new jersey’s clean energy program · • a turn-key, retrofit program to replace outdated and...
TRANSCRIPT
NJCleanEnergy.com
ENERGY SMART Saving Money
Investing in Infrastructure Building Resilience
September 15, 2017
by Elizabeth Ackerman, DCO Energy Gary Finger, Ombudsman NJ Board of Public Utilities
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First Step: AWARENESS
• What is the Societal Benefits Charge (SBC)?
• What does NJ’s Clean Energy Program (NJCEP) do?
• What is ESIP?
• What is the value of a ‘negawatt’ (EE)?
• What about generation (RE, DR, microgrids)?
• What resources are available?
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Second Step: ENERGY AUDIT
• How much energy is being consumed – kWh, BTU, kW
• How energy is being purchased
• Provides a baseline and benchmark of energy usage
• Inventory/age of existing equipment – level of efficiency
• Identifies cost-effective Energy Conservation Measures
(ECMs)
• Opportunities for on-site generation?
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Third Step: ENERGY EFFICIENCY
REDUCE WHAT YOU CONSUME BEFORE YOU GENERATE
• ‘Negawatt’is the most cost-effective kWh
• Ample incentives available
• Reduces size and cost of generation
• Collateral benefits: increased comfort, reduced
emissions, increased productivity, job creation
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Step 4: DISTRIBUTED GENERATION
NOW SIZE GENERATION FOR REDUCED LOAD
• Solar PV (+ Battery Storage)
• Combined Heat and Power (CHP)/Fuel Cells
• Micro-grids
• Collateral benefits: resilience, energy independence +
security, revenue streams
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Step 5: INCENTIVES
• NJ’s Clean Energy Program (NJCEP)
• Energy Savings Improvement Program (ESIP)
• Solar Renewable Energy Credit (SREC)
• Power Purchase Agreement (PPA)
• Demand Response, Frequency Regulation Market
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INCENTIVE PROGRAMS
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NJ CLEAN ENERGY PROGRAM
• Administered by the New Jersey Board of Public Utilities
• Funded from “Societal Benefits Charge” on utility bill
• Program Goals:
Save energy and lower operating cost
Protect environment and lower emissions
Transform the market: technology, environment, financial
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EE PROGRAM PORTFOLIO
Commercial, Industrial, Government, Non-Profit,
Institutional and Multifamily
Audits
• Local Government Energy Audit • Benchmarking study
Equipment Rebates
• SmartStart • Direct Install – Local Gov’t; Small Business • Large Energy Users • Sandy Relief Plan
Whole Buildings
• Pay for Performance Existing Buildings • Pay for Performance New Construction
Energy Generation:
• Combined Heat and Power (CHP) and Fuel Cells
ELIGIBLE SECTORS
PROGRAMS
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LOCAL GOVERNMENT ENERGY AUDIT (LGEA)
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The program subsidizes 100% of the audit cost,
subject to an annual incentive cap of $100,000
per entity, per fiscal year.
Local governments under Local Public
Contracts Law
Local governments under Local Public School
Contracts Law
County colleges under County College
Contracts Law
NJ State Colleges or State Universities
501(c)(3) Non-profit Agencies
AVAILABLE TO
INCENTIVE
LGEA OVERVIEW
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LGEA: HOW IT WORKS
• TRC Solutions (Program Manager) provides ASHRAE level
II audit, using an on-line application process
• Analysis of building(s) energy use: how much, by which
equipment, how purchased, on-site generation
• Produces a list of recommended, cost-effective energy
conservation measures (ECMs)
• Incentive cap increased for entities involved in ESIP
project
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WHAT IS BENCHMARKING?
Is 60 MPG high or low for this automobile?
Fuel Efficiency: MPG
Is 90 kBtu/SF/YR high or low for this building?
Energy Performance Source: 1 to 100
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WHY BENCHMARK?
• Understand energy usage and costs
• First step for ENERGY STAR
certification
• Identify under-performing facilities
• Assess effectiveness of operations
• Assist in goals, targets and timelines
• Set investment priorities
• Verify and document pre and post
project energy use
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NJ SMARTSTART BUILDINGS
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SMARTSTART OVERVIEW
• Two types of incentives for installing high efficiency
equipment:
Prescriptive Incentives
Custom Incentives
• Available to all Commercial, Industrial, Agricultural,
Government, Non-Profit and Institutional customers
• Includes New Construction, Rehab and Retrofit projects
• Project pre-approval required
• Incentives up to $500,000 per electric account and
$500,000 per natural gas account.
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SMARTSTART: INCENTIVES
Prescriptive Incentives
• Project Categories:
New Construction
Renovation
Remodeling
Equipment Replacement
• Specific incentives and individual applications for
Lighting, HVAC, VFDs, Refrigeration, Controls and more.
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SMARTSTART: INCENTIVES
Custom Incentives
• Designed for new or innovative technologies proven to
be cost-effective and not listed as prescriptive
• Incentives paid for approved projects at the lesser of
three values:
50% of project cost
Buy down to one year payback, OR
$0.16/kWh, $1.60/ therm saved in first year
• Projects must have a minimum first year energy savings
of 75,000 kWh or 1,500 therms to be eligible.
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DIRECT INSTALL
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DIRECT INSTALL OVERVIEW
• A turn-key, retrofit program to replace outdated and
inefficient equipment
• Lighting, HVAC, Water, Refrigeration
• Open to Local Governments, small- and mid-sized Commercial
and Industrial facilities with a peak electric demand ≤ 200 kW
• Provides incentives of 70% of the installed cost
• Incentives are paid directly to the contractor
Customer only pays remaining 30% of installed cost
$125,000 project cap
$250,000 per entity cap per year
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DIRECT INSTALL: BENEFITS
• Turnkey process: State-approved contractors conduct
audit, complete all paperwork, install equipment
• Minimal capital outlay: Cost to entity limited by generous
incentives and paid when work is completed and
approved by NJCEP
• Fast turnaround time: Average length of time for project
completion = 3 - 6 months
• Ongoing savings: Projects provide energy savings year
after year
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MIDDLESEX COUNTY EXTENSION SERVICES
• County Park Building
• Lighting & HVAC retrofit
• Total Project Cost: $79,505
• Incentive: $55,654
• Annual Savings: $11,604
• Payback Period: 2.1 Years
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ROXBURY TOWNSHIP PUBLIC SCHOOLS
• Public Elementary School
• Lighting & HVAC retrofit
• Total Project Cost: $119,740
• Incentive: $83,818
• Annual Savings: $16,229
• Payback Period: 2.2 Years
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HAMILTON TOWNSHIP FIRE DISTRICT #2
• Municipal Fire Station
• Lighting & HVAC retrofit
• Total Project Cost: $125,664
• Incentive: $87,965
• Annual Savings: $12,961
• Payback Period: 2.9 Years
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PAY FOR PERFORMANCE
P4P
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P4P OVERVIEW
• Comprehensive, whole-building approach to saving
energy in existing or new facilities
• Goal: reduce consumption by 15% or more
• Incentives up to $2 million per project, assuming both
gas and electric improvements are made; $4 million
annual entity cap
• Incentives paid in three installments at milestones
• Requires Customer to work with State-approved
participating ‘Partner’
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P4P OVERVIEW
• Existing Buildings: Large Commercial, Industrial
Institutional and certain multifamily with an annual
peak demand in excess of 100kW
• New Construction: Projects with over 50,000 square
feet of planned conditioned space
• Eligibility requirements flexible for hospitals, 501(c)(3)
non-profits, local government buildings, affordable
multi-family housing and public universities and
colleges
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P4P: HOW IT WORKS
• Projects must create an Energy Reduction Plan
Prior 12 month energy use baseline for existing buildings
Current energy code baseline for new construction projects
Incentive Milestone #1 of up to $50,000
• Implementation of Project
Must finish construction or renovation to qualify
New Construction projects must submit an As-Built
Energy Reduction Plan to address any changes during
construction
Incentive Milestone #2 paid to customer
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P4P: FINAL PAYMENT
To Qualify for Final Payment:
For existing buildings, after 12 month of consecutive
energy billing submit a post-construction report
Complete commissioning and a Commissioning Report of
new construction projects
Final Incentive Milestone #3 paid to customer
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P4P BENEFITS
• Helps businesses to stay competitive:
> 40% of new non-residential buildings are built to
green standards
More cities are mandating energy performance
disclosure of commercial buildings annually
• Increases the value of the building:
ENERGY STAR and LEED labeled buildings receive higher
prices and have increased occupancy over standard
buildings
• Reduces operations and maintenance costs
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NEWARK PUBLIC SCHOOLS
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OLD BRIDGE TOWNSHIP
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DG PROGRAMS
Commercial, Industrial, Government, Non-Profit,
Institutional and Multifamily
Energy Generation:
• Combined Heat and Power (CHP) and Fuel Cells
ELIGIBLE SECTORS
PROGRAMS
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COMBINED HEAT & POWER AND FUEL
CELLS
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CHP/FC OVERVIEW
• On-site power generation with recovery and productive
use of waste heat
• Two paths for incentives:
CHP and Fuel Cell systems fueled by non-renewable
sources
Biopower systems for technologies fueled by biomass,
which is handled through the renewable energy program
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CHP/FC OVERVIEW
• Incentives range from $0.35-$4.00/watt
• Cap of $2-$3 million depending on technology and size
• Incentives paid in three phases:
30% at equipment purchase
60% at installation completion
10% at performance verification
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CHP/FC BENEFITS
• Lower cost: reduces overall electricity purchases from
utility
• Less risk: company’s energy prices more stable over time
• More reliable: may reduce disruptions from electric grid
• Less waste: utilizes heat that would otherwise be wasted
• More sustainable: on-site generation results in less
greenhouse gas emissions
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OCEAN COUNTY COLLEGE
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OLD BRIDGE TOWNSHIP
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JERSEY SHORE UNIVERSITY MEDICAL CENTER
• Hospital and Critical Care
Facility
• CHP Equipment
• Total Project Cost: $3,888,805
• Incentive: $1,000,000
• Annual Savings: $2,892,703
• Payback Period: 1 Year
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RESILIENCE
• Ability to restore power quickly in the event of a grid
power outage
• Requires Distributed Generation (DG) and ability to
‘island’ – i.e. isolate the facility from larger grid
• NJBPU Town Center MicroGrid grant program
Powering Critical Facilities within close proximity
13 Projects
$175,000 each for feasibility studies
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SOLAR OVERVIEW
Solar Renewable Energy Credits (SRECs)
Entity owns system
Each MW generated creates 1 SREC
SRECs traded annually
Net Metering
Entity owns system
Sell excess energy back to grid on monthly basis
12 month ‘True-up’: sell back to grid at wholesale price
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SOLAR OVERVIEW
Power Purchase Agreement (PPA)
“Rent-your-roof”
Guaranteed cost (4/kWh)of electricity for contract
term
Most common form of solar PV development
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SOLAR BENEFITS
• Lower cost: reduces overall electricity purchases from
utility
• Sometimes roof replacement is included in PPA
• Can provide revenue stream
• More sustainable: on-site generation results in less
greenhouse gas emissions
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REVENUE STREAMS Demand Response (DR)
Entity paid by PJM for energy not consumed during peak
hours (kW)
Paid whether PJM calls an ‘event’ or not
Ideal for schools – greatest demand hours during summer
cooling season when schools have limited occupancy
Frequency Regulation Market (FRM)
Requires battery storage
Sell energy back to grid at steady, predictable current
Reduces impact on the grid of ‘intermittency’ of RE
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ESIP OVERVIEW
• Funding mechanism that allows public entities to pay for
capital improvements (energy infrastructure) with operational
savings realized by upgrading inefficient equipment
• Funds all hard costs (installed ECMs) and soft costs (audit,
engineering design, bonding costs, 3rd-Party review of ESP)
required to implement project
• Typical ESIP term is 15 – 20 years
• Turn-key process that delivers comprehensive energy analysis
and solutions and maximizes all available incentives
• Guaranteed savings when working with an Energy Services
Company (ESCO)
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ESIP: TYPICAL ECMs
Retro-commissioning (RCx) Lighting and Controls (in + out) Water Conservation Building Automation System (BAS) HVAC Chillers Boilers Roof Top Units (RTUs) Air Handling Units (AHUs) Motors Pumps Air sealing Insulation New windows New roof Kitchen equipment
All available incentives Revenue Streams Commissioning Staff Training Energy Guarantee Energy Curriculum (schools)*
*ESIP legislation allows 15% of the total cost of project to be directed to non-energy measures as long as energy savings can support them.
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ESIP PROCESS
1. Conduct Investment Grade Audit (IGA)
2. Develop Energy Savings Plan (ESP)
3. Third-party review of ESP
4. Obtain BPU approval of ESP
5. Secure Funding
6. Produce Engineering Design/Specifications
7. Competitively bid all ECMs
8.Construct
9. Commission
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ESIP: IMPLEMENTATION MODELS
ESCO Model • Uses public bidding or competitive contracting process
to award a contract to a DPMC-certified ESCO to provide turn-key services
• ESCO conducts audit, develops the ESP, produces engineering design/specifications, bids the ECMs and manages the construction
• ESCO must give a guarantee of savings opportunity to government entity
• Contract award is for “most advantageous, price and other factors considered process” or “lowest responsible bidder.”
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ESIP: IMPLEMENTATION MODELS
Do-It-Yourself (DIY) Model • Hire an energy consultant to develop your Energy
Savings Plan • Subcontract engineering design/specifications • Bid the ECMs • Manage construction in-house or hire
professionals to provide that service • Rely on built-in verification process to assure
savings – NO ENERGY SAVINGS GUARANTEE
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ESIP: IMPLEMENTATION MODELS
Hybrid Model – ESCO + DIY • Hire an Architect or Mechanical Engineer to manage
your ESCO project • AoR/EoR hires an ESCO as subcontractor to its
professional contract • ESCO conducts IGA; develops ESP • AoR/EoR provides 3rd-party review of ESP • ESCO produces engineering design/specifications, bids
the ECMs and manages construction • ESCO can provide energy savings guarantee - contracted
directly with entity
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ESIP: NJBPU OVERSIGHT
• RFP to hire ESCO must be approved by the BPU (template RFP available)
• LGEA is basis of RFP to hire ESCO
• Mandatory pre-proposal conference for interested, DPMC-certified ESCO’s
• BPU will receive, at a minimum, a CD or Flash Drive copy of each phase of the proposal and contract process
• BPU must approve ESP *NJCEP incentives are reviewed and approved in writing by the Program Manager, not BPU staff
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Projected Guaranteed Actual Percentage Entity Annual Savings Annual Savings Difference
Barnegat School District $317,151.00 $359,411.00 113.32% Mercer VoTech $1,015,724.00 $1,126,793.00 110.93% Millville School District $616,411.00 $803,820.00 130.40% Salem County VoTech $529,649.00 $623,562.00 117.73% Wyckoff School District $368,277.00 $403,642.00 109.60% Kearny Township $100,604.00 $122,534.00 121.79%
Bridgewater/Raritan RSD $592,025.00 $593,612.00 100.26%
Hanover Twp School Dist. $212,168.00 $218,104.00 102.79%
Phillipsburg $442,341.00 $521,762.00 117.95% Franklin Twp $99,134.00 $103,543.00 104.44% Somerset Hills $345,944.00 $352,647.00 101.93% Manalapan $67,021.00 $78,623.00 117.31%
Newark Housing Authority $4,212,128.00 $9,411,792.00 123.45%
$8,918,577.00 $14,719,845.00 113.22%
ESIP: PROGRAM PROGRESS
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COUNTY OF OCEAN
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ATLANTIC CITY
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OLD BRIDGE TOWNSHIP
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A D V O C A C Y
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STREETLIGHTING IN YOUR COMMUNITY
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565 municipalities in New Jersey
Over 8 million ratepayers in the State
Ratepayers (or taxpayers?) pay more than $110 million annually to light our streets
There are just over 745,492
street lights in New Jersey
Street lighting is paid for in nearly
all cases by local government
This is a budget item that is ultimately reflected in your property tax bill.
STREETLIGHT OVERVIEW
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USDOE: 20% of all energy consumed in US used is for lighting Between 36 – 44 million street lights in U.S. Primary technology used is High Pressure Sodium
Retrofitting all street lights with new LED technology will reduce the energy used by 24%. Added benefit: Reported reduction in crime by 12%
NATIONAL STREETLIGHTING STATUS
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STREETLIGHTS IN NEW JERSEY
• Municipalities can save over $55 million annually utilities provided a tariff for streetlights tariff • This represents between 1 ½% - 2% on a
municipalities annual budget • Atlantic City Electric (ACE) is the only investor-owned
utility to provide the tariff • The Board cannot force the Electric Distribution
Companies (EDCs) to introduce a tariff for LED street lighting
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STREETLIGHT COSTS IN NEW JERSEY
Newark - $8.6 million annually
Jersey City - $4.0 million annually
Camden - $1.9 million annually
Cherry Hill - $870,000 annually
Haddonfield - $111,000 annually
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Barnegat 144 street lights $19,672 Beach Haven 490 street lights $84,094 Harvey Cedars 176 street lights $35,018 Long Beach 1351 street lights $236,349 Ship Bottom 332 street lights $86,323 Surf City 217 street lights $35,705 Absecon 2022 street lights $127,413 Stafford Twp 3727 street lights $412,965
STREETLIGHT COSTS IN NEW JERSEY
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STREETLIGHT SMART
• Any municipally-owned streetlighting can be retro-fitted now.
• Review the capital costs and determine the payback for your county and municipalities.
• NJ’s Clean Energy Program provides incentives to convert to LEDs.
• Consider ESIP to carry the funding. • If you are located in ACE’s territory, upgrade to LEDs
to take advantage of significant and ongoing savings.
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The Office of Clean Energy provides LED incentives up to $150 per light, including cobra head street lighting. Working with the street lighting tariffs submitted by Atlantic City Electric (ACE), under their SPL Rate schedule (Street and Private Lighting) a town can take advantage of improved lighting quality and slightly lower monthly costs. Under ACE’s CSL Rate Schedule (CSL) when a town fronts the capital cost of the lighting the annual municipal lighting rates drops by over 65%.
STREETLIGHT SMART
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ADVOCATE for building ordinance that requires all new paving and construction projects to upgrade
to LED streetlighting technology.
Parking lot lit with metal halide Same parking lot with LEDs
Reduction in crime impacts public safety budgets
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LOS ANGELOS after street light conversion
Significant Green House Gas reductions
Significant reduction in light pollution
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RESOURCES Gary Finger, Ombudsman [email protected] Elizabeth Ackerman, Architect [email protected] NJ’s Clean Energy Program www.njcleanenergy.com Energy Savings Improvement Program (ESIP) www.njcleanenergy.com/commercial-industrial/programs/energy-savings-improvement-program Pay for Performance (P4P) Partners www.njcleanenergy.com/files/file/Pay%20for%20Performance/2016%20Partner%20List/P4P%20EB_NC%20Approved%20Partners%20Master%2011-10-16%20Clean.pdf State-qualified ESCOs www.nj.gov/cgi-bin/treas/contract_search.pl Sustainable Jersey www.sustainablejersey.com