1. Framing the Challenge
& Opportunity:
Residential Buildings
National Housing Conference
September 26, 2011
Lori Bamberger
Seeding Markets, Sustaining Communities

2. 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
Confidential Lori Bamberger Consulting 2

3. Residential buildings make up a large chunk of the
nation’s emissions
Industrial,
12%
Residential
Buildings Commercial,
buildings
account for 43 Transportation
40%
account for
32%
Buildings
percent of 43% almost half of
U.S. CO2 the built
emissions environment’s
Industry
Residential, emissions
48%
25%
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
Confidential Lori Bamberger Consulting 3

4. Residential emissions have increased substantially
in the last 18 years
CO2 emissions from residential
buildings increased much
faster than all sectors except
All sectors, 15.9%
commercial operations
between 1990 and 2008 and
surpassed the overall average
increase by over 10
percentage points
Source: Energy Information Administration
Confidential Lori Bamberger Consulting 4

5. 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
Confidential Lori Bamberger Consulting 5

6. Older MF buildings increase the Energy CCC’s:
Consumption, Costs, & Carbon Emissions
Household
Multifamily 5 Number of Percent of All Average
BTU BTU/Sq. Ft.
units of More Households Households Energy Costs
Consumption
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
Confidential Lori Bamberger Consulting 6

7. 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
Confidential Lori Bamberger Consulting 7

8. The California single family home
example
Approximately 2/3 of California Residents Live in
SF homes (~8.3 Million homes)
Statewide Average Electricity Use Per Household
(5,914 kWh per Household) Statewide Average Natural Gas Use Per Household
Pools, Spas, Misc. – 3%
Lighting (Estimate)* Water Heating – 3%
Dryer – 3%
– 22% Miscellaneous – 11%
Cooking – 22%
Space Heating – 4%
Laundry – 5%
Space Heating – 44%
Refrigerators and Dishwashing and
Freezers – 19% Cooking – 5%
Pools and Spas – 6%
Water Heating – 44%
TV, PC, and Air Conditioning – 10%
Office Equipment
– 15%
* 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
Source: California Long Term Energy Efficiencycomes from other
where it is combined with exterior lighting usage. This number Strategic Plan (2008); IEPR (2007)
lighting studies that are better able to pinpoint this estimate than a conditional
demand model as was used for the RASS.
Confidential Lori Bamberger Consulting 8

9. 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
Share of household income spent on home energy
18%
16% 16%
14%
12%
10%
9%
8%
7%
6%
5%
4% 4%
3% 3%
2% 2% 2%
0%
Less than $10,000 to $15,000 to $20,000 to $30,000 to $40,000 to $50,000 to $75,000 to $100,000 or
$9,999 $14,999 $19,999 $29,999 $39,999 $49,999 $74,999 $99,999 more
Household Income
Confidential Lori Bamberger Consulting 9

10. 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
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11. 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
Confidential Lori Bamberger Consulting 11

12. Our Work & How to Reach Us
• Affordability, energy financing & innovations
– Partnership-building & Cross-Sectoral Efforts
– Policy Formulation
– Financing Innovations & Implementation
• Reaching Us:
Lori Bamberger Consulting
Thoreau Center for Sustainability
The Presidio
1012 Torney Avenue
San Francisco, CA 94129
415-400-8621
LBamberger@yahoo.com
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