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
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.
In the face of ever-increasing utility costs, and amid growing concerns about climate
change, energy independence, and economic security, the Cambridge Energy Alliance (CEA) today announced it has formed partnerships with four well-established lending institutions, to provide specialized loans and innovative financial solutions for energy efficiency improvements to Cambridge residents and businesses. The lenders were selected following an in-depth evaluation of numerous responses to proposals.
“We are delighted that these lenders have partnered with us,” stated Josh Hassol, Chief Executive Officer of the Cambridge Energy Alliance. “These partnerships will allow Cambridge residents and business owners to make sound, cost-effective investments in critical energy efficiency improvements that work for their individual budgets. Residents and businesses will save money on their utility bills while they reduce greenhouse gas emissions across the City.”
The banks and lending institutions that have partnered with CEA include East Cambridge Savings Bank, Citizens Bank, Key Equipment Finance, and Bostonia Partners, and cover all potential customer segments of the Cambridge Energy Alliance across the City, from individual homeowners to large institutions and businesses.
All lending institutions are ready to begin working with customers of Cambridge Energy Alliance immediately in order to maximize participation.
Sunday- Community members traveled door to door in the Riverside neighborhood of Cambridge distributing free energy efficient compact fluorescent light (CFL) bulbs and efficiency resources to hundreds of homes. This community event, organized by the Cambridge Energy Alliance (CEA) and the Home Energy Efficiency Team (HEET), was held in order to help residents lower their home energy consumption and cut carbon emissions in Cambridge. Jason Taylor, a HEET Team leader, enthusiastically remarked, "Changing light bulbs will put money in your pocket. And it helps the Earth." The Riverside light bulb exchange is part of a broader effort by HEET to help Cambridge residents lower their carbon footprint by implementing efficiency measures in homes with support from volunteers.
Twenty-four volunteers met traveled on foot door-to-door in the Riverside neighborhood, exchanging CFL bulbs for incandescent bulbs. The CFL bulbs were generously donated by TCP, Inc., and Metro Pedal Power provided the carbon-free delivery for the CFLs to the Cambridge Community Center—making it a carbon free event. Four hundred and forty-two CFL bulbs were exchanged today, saving 132,000 pounds of CO2 emissions from being emitted per year. If a resident were to exchange 20 light bulbs in their home it would save approximately $1200 dollars over the life span of the bulbs. The exchange will help Riverside residents decrease their energy consumption, combat climate change, and also save money on their energy bills. After the canvass, a community party was held at the Cambridge Community Center to celebrate the volunteers’ outreach efforts. Lilah Glick, Community Outreach Manager for the Cambridge Energy Alliance considers the event to be a great success and shared, “this demonstrates how a small group of committed individuals can make a real difference in their community and lead the way for a more sustainable, healthy future”. The Riverside light bulb exchange is a continuation of CEA’s summer canvass program, connecting Cambridge residents to efficiency programs and services to help them save money and save the planet. Ms. Glick views changing out light bulbs as a great first step toward reducing energy use and recommends Cambridge residents get connected to CEA’s energy audit programs and services to help identify deeper savings opportunities that create more sustainable, healthier, and comfortable homes.”
