI
households with the goal of improving energy
affordability and reducing GHGs from residential 1 Urban Sustainability Directors Network (USDN). (2018). A Guidebook on Equitable Clean Energy
Program Design for Local Governments and Partners. P. 11-12. [PDF]. https://cuspnetwork.ca/wp-content/
buildings as articulated in the CleanBC plan. uploads/2020/03/USDNEquitable CleanEnergyGuidebookCompressed-2.pdf
14 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 15
Approach and methodology
5. Reduce financial burdens: Programs should not add financial burdens
for LMI households and should aim to reduce financial and other burdens.
Jurisdictional scan The steps to create this journey map were as
6. Increase benefits: Programs should seek to deliver services beyond clean energy follows:
A jurisdictional scan was completed between
technologies and capitalize on co-benefits, such as job creation or community
November 2020 and January 2021 where 1. Complete a literature review to understand
resilience for people of color, indigenous communities, and other historically
building retrofit program managers from across the goals, outcomes and procedures of ECAP
underserved and underrepresented populations.
North America were interviewed virtually to 2. Create a skeleton process map including
7. Make it easy: Program participation should be as easy as possible for any better understand the lessons learned from stakeholders and key milestones
household with effective, efficient, and culturally competent program design, their respective programs. A literature review
3. Speak with ECAP administrators and program
outreach, and delivery. was conducted to inform the selection of
users to gather more information on program
programs from across Canada and the United
8. Integrate with other services: Wherever possible, programs should align with steps and points of stress
States. Programs were selected based off their
other services for LMI households. 4. Create first draft of customer journey map
diverse approaches to funding, outreach,
9. Protect consumers and workers: Programs should have carefully considered communication, target technologies, and based of research and preliminary interviews
consumer and workforce protection elements and consumer education to avoid payment options. 5. Share first draft journey map with ECAP
unintended consequences. administrators and program users for
BC Hydro and FortisBC’s ECAP was selected as a
feedback and fact checking
10. Beyond carve-outs: Programs should do more than set aside a small portion local case study because it is currently the largest
of benefits for LMI households, and where possible, centre the needs of LMI income-qualified home retrofit program in B.C.
6. Finalize edits and create final journey map
households and other historically underserved communities in program design
and delivery.
Customer journey map Metrics
11. Track progress: Programs should establish and assess against baseline equity A customer journey map is a diagram that
data — both quantitative and qualitative — to inform program design, establish To ensure that all programs were analyzed
depicts the stages of a customer’s experience
metrics, and track progress. consistently, a standardized series of questions
with a given program or product and can identify
were created to gather information on:
12. Long-term commitment: Programs should provide support for LMI households gaps between the customer experience strategy
• Administrative body
beyond installing a clean energy technology, and include structures for helping and their reality. A journey map is data-driven
and covers the steps and interactions along a • Funding mechanism and budget
with technology service, upkeep, and repair.
customer’s journey. This can be beneficial to • Assistance amount
understand how complicated or simple it is to
• Jurisdiction
complete a given task. For the purposes of this
• Benefit design
research, a journey map was completed to better
understand the experience of a homeowner • Eligibility design
participating in ECAP and to make procedural • Lessons learned
recommendations. Renters, Indigenous
communities and non-profit housing residents
are not included in the scope of this journey map.
16 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 17
Data gaps and assumptions consideration. The energy cost burden data Research summary
derived from Census by CUSP could be used as
A diverse body of energy cost assistance programs
an interim measure to analyse the number and
exist in Canada and the United States. These
percentage of households in energy poverty:
can be administered privately, by a utility, or by
Programs to reduce energy Hydro has recommended that this program not
municipal, provincial, state, or federal government. a. Included or excluded from these continue past the three-year pilot project and
For the purpose of this research, we selected a retrofit programs as a result of current
poverty in B.C. it is likely to be terminated by the end of April
subset of programs that exhibit unique strategies income-qualification thresholds to assess Programs that are designed to reduce the 2021.
