Letter from Donna P. Lopez, City Clerk transmitting a report from Councillor Zondervan, Co-Chair of the Health and Environment Committee for a public hearing held on May 24, 2018 to discuss the City of Cambridge getting to NET Zero Action Plan

ATTACHMENTA May 24, 2018 ZERO City of Cambridge THE PATH TO A CAMBRIDGE I FY 2017 Progress Report Health and Environment Committee Hearing Getting to Net Zero Action Plan and Low Carbon Energy Supply Strategy

Annual Report • Continued program design FY 17 Actions Emphasize: • Initial program and policy pilots THE PATH TO A VIET ZERU • Continued establishment of project resources CAMBRIDGE d

THE PATH TO A Annual Report • Qualitative Action Updates • Quantitative Project Outcomes • Quantitative Action Outputs

FY 17 Goals: Targeted achievements Action Summaries THE PATH TO A HET ZERO Next steps CAMBRIDGE I progress, or behind) institutional, resources) FY 17 Progress, Barriers, and Next Steps: Action status (on track, in Action barriers (regulatory,

THE PATH TO A NET ZERE buildings through Reduce energy use in retrofits and improved operations. i CAMBRIDGE 1.1.2 Additional BEUDO Requirements I.I.I Custom Retrofit Program DETAILED ACTION PLAN I. Energy Efficiency in Existing Buildings DE30U

FY 17 Goals: Multi-Family Pilot program Begin implementation of the delivery THE PATH TO A MEI ZERU implementation Action 1.1.1: Custom Retrofit Program CAMBRIDGE A Coordination with utility and Multi-Family Energy Pilot in vendor to streamline program Multi-Family Advisor offering and program tracking/evaluation FY 17 Progress, Barriers, and Next Steps:

THE PATH TO A HE ZEE Conduct Phase 2 stakeholder- Manage coordination with related based program design process BEUDO Requirement design analysis complete process underway; Phase 1 data actions L COMBRIDGE FY 17 Progress, Barriers, and Next Steps: Action 1.1.2: Additional BEUDO Requirements emission reduction goals of Cambridge-specific FY 17 Goals: Determine which buildings the Net Zero Action Plan requirements, including the necessary to achieve the performance thresholds will be impacted by the new

2.2.2 Height + FAR Bonus DETAILED ACTION PLAN Cambridge Zoning Ordinance 2. Net Zero New Construction 2.4 Net Zero Municipal Buildings 2.2.1 Market-based Incentive Programs 2.3 Increase Green Building Requirements in 2.5 Removal of Barriers to Increased Insulation THE PATH TO A MET ZERO CAMBRIDGE new construction. Enable low carbon

LET ZEI0 THE PATH TO A Consider density-based incentive University collaboration to study approach (see Action 2.2.2) options without outside funding Limited meaningful market incentive program approaches completed Fi CAMBRIDGE FY 17 Progress, Barriers, and Next Steps: Action 2.2.1: Market Based Incentive Program construction and major FY 17 Goals: complexity and shorter sector where there is less construction cycles. Pilot a market based incentive approach for new renovations in the residential

FY 17 Goals: zero emissions. Begin the feasibility of offering program implementation. new Cambridge buildings Complete consideration of height and/or FAR bonuses to which commit to pursuing net THE PATH TO A LET ZERO use of bonuses Action 2.2.2: Height and FAR Bonus CAMBRIDGE Part of current Envision Policy vetting and potential Cambridge action prioritization Timing of Envision Cambridge process and regulatory limits to FY 17 Progress, Barriers, and Next Steps: implementation through Envision

THE PATH TO A LET ZERO CAMBRIDGE Bring zoning amendment package to City Council and continue study of Previously delayed; requirements now process State building code barriers and performance based options ready for regulatory process development of third-party review FY 17 Progress, Barriers, and Next Steps: Cambridge Zoning Ordinance Action 2.3: Increase Green Building Requirements in FY 17 Goals: Green Building Requirement Commissioning major renovation projects LEED criteria at the Gold' over 25,000GFA to meet Implement the Cambridge level or better and Enhanced that all new construction and

FY 17 Goals: target net zero readiness. Implement the established policy that new construction of municipal buildings should ready of Municipal Buildings THE PATH TO A MEI ZENU CAMBRIDGE Continued development of New municipal buildings being constructed to achieve net zero- definitions for net zero standard Action 2.4.1: Net Zero Requirement for New Construction FY 17 Progress, Barriers, and Next Steps:

Continue implementation and tracking of results implementation in process Resource limits to achieve THE PATH TO A multiple institutional goals Initial planning complete and A CAMBRIDGE FY 17 Progress, Barriers, and Next Steps: Action 2.4.2: Renewal of Municipal Buildings FY 17 Goals: operational improvements to Public Works. The strategy will technology and local capacity is evaluation requiring increased municipal facilities to achieve Implement capital and by the Cambridge Department of involve continuous self- targets established and tracked improved. performance levels as

FY 17 Goals: to increased exterior building renovations. to the Cambridge Zoning Implement a potential new policy through amendments insulation during residential Ordinance to remove barriers THE PATH TO A HEN ZERO CAMBRIDGE context of other needs package to City Council Bring zoning amendment potential zoning changes in Regulatory prioritization of Action 2.5: Removal of Barriers to Increased Insulation Previously delayed; amendments now ready for regulatory process FY 17 Progress, Barriers, and Next Steps:

THE PATH TO A MER ZERO Fi CAMBRIDGE Replace fossil fuels with low carbon energy. 3.3 Develop a Memorandum of Understanding with Local Utilities 3.2 Rooftop Solar Ready Requirement 3.1 Low Carbon Energy Supply Strategy DETAILED ACTION PLAN 3. Energy Supply

begin. FY 17 Goals: FY17, at which point should be completed in Energy Supply Strategy Study which will meet the to complete a Low Carbon implementation of strategies identified in the study should goals listed above. The study Engage a qualified consultant THE PATH TO A LET ZERU CAMBRIDGE Action 3.1: Low Carbon Energy Supply Strategy ready to pursue next steps Advance recommendations entities for successful action Study completed in fall 2017 Coordination among regional through regional collaboration FY 17 Progress, Barriers, and Next Steps:

THE PATH TO A MET ZENE CAMBRIDGE solar installation requirements State code requirements adopted Potential building code conflict for buildings up to 3 stories for taller buildings readiness; begin consideration of Voluntary commitment to solar FY 17 Progress, Barriers, and Next Steps: Action 3.2: Rooftop Solar Ready Requirement FY 17 Goals: buildings in Cambridge based on recommendations made in Implement solar ready the FY16 study. requirements for new

FY 17 Goals: memorandum of manage progress. Complete and begin implementation of a regularly to monitor and on areas of mutual interest understanding (MOU) with Eversource and Veolia based and have senior officials meet with Local Utilities agreement THE PATH TO A MET ZERO utility concerns for utility dialogue CAmBRIDgE ea Determination of scope of MOU process delayed due to Action 3.3: Develop a Memorandum of Understanding Leverage LESS implementation FY 17 Progress, Barriers, and Next Steps:

-CO2 THE PATH TO A +C02 MET ZERO EL CAMBRIDGE Option to invest in a net zero community. Investigate Local Carbon Fund DETAILED ACTION PLAN 4. Local Carbon Fund

FY 17 Goals: carbon otisets including on potential standards for of a Local Carbon Fund for ownership and verification. project scope, additionality, Begin feasibility assessment Cambridge, with an emphasis scale THE PATH TO A LET ZERO Action 4: Investigate Local Carbon Fund forward on schedule CAMBRIDGE Feasibility study moving Continue feasibility analysis with stakeholder engagement to achieving fund economy of Stakeholder participation is key FY 17 Progress, Barriers, and Next Steps:

THE PATH TO A i CAMBRIDGE Community engagement and capacity building Maintenance Plan Requirement for New Construction Getting to Net Zero Project 5.3 Net Zero Lab Standards and 5.2 Develop Ongoing Capacity to Manage 5.I Communication Strategy DETAILED ACTION PLAN 5. Engagement & Capacity Building

FY 17 Goals: comprehensive develop and begin Plan objectives and implementation of a components. Integrate Over FY16 and FY17, communications strategy each Action as appropriate. around the Net Zero Action public communications into stakeholder engagement and THE PATH TO A LET ZERO Action 5.1: Communication Strategy CAMBRIDGE newsletter and website of Net Zero Action Plan outreach strategies such as Continue development of new Broaden community awareness Implementation of multi-faceted communication strategy ongoing FY 17 Progress, Barriers, and Next Steps:

THE PATH TO A MET ZERE CAMBRIDGE On track with implementation of Complete annual report review reporting structure Ensure continued coordination and ongoing program monitoring among partner institutions NAP management and FY 17 Progress, Barriers, and Next Steps: Getting to Net Zero Project Action 5.2: Develop Ongoing Capacity to Manage Continue monitoring roles and FY 17 Goals: Net Zero initiative over the implementing the Cambridge long term responsibilities for

