A communication transmitted from Louis A. DePasquale, City Manager, relative to Awaiting Report Item Number 17-33, regarding a report on supporting a goal of using 100% renewable energy by 2035

C I T Y O F C A M B R I D G E Community Development Department Iram Farooq Assistant City Manager for Community Development Sandra Clarke Deputy Director Chief of Administration 344 Broadway Cambridge, MA 02139 Voice: [phone removed] Fax: [phone removed] TTY: [phone removed] www.cambridgema.gov To: Louis A. DePasquale, City Manager From: Iram Farooq, Assistant City Manager for Community Development Owen O’Riordan, Commissioner Department of Public Works Date: June 19, 2018 Re: Awaiting Reports 17-33, regarding supporting a goal of using 100% renewable energy in Cambridge by 2035 Massachusetts House and Senate bills have been proposed for consideration which would require Massachusetts to obtain 100% of its electricity from renewable sources by 2035 and further require that all fossil fuels for heating, transportation and other sectors be replaced by renewable energy by 2050. This latter goal reflects the greater challenge of phasing out the use of natural gas, oil and gasoline compared with converting electricity generation from fossil fuels to renewable energy, including solar and wind. Current Renewable Energy Goals and Consumption As a member of the Metro Mayors Climate Task Force, the City has set a goal to reach carbon neutrality citywide by 2050 for all sectors including buildings and transportation, which would necessitate conversion to a 100% renewable energy supply. A separate, community-wide goal has not yet been set for a specific year when all electricity consumed in Cambridge would come from renewable sources, but the Climate Protection Action Committee has set an interim goal that 20% of community-wide electricity be supplied by renewable sources by 2020. As of 2018, 13% of grid-supplied electricity comes from renewable sources and an estimated 0.5% is generated by local solar PV systems. This percentage, however, is lower than the actual supply of renewable electricity as it does not include renewable electricity purchased by private entities from third-party suppliers. Currently, we only have anecdotal evidence of this activity and no ability to quantify actual consumption. Net Zero Action Plan Recent greenhouse gas inventories show that Cambridge’s building-related emissions constitute the majority of emissions in both the municipal inventory (82%) and citywide (69%). Replacing fossil fuels used to heat, cool and light buildings and power equipment with 100% renewable energy will require significant investment in making buildings more energy efficient, as well as in installation of solar energy systems in Cambridge and renewable energy generation facilities outside the city (given limitations on rooftops and other locations where solar panels could be installed in Cambridge). The Cambridge Net Zero Action Plan includes an action to develop a low carbon energy supply strategy for Cambridge. The initial study to analyze options for transitioning to a carbon-neutral energy supply in Cambridge by mid-century was recently completed. The study was supported by an international consultant team with deep experience in low carbon energy systems at the building as well as district

scale and guided by staff, along with an advisory committee comprising Eversource, Veolia, a local developer, Harvard, MIT, and representatives from the Climate Protection Advisory Committee, state agencies and the cities of Boston and Somerville. The study analyzed approaches for how to convert buildings to renewable energy, as well as options for how district energy systems could improve energy efficiency and resiliency while lowering costs. The study, including an Executive Summary and proposed next steps, is available here: http://www.cambridgema.gov/CDD/climateandenergy/climatechangeplanning/lowc arbonenergysupplystrategy Community Electric Vehicle Strategy The FY19 operating budget for the Community Development Department (CDD) includes funding to further develop and refine an EV Strategy. The EV Strategy is expected to include recommendations on options for expanding the network of publicly available EVSE, technology most appropriate for different use cases, and public ownership models and funding sources. The EV Strategy recommendations will prioritize equitable access to EV opportunities and EV charging for all Cambridge residents. The FY19 budget also includes $100,000 in capital funds for EVSE installation on municipal property, and we are currently working on a grant application through the Eversource “Make Ready” program to expand the number of EVSE installations. The City continues to pursue opportunities for EV and EVSE outreach, to supplement the information provided on the City’s webpage and resources featured at general outreach events. Last year CDD hosted two Ride and Drive events during National Drive Electric Week, and additional events will be organized this year to engage the community and advance EVs as a mainstream option. Public Transportation Transit is a critical element of city efforts to provide mobility options to residents, employees and visitors in order to reduce environmental impacts, and improve safety in Cambridge. A range of activities to support transit is ongoing, including participating in the MBTA service planning process to ensure that all areas of Cambridge are well-served; providing excellent amenities at transit stops including benches, shelters and real-time information; introducing bus-only lanes and signal priority on key bus route segments; and planning for improved transit service in the future to the Alewife area and along the Grand Junction corridor in particular. Municipal Renewable Energy Goal The City has set a goal to source 100% of municipal electricity from renewable energy sources through a combination of on-site solar generation on municipal facilities and purchase of renewable energy from renewable energy projects outside Cambridge. Staff are developing a request for services to identify financially feasible projects that would satisfy our demand for electricity in the near term, within 3-5 years.