for energy cost reduction. Although we were appropriateness of this threshold. incidence of energy poverty typically fall into
unable to review all energy cost assistance two major categories: one-time emergency Ongoing support programs in B.C.
b. Facing additional barriers to
programs in Canada and the United States, this relief funds and ongoing supports for those
participation and energy bill relief due to Indigenous Communities Conservation
report assumes that the selected programs are a experiencing chronic hardships paying bills.
their tenure (market renters and non- Program (ICCP)
representative sample. British Columbia has fewer programs to support
market renters). Offered by BC Hydro and FortisBC, the
utility ratepayers compared to other provinces,
This report draws on qualitative and quantitative despite having a high rate of energy poverty33. Indigenous Communities Conservation Program
c. Based on building age, type,
data alike. Each case study had varying degrees Early energy efficiency programs were available (ICCP) seeks to provide free energy-saving
neighbourhood, or demographic group so
of publicly available data and not all requests on a first-come-first-serve basis and as such, saw products and train First Nation community
as to improve engagement and support
for private information were successful. As such, uptake by higher income homes34. More recent members to lead energy-saving efforts in their
through the application and approval
not all programs were compared with the same energy efficiency programs can be classified as community. ICCP was developed to more
process.
metrics. those serving low-income households or those appropriately serve First Nations in B.C. as they
There are many important recommendations that serving households of any income level. complete home renovations. ICCP helps build
can be made to improve income-qualified home
Two types of recommendations capacity and increase the energy efficiency of
retrofit programs, some of which were outside This report includes both process-based and One-time emergency relief programs in homes on reserve. BC Hydro and FortisBC offer
of the scope of this report. In particular, two outcomes-based recommendations for low- B.C. rebates for larger home efficiency upgrades
recommendations that are not explored in this income home retrofit program administrators. including insulation, ventilation, windows,
Customer Crisis Fund
report and require further research include: Process-based recommendations are made with doors, furnaces, heat pumps, water heaters
the support of the customer journey map which This three-year pilot project offered by BC and new appliances36. ICCP offers two options
1. Increasing program supports for income- illustrates the steps that an ECAP customer follows Hydro began in 2018 to offer one-time financial to assist First Nations in completing home
qualified renters in B.C. The issue of the “split and the associated points of friction or stress. assistance for residential customers facing a upgrades — one or both may be selected
incentive” that arises when tenants pay for Also, these recommendations are supported by temporary financial crisis that prevented them depending on the renovations they are planning
utility bills in energy-inefficient rental suites is our jurisdictional scan of programs across North from paying their energy bill. A temporary on completing37.
a long-standing and complex one. America and their lessons learned. Outcomes- financial crisis could include but is not limited
First Nations can receive salary support,
based recommendations look beyond a single to a loss of employment, loss of benefit income,
2. Creating program eligibility criteria based on a installation training and free energy-savings
program to more holistic and transformative unanticipated medical expenses, or a death in
customer’s energy cost burden (ratio of utility products including energy efficient lighting, high
changes that should be made for improved design the family. For those households that have fallen
spending to household income), rather than performance faucets and showerheads, and
and delivery of low-income energy efficiency and behind on their energy bill and are in danger of
income qualification alone. This approach basic draft proofing.
weatherization programs in British Columbia. having their energy disconnected, these were
requires that program administrators have
eligible for a one-time grant of up to $600 for First Nations and selected contractors can
access to two types of potentially sensitive Recommendations are further categorized by their electrically heated homes and $500 for non- receive rebate application support and training
information (utility bills and income level of difficulty, level of impact and the type of electrically heated homes35. Unfortunately, BC to install insulation, air sealing, and ventilation.
verification) and requires more in-depth change.
