Cambridge Multifamily Energy Innovation Project

1. Cambridge Multifamily Energy Innovation Project MIT Energy Efficiency Strategy Project

2. INTRODUCTION MF SECTOR BARRIERS • SPLIT-INCENTIVES • OWNER/TENANT DISTRUST • HIGH TURNOVER IN CAMBRIDGE • PROPERTY MANAGERS DO NOT PRIORITIZE EE • POLITICALLY CHALLENGING TO REQUIRE UPGRADES WHAT EXISTS TODAY? • ~ 6 PROGRAMS TOUCH MF SPACE • CITY & COMMUNITY PARTNERS MARKET PROGRAMS • LIMITED COMMUNICATION BETWEEN CITY, UTILITY & VENDORS • CITY CONSIDERED AN ENERGY USE DISCLOSURE ORDINANCE

3. PRELIMINARY DESIGN • DRIVE DEMAND • DATA & INFO • DISCLOSURE • MANDATE • SEGMENT • CBSM • HEALTH • ONGOING FEEDBACK • O&M • CAP. MNGT • BEH. • EXISTING PROGRAMS • OPEN • CONTRACTOR POOL(?) • FINANCING • OBF BUILDING UPGRADES • SINGLE POINT OF CONTACT FOR BUILDING OWNER (?) • INTEROPERABLE CRM • PRESCREEN • SCHEDULE • FOLLOW-UP

4. UNDERSTANDING MARKET BARRIERS 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/

5. CHARTING POSSIBILITIES COMMUNITY ENGAGEMENT PROCESS TO CHART EFFICIENCY OBSTACLES AND OPPORTUNITIES • BUILDING STAKEHOLDER ROSTER • CONDUCTING FOCUS GROUPS • CREATING A MATRIX OF INTERESTS AND INFLUENCES TO INFORM PROGRAM DESIGN CAN MARKET BARRIERS BE TURNED INTO OPPORTUNITIES? • USING MARKET SEGMENTATION AS A FOOTHOLD TO CREATE INCENTIVES

6. A MARKET SEGMENTATION APPROACH

7. MARKETING PRINCIPLES BROADEN MARKETERS • CITY STAFF, COMMUNITY ORGANIZATIONS, MULTIPLE CONTRACTORS • COMPENSATION FOR “HOT LEADS” – WORTH? MAKE IT VISIBLE • CERTIFICATION & RECOGNITION • WHAT IS THE “LEED GOLD” EQUIVALENT? TRUST IS CRITICAL • PROPOSAL NEEDS TO BE VETTED BY TRUSTED NETWORKS • PEER-TO-PEER PROMOTIONS • GET CONTRACTORS IN FRONT OF OWNERS • WHO IS THE BEST “SINGLE POINT OF CONTACT”? USE DEADLINES • SPECIAL INCENTIVES • BULK PURCHASING COHORTS • SHOULD CONSIDERING UPGRADE ORDINANCE ALLIANCE?

8. INTERACTIVE ENERGY MAP FOR RENTALS RENTAL/MULTIFAMILY BUILDINGS COLOR CODED FOR ENERGY EFFICIENCY DISPLAYS AVERAGE MONTHLY ELECTRICITY AND GAS BILLS AND HEATING FUEL TYPE RENTERS USE MAP BEFORE MAKING LEASING DECISIONS, HOPEFULLY INFLUENCES LANDLORDS TO IMPLEMENT EFFICIENCY MEASURES GET DATA FROM NSTAR OR FROM CURRENT TENANTS. WALK SCORE IS SIMILAR TOOL

9. ON-BILL TARIFFS: CRACKING THE SPLIT INCENTIVE ON-BILL TARIFFS: A FORM OF ON-BILL FINANCING • UTILITY (OR OTHER FINANCIER) MAKES UPFRONT EFFICIENCY INVESTMENTS, CUSTOMER MAKES REPAYMENTS ON MONTHLY BILL • IDEAL: MONTHLY SAVINGS >= REPAYMENTS ON-BILL TARIFFS VS. ON-BILL LOANS • TARIFFS: TIED TO THE PROPERTY VIA THE METER • LOANS: NON-TRANSFERABLE, STAY WITH THE BORROWER EXAMPLE: MPOWER FUND (PORTLAND, OR) • FOCUSED ON MULTIFAMILY MARKET • BUILDING OWNERS AND UTILITIES ENTER INTO 10-YEAR ENERGY SERVICE CONTRACTS • ENERGY SAVINGS SPLIT BETWEEN OWNERS AND TENANTS, ALSO CAPTURED FOR FUND VIA TARIFF PRO-RATED ACROSS ALL METERS

10. FACILITATING DEEP GREEN RETROFITS MF DEEP UPGRADE CHALLENGES • MULTI-UNITS – REQUIRES RAPID UPGRADES, IDEALLY UNIT BY UNIT • VARIOUS HEATING SYSTEMS; DIFFERING UPGRADE OPPORTUNITIES • PREVALENCE OF OLDER MASONRY CONSTRUCTION EXPLORE SOLUTIONS TO MULTI-UNIT STEAM & HW HEATING POTENTIAL FOR SUPER-INSULATIVE, THIN INTERIOR INSULATION • RIHA – 50 UNIT MASONRY BUILDING, 1940 • AEROGEL INTERIOR INSTALLATION • MANUFACTURER REPORTS 5-YEAR PAYBACK, AFTER TAX INCENTIVES PROGRAM ROLES • BULK PURCHASING • CAPITAL ASSET MANAGEMENT ASSISTANCE

11. THANKS!

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