Cambridge Multifamily Energy Program
Terms of Reference – DRAFT
1. Introduction
This Terms of Reference document will outline the components to be included in a
detailed multifamily energy program conceptual design. MIT faculty and students
will complete the detailed design during the Spring Term (February – June) of 2013,
via one of two avenues:
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A practicum offered by MIT’s Department of Urban Studies and Planning.
Project work of Energy Efficiency Strategy Project.
The program design will be offered for the consideration of the energy utility NStar
and the City of Cambridge, to inform the joint delivery of an energy program for
multifamily housing in Cambridge. The program will focus on housing complexes
with approximately 2-12 units in which unit occupants (tenants or unit owners) pay
the utility bill.
The Case for Energy Efficiency
Why EE matters to utilities, local government, local communities.
 Energy savings.
 Direct and savings induced jobs.
 Example to lead other regions – environmental and social justice
opportunity.
 Regulatory mandates on utilities.
Energy Programs – Past and Present
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Outline what programs have been & are currently offered for MF in
Cambridge. Note programs by NStar, non-governmental organizations, and
the City. Note:
o Administration
o Management
o Partners
o Contractor protocols.
o Customer process.
Brief commentary on lessons learned, promising findings, identified barriers
to EE, missing pieces to the policy mix, etc.
Barriers to Energy Efficiency in Multifamily Housing
Draw on literature review & Cambridge context. Note commonly cited barriers.
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Split incentive. Typical financing tools & leases do not facilitate saving
energy.
o In Cambridge MF, most tenants pay for both electricity and heating
fuel.
Lack of energy literacy and frame of reference.
Pre-weatherization barriers.
Etc.
Characterizing the Multifamily Housing Stock in Cambridge
This section will segment our market along important variables:
 Age
 Condition (if available)
 Condominium versus rented units
 Owner occupied in rental units
 Affordable versus market
 Individual versus master metered
 Extent of building management staffing (likely more qualitative interviews)
A New Opportunity
Across the USA, there have been a variety of innovative new energy efficiency
programs and policies in recent years, designed and implemented by multistakeholder coalitions including utilities, local government, civil society and others.
A variety of strategies and opportunities are emerging, which have the potential to
breakdown traditional barriers to energy efficiency. Important such opportunities
that will be explored in the design of a multifamily energy efficiency program for
Cambridge include:
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Using energy data to identify buildings needing upgrades, and to inspire
owners and tenants to take action based on comparisons with their peers.
Stakeholder engagement, exploring opportunities to engage landlord and
tenant communities to co-create energy efficiency program architecture.
Novel financing mechanisms, which can enable the large investments
required in the housing stock and reduce split-incentives.
Green leasing stipulations, enabling the beneficiaries of energy
improvements (tenants, in the case of most houses in Cambridge).
Addressing healthy homes issues, as well as improving the durability of the
housing stock and exploring opportunities to implement other
environmental improvements beyond energy (stormwater improvements,
etc.)
2. Potential Program Architecture
Outline potential structure of a MF energy program. Caveate that this outline is
conceptual and preliminary; recommended designs will occur in Spring 2012.
Outline should cover:
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Process of buildings/customers through the program.
Adminstration, management & delivery structure; responsibilities of
different stakeholders.
3. Program Components
Note: This section comprises the majority of our Terms of Reference.
The design of our program is underpinned by several key components:
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Leveraging energy data.
Engaging multiple stakeholders, especially landlords and tenants, in the
program design and delivery.
Financing mechanisms.
Green leasing stipulations.
The technical scope of upgrade work.
For each component, outline:
 Purpose of this component – what does it do to enable energy efficiency?
 The goals and scope of the detailed design in Spring 2013.
 Key background information.
 Important precedents.
 Regional partners, who could be involved in implementation. Note their
status, and the extent that they have been engaged this Fall 2012.
Energy Data
Scope of Design
 Privacy principles - What parties (owners, tenants, government, third party
providers, etc.) can access what data, under what conditions.