18 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 19Energy Conservation Assistance Program (ECAP) FIGURE 6: AVAILABLE UPGRADES
At a glance:
HOUSING TYPE AVAILABLE UPGRADES A PERSON MAY RECEIVE
Single-family detached home Tier 1 retrofits:
Location British Columbia (B.C.), Canada Townhome LED light bulbs
Rowhome Water-efficient showerheads
Operational 2008 - present
Duplex Faucet aerators
Funder BC Hydro, FortisBC and Pacific Northern Gas Ltd. (PNG)
Weatherstripping
Administrator BC Hydro and FortisBC Clothing drying rack or clothesline
Target audience Low income home owners and renters (LICO + 30%) Hot water pipe wrap
Carbon monoxide detector
Target technology Energy efficiency and weatherization
Tier 2 retrofits:
Eligibility Income qualification and home ownership (renters can apply with a
signed agreement from their landlord) ENERGY STAR fridge replacement
High efficiency gas furnace replacement
Website https://www.bchydro.com/powersmart/residential/savings-and-rebates/
savings-based-on-income/free-product-install-and-advice.html Insulation in walls, attic, or crawl space*
Manufactured home / mobile Tier 1 retrofits:
Summary: ECAP is an income-qualified program successful applicants will be contacted by It’s home
LED light bulbs
whose goal is to reduce energy consumption, On Electric, a program contractor, to arrange a
reduce energy bill cost and increase comfort site visit to assess home energy needs. During Water-efficient showerheads
in low-income households in B.C.38. Three the site visit, the It’s On Electric contractor will Faucet aerators
streams of ECAP exist: for individual applicants; assess the home and appliance condition and
Door weatherstripping
bulk applications for non-profit housing energy efficiency, and install Tier 1 retrofits
organizations; and bulk applications for First such as LED light bulbs, water efficient shower Tier 2 retrofits:
Nations. This program is separate from FortisBC heads, outside door weatherstripping and ENERGY STAR fridge replacement
and BC Hydro’s Energy Savings Kit (ESK) faucet aerators. After the initial site visit, low-
program which offers free basic energy-saving efficiency homes will be contacted for Tier Apartment Tier 1 retrofits:
items to income-qualified homes in B.C. 2 retrofits that include large appliances and Condominium LED light bulbs
deeper weatherization. Wait times for ECAP Water-efficient showerheads
ECAP includes energy coaching and two tiers
depend on the season, geographic location, and
of weatherization and energy efficient product Faucet aerators
contractor availability. There are now energy
installations. The level of support that a
evaluators across the province and there is the Door weatherstripping
household will receive is dependant on housing
capacity to visit a remote location within a short Source: https://www.bchydro.com/powersmart/residential/savings-and-rebates/savings-based-on-income/free-product-
type, home efficiency, home safety, and heat
time period if there are several applicants from install-and-advice.html
source (electric or natural gas).
that community. Figure 6 outlines the possible * Includes the installation of a ventilation system and complete blower door guided air sealing
Customers can apply online or by mail and upgrades a home may receive based on housing
type.
20 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 21ECAP measures of success include39: funds program costs for high efficiency furnace from a First Nation are encouraged to support Renewables component. The primary goal of
installation and weatherization for homes their Band members with their application and LIWP is to reduce GHG emissions in low-income
1. Number of customers served
heated by natural gas. BC Hydro funds the are offered payment of $25 per application they households and to help vulnerable communities
2. Achieving program budget
installation of Energy Star fridge installation and assisted in submitting41. become more resilient to the effects of
3. Number of energy-saving items installed
weatherization for homes heated by electricity. climate change. LIWP is part of California
4. Deemed energy savings Outreach: Since ECAP began in 2008, the
Climate Investments, a statewide initiative
5. Customer satisfaction Eligibility: Applicants must be customers of BC advertising and engagement strategies
that puts billions of Cap-and-Trade dollars
Hydro, City of New Westminster, FortisBC or a have evolved. Previous attempts for broad
towards reducing greenhouse gas emissions,
Funding: ECAP provides free energy efficiency municipal electricity customer and must meet advertisement led to several non-low-income
strengthening the economy, and improving
and weatherization products and installation federal LICO income qualification + 30%* as applicants who were subsequently rejected for
public health and the environment42.
