Governor Deval Patrick today announced a $2 million state revolving loan fund to cover the start-up costs of large-scale energy efficiency programs modeled on the Cambridge Energy Alliance, an innovative public-private partnership also unveiled today. The state fund, called MassEfficiency, will allow the City of Boston and four other Massachusetts cities to replicate the Cambridge effort, which promises $100 million in efficiency measures to be paid for largely out of the savings they generate.
“The Cambridge Energy Alliance is pioneering a new model for energy efficiency that should be replicated by communities across the Commonwealth,” said Governor Patrick, speaking at the launch of the Alliance at the Cambridge City Hall Annex. “MassEfficiency will help make that happen.”
The Cambridge Energy Alliance is a new nonprofit organization formed in partnership with the City of Cambridge to carry out a first-in-the-nation level of energy efficiency measures in a single city. Over the next five years, the Cambridge Energy Alliance will carry out a $100+ million energy efficiency implementation effort, while also installing, where feasible, new renewable and clean energy generation, and technologies that curb electricity use during peak
demand periods. The tagline of the program, which will also target transportation, water use and heating efficiencies, is Saving Money and the Planet.
Specifically, the Cambridge Energy Alliance aims to reduce electricity demand by 50MW, a 15% peak load reduction; reduce annual electricity and water consumption by 10% citywide; and reduce annual greenhouse gas emissions from the city by 150,000 tons (10%) by 2011. The Alliance intends to achieve a participation rate of 50% in each sector of customers (municipal, commercial, residential).
“As a foundation focused on climate change solutions, we view cities as the most promising areas for near-term success in efforts to reduce greenhouse gas emissions,” said Rob Pratt, Senior Vice-President of the Henry P. Kendall Foundation, which, along with the Barr Foundation, provided start-up funding for the Cambridge Energy Alliance. “In city environments, a targeted energy efficiency approach is a clear win-win – reduced emissions and lower energy bills.”
Cities naturally aggregate both needs and services and can therefore support the unique but replicable financial mechanism – a Revolving Fund for Energy Efficiency – designed by the Cambridge Energy Alliance. Approximately 80% of the financing will come from private sources. The remaining 20% will come from a number of electrical utility incentive programs that were established in part to promote energy efficiency. As a result, energy savings and clean energy installations will, in most cases, be paid for by the project financing and repaid from future energy savings of companies, municipal facilities, universities, hospitals, small businesses, and residents. No upfront costs will be required for such installations, and there will be no cost to Cambridge or state taxpayers.
“What’s exciting about this initiative is that it brings private financing to a large-scale energy efficiency project,” said Energy and Environmental Affairs Secretary Ian Bowles. “Governor Patrick and I are glad to be able to provide start-up funds for five more cities to adopt the Cambridge Energy Alliance model through MassEfficiency. The City of Boston, in particular, will be able to take the lessons learned in Cambridge and apply them to an even bigger market, for more savings in energy and money, and greater environmental benefits.”
“I appreciate Governor Patrick’s commitment and leadership in providing the necessary start-up funding to expand this major energy efficiency program to the City of Boston and beyond,” said Boston Mayor Thomas M. Menino. “Conservation is where we must first look to meet our future energy needs, because with each kilowatt we save we reduce our dependence on fossil fuels, eliminate pollution in our neighborhoods, and provide cost savings to residents and businesses alike. The Governor’s leadership in this area will help leverage hundreds of millions of dollars in capital for these projects, serving as a major boost to our economy and creating jobs.”
Governor announces $2 million revolving loan fund to help Boston, four other cities launch similar programs to save energy and reduce emissions. Video
CDM and the Cambridge Energy Alliance (CEA) have formed the first-of-its-kind partnership to evaluate energy and water efficiency at One Cambridge Place, CDM’s
world headquarters in Cambridge, Massachusetts. This large-scale energy and resource conservation project for CDM represents an innovative, community-based approach to making energy efficiency a reality for residents and businesses.