FY 17 Goals: research integrity. can be trialed without industrial hygienists to compromising safety or research institutions and of industry stakeholders, for reducing energy use that Continue work by a coalition collaborate on new standards piloting THE PATH TO A energy needs Action 5.3: Net Zero Lab Standards CAMBRIDGLI Evaluation of potential a Sustainable Future workplan FY 17 Progress, Barriers, and Next Steps: laboratory energy standards for Diversity of laboratory uses and In progress through Compact for

THE PATH TO A ET CAMBRIDGE I Custom Retrofit Program (1.1.2 and I.I.I) buildings (2.3 and 2.5) rooftop solar requirement (3.l and 3.2) investigate energy upgrade intervention points (1.1.3) FY19 Key Actions • Consider pursuing BEUDO amendments and study • Engage in USDN Zero Cities collaboration to • Pursue LESS recommendations, including study of • Adopt Green Building Zoning Amendments for new

Project Scope Develop an energy supply strategy for the City of Cambridge that to support the goals of achieves a system-level transformation in order the Net Zero Action Plan Supply Strategy Low Carbon Energy Strategies Role of City Policies and Investment Potential Low Carbon RES Potential DEFINE TO HELP STRATEGY Utilities Role of Energy Storage Opportunities

Work Package 2: Low Carbon Scenarios assessment of City's current energy Work Pacakge 3: Change and Benefit economic viability assessment Management Development supply and barriers to low carbon • Work package 1: Baseline situation • Work Package 4: Technical and GAS OIL *& SUSTATNABILI STRATEGY COLLABORATION ASSESSMENT PROJECT COMPONENTS

Wind Nuclear Oil gas Natural Coal renewables Solar & other ELECTRICITY 39% Oil 5% Electricity BBa Electricity COOLING Solid fuel HEATING gas Natural NOTE THERMAL ENERGY SIGNIFICANCE and CHP renewables Solar & other District Heating demand for heating will go down. future, and correspondingly the energy for cooling is expected to increase in the Due to global warming, the energy demand WORK PACKAGE 1: CURRENT ENERGY DEMANDS OF CITY -

Comm. & Man. Fuel Oil Res. Natural Gas Res. Electricity Res. Fuel Oil Gas Comm. & Man. Natural • Comm. & Man. Electricity 2012 Emissions. Total Annual Consumer Energy-use Emissions 0% 90% 20% 70% 60% 30% 80% 50% 40% 10% 100% 2e CAMBRIDGE COMMUNITY GHG INVENTORY

Kandal SaLar Landuns parcain Thermal Demand by KBTWeg.It community g Existing demand Change in demand by kBTUleq.ft 1.750 3,500 3.000 Fant / 51-75 31-40 75 - 100 | 101 - 150 151-200 CAMBRIDGE HEAT DEMAND: TODAY, 2030, 2040 Piqect ra 112002502) the CiS uset communty (cumart and change in demand 2030 and 20401 Change in demand 2030 Change in demand 2040 EarL. MERE, DaLone, Maptryinds, @ OpenSteeBlap controltura, ana Eat HERE, Delam, Mapmylnds, O Cpendtoettap contbruturs, ane RAMBOLL

2030 2000 COALINS RAMBULL eDU Coning demand TE/C8/2017 Bill, HERE, DeLamma, Mampinda, O OperStreatMap cardibutors, and the Die Last barmanty the O19 uner community cutlert and chatte demand 2090 and 20401 CITY OF CAMBRIDGE ENERGY MASTERPLANNINO Rajas no 0100025020 Change in demand Change in demand 2040 7,000 1.750 3,500 16 - 21 21-25 26.50 /51-221 73-8 - 15-5 25-5 Change in demand by kBTU/eg.ft demand Existing Ex! HERE, DeLorra, Maumida, © OpenStenVa Cooling Demand by kBTUIcg.ft 10,500 2.005 CAMBRIDGE COOLING DEMAND: TODAY, 2030, 2040

GRID SCALE SCALE LOCAL CALE DISTRICT MOVING TOWARDS RENEWABLE ENERGY installations. On a grid scale, support the New England state initiatives towards wind energy and large solar PV such as solar panels and heat pumps in our homes. On a very local scale, install renewable energy sources On a district scale, make our combined heat and power plants more energy-efficient and phase out fossil fuels. In order to reach our target we must work with renewable energy on several levels.