Community Choice Aggregation In July 2017 Cambridge Community Electricity, an electricity aggregation for all basic service electricity customers in Cambridge, was launched to increase the amount of renewable energy in the city’s electricity supply. Over 35,000 residential and about 4,800 small business accounts are enrolled in the aggregation. The program offers a Standard Green option - which includes 25% more solar energy than required by the state, derived from local renewable energy sources – and a 100% Green option, which provides 100% renewable energy generated from projects throughout New England. The program’s Standard Green option has saved residents and businesses money compared to Eversource Basic Service rates since the program’s launch, and approximate 640 Cambridge residents and businesses are currently enrolled in the 100% Green Option. Municipal Onsite Solar Generation In 2015 the City set a goal of generating 5% of municipal electricity use from onsite renewable systems by 2020. Through new solar installations, energy efficiency projects and a cleaner regional electricity grid, the City expects to achieve the goal by 2019, one year ahead of schedule. Beyond 2020, the City plans to continue the practice of installing rooftop PV arrays when installing new roofs at schools and at smaller buildings, when feasible. Since 2015, the City has installed 5 photo-voltaic (PV) systems, has 3 in design, and is planning a new roof and PV system at the Graham and Parks School. A list of municipal PV systems can be found at http://www.cambridgema.gov/theworks/energyefficiency/renewableenergy To date the City has chosen to retain the Solar Renewable Energy Credits from its onsite installations rather than selling them. The electricity procurement study described above will include recommendations for providing a funding stream for long-term renewables procurement. Virtual Net Metering Contracts Virtual net metering (VNM) is a bill crediting system to support solar production. The City receives credits on our electric bills when we purchase VNMs from non-city solar installations. The City has signed five contracts for Virtual Net Metering projects, two in Boston, one in Dedham, and two planned at MBTA parking garages (Alewife and in Westwood). When complete, these projects will add close to 7 MW of solar energy in the region. While Cambridge cannot claim these systems in its GHG inventory reductions, the contracts provide approximately $300,000 in annual savings on electricity bills. Savings from virtual net metering contracts, along with utility rebates and financing strategies recommended through the 100% renewable supply study will provide seed funding for renewable installations. Municipal Facilities Improvement Plan (MFIP) The goal of the MFIP is to provide and maintain high-performing facilities for staff, occupants, the public, and the broader environment. Since FY15 the City has invested $24 million and has committed to an annual allocation of $5 million over

the next five years. Phase 1 evaluated and prioritized more than 42 buildings for capital improvements. While initial improvement projects have focused on deferred maintenance and access, projects that include building envelope and HVAC systems are also being implemented to reduce energy use and greenhouse gas emissions. In accordance with the MFIP, larger-scale renovation projects that include HVAC upgrades consider electrification to the extent feasible. For example, Taylor Square and East Cambridge Fire Stations are being designed as all-electric buildings, with ground or air source heat pumps and variable refrigerant systems (VRF). The Moses Youth Center childcare center, located in the basement of a larger building, will also be upgraded with a dedicated VRF system, which will allow for full electrification when the main HVAC system is scheduled for replacement at a future date. Net Zero Construction Major renovations and construction of new city buildings is required to be “Net Zero ready” and fully Net Zero starting in 2020. The City is well ahead of this goal with both the King Open Complex, and the newly completed 859 Massachusetts Avenue family shelter built as fossil fuel free facilities. Clean Fleet Program The City has been working with the USDOT Volpe Research Center to develop strategies to increase fuel efficiency and decrease the GHG emissions of the City’s fleet. Volpe inventoried the City’s fleet and emissions, identified available and emerging technologies and has developed overall greenhouse gas reduction scenarios; Volpe has also been meeting with stakeholder departments to review operational needs and constraints that might affect adoption of recommended vehicle systems. In the coming months, we expect to identify the optimal strategies and plan for implementation as we pilot various technologies. While passenger plug- in electric vehicles have become widely available, technology for commercial vehicle use is still emerging. By 2030, depending on various scenarios, the City could reduce fleet GHG emissions by 30-50%. Reporting on Goals and Progress Progress toward the city’s carbon neutrality and renewable energy generation goals is described in the annual progress reports on the Net Zero Action Plan and the Goals and Objectives developed by the Climate Protection Action Committee (both adopted by City Council). The online Sustainability Dashboard (http://sustainabilitydashboard.cambridgema.gov/ ) tracks the City’s progress towards sustainability goals across disciplines, and summarizes the information in an accessible format. In the future, as part of a set of indicators and targets being developed through the Envision planning process, additional metrics will become available.