Using Local Improvement Charges to Finance Building Energy Efficiency ImprovementsA Concept Report

Publication - May 1, 2004 - By Roger Peters, Nicholas Heap, Matt Horne

This paper describes an innovative new use for municipal local improvement charges (LIC) to finance improvements in residential and/or commercial building energy efficiency.The main advantage of using an LIC over alternative methods of financing energy efficiency improvements is that it associates the repayment of the cost of efficiency improvements with the building property rather than with the current building owner. The benefits and costs therefore pass from owner to owner, and do not add to the first cost of the improvement or the indebtedness of the owner. The paper describes the benefits of using LICs for municipalities and building owners, and ways in which an energy efficiency LIC program could operate. Finally it proposes a pilot program through which Canadian municipalities could test the concept. The research for this paper was funded by Climate Change Central Alberta and BC Hydro.

See our 2005 Report, Using Local Improvement Charges to Finance Energy Efficiency Improvements: Applicability Across Canada for further information.


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