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 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. OUTREACH Cities Community Groups Utility advertising CDC networks Etc. MassSAVE 1-4 (NSL) MassSAVE 1-4 (NSL) CURRENTLY… MF Weatherization MF Market Integrator LEAN (low income MF) LEAN (low income MF) MA Green Retrofit Initiative MA Green Retrofit Initiative Commercial Fuel Switch MF HVAC

OUTREACH Cities Community Groups Utility advertising CDC networks Etc. OUTREACH Cities Community Groups Utility advertising CDC networks Etc. MassSAVE 1-4 (NSL) MassSAVE 1-4 (NSL) CURRENTLY… MF Weatherization MF Market Integrator LEAN (low income MF) LEAN (low income MF) MA Green Retrofit Initiative 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 % 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,

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 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 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!

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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)