2008 NCPPP Innovation Service Award Winner
Project Location: Cambridge, Massachusetts
Public Sector Partner: Cambridge Energy Alliance
Contact Name: Josh Hassol, President and CEO,
jhassol@cambridgeenergyalliance.org
Private Sector Partner: Bostonia Partners, LLC
Contact Name: Anita Molino, Principal,
amolino@bostonia.com
PROJECT SUMMARY
In an effort to promote, design and implement energy efficiency and clean energy initiatives, the City of
Cambridge, Massachusetts, partnered with non-profits and private companies to develop the Cambridge Energy
Alliance (CEA). CEA is a city-sponsored non-profit operating company made up of the City of Cambridge;
Cambridge Health Alliance; Clean Energy Solutions, Inc.; Peregrine Energy Group; and the Henry P. Kendall
Foundation. An investment of $100 million over the first ten years of the program will be directed toward
energy investment measures in buildings throughout the City. Eighty percent of the funding will be secured
through private donations, coordinated by Bostonia Partners, LLC, and the remaining 20 percent will come
from state- and regionally-financed efficiency incentives available to CEA.
PROJECT OBJECTIVES
Project objectives include reduction in energy usage, development of more sustainable energy sources and the
mobilization and education of the community. Specifically, CEA aims to reduce electrical demand by 10 percent
during normal hours and by 14 percent during peak usage times (4 to 7 p.m.). If these results are obtained,
energy experts estimate the City of Cambridge will reduce its carbon dioxide emissions by 150,000 tons annually.
Later on, more attention will be paid to water and natural gas conservation and efficiency.
The first phase of the project, set to span between five and seven years, will target half of the City’s 23,000
buildings. CEA believes it will have the biggest impact by working with university, commercial and industrial
properties, which account for nearly 70 percent of Cambridge’s energy consumption.
Another important objective of CEA is to develop a program that can be a model of community collaboration for other
cities and towns as they embark on their own energy efficiency programs. In 2007, the State of Massachusetts announced
the creation of a $2 million loan fund for local governments to supplement start-up costs for energy efficient programs
modeled after CEA.
PROJECT DESCRIPTION
Partners
The public sector partner for this project is the Cambridge Energy Alliance, made up of the City of Cambridge;
Cambridge Health Alliance; Clean Energy Solutions, Inc.; Peregrine Energy Group; and the Henry P. Kendall Foundation.
To implement energy efficiency projects, CEA competitively selected lenders and energy service companies (ESCO) to
oversee the small loans to property owners, conduct energy audits and contract for improvements.
The private sector partner for this project is Bostonia Partners, LLC. CEA’s endeavor is dependent on the donations of private sources,
and Bostonia Partners, LLC coordinates the ongoing financial fundraising.
Implementation Environment—Legislative and Administrative
Performance contracting, specifically contracts with ESCOs, is permitted under the General Laws of Massachusetts.
Procurement of energy management services may be competitively sought by governmental agencies (Gen. Laws of Mass.,
part I, ch. 25A § 11C, [2008]).
Financial Agreement
The funding for CEA comes from two sources: private donations (80 percent) and state- and regionally-financed energy efficiency
incentives (20 percent). Bostonia Partners, LLC coordinates the private donations.
Small loans are made to property owners in order to upgrade existing buildings. Competitively selected lenders offer low rates to
property owners, and the selected ESCOs perform energy audits and negotiate with contractors for the improvements. The small loans
are repaid through utility cost savings realized by the improvements. Once the loan has been repaid, property owners will benefit
from these projects by decreased energy costs for years to come. CEA estimates that over the next ten years, utility consumers will
save more than $160 million. Individual utility bills may decrease by 20 to 30 percent with the implementation of a full cost-effective package.
CEA monitors monthly consumption rates in four categories of buildings: small and large residential and small and large
commercial/industrial. As improvement projects are closed out, CEA will monitor monthly consumption of individual buildings.
Quarterly reports will be posted on CEA’s website.
Contract Provisions
Loan recipients are required to repay the complete loan at a low interest rate.
The repayment of loans allows CEA to avoid using local and state tax dollars to pay for its programs
Implementation Metrics
CEA’s success rests on its contracts with the contracted ESCOs, experts in the field of energy efficiency and performance contracting.
These ESCOs, two of which are accredited by the National Association of Energy Service Companies, supply industry expertise in order
to develop projects that will allow property owners to realize energy savings.
Commentary
CEA’s innovative program is set to become a model throughout the United States. Already the State of Massachusetts has announced a
loan program, called MassEfficiency, which will allow five cities, including the City of Boston, to begin their own programs.
Information obtained from energy audits is intended to be included on CEA’s website. CEA began audits in September 2008, and as data
is collected, this information will be posted to the organization’s website.