for income-qualified customers. FortisBC outlined in Figure 7. the program. Though some is done together,
BC Hydro and FortisBC do most of their ECAP
FIGURE 7: INCOME QUALIFICATION GUIDE 3E Thermal
advertising separately to their respective
customers. Targeted advertising occurs 3E Thermal is a consultant agency who provides
NUMBER OF PEOPLE IN HOUSEHOLD TOTAL HOUSEHOLD INCOME BEFORE TAX
through social service organizations such as free expert project management support for
1 person $34,400 organizations that offer free tax clinics for the energy efficiency and weatherization projects for
Federal Community Volunteer Income Tax multi-family dwellings in Vermont, USA. 3E aims
2 persons $42,800 to standardize the outcomes for “deep retrofits”
Program. Furthermore, participants of BC Hydro
and FortisBC’s income qualified program for in energy efficiency and weatherization projects
3 persons $52,600
free ESKs are sent information on ECAP and are to improve their quality and sustainability.
4 persons $63,800
encouraged to participate. Other advertising
occurs through social media, direct mail
The Nova Scotia HomeWarming Program
5 persons $72,400
through the Ministry of Children and Family The HomeWarming Program offers free energy
6 persons $81,700 Development, utility and CleanBC websites, assessments, insulation, draft-proof, and
leaflets in energy bills, and customer emails. installation of energy efficient products to
7 or more persons $90,900
income-qualified homeowners across Nova
Programs in other jurisdictions Scotia. HomeWarming is proudly sponsored
Source: https://www.bchydro.com/powersmart/residential/savings-and-rebates/savings-based-on-income.html For more information on each program, see the by Nova Scotia Power and the Province of
Appendices at the end of this report. Nova Scotia as part of a broad, province-wide
* Values are updated annually
initiative to provide energy efficient upgrades to
Low-Income Weatherization Program income-qualified homeowners.
Partners: Across British Columbia, several application as they file their taxes. There are
social service organizations and non-profit many community organizations who create their (LIWP)
EcoSave
societies are partners of ECAP and may help own systems to support local homeowners to The California Low-Income Weatherization
to spread awareness or provide support apply to ECAP. The Nelson Hydro EcoSave program is a City of
Program (LIWP) is administered by the
during the application process. FortisBC offers Nelson initiative and began as a pilot program
Department of Community Services and
Recently, BC Hydro and FortisBC have increased in 2011 to encourage homeowners, who were
financial incentives to community organizations Development (CSD) and offers robust energy
resources to support energy efficiency and also Nelson Hydro customers, to retrofit their
per application received through their program components including: Single-
weatherization for First Nations housing projects homes to become more energy efficient.
organization40. One such partner includes the Family Farmworker Housing Energy Efficiency
through rebates and ICCP. To increase the The goal of this program is to reduce energy
Federal Income Tax program that encourages & Solar PV; Community Solar Pilot Program;
number of on-reserve ECAP applicants, staff consumption and GHG emissions. The program
low-income homeowners to fill out an ECAP and a Multi-Family Energy Efficiency and
22 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 23offers support through the process of having from LED lighting, to replacing inefficient
energy evaluations, energy coaching, support appliances, and high impact energy upgrades
in accessing rebates and contractors and on-bill such as insulation or heat pump system
financing for energy efficiency retrofits in single-
family homes in the Regional District of Central
upgrades43. Findings
Kootenay (RDCK) in B.C. Energy Affordability Program
The Energy Affordability Program (previously
AffordAbility Fund Trust (AFT) the Home Assistance Program) is an energy Journey map of ECAP as well as program users and community
administrators. Please note that this map is
The AffordAbility Fund Trust (AFT) operated efficiency and weatherization program offered customer experience accurate to the best of our knowledge and at the
from 2017 to 2021 to provide support to reduce to income-qualified households in Ontario.