 Data format principles (utility billing history, value-added data, etc.),
outlining what data should be made available to different audiences to
realize a vibrant entrepreneurial environment for residential energy
services.
 The data taxonomy, platforms, and collection protocols for a city
program, considering how the system could be scaled or replicated in other
regions.
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Innovations in data presentation - The data presentations (benchmarks
and ratings, maps, thermal images, etc.), contexts (time of listing for sale or
lease, efficiency program recruitment drives, etc.) and messengers (peers,
utility, city, upgrade contractors) that can best catalyze participation in
upgrade programs.
Background Information
 Determine data formats and protocols to be shared by NStar. How does this
differ from Green Button and the Federal SEED intiatitve?
 Review Massachusetts DOER Benchmarking Initiative
 Review US DOE Green Button & SEED initiatives, the format of data which
utilities are expected to share.
 Review typical asset information that can be derived from typical city tax
assessment and GIS data. Joe Feirrera to inform.
 Summarize existing literature on available data, applications, privacy.
 Summarize benchmarking principles for good practice; Lindsay Reul’s work
on mapping applications.
 Literature review on optimal means of testing these products &
interventions.
Precedents & Partners
Outline the data requirements, diagnostic technologies, and information
presentation context associated with the following projects:
 Next Step Living
 essess.com
 MIT Cambridge EnergyView energy analytics and mapping
 WeGo Wise
Assess the scalability of these systems. What are the input resources needed to
develop and maintain these databases & graphics? How do they help program
administrators achieve greater efficiency (diagnosing buildings to focus on, assisting
in marketing, greater transparency, etc.).
Deliverables for Fall
 Summary of privacy principles, basic data taxonomy, existing presentation
schemes.
 Description of experimental / pilot testing process for the Spring.
Demand-side Stakeholder Engagement
Realizing the EE potential in MF requires overcoming a series of split-incentives and
collective action problems. It is important that a variety of stakeholder groups are
involved in the design of the program, and subsequent program marketing efforts.
Important constituencies to engage include:
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Landlords organizations
Tenants associations
Condominium owners association
Property managers
Brokerage community
Scope of Design
 Preliminary engagement with stakeholders
 Marketing & engagement plan for the demand side (Condo owners, landlords
& tenants)
Background Information
 Stakeholder assessment of demand side
o What are pertinent organizations?
o What are their interests & stated positions?
 Status of rent control regulations in Cambridge
Financing
Scope of Design
 Recommend a consumer financing tool to support deep energy upgrades.
Background Information
 Summarize available financing tools & programs in Cambridge.
o http://cambridgeenergyalliance.org/landlords/financing
o http://leanmultifamily.org/
o http://www.heetma.com/
 Typical MF building financing systems present in Cambridge (commercial
mortgages, home mortgages, REITs, etc. – Derive from interviews with real
estate community.)
 Existing & proposed on-bill financing initiatives.
 Commercial PACE – Could it apply to MF in MA; existing & proposed
initiatives.
 Articulate important elements of financing EE.
Green Leasing
Scope of Design
 Recommend strategy for utility/City to incorporate green leasing language
into MF leases.
 Recommend lease stipulations.
Background information
 Green lease for MF initiatives – Start in MA, and proceed elsewhere.
 Status of rent controls.
Technical Scope
Scope of Design
 Outline typical measures appropriate for MF housing typologies in
Cambridge.
 Outline required contractor certifications
Background information
 Identify MF upgrade contractors.
 Pre-weatherization barriers.
 Status of rent controls.
4. Appendixes
Case Study – Next Step Living
Energy data & thermal imaging asset inference
Case Study – Essess.com
Case Study – Solar Map
Case Study – Next Step Living – WeGo Wise
Case Study – Renew Boston Lean Program
Program management
Case Study – Seattle Benchmarking & Reporting Policy
Covers MF housing >5 units.
http://www.seattle.gov/environment/benchmarking.htm
Preliminary Practicum Lesson Plan & Syllabus