Thank you.
Mr. Chairman, honourable committee members, and guests, thank you for the opportunity to speak with you today.
NAIMA Canada is an industry association that represents the majority of fibreglass, rock, and slag insulation manufacturers in Canada. It is a sister organization to the 75-year-old North American Insulation Manufacturers Association, based in Alexandria, Virginia.
Our association was established in 2004 with a mandate to actively develop technical standards and to interact with governments and partners to promote the energy efficiency and environmental benefits of its members' products. Our Canadian membership consists of CertainTeed Corporation, Fibrex Insulations, Johns Manville, Knauf Insulation, Owens Corning Canada, and Roxul Inc., which represent thousands of manufacturing, sales, distribution, and installer jobs in every province.
The recent decision to eliminate the federal portion of the ecoENERGY program is very disappointing. The act of cutting the program and how it was done are both worrisome, at best. The decision was made with no attempt to discuss the impact of this decision with industry stakeholders. I mean not just manufacturers, like NAIMA members, but also the private companies that are delivering energy audits and the non-profits that are doing the same.
I would point you to a Facebook page called “Keep the ecoENERGY Retrofit – Homes Program Alive”, which sprang up in response to these cuts. On the site you can read about the very real impact this has had on small and independent business people whose sole source of employment is energy audits. Many had been in business for only a short time, after investing heavily in the required equipment and training.
The provincial partners that supported this program by matching the ecoENERGY funds were also caught off guard. This has resulted in widespread confusion, layoffs, and many individuals walking away from audit and retrofit jobs.
The early withdrawal of the ecoENERGY program works against the federal government's stated objective of reducing greenhouse gases. But greenhouse gas reduction is only one of the benefits this program has brought to Canadians. Energy efficiency measures provided a direct and ongoing benefit to Canadian homeowners' pocketbooks while supporting the creation of jobs for contractors, building supply retailers, and manufacturers, such as our membership.
Modelling programs and real-life experiences have seen reductions in homeowner operating costs of $500 to $800 a year through investments of as little as $4,500 through this program. Energy efficiency renovations allow the homeowner to see immediate and sustained payback. More disposable income in the hands of the consumer can only fuel the economy.
In the interest of time, NAIMA has limited suggestions to four key areas, which we believe can generate significant benefits.
First, offer energy efficiency low-interest loans. These loans would be guaranteed by the government. They would provide homeowners with the upfront financial resources to tackle many of the issues not addressed by ecoENERGY programs. For example, in many instances, when considering the envelope of a house, the cost of opening a wall to insulate to higher R values is not reasonable or feasible with a $500 incentive. A loan program could assist homeowners in completing some truly substantive and needed energy efficiency repairs and upgrades, without the burden of rising interest rates. It's worth considering.
Second, programs focused on increasing energy efficiency in one of the most neglected areas of housing--social housing, low-income housing, and housing in some first nations communities--are needed now. Estimates vary, but there are almost 800,000 units across this country in these categories, most of them in need of major energy efficiency upgrades. Since the heating and cooling costs of these units are directly or indirectly paid for by some level of government, any federal investment in reducing these costs will positively contribute to the bottom line of government.
Third, we must recognize that new homes will continue to add to the Canadian market homes that require energy efficient upgrades. Our building code processes fail to ensure energy efficiency when homes are built. Five of Canada's provinces do not have energy efficiency in their building codes, and one province has not updated its energy efficiency code since the 1960s. This is a huge deficit that will continue to burden future generations.
Finally, Canada must use the process and data resulting from the ecoENERGY programs to educate homeowners about what it costs to operate their homes. The decision about home pricing is only one part of the equation when it comes to affordability. Just as important is the part of the equation that includes operating costs. It's not only the cost of the mortgage that can cripple a household budget. In 2007 we saw groups begin to discuss a new term, “energy poverty”. This term was used for the situation where families were going without proper food and heating because their income could not stretch to meet rising mortgage rates and food.
NAIMA Canada also supports mandatory home energy audits. We believe this is, first and foremost, a critical consumer protection initiative. Potential homebuyers need to have access to verify full and open disclosure on the energy performance of a home, not just the fuzzy energy bill estimates provided by real estate agents. Such an initiative would see a responsible homeowner benefit from lower bills when they occupy a house and also see a premium price or a quicker sale when they decide to sell. Mandatory labelling of houses for buyers provides important consumer information that is currently not being offered.
Recent studies and polls indicate a strong willingness by consumers across all regions of Canada to expect or demand energy efficiency in homes. According to the 16th annual RBC homeowner study, almost all Canadians, 95%, said that low energy consumption is an important consideration when buying a home.
It is clear that improving energy efficiency not only helps us meet our commitments but also has an immediate, positive impact on us and our families. The reinstatement of the ecoENERGY program will have the added benefit of continuing to educate Canadian consumers about the benefits of energy efficiency, while supporting jobs in the manufacturing, sales, and installation of energy-related products.
Our industry benefits from the ecoENERGY program by selling more insulation, but jobs are created, homeowners save on energy bills, and society benefits from the reduced greenhouse gas emissions. Clearly, NAIMA Canada is committed to energy conservation and will continue to work with all interested parties. We now eagerly await the outcome of your deliberations.
Thank you.