2019 Source: MA DOER 2017 2015 2011 2009 Requirements RPS Classes I.. MA Energy Portfolio 2003 0% 20% 40% CLEAN ELECTRICITY - SOLAR

Island Rhode Massachusetts WEA Cape Wind Lease Area MA Lease OCS-A 0501 MA Lease OCS-A 0500 ROW Grant OCS-A 0506 RI/MA Lease OCS-A 0486 RI/MA Lease OCS-A 0487 Massachusetts Martha's Vineyard CLEAN ELECTRICITY - WIND Management Source: Bureau of Ocean Energy < Nantucke

POTENTIAL NEW THERMAL ENERGY SOURCES

POTENTIAL NEW THERMAL ENERGY SOURCES OUTBOUND CENTRAL I NOTAR ENTRANCE SE WHOLE FOODS

ZONE 3 ZONE 2 ZONE 2 ZONS ZONE 2 ZONE 5 ZONE 4 * - Potential CH 5- Alewife 3- Nort Point Development Area 4 - Alevite Develooment Area 2» Indindual supper Supply Areas Legend WORK PACKAGE 2: SCENARIO DEVELOPMENT PROCESS

jobs. costs. choices. delivered. entrepreneurship. GOALS -QUALITATIVE • Predictable: Minimize rate volatility, hardship, and promotes energy literacy. • Affordable: Keep rates as low as possible and maintain competitiveness. • Clean: Reduce carbon emissions and toxic pollutants created by the system. • Innovative: The system spawns innovation, intellectual property creation, and SCENARIO ASSESSMENT CRITERIA: CITY ENERGY SUPPLY • Reliable: Minimize system downtime from outages and ensure high quality of power • Local Control: Give residents greater control over their energy resources and energy • Transparent: Consumers can understand their power costs and what drives changes in • Just: The system promotes "energy equity," protecting vulnerable populations from undue • Wealth Creating: Keep more energy revenue in the local economy instead of exporting it to outside suppliers - to help drive local economic development, create new businesses and

HEAT PUMP GREEN CERTIFICATES HEAT PUMP ELECTRICITY SOLAR PV HEAT PUMP SOLAR PU POWER HEAT PUMP SOLAR PV HEAT PUMI SOLAR PV HEAT SCENARIO 1: INDIVIDUAL ELECTRIFICATION

SCENARIO 1: INDIVIDUAL ELECTRIFICATION

HEAT PUMP DISTRICT ENERGY STEEPERCY ELECTRICITY WIND TURBINE GREEN CERTIFICATES SOLAR PV HEAT PUMP MEAT PUMP SOLAR PV SOLAR PV HEAT PUMP DISTRICT ENERGY SCENARIO 2: DISTRICT ENERGY ELECTRIFICATION

plant neatycooing WHAT IS DISTRICT ENERGY? Users Heat/coaling Figure: Danfoss A/S Network Distribution

BOILER BIOMASS SEWER CONNECTED DISTRICT ENERGY OLAR PY HEAT PUMP - & ATES THERMAL STORAGE (ERGY CHP BIOMASS GREEN CERTIFICATES DISTASTER HEAT PUMP ELECTRICITY SOLAR PY HEAT PUMP SOLAR PV HEAT PUMP SOLAR PV HEAT PUMP SOLAR PV CONNECTED SEWER HEAT PUMP.- CHP BIOMASS SOLAR PV & ATES THERMAL STORAGE DISTRICT ENERGY— SCENARIO 3: DISTRICT HEATING AND COOLING SYSTEMS

recommendations need for transition engagement to facilitate their buy in other similar events in Cambridge to educate the public on energy and the • Roll up designed for Science Week and success of the strategy implementation • Ramboll collaborated with City on public • Public and stakeholder buy-in is critical to • Implementation strategy to support study Code: 8071 CARBON-FREE PLANNING FOR CAMBRIDGE WORK PACKAGE 3: CHANGE AND BENEFIT MANAGEMENT ENERGY IN CAMBRIDGE

Scenario Measures of Success: • Business case can be made • Maximizes locally sourced energy production WORK PACKAGE 4: FEASIBILITY ANALYSIS • Will match energy demand profile/consumption in 2050 • Sustainable and equitable • Achieves goal of carbon neutrality