The project team includes ConEdison Solutions, an energy service company, which is conducting a comprehensive energy efficiency audit of the 180,000 square feet that CDM leases at One Cambridge Place. The audit will create an accurate energy model of the building; identify electric, gas, oil, and water efficiency opportunities; and optimize building functions. Proposed infrastructure investments could yield more than $100,000 per year in energy, water, and operational savings—as much as 16 percent of CDM’s projected 2009 energy and water/sewer costs.
Tom Pedersen, CDM director of sustainability, states, “This effort is an integral part of our corporate-wide sustainability performance improvement program and further demonstrates CDM’s commitment to develop lasting solutions for our clients, communities, operations, and people that meet current needs while preserving resources for future generations.” CDM is one of the city’s top 20 employers with 683
employees at One Cambridge Place.
“We’re excited to be the first major business in Cambridge to be collaborating with CEA and ConEdison Solutions on this pioneering partnership in energy and water efficiency,” says Robert Cabral, CDM vice president, facilities. “Proposed savings would not only cover the cost of doing this study and the implementation of recommended measures, but significantly reduce our greenhouse gas emissions and
pay back the investment within 6 to 8 years.”The audit will be complete by the end of 2009 with the installation of improvements slated for early 2010.
ConEdison Solutions will supervise the installation of energy efficiency measures and ensure that the expected savings materialize. Measures being considered include improved heating, ventilation, and air conditioning controls; energy-efficient lighting, refrigerators, and ice machines; as well as enhanced facility management processes, procedures, and policies.
CEA, the result of a first-in-the-nation collaboration between the city of Cambridge and major foundations, is a non-profit organization that is facilitating increased sustainability through large-scale implementation. “CEA aggregates all aspects of energy and water efficiency—from energy service providers, government rebates, and financing to renewable energy and demand reductions and community education and outreach—into one effort,” explains Deborah Donovan, CEA executive director. “The inclusive program allows businesses, residents, and institutions across Cambridge to save energy and money, and dramatically reduce the city’s greenhouse gas emissions. We’re grateful for the city’s forward-thinking support for CEA and to CDM for putting this project on the map by becoming the city’s first major participant.”
“This is an exciting development for CEA and the city,” says Robert W. Healy, Cambridge city manager. “When the city co-sponsored the creation of CEA, we aimed to spur energy efficiency and clean energy improvements in the commercial building sector because that is where most of the energy use and greenhouse gas emissions are occurring. I congratulate CDM for stepping up to the plate and leading the way for our businesses. We hope many others will follow their example.”
MetLife, the owner of One Cambridge Place, is working to obtain U.S. Green Building Council Leadership in Energy and Environmental Design (LEED®) Existing Building certification and an Energy Star™ rating for the property.
This summer (July 6-22) CEA and NSTAR will be reaching out to Cambridge’s small business community to promote energy efficiency measures and accompanied incentives. The Cambridge commercial canvass is made possible through a partnership with Northeastern University’s Summer Discovery program which is supplying six volunteers for the duration of the small commercial campaign. After several days of training, volunteers will visit Cambridge’s small businesses establishments, and alert businesses of money-saving opportunities in their buildings.
Businesses that implement qualified energy efficiency improvements will be eligible to receive a window sticker certifying them as a Green Business Leader. Benefits incurred from energy efficiency improvements include: using less energy, saving money, catching up on deferred maintenance, and improving comfort and productivity of staff and customers.
The Cambridge Energy Alliance (CEA) is a community-based nonprofit organization sponsored by the City of Cambridge that helps residents and business owners invest in making their homes and buildings work smarter and more efficiently-saving energy, water and money. CEA aims to tackle building inefficiencies because 80% of the greenhouse gas emissions in Cambridge are from buildings, and over 60% of those emissions come from the commercial sector. In order to reduce Cambridge energy use CEA helps residents, businesses, and institutions of all sizes make their buildings work smarter and better by presenting them with tips, incentives, and rebates to help them save energy, water, and money. The incentives CEA presents are offered through NSTAR, Cambridge’s local environmentally-forward utility company.