Cambridge Multifamily Energy Innovation Project

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

2. THE BIG QUESTION How do we transform markets to realize scalableenergy 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.

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

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

5. BY THE NUMBERSTHE CAMBRIDGE HOUSING MARKET 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 HOUSING MARKET DOMINATED BY RENTALS YOUNG RENTAL DEMOGRAPHIC IN TRANSITION HOUSING STOCK PRIME FOR EFFICIENCY

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/

7. POTENTIAL POLICY SOLUTIONS SEVERAL EXISTING OPTIONS • ALL ARE PARTIAL SOLUTIONS • UNLIKELY TO SUCCEED WITHOUT BROKERED AGREEMENT

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

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

10. CAMBRIDGE’S 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

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

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

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)

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

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

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

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

18. UTILITY PROGRAM CYCLES & PILOTS PILOT PROGRAMS 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.

19. UTILITY PROGRAM CYCLES & PILOTSLIMITATIONS TO TYPICAL ENERGY PROGRAM DEVELOPMENT HOW CAN WE DESIGN EXPERIMENTATION INTO PILOT PROGRAM? 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.

20. THANKS!THOUGHTS?COMMENTS?

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)