The Rebuild Boston Experience 1 Northeast Energy Efficiency

The Rebuild Boston Experience 1

Northeast Energy Efficiency Council Boston, Massachusetts presented by Mike Sherman April 3, 2003 2

What is Rebuild America? l l U. S. DOE Technology Deployment program; Energy savings through community-driven solutions; – Public/private partnerships operating at the community level l Result-driven strategic process grounded in performance metrics. There are few prescribed pathways to success 3

Rebuild Goals: l l Develop, nurture and grow partnerships – more than 500 created. Implement energy efficiency projects – – More than 1 billion square feet; More than $1. 5 billion saved in cumulative energy costs; Annual greenhouse gas emissions reductions of 188 metric tons of carbon; Stimulating private sector jobs 4

Elements of Success 5

Local Organizations Local organizations are the nucleus of Rebuild America Efforts l l State or local government Community-based non-profits Business associations Other sorts public/private partnerships 6

“Energy Champions” Energy Champions are the indispensable people who persist and pursue accomplishment of energy efficiency projects and behavioral changes. 7

Technical Expertise Technical expertise comes from many sources: l l l National Laboratories State Energy Offices In-house technical staff Consultants Utility technical staff 8

Resources $ Organization and Technical Expertise are only exercises without hard resources: l l Public Benefits funds; Performance contracting State and federal programs Private sources in-kind and $ 9

Origin of Rebuild Boston l Established in 1995 (through 2001) l One of six test bed sites for Rebuild America l Focus on Economic Empowerment Zone 10

Enhanced Empowerment Zone 11

Rebuild Boston Partners l City of Boston – Boston Housing Authority – Boston Water $ Sewer Commission Boston Edison (Nstar) Boston Gas (Keyspan Energy) MA Energy Efficiency Council MA Division of Energy Resources MA Water Resources Authority MA Housing Finance Agency Environmental Diversity Forum Environmental Protection Agency l Housing & Urban Development l l l l 12

Our Early Goals l Coordinate delivery of DSM in the Enhanced Empowerment Zone – Apply energy efficiency measures to 10. 4 million sq. ft. over 5 years – Save 437 Million BTU l l Promote Development of Performance Contracts for municipal and privately owned buildings Promote long-term changes in attitudes & actions about energy efficiency 13

5 Year Results $33 million in energy & water efficiency l > 19 million square feet completed l 4, 800 units of housing l 200 commercial/insitutional facilities l $40 million in additional projects initiated l 14

5 Year Results (2) l l Forged fundamental changes in public housing energy management Raised energy-efficiency standards for citysponsored affordable housing Played a key role in research on energy/health issues in public housing Worked with Boston inter-departmental team to systematically approach city’s energy management ($30 million annual energy bill) 15

The best laid plans… l High-level buy-in did not immediately materialize; – Oil and gas prices, adjusted for inflations were historically cheap; – Other revitalization issues were higher priorities – energy efficiency did not connect. l l Institutional players did not need Rebuild There were few dollars available for energy efficiency projects; 16

Finding the way to energy champions l Energy Champions are where you find them. – Technical skills – Financial – Business 17

Restructuring to the rescue In 1997 Massachusetts enacted the Electric Utility Industry Restructuring Act. – Public Benefits Energy Efficiency Funding – Low Income energy efficiency fund – Renewable Energy Trust 18

Existing businesses needed help to revitalize 19

Economic Development l Small businesses chronically under-served by utility energy efficiency programs – Hard to reach out to small businesses, esp. in inner city – Transaction costs high for the savings realized – An Alternate vehicle was needed 20

Combined Forces get things done Office of Business Development • More than 150 small business projects in 2 years • Most cost $3, 000 - $8, 000 • Gas and electric savings 10 -20% 21

Affordable Housing Re-orient to life-cycle instead of first cost l Work with architects & engineers to develop energy-efficiency construction standards l Find $ sources for higher efficiency equipment costs l – Utilities – Housing pro formas 22

Affordable Housing Projects Morville House –elderly housing Academy Homes II – HUD-Foreclosed housing 340 units Mission Main Redevelopment – former public housing redeveloped as mixed income – 600 units family &elderly housing St. Botolph St. Assisted living 89 units 23

Boston Housing Authority Developed first performance contracts l Developed Master Plan for BHA properties l Combined energy efficiency work with indoor air/quality health studies and remediation l Now Implementing Master Plans l 24

Lessons Learned 1. 2. 3. Energy efficiency is only a (small) part of the picture for most people. Co-operative efforts need to be truly collaborative. To change systems you need l Champions l Resources l Results 25

Transition to Rebuild Massachusetts Opportunity to extend the Boston experience to other communities l Ability to draw on wider resource base l Ability to bring communities together to share experiences, problems and strategies for change. l 26