ENERGY
COST RELIEF PROGRAMS
Winter is fast approaching, and this year Canadians are bracing for more than snow and cold temperatures. They’re preparing for an increase in their home heating bills due to rising energy prices worldwide.
The Government of Canada understands that high energy prices impact every one of us. And low-income Canadians are hit the hardest.
That’s why on October 6 we introduced legislation for a comprehensive package to help Canadians protect themselves and their families against volatile energy prices ¾ now and in the future. This package is worth more than $2.4 billion. Close to $600 million is committed for direct assistance through a proposed Energy Cost Benefit to low-income Canadians who will spend a significantly larger proportion of their money on heating this winter through relief.
Over the long term, it makes economic and environmental sense to make our homes and buildings more energy-efficient. By taking action now, Canadians will save money, lower energy use and do their part to address climate change for years to come.
To help Canadians create a more energy-efficient future, we are bringing forward a number of programs and incentives we plan to make available in the months ahead.
We are proposing to expand the already successful EnerGuide for Houses Retrofit Incentive program. Grants for energy efficiency retrofits are averaging $750 under the existing program, and households are saving approximately 30 per cent on their energy bills. The expansion will allow the program to reach a total of some 750,000 homes.
We are also introducing financial incentives to encourage Canadians to upgrade to high efficiency home heating systems. The rebates will average about $150.
Institutions like hospitals, schools, universities, and other levels of government will also face higher heating costs in the coming months. We have earmarked $185 million to broaden programs designed to improve the energy efficiency of existing commercial and institutional buildings.
Another key component of the energy package is a proposed program to provide energy retrofit assistance to low-income Canadians - the proposed EnerGuide for Low-Income Households program.
This program is a $500-million initiative that will help about 130,000 low-income households nationwide retrofit their homes and permanently lower their heating costs.
Canada Mortgage and Housing Corporation will lead delivery of this proposed program, through its Residential Rehabilitation Assistance Program, in partnership with provinces, territories and others. Energy evaluations will be performed through Natural Resources Canada’s EnerGuide for Houses service and EnerGuide for Existing Buildings.
The proposed program will be available across Canada in January 2006, after the approval of the legislation. Special allocations are being made for Aboriginal communities, both on and off reserve, and in the North. It will apply to all buildings constructed prior to 1980.
Qualifying households coast to coast will receive up to $5,000 to offset the costs of retrofits such as draft-proofing their homes, replacing old windows and heating system upgrades. The long-term cost savings for low-income households will be significant ¾ as much as 30 percent, or approximately $425 a season once renovations are completed. To be eligible, households must meet income requirements under Canada Mortgage and Housing Corporation’s Residential Rehabilitation Assistance Program.
Low-income renters will benefit as apartment building owners make energy retrofits and pass savings onto tenants. Grants for retrofits of multiple-unit buildings and rooming houses will be up to $1,500. Social housing providers are also eligible for assistance.
These initiatives are part of Project Green, the Government of Canada’s broad environmental vision that links our economic competitiveness and prosperity to a sustainable future.
All Canadians stand to benefit from these initiatives. Energy and money savings, lower greenhouse gas (GHG) emissions, , and an improved environment are important to all of us. These programs reduce emissions per household by 2.5 tonnes and lead to a cleaner environment, a healthier population and a more competitive economy today and tomorrow.
The Honourable Joe Fontana, Minister of Labour and Housing and the Honourable John McCallum, Minister of National Revenue and Acting Minister of Natural Resources
