ssc2011_lori bamberger ppt

Framing the Challenge & Opportunity: Residential Buildings

National Housing ConferenceSeptember 26, 2011

Lori Bamberger

Seeding Markets, Sustaining Communities

Lori Bamberger Consulting 2Confidential

The Framework for Residential Energy Financing Innovations

• The Opportunity & What’s at Stake• Carbon• Multifamily & Single Family

• Barriers

• Local and National Innovations• Information Perfecting (Labels, Disclosures)• Marketing• Financing


Residential buildings make up a large chunk of the nation’s emissions

Buildings account for 43 percent of U.S. CO2 emissions

Residential; 48%

Commercial; 40%

Industrial; 12%

Build-ings43%

Industry25%

Transporta-tion32%

Residential buildings account for almost half of the built environment’s emissions

So, residential buildings account for 21 percent of all U.S. CO2 emissions

And, the vast majority of CO2 emissions come from single family, owned homes

that will still exist in 2050…Source: Pew Center on Global Climate Change and Nehemiah Stone


Residential emissions have increased substantially in the last 18 years

CO2 emissions from residential

buildings increased much faster than all sectors except commercial operations between 1990 and 2008 and surpassed the overall average increase by over 10 percentage points

All sectors, 15.9%

Source: Energy Information Administration


The Multifamily Opportunity

35 Million Families In all U.S. Multifamily• Approximately 1/3 of all Californian households (~4.2 million)

Federally Subsidized Subset: Big, Old Buildings• 34,614 HUD subsidized buildings • 5 million HUD and LIHTC subsidized, affordable housing units

Enormous Federal Energy Cost Outlay• $6.8 billion in federal HUD expenditures: 15–20% of HUD’s budget• More billions in LIHTC, USDA, and VA subsidized housing

29% ($9 billion) in Energy Savings estimated from MF alone• $1.9 billion in savings estimated from HUD’s MF potential

Large Aggregation Opportunity due to fewer owners


Older MF buildings increase the Energy CCC’s: Consumption, Costs, & Carbon Emissions

Multifamily 5 units of More

Number of Households

Percent of All Households

Household BTU

Consumption BTU/Sq. Ft.

Average Energy Costs

Before 1940 1.4 1% 76.6 122.8 $1,506

1940−1959 2.0 2% 72.4 101.5 $1,434

1960−1979 6.2 6% 52.3 66.2 $1,110

1980-1999 5.9 5% 47.8 60.6 $1,103

2000 or later 1.3 1% 44.2 50.4 $1,092


The Single Family Opportunity

Approximately 75 million households • Approximately 8.3 million single family units in California•Nearly 1/3 are low- or moderate-income

–Many don’t qualify for energy assistance– Homes are the least efficient, most costly to operate

Energy Costs are Rising•Average national energy costs: $1997/household•In some parts of the US, some energy spikes approached levels close to the subprime ARM spike

Saving Energy can build family savings & stabilize neighborhoods•Modest investments ($3,000 to $15,000) can yield 20-40% energy and financial savings•The average single family savings estimated at approximately $650/year. • Foreclosure stabilization loan/mod efforts seek savings of $50-$100/month


The California single family home example

Approximately 2/3 of California Residents Live in SF homes (~8.3 Million homes)

Miscellaneous – 11%Water Heating – 3%

Space Heating – 4%

Dishwashing and Cooking – 5%

Pools and Spas – 6%

Air Conditioning – 10%

Laundry – 5%

TV, PC, and Office Equipment

– 15%

Refrigerators and Freezers – 19%

Lighting (Estimate)* – 22%

* Note: An estimate of 1,200 kWh per household (20% of the total use) has been designated as interior lighting and was shifted from Miscellaneous to Lighting where it is combined with exterior lighting usage. This number comes from other lighting studies that are better able to pinpoint this estimate than a conditional demand model as was used for the RASS.

Statewide Average Electricity Use Per Household

(5,914 kWh per Household)

Miscellaneous – 11%Water Heating – 3%


Dishwashing and Cooking – 5%

Pools and Spas – 6%

Air Conditioning – 10%

Laundry – 5%

TV, PC, and Office Equipment

– 15%

Refrigerators and Freezers – 19%

Lighting (Estimate)* – 22%

* Note: An estimate of 1,200 kWh per household (20% of the total use) has been designated as interior lighting and was shifted from Miscellaneous to Lighting where it is combined with exterior lighting usage. This number comes from other lighting studies that are better able to pinpoint this estimate than a conditional demand model as was used for the RASS.

Statewide Average Electricity Use Per Household

(5,914 kWh per Household)


Water Heating – 44%

Cooking – 22%

Statewide Average Natural Gas Use Per Household

Pools, Spas, Misc. – 3%

Dryer – 3%


Water Heating – 44%

Cooking – 22%

Statewide Average Natural Gas Use Per Household

Pools, Spas, Misc. – 3%

Dryer – 3%

Source: California Long Term Energy Efficiency Strategic Plan (2008); IEPR (2007)


The costs of energy inefficiency exacerbate existing financial challenges faced by middle income families

The lowest income groups pay the highest proportions of their income on home energy

Less than $9,999

$10,000 to $14,999

$15,000 to $19,999

$20,000 to $29,999

$30,000 to $39,999

$40,000 to $49,999

$50,000 to $74,999

$75,000 to $99,999

$100,000 or more

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

16%

9%

7%

5%

4%

3% 3%

2% 2%

Household Income

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Financial and Other Barriers Inhibit Scaling

Perception• Utility Costs Not disclosed at sale

• Asset Labels typically apply to new homes

• Privacy laws

Financing Challenges in both single family and multifamily• First cost hurdles & lack of affordable financing

• Data

• Early, patient and innovative capital

• Regulatory Silos

• Multifamily: misaligned incentives; prohibitions on project reserves/receipts

• Single Family: Enormous Fragmentation (75 million different owners), mortgage crisis

Workforce Issues


Local innovations are scalable, replicable, and point the way forward

Information Perfecting & State and Local Policy• Disclosure: Green MLS, Utility Bill, Asset Ratings• Code enhancements

Financing Innovations• Standalone Energy Retrofit Lending

– Multifamily Energy Retrofit Funds – PPAs and ESAs– Onbill Financing (Enterprise Cascadia, Blue Tree, and Lori Bamberger Consulting)– Tax-Lien Financing (for commercial and multifamily)– Public Housing and Freezing the Base

• Embedded Financing

Workforce Initiatives

Utility Initiatives & Incentives


Our Work & How to Reach Us

• Affordability, energy financing & innovations– Partnership-building & Cross-Sectoral Efforts– Policy Formulation – Financing Innovations & Implementation

• Reaching Us:Lori Bamberger ConsultingThoreau Center for SustainabilityThe Presidio1012 Torney AvenueSan Francisco, CA [email protected]

ssc2011_lori bamberger ppt

Technology

energy savings

energy cccs

energy spikes

costs of energy inefficiency

single family opportunity

energy assistance homes

single family units

residential emissions