Included on the next several pages is the time this report is written, however the program
the cost of electricity bills for Ontario residents The goal of this program is to reduce the home
journey map of an ECAP customer as they move is subject to change on a yearly basis which may
who do not qualify for low-income home energy energy costs for income-qualified households
through the program. This map is intended to impact the customer experience. Also, this map
programs. The Ontario government made a in Ontario and to increase home comfort. Two
demonstrate the program process, showcase outlines the customer experience for property
one-time contribution of $100 million for the tiers of retrofits are available, energy savings
program strengths and pinpoint procedural owners and does not reflect the experience of
creation of the AffordAbility Fund Trust which kits (ESK) that are tailored to a home’s unique
points of stress that can be improved. This renters, Indigenous community members or
was overseen by an Independent Board of needs and comprehensive support that includes
journey map is based off interviews with ECAP non-profit housing associations participating in
Trustees. Program operations were managed by free items such as LED light bulbs, an efficient
administrators from BC Hydro and FortisBC ECAP.
Hydro One Networks, while Local Distribution refrigerator, and a window air conditioner.
Companies (LDCs) delivered the program Further measures are available to homes heated
benefits to homes in their area. The program by electricity.
offered energy saving measures that ranged
24 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 2527
TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC
1. RECRUIT
Customer hears and learns
about ECAP
Main contact for customer:
Contractor: It’s On Electric
Customer hears about ECAP Customer wants to learn more Customer consults others
Word of mouth Word of mouth •May speak with others in the home,
•Social service organization •Ask friends and family neighbors, friends or their social
•Friends and family •Social service organization service organization representative.
Online souces Online Frequently asked questions
•BC Hydro, FortisBC or CleanBC •BC Hydro, FortisBC or CleanBC •Should we apply?
websites websites •Is it worth it?
•Social media Phone •How easy is it?
•BC Hydro or FortisBC e-newsletter •Call It's On Electric to learn more •Am I eligible?
•Local government websites and
newsletters
Mail
•Energy bill insert
•ESK participant mail
Recommendation: Design program recruitment for the customers the program is trying to reach and the barriers
they face in accessing the program.
ECAP Customer Experience Map
Program Outreach & Proof of Tier 2
Tier 1
barriers awareness income eligibility eligibility
Application
process
Recruit Enrol Assess Perform Improve
Note: This map outlines the customer experience for individual homeowners or renters applying to ECAP. There are different processes for
group applicants either from a First Nation or from non-profit housing that are not represented in this map.
MARCH 2021
2629
TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC
Customer receives
letter indicating 3. ASSESS
W
ineligibility
Common reasons Customer is accepted in to
-Above the income phase one of ECAP to receive
qualification limit light retrofits and a home
-Does not meet other assessment
eligibility
-Letter includes why Main contact for customer:
customer Is ineligible Contractor: It’s On Electric
and other ways to save
Contractor, BC Customer Customer is Decide if home is
Hydro and FortisBC Contractor visits
receives letter contacted by eligible for
evaluate customer's home
applications of acceptance contractor deeper retrofit
• Maximum 4-6 week • It's On Electric will help • Customer and • Light efficiency retrofits • Household efficiency
wait online applicants contractor schedule take place data is assessed by a
whose applications appointment for home • Data collection on home third-party for
were incomplete. visit efficiency eligibility for a second
• Appointment wait time • Advise for behavioural home visit and efficient
depends on season, changes to reduce item instalation.
geographic location and energy
contractor availability.
Recommendation: Have regional program coordinators and contractors available to provide quick, efficient and informed
support throughout the application and installation process.
2. ENROL
Customer decides not
to apply
Lose customers who Customer gathers required
Reasons cannot provide proof documentation and applies to
-Does not meet low- ECAP
of income or do not
income qualifications
-Language, awareness, feel comfortable Main contact for customer:
time or cultural barriers Contractor: It’s On Electric
Customer finds and provides
Customer decides to apply Submit application
proof of income
• Can apply online or by mail • Must provide one of the
• Support available for applicants documents listed on ECAP
applying through community application for proof of income
service organizations. Ex. Revenue
Canada Volunteer Income Tax
Support Program
• It's On Electric is available to
support application
Recommendation: Create a program application process that is quick, easy and accessible for eligible applicants.
