Cambridge Net Zero Action Plan

Next Steps: Electrify Cambridge will continue to provide retrofit support services as currently designed. The program will be further enhanced in FY26 with additional retrofit support offerings. There are several outreach and engagement events planned for FY26 and re-engagement efforts will be made with buildings that participated in the program to date.

Challenges: It can take months or even years for residents to go from project consultation to the completion of an electrification project, so we are working to re-engage participants to help keep their projects on track. In addition, individual project costs for many electrification measures remain expensive, even with incentives. It can be challenging to coordinate an all-electric replacement when a failing piece of equipment needs immediate replacement, but our goal for the long-term decarbonization plans provided by Electrify Cambridge is that they help people plan for electrification in advance of such situations.

Local grid capacity has also been a challenge and barrier for some buildings to electrify. The installation of a transformer on-site substantially increases project cost and there are no current MassSave incentives to cover these costs. Installing a transformer on-site can also present challenges with available space.

Opportunities: The Electrify Cambridge program will expand outreach efforts to drive more engagement to the program. Opportunities for expanding program offerings to include assistance around resilience measures, such as cool roofs, are being explored. 

Next Steps: The first year of emissions reduction requirements is 2026. Staff continue to work on developing the regulatory language and will conduct stakeholder engagement for phase two and phase three.  In totality, these regulations will provide guidance to building owners about how to calculate their emissions, procure renewable energy to reduce property emissions, and provide requirements for data verification, campus configuration, review board formation, and other aspects of administration.

The City is creating technical guides and other information resources on how BEUDO measures emissions, what qualifies as renewable electricity, and how building owners can utilize flexibility mechanisms in BEUDO.

The City and other partners will continue to wait for the release of grant funds from the Department of Energy. City staff will also work to explore how the Cambridge Electricity Aggregation could possibly help BEUDO properties that are unable to procure their own virtual power purchase agreements.

Challenges:  There will likely be challenges that arise related to the administration of the ordinance. Ensuring that every property is meeting the reporting deadline, applying for an extension if needed, meeting emission reduction requirements, or receiving a deferral is a lot of work that requires thoughtful communication, attention to detail, and the full-time dedication of several staff members.  

Opportunities:  BEUDO presents the city with an opportunity to be a leader in building performance requirements. As other municipalities look to establish similar policies, Cambridge can serve as an example. As the regulations are developed and the Resource Hub is developed and eventually opened, there will be opportunities for engagement with property owners to help them understand opportunities for decarbonization. 

Next Steps: Staff will continue to monitor performance of the current initiatives as laid out in the NZAP. Additionally, should opportunities to arise for state-level advocacy staff will continue to participate when appropriate. 

Challenges: Ensuring that all stakeholders relevant to development in Cambridge are aware and knowledgeable of the requirements that have been created over the past several years will continue to be a manageable challenge.  

Opportunities: Cambridge can continue to be a leader by requiring sustainable building practices. As more municipalities look to establish their own requirements, Cambridge can continue to be a wealth of knowledge and resource for others.

Next Steps: Staff will monitor new, special permit projects that are submitted to the city for review. Projects that meet the requirements for reporting embodied carbon will have their data collected and analyzed by staff. Once determined to have enough data progress on the following activities for this action will begin.

Challenges: The current language of the zoning ordinance for this action has been a limiting factor for successful data collection. Most of the new developments that would be subject to reporting by size have included residential exempting them from the regulation.

Opportunities: Cambridge is one of the first cities in the United States to pass an embodied carbon reporting policy. Industry experts, developers, and other municipal, state, and utility officials often cite the need for regional collaboration and coordination for reporting requirements and standards. Cambridge is already a leader in this space; however, the City should continue to engage with other local municipalities and the State for coordinating additional embodied carbon policies or making amendments to existing policies.

Next Steps: The city will continue to make progress on on-going construction and renovation projects, as well as start other planned projects. . 

Challenges: While each project has its own individual challenges, some exist outside the direct control of the city. For example, the electrical grid will be constrained as more building systems are converted to all electric. Operational changes can help shift loads to alleviate some electric demand, but this may not enough to overcome grid constraints.

Very long lead times for electrical infrastructure equipment such as transformers, sometimes up to 18 months make it difficult to complete large projects. Due to the complexity of HVAC electrification projects and related infrastructural improvements, project duration can be lengthy.

Opportunities: Cambridge will continue to be a leader in reducing greenhouse gas emissions from its operations. New construction, building renovations and retrofits demonstrate leadership but the generation of electricity on site through solar and procurement of 100% renewable energy strongly advance our goals.

Next Steps: Staff will continue to work with the consultant procured for the Thermal Energy Network study. This study will provide the City with a pathway for the implementation of a pilot program.

Challenges: Data for this action is primarily informed by the mechanical permit database. This comes with challenges related to timing as permitted work can take many months to years to complete. Staff work continuously with other city departments, program administrators, and the contractor and developer community to improve and educate about permitting processes. Challenges related to the thermal energy network project have already started to become clear, such as the availability of space in the dense urban environment of Cambridge for large borefields.

Opportunities: Over the coming year, the geothermal demonstration study will continue to provide meaningful insight about potential opportunities for a connected thermal energy network project in Cambridge. This could lay the groundwork for establishing more geothermal systems throughout the city that would provide more efficient, low-carbon heating and cooling.

Next Steps: Outreach will continue across the city to educate residents about the program. CCE is working to add more renewable electricity, such as through innovative VPPAs . 

Challenges: Continuously growing enrollment remains a challenge. Since the inception of the aggregation the total number of enrolled accounts has remained relatively stable, meaning that overall enrollment numbers haven’t grown much. There are several factors for this such as the transient nature of Cambridge residents, but more importantly third-party competitive suppliers that compete with the aggregation. Competitive suppliers often target the most vulnerable populations by offering lower costs immediately after enrollment, then increasing prices sustainably shortly thereafter. Regulating these competitive suppliers would need to be coordinated by the State.

Opportunities: At the state level there are big opportunities for aggregation programs, community solar programs, and how utility billing is done. The Department of Public Utilities (DPU) has recently enabled municipalities to have community solar automatically included in aggregation programs. Moving to a system of single billing would have a significant impact on the ease of implementation and education around the benefits of community solar.

Next Steps: In FY26, staff will be undertaking a study on financing needs and opportunities. This needs assessment will take into consideration new financing offers, such as the low- and moderate-income retrofit financing from the Massachusetts Community Climate Bank, and federal funding programs. 

Challenges: The costs of building decarbonization can be high, so a successful financing strategy will need to help residents overcome cost hurdles, including upfront and operating costs. The CCA 3.0 model will also require investigating the mechanisms and regulatory frameworks that would allow Cambridge to create such a program. 

Opportunities: Over the coming year, staff will identify needs, opportunities, and strategies for financing to support building decarbonization in Cambridge. Future financing programs, including a CCA 3.0 approach, could help residents implement electrification projects and share in the benefits of distributed energy resources.