Item SO_ emissions, ton NOx emissions, ton PM2.5 emissions, ton CO_ equivalent, 1,000 ton Annual costs for off-setting SCENARIOS 50 $/ton in 2040) in million $ carbon emissions (at a price of 27 BaU 286 387 1.13 19.35 .21 8.1 112 162 Ind. Electrification DE 92 6.9 .17 137 Electrification 38 63 3.2 193 5.55 DE CHP biomass assume BAU electrical grid CO2 emissions CLEAN: EMISSIONS IN THE YEAR 2040 FOR THE ASSESSED carbon intensity and carbon-neutral

91 171 68 % 3,531 1,386 DE CHP BaU+284 56 86 72% 1,689 4,618 BaU+1,533 DE Electrification 67 74 Ind. 65 % 5,637 2,942 BaU+3,825 Electrification 72 BaU 600 112 84% 4,896 4,111 IN MILLION $ FOR THE ASSESSED SCENARIOS AFFORDABLE: ECONOMIC RESULTS AS NET PRESENT VALUE Variable operation & maintenance Fixed operation & maintenance Fuel costs Capital Expenditures (CAPEX) Item Fuel share TOTAL in million $

KEY CONCLUSIONS decarbonization of the regional grid. commitment of carbon neutrality by 2050. require a combination of approaches over time. systems in areas of high energy demand and depends on Business as Usual pathway locks in fossil fuel infrastructure in environmental efficiency without introduction of district energy • Electrification of buildings with grid-supplied electricity is likely to play a central role, but can't achieve acceptable levels of cost and • Decarbonization of the energy supply for Cambridge buildings will • There are limited energy supply resources within Cambridge, yet a buildings and the supply chain in a way that precludes meeting the

must be considered in the context of a regional clean energy coordinated manner. group which can identify and address key questions and barriers in a flexibility of energy sources, including biomass, which requires transformation. further consideration. KEY CONCLUSIONS, CONT. • District energy offers increased system efficiency, resilience and • Such consideration should occur through a regional stakeholder • Achievement of a future low carbon energy supply for Cambridge

areas energy outstanding questions • Promote rooftop solar deployment NEXT STEPS FOR LCESS IMPLEMENTATION • Continue analyzing viability of CHP fuel source options • Consider siting large generation plants (eg: Mystic Station) • Promote electrification of buildings in less-dense areas • Continue analyzing feasibility of district heating and cooling in high density • Engage regional partners and stakeholders to answer and address • Support state and utility action to modernize the grid and develop renewable

[phone removed] Thank You! THE PATH TO A NGT ZERO CAMBRIDGE sfederspiel@cambridgema.gov www.cambridgema.gov/netzero

Heat production (GWh) 200 1,400 1,200 1,000 2020 2021 2023 2024 2025 Gas Boilers Existing CHP 2026 2027 2028 2025 2030 Year 2092 2032 2033 2035 2035 2037 2038 2039 DEVELOPMENT OF HEAT DEMAND IN ZONE 1 FOR BAU SCENARIO 2040

2045 2039 2038 2037 2036 2035 2034 2033 2032 2031 Electric Boilers 2030 Year 2029 2028 2027 2026 2025 2024 2023 Existing CHP Gas Boilers 2022 2021 2020 200 000 1,200 1,400 Heat production (GWh) DEVELOPMENT OF HEAT DEMAND IN ZONE 1 FOR SCENARIO 1

Heat production (GWh) 100 200 400 600 [phone removed] 2021 2022 2023 Gas Boilers 2024 2025 2026 2027 2028 2025 Year 2050 2052 Electric Boiler 2082 2033 2034 Air Source Heat Pump 2035 Ground Source Heat Pump 2035 2037 2038 Energy Storage Aquifer Thermal 2039 DEVELOPMENT OF HEAT DEMAND IN ZONE 2 FOR SCENARIO 1, 2, 4 2040

2040 2039 2038 2037 2035 Electric Boilers 2035 2034 2033 Heat Pumps Water Source 2032 2031 2030 Year 2029 2028 2027 2026 2025 2024 2023 Existing CHP 2022 Gas Boilers 202( 2020 200 1,400 3,200 Heat production (GWh) DEVELOPMENT OF HEAT DEMAND IN ZONE 1 FOR SCENARIO 2

Heat production (GWh) 200 1,400 1,000 500 800 1,[phone removed] 2021 2022 Gas Boilers 2023 2024 Existing CHP 2025 2026 2027 2028 2029 Year 2030 2031 2032 2033 Biomass CHP 2034 2035 2036 2037 DEVELOPMENT OF HEAT DEMAND IN ZONE 1 FOR SCENARIO 3 2038 2039 2040