MARCH 2021
2831
TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC
5. IMPROVE
Customer has completed ECAP
and can offer feedback
Main contact for customer:
Contractor: It’s On Electric
Secondary contact:
Contractor: Ecofitt
Customer receives Customer receives Customer
Customer tells
owner manuals & email summary of completes
others about their
learns about services and items program feedback
experience
appliances they have received survey
• Email sent from Ecofitt • Participants of phase 1 • Program experience review
only complete an optional with BC Hydro or FortisBC
paper survey (left during (only for some participants)
first home visit) • Conversations with family
• Participants of phase 1 & friends
and 2 are contacted by It's
On Electric for a phone
survey that can be finised
online
Recommendation: Offer curating and navigating support for program participants so they can access and benefit from
other complementary rebates and energy saving programs.
Customer hears
they are not eligible 4. PERFORM
for more retrofits
No follow up if
not eligible for Common reasons
Customer is accepted to phase
-Health, safety, or
second home visit two of ECAP and receives
infrastructure
deeper retrofit and installation
Common reason barriers
of energy efficient appliances
-Home is above -Home is above
ECAP efficiency ECAP efficiency Main contact for customer:
baseline baseline Contractor: EcoFitt
Secondary contact:
It’s On Electric (for those receiving
a fridge installation)
Customer is
Customer is Customer
confirmed to Schedule Deeper retrofit
contacted for a receives second
receive more retrofit(s) occurs
second visit home visit
retrofits
• Customer and Ecofitt • More in-depth home • 1 follow-up message • Schedule retrofits • Be present at
contractor schedule assessment occurs and consent form to with Ecofitt or their instalation (optional)
home visit by an Ecofitt be signed for each subcontractors
contractor to assess additional retrofit • Fridge instalations are
whether home is completed by It's On
eligible for Electric
weatherization,
insulation and a new
furnace.
Recommendation: Offer funding for comprehensive home retrofits capable of shifting homeowners and renters
MARCH 2021
out of energy poverty.
30ECAP strengths ECAP weaknesses Participation in the ECAP Tier 1 is True to these limitations, by BC Hydro’s own
low admission, participation in the ECAP Advanced
ECAP is intended for LMI households across B.C.
Savings from ECAP Tier 1 are small Weatherization program has been “too low
to receive free energy efficient items, appliances, In 2019, an information request to BC Hydro
BC Hydro estimates that between 2012 and to enable statistical analysis”55, but based on
and weatherization to improve the comfort and revealed their estimate that just 17,000
2016, Tier 1 ECAP participants saved between an information request to program managers
decrease the energy bill cost in their home. The households (excluding FortisBC electric
642 and 899 kWh per year per home. These appears to be between 300-400 homes per year
direct install method of the program means that customers) had participated in the ECAP
averages were applicable across all regions, between both BC Hydro and FortisBC (based
utilities can set very high installation standards program since its inception in 2008, or around
building types, and heating fuels.47 Therefore, at on 2018-2019 data).56 This translates to a rate
that are vetted by some of the best building 5% of eligible households in its entire history.51
the current Step 1 electricity rate48, these savings of around 0.1% of eligible households per year,
scientists. Tier 2 retrofits are completed by It is unclear whether these statistics are
would translate to between $60-$85 per year. which is so low as to be almost negligible.
an independent contractor to provide quality completely up to date. However, between
assurance and ensure that their high standards Even at the higher Step 2 rate, savings would
2017-2019, it is known that just over 10,000
are met 100% of the time. As a result, the quality amount to just $89-$125 per year. In the case
households participated in ECAP Tier 1 52.
of ECAP’s installation work is above the general that energy savings resulted from a decrease
market standard, which means that equipment in natural gas consumption, savings would be There are over 384,000 households that are
is properly commissioned and will last longer. significantly less, approximately one-third of eligible for low-income programs based on BC
these numbers. Hydro’s criteria. Therefore, even considering
The partnership between BC Hydro, PNG these more optimistic numbers, ECAP Tier 1 is
and FortisBC means the program can serve In comparison, the average electricity
currently reaching only around 1% of eligible
electrically and natural gas-heated homes. Also, consumption across BC Hydro’s service area
households per year. In its current forecast of
this partnership helps homeowners to decrease is 900 kWh per month.49 An annual electricity
program participation, BC Hydro estimates
their natural gas and electricity consumption. bill for the ‘average’ customer is therefore
that this rate will continue at just over 1% per
Recently, the ECAP program has evolved to around $1,130 per year, excluding fixed charges.
year during the period of 2020-2022, reaching
serve more rental households — a traditionally However, homes that heat using electric
perhaps 13,000 homes during these three years.
difficult to reach segment of the market. BC baseboards or electric furnaces, often located
At these low rates, it will take many decades
Hydro estimates that up to 75% of participants in rural and remote households, typically pay
to reach all the homes that are eligible for the
from 2017-2019 were renters or tenants44. much more over a year, with many households
program.53
that suffer from high rates of energy poverty
ECAP has evolved over the past 12 years to averaging bills that exceed $3,000/year.
be more inclusive of Indigenous community Savings from ECAP Tier 2 may
applicants, which is essential as at least 17,000 An annual savings of less than $100 from be higher, but participation is
Indigenous households experience energy participation in ECAP does not address the core negligible
poverty in the province45. A recent example need facing these households. These savings
ECAP’s advanced weatherization, or Tier 2
of this is FortisBC’s partnership with the Fort are also largely insignificant when compared to
stream claims to offer a higher level of savings
Nelson First Nation and the Osoyoos Indian the steady rise in electricity rates in B.C., which
to customers. However, issues like mould or
Band. The on-reserve housing councils of have increased by almost 50% in the last decade
structural damage in homes precludes them
these First Nations worked with FortisBC and are set to further rise 6-8% over the next five
from participation in ECAP Tier 254. As a result,
to arrange free home energy assessments, years.50
many of the homes that could benefit most from
weatherstripping and installation of energy the Tier 2 interventions are rendered ineligible
efficient items for community members46. for the advanced weatherization they need.
32 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 33PROCESS-BASED RECOMMENDATIONS
Discussion 1 Design program recruitment for the customers the program is trying to
reach and the barriers they face in accessing the program.
Recommendations
Legend 2 Create a program application process that is quick, easy and accessible
for eligible applicants.
Transactional change: work within an existing
set of institutional arrangements to reform
or eliminate a single barrier to free groups to 3 Have regional program coordinators and contractors available to provide
quick, efficient and informed support throughout the application and
achieve the universal goal57. installation process.
Transformative change: to restructure the 4 Offer funding for comprehensive home retrofits capable of shifting
homeowners and renters out of energy poverty.
system itself rather than one relationship or
action within the system58.
5 Offer curating and navigating support for program participants so they
can access and benefit from other complementary rebates and energy
Low difficulty: changes that can be
saving programs.
implemented in 0-2 years and require relatively
low effort and/or institutional changes.
High difficulty: changes that require 2+ years OUTCOMES-BASED RECOMMENDATIONS
to implement and require high effort and/or 6 Establish per-home targets for reductions in energy use and energy cost
institutional changes. burden. Measure and report performance specific to these targets.
Low impact: changes that result in low impact
7 Create program goals that align with provincial/state mandates on energy
to success indicators such as program cost, efficiency, climate change and poverty reduction.
energy savings and participation.
8 Make the four dimensions of equity central in program design,
High impact: changes that result in a large implementation and evaluation.
impact on success indicators such as program
cost, energy savings and participation.
34 MARCH 2021 TRANSFORMING INCOME-QUALIFIED HOME ENERGY RETROFIT PROGRAMS IN BC 35You can also read
