Slide 1

Cambridge Multifamily Energy Innovation Project MIT Energy Efficiency Strategy Project

Slide 2

THE BIG QUESTION How do we transform markets to realize scalable energy efficiency and renewable energy In multifamily housing (2-20 units) via partnership between utilities, government, community organizations, and private business? Proposed practicum Spring 2013. Not yet approved.

Slide 3

JUNE 2013 PRODUCTS Conceptual design of an energy program for City & utility consideration, leveraging: Big data Democratization of program delivery Innovative financing tools Community-partnered outreach Student learning objectives Introduction to energy efficiency resource governance Multi-stakeholder engagement and decision-making techniques Program design, administration and evaluation Exposure to data systems management

Slide 4

FALL 2012 Background research Terms of Reference to guide detailed Spring 2013 program design Solidifying partners and program status

Slide 5

BY THE NUMBERS THE CAMBRIDGE HOUSING MARKET 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

Slide 6

UNDERSTANDING SPLIT INCENTIVES MULTI-FAMILY HOUSING A HARD-TO-REACH MARKET IN ENERGY EFFICIENCY THE LANDLORD-TENANT PROBLEM EXACERBATED BY LOCAL MARKET CHARACTERISTICS DOMINANCE OF RENTALS FEW LONG-TERM RESIDENTS HIGH NUMBERS OF SMALL PROPERTY OWNERS CONDOMINIUMS PRESENT ADDITIONAL UNIQUE BARRIERS INFLUENCE OF HOMEOWNER ASSOCIATIONS Creative Commons License, http://www.flickr.com/photos/bradywahl/3942246432/

Slide 7

POTENTIAL POLICY SOLUTIONS SEVERAL EXISTING OPTIONS ALL ARE PARTIAL SOLUTIONS UNLIKELY TO SUCCEED WITHOUT BROKERED AGREEMENT GREEN LEASES TIME-OF-SALE EFFICIENCY ORDINANCES ENERGY DISCLOSURE ORDINANCES PROS PROVEN IN COMMERCIAL MARKET SIDESTEP THE SPLIT-INCENTIVE PROBLEM OVERCOME INFORMATION BARRIERS PROVIDE CERTAINTY AND TRANSPARENCY LOCAL PRECEDENT IN GREEN COMMUNITIES ACT EVIDENCE OF CONNECTION TO ENERGY SAVINGS CONS DIFFICULT WITHOUT RENT CONTROL HARD TO ENACT AND HARDER TO REPLICATE SUBSTANTIAL OPPOSITION; UTILITY PRIVACY POLICY DO NOT ADDRESS TRUST ISSUES LIMIT ON HOMES THAT CAN BE REACHED MUST STILL CONNECT INFORMATION TO ACTION

Slide 8

STAKEHOLDER ENGAGEMENT AND FACILITATION CURRENT PREP WORK BUILDING ROSTER OF RELEVANT ACTORS IDENTIFYING EXISTING AVENUES OF COMMUNICATION AGENDA FOR SPRING SEMESTER CONDUCT OUTREACH TO RELEVANT ACTORS USE PARTICIPATORY PROCESS TO INFORM PROGRAM DESIGN TARGETED GROUPS LANDLORD ORGANIZATIONS TENANT ADVOCACY GROUPS CONDO ASSOCIATIONS PROPERTY BROKERS AND MANAGERS ENERGY CONTRACTORS NSTAR AND CITY OF CAMBRIDGE

Slide 9

AVAILABLE MULTI-FAMILY PROGRAMS IN MASSACHUSETTS MASS-SAVE HOME ENERGY SERVICES PROGRAM AVAILABLE FOR 1-4 UNIT BUILDINGS MASS-SAVE MULTI-FAMILY PROGRAM AVAILABLE FOR 5+ UNIT BUILDINGS LOW-INCOME MULTIFAMILY PROGRAM (LEAN) 50% OF UNITS MUST BE AT OR BELOW 60% OF AMI MASSACHUSETTS GREEN RETROFIT INITIATIVE 50% OF UNITS MUST BE AT OR BELOW 60% OF AMI FOCUS ON DEEPER RETROFITS, ONGOING ENGAGEMENT WITH PROPERTY OWNERS

Slide 10

CAMBRIDGES EXPERIENCE WITH MULTI- FAMILY PROGRAMS EXPERIENCE PROMOTING MASS-SAVE PROGRAMS FOCUS ON COMMUNITY-BASED OUTREACH NOW DEVELOPING MULTI-FAMILY SOLAR GUIDE FINDINGS MOST ENGAGED LANDLORDS LIVE IN THE PROPERTY MOTIVATED TENANTS KEY TO SUCCESS CHALLENGES MAINTAINING CONTACT WITH LANDLORDS AND TENANTS ACCESSING MULTI-FAMILY AUDIT DATA & CUSTOMER PROGRESS LACK OF UPTAKE OF DEEP RETROFITS

Slide 11

POTENTIAL SHIFTS IN MASSACHUSETTS MULTI-FAMILY PROGRAMS DRAFT MASSACHUSETTS EFFICIENCY PLAN FOR 2013-2015 MENTIONS: TREATING CONDO OWNERS AS SINGLE FAMILY HOMEOWNERS COORDINATING MULTI-FAMILY AND COMMERCIAL PROGRAMS COORDINATING SINGLE FAMILY AND MULTI-FAMILY LOW INCOME PROGRAMS

Slide 12

POTENTIAL FINANCING OPTIONS ENERGY PERFORMANCE IMPROVEMENT PROGRAM PROVIDES LOANS OF UP TO $15,000 PER UNIT FOR MULTI-FAMILY EFFICIENCY IMPROVEMENTS ON-BILL FINANCING NSTAR HAS FACED PAST CHALLENGES IN CAMBRIDGE WITH BILLING SYSTEM LIMITATIONS LOCAL TAX INCENTIVES HAS BEEN LARGELY UNEXPLORED IN MULTI-FAMILY SECTOR SOLAR LEASING SOLAR COMPANIES COVER EQUIPMENT AND INSTALLATION COSTS CUSTOMERS PAY FIXED MONTHLY LEASE PRICE OR ELECTRICITY RATE

Slide 13

DATA AND BENCHMARKS ENERGY DATA MONTHLY BILLING RECORDS GRANULAR SMART METER READINGS LOAD DISSAGREGATION APPLIANCE COMMUNICATIONS VIA INTERNET OF THINGS ADDRESSABLE EQUIPMENT & HOME AREA NETWORK DETAILED LOAD DISSAGREGATION & ENERGY MANAGEMENT ASSET DATA BUILDING INFORMATION TAX ASSESSOR RECORDS USER INPUTS COMPREHENSIVE BUILDING ASSESSMENTS BUILDING BENCHMARKING SOCIAL COMPARISON PRIORITIZE UPGRADES TYPES OPERATIONAL (ENERGY USE) ASSET BASED (EFFICIENCY OF THE PHYSICAL BUILDING, IRRESPECTIVE OF OPERATION)

Slide 14

BUILDINGS & ENERGY DATA SYSTEMS POLICY DISCLOSURE, MANDATE, LEASE COMMUNITY BASED OUTREACH DRIVE DEMAND FOR MassSAVE & MF DRIVE DEMAND FOR MassSAVE & MF POTENTIAL PILOT PROGRAM ARCHITECTURE

Slide 15

BUILDINGS & ENERGY DATA SYSTEMS POLICY COMMUNITY BASED OUTREACH DRIVE DEMAND FOR MassSAVE & MF DRIVE DEMAND FOR MassSAVE & MF POTENTIAL PILOT PROGRAM ARCHITECTURE OPEN CON- TRACTOR POOL OPEN CON- TRACTOR POOL EE & HEALTHY HOMES CREDENTIALS QUALITY ASSURANCE FINANCING

Slide 16

BUILDINGS & ENERGY DATA SYSTEMS POLICY COMMUNITY BASED OUTREACH DRIVE DEMAND FOR MassSAVE & MF DRIVE DEMAND FOR MassSAVE & MF POTENTIAL PILOT PROGRAM ARCHITECTURE OPEN CON- TRACTOR POOL OPEN CON- TRACTOR POOL EE & HEALTHY HOMES CREDENTIALS BUILDING UPGRADES ASSET MANAGEMENT ENERGY USE MONITORING & PRESENTATION OPERATIONAL IMPROVEMENT OCCUPANT BEHAVIOR QUALITY ASSURANCE FINANCING

Slide 17

BUILDINGS & ENERGY DATA SYSTEMS POLICY COMMUNITY BASED OUTREACH DRIVE DEMAND FOR MassSAVE & MF DRIVE DEMAND FOR MassSAVE & MF POTENTIAL PILOT PROGRAM ARCHITECTURE OPEN CON- TRACTOR POOL OPEN CON- TRACTOR POOL EE & HEALTHY HOMES CREDENTIALS BUILDING UPGRADES ASSET MANAGEMENT ENERGY USE MONITORING & PRESENTATION OPERATIONAL IMPROVEMENT OCCUPANT BEHAVIOR QUALITY ASSURANCE INTEROPERABLE CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM FINANCING

Slide 18

UTILITY PROGRAM CYCLES & PILOTS Vine, Edward. 2010. A Conceptual Framework for Integrating Behavior and Behavioral Change in the Energy Efficiency Program Cycle. In People-Centered Initiatives for Increasing Energy Savings. Washington DC: American Council for an Energy Efficient Economy. PILOT PROGRAMS

Slide 19

UTILITY PROGRAM CYCLES & PILOTS LIMITATIONS TO TYPICAL ENERGY PROGRAM DEVELOPMENT Sullivan, Michael. 2009. Using Experiments to Foster Innovation and Improve the Effectiveness of Energy Efficiency Programs. Berkeley: California Institute for Energy and Environment Behavior and Energy Program. http://uc-ciee.org/downloads/exp_design_wp.pdf. HOW CAN WE DESIGN EXPERIMENTATION INTO PILOT PROGRAM?

Slide 20

THANKS! THOUGHTS? COMMENTS?

Slide 21

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)