Cambridge Multifamily Energy Innovation Project

MIT Energy Efficiency Strategy Project

INTRODUCTION

PROJECT GOAL: ENERGY PROGRAM DESIGN FOR EXISTING MULTIFAMILY HOUSING

TIMELINE• FALL 2012 – BACKGROUND RESEARCH & CONCEPT DEVELOPMENT

• SPRING 2012 - PRACTICUM

• JUNE 2012 – DELIVERY OF DETAILED PROGRAM DESIGN

PROGRAM COMPONENTS

• ENERGY DISCLOSURE FOR ALL BUILDINGS

• EXPLORE UPGRADE REQUIREMENTS

• ENERGY MAP AND DISCLOSURE PLATFORM

• COMMUNITY BASED MARKETING & ENDORSEMENT

• INTEROPERABLE CUSTOMER RELATIONSHIP MANAGEMENT

• ON UTILITY BILL FINANCING

• COMPREHENSIVE SCOPE

OUTREACH

•Cities •Community Groups•Utility advertising•CDC networks•Etc.

MassSAVE 1-4

(NSL)

CURRENTLY…

MF Weatherization

MF Market Integrator

LEAN (low income

MF)

MA Green Retrofit

Initiative

Commercial

Fuel Switch

MF HVAC

OUTREACH

•Cities •Community Groups•Utility advertising•CDC networks•Etc.

MassSAVE 1-4

(NSL)

CURRENTLY…

MF Weatherization

MF Market Integrator

LEAN (low income

MF)

MA Green Retrofit

Initiative

Commercial

Fuel Switch

MF HVAC

MassSAVE•More comprehensive •HEAT Loan, NSL Loan, CEA loans•Good customer relationship (CRM)

LEAN & MA G.R.I•More comprehensive •Loan products•Good CRM

MF Programs•Disaggregated•HEAT Loan; limited applicability to MF•Poor CRM

MARKET ANALYSIS

THE STATE OF HOUSING IN CAMBRIDGE

HOUSING MARKET DOMINATED BY

RENTALS

RENTALS ARE 65% OF MARKET

95% OF RENTALS ARE MULTI-UNIT

33% OF RENTALS ARE 2-4 UNIT

27% OF HOUSING UNITS ARE CONDOS

STUDENTS ARE 27% OF ADULT POPULATION

53% OF RENTAL HOUSEHOLDERS ARE UNDER 35

OVER 60% OF RENTERS HAVE LIVED IN CURRENT HOME LESS THAN FIVE YEARS

52% OF RENTAL UNITS BUILT BEFORE 1940

13% OF RENTAL UNITS USE OIL HEATING

YOUNG RENTAL DEMOGRAPHIC IN

TRANSITION

HOUSING STOCK PRIME FOR EFFICIENCY

LOCAL BARRIERS TO EFFICIENCY

MULTI-FAMILY HOUSING A HARD-TO-REACH MARKET IN ENERGY EFFICIENCY

• SPLIT INCENTIVES AND THE “LANDLORD-TENANT PROBLEM”

• TRADITIONAL ENERGY EFFICIENCY PROGRAMS HAVEN’T CRACKED THROUGH

• DESPITE POTENTIAL FOR GREAT SAVINGS, A MARKET FAILURE

LOCAL RENTAL HOUSING MARKET PRESENTS SPECIFIC DIFFICULTIES

• NO COORDINATION AMONG MANY SMALL PROPERTY OWNERS

• YOUNG, MOBILE RENTAL DEMOGRAPHIC• ADDITIONAL RULES FOR CONDOMINIUMS Creative Commons License,

http://www.flickr.com/photos/bradywahl/3942246432/

PROGRAM COMPONENT CONCEPTS

DISCLOSURE & MANDATES

ENERGY DISCLOSURE• SIGNAL INTENTION TO MANDATE DISCLOSURE FOR ALL PROPERTIES• OPT-OUT OPTION• AUTOMATED DATABASE POPULATION BY UTILITY (>2 UNITS?)

ASSET DISCLOSURE• INCREASINGLY LOW-COST TOOLS TO:

• RATE BUILDING EFFICIENCY• SUGGEST UPGRADE OPTIONS

• CITY (AND PARTNERS) COULD ISSUE RFP FOR PROVISION OF TOOL & ONLINE PLATFORM FOR MF BUILDINGS

UPGRADE MANDATE• ORGANIZE MULTI-GOVERNMENTAL, MULTI-STAKEHOLDER GROUP TO

INVESTIGATE LOCAL GOVT. OPTIONS TO MANDATE COST-EFFECTIVE UPGRADES

• ORDINANCE• STRETCH BUILDING CODE

OUTREACH STRATEGY

CERTIFICATION & RECOGNITION• OWNERS ASSOCIATIONS, CITY & OTHERS

CERTIFY PARTICIPANTS

• CERTIFY BUILDINGS, PROPERTY MANAGERS, ETC.

• PROMOTE TO BROKERS

USE DEADLINES• SPECIAL INCENTIVES

• BULK PURCHASING COHORTS

• LOOMING UPGRADE REQUIREMENT

OUTREACH STRATEGY

“REGISTERED MARKETERS”• ASK PROGRAM PARTICIPANTS WHO INFLUENCED THEIR

PARTICIPATION AT END OF ENGAGEMENTS• PAY FOR PERFORMANCE – HOW MUCH IS A LEAD WORTH?ANY ORGANIZATION CAN BE A “REGISTERED MARKETER”

COMMUNITY OUTREACH• PEER-TO-PEER, NEIGHBOR-TO-NEIGHBOR & CONTRACTOR-TO-

CUSTOMER• SOLICIT COMMITMENT• MEETINGS BASED, WHERE POSSIBLE• PROPOSAL NEEDS TO BE VETTED BY TRUSTED NETWORKS

FACILITATING DEEP GREEN RETROFITSMF DEEP UPGRADE CHALLENGES •MULTI-UNITS – REQUIRES RAPID UPGRADES, IDEALLY UNIT BY UNIT•VARIOUS HEATING SYSTEMS; DIFFERING UPGRADE OPPORTUNITIES•PREVALENCE OF OLDER MASONRY CONSTRUCTION

TECHNICAL OPPORTUNITIES•EXPLORE SOLUTIONS TO MULTI-UNIT STEAM & HW HEATING•POTENTIAL FOR SUPER-INSULATIVE, THIN INTERIOR INSULATION

PROGRAM ROLES•AGGREGATION & BULK PURCHASING•CAPITAL ASSET MANAGEMENT ASSISTANCE•ENERGY INFORMATION FEEDBACK

DELIVERY VEHICLES

EXTEND & EXPAND MA GREEN RETROFIT INITIATIVE• BLAH BLAH BLAH

INTEGRATE INTO UTILITY PROGRAM PORTFOLIO• BLAH BLAH BLAH

THANKS!

• http://www.city-data.com/neighborhood/Cambridgeport-Cambridge-MA.html

• Part 1: Introduction

• Intro (Brendan)• Program components• Summary of existing MF programs• Summary of potential delivery vehicles• Market Analysis (Ryan)•

• Part 2: Recommendations and Considerations

• Mandates and Disclosure Ordinances (Brendan)• Data Tools (Alexis)• Organizing Strategies and Marketing (Ryan)• Financing (Adi)• Deep Upgrades and Ongoing Engagement (Brendan)•

• Part 3: Conclusion

• Potential Delivery Vehicles (Brendan)