new jerseys clean energy program opportunities for commercial, industrial and institutional...

New Jersey’s Clean Energy Program

Opportunities for Commercial, Industrial and Institutional Buildings

Gary E FingerBusiness Ombudsman

September 2013

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NJ Clean Energy Program Background

• Introduced in 2001 as part of the 1999 EDECA• Funded from “Societal Benefits Charge” on

utility bill• Administered by the New Jersey Board of Public

Utilities• Provides energy efficiency project opportunities

for:– Residential– Renewables– Commercial & Industrial

Program Goals

• Save energy and lower operating costs• Protect environment and lower emissions• Change the business mindset:

– Think high efficiency first– Encourage early retirement of equipment– Increase effective operations and maintenance – Promote renewable energy alternatives

Commercial & Industrial Portfolio

• NJ SmartStart Buildings• Local Government Energy Audit• Direct Install• Pay for Performance• Combined Heat & Power/Fuel Cells• Large Energy Users Pilot• Benchmarking

NJ SmartStart Buildings

• Includes New Construction, Rehab, and Retrofit Projects

• Most Popular - Equipment Replacement Projects

– Prescriptive– Custom Electric and Gas


• Electric Chillers• Natural Gas Cooling• Electric Unitary HVAC

Systems & Controls• Ground Source Heat

Pumps• Gas Heating • Water Heating• Lighting Controls

• Variable Frequency Drives VAV Systems or ChW Pumps

• NEMA Premium Motors*• Prescriptive & Performance

Lighting*• Refrigeration Doors/Covers

and Controls• Food Service Equipment

Custom measure path for unique electric or natural gas measures not on this prescriptive list

Prescriptive Incentives – Prequalified Technologies

*Incentives for premium motors and T12 lighting are discontinued as of March 1, 2013, except in Hurricane Sandy areas where the date has been extended to June 30, 2013.


Changes Effective March 1, 2013:• Prescriptive lighting incentives for T12 fixtures* eliminated.

The retrofit savings baseline will shift from T12s to T8s.• Incentives for premium efficiency motors* eliminated.• Motors with greater than 200 HP will continue under custom

measures.• Application for fractional HP electronically commutated

motors (ECMs) for refrigerated/freezer cases will become part of a new prescriptive Refrigeration Controls/Motors application.

• Motor and T12 lighting incentive applications were accepted through close of business, February 28, 2013.

• Approved projects must be completely installed withinone year of the program commitment date.*June 30, 2013 in Hurricane Sandy areas


Custom Measures is designed for unique technologies• Incentives paid for approved projects at the lesser of three

values:• 50% of project cost, or• 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.


Hurricane Sandy Enhanced Incentives• Additional incentives are available for businesses

and local government buildings located within storm-damaged areas.

• Equipment purchased on or after October 29, 2012 will qualify, while funding is available.

• A map of eligible zip codes is available at NJCleanEnergy.com/SANDY

• Buildings outside eligible zip code areas may qualify for enhanced incentives if it can be demonstratedthat damage was caused by Hurricane Sandy.

Enhanced Incentives

Prescriptive Equipment Incentives available through

NJ SmartStart Buildings have been increased by 50% in areas

affected by Hurricane Sandy.


A new line of NJ SmartStart Buildings incentives has been added for high efficiency food service equipment, including:

• Dishwashers• Fryers• Griddles• Hot Food Holding Cabinets• Ice Machines• Ovens• Refrigerators & Freezers• Steam Cookers

The 50% enhancement for areas impacted by Sandy does not apply to the new food service equipment incentives.

Streamlined Requirements

Additional enhancements for buildings located in Hurricane Sandy areas include modifications to standard program requirements:

• Pre-inspections and pre-approvals will be waived where appropriate, as will equipment inventory requirements for those with proof of existing conditions (i.e. maintenance records, recent photographs and energy audit reports);

• Restrictions on performance lighting measures in major rehabilitation projects have been eliminated;

• Planned discontinuation of incentives for premiummotors and T12 lighting has been extended fromMarch 1, 2013 to June 30, 2014.

Application Procedures

Hurricane Sandy Application Procedures

• Check the list of zip codes in Sandy affected areas to ensure your eligibility at NJCleanEnergy.com/SANDY.

• Complete the Hurricane Sandy Certification Form.

• Complete an application(s) for the appropriate NJ SmartStart Buildings energy efficiency measure.

• Attach the application(s) to the CertificationForm and send it to the program manager at the address provided on the form.

Local Government Energy Audit

The Audit is available for:• NJ Local Governments• 501(c)(3) Non-profit Agencies• NJ State Colleges and Universities• K-12 Schools

Covering a wide range of building types, including:• Offices• Town Halls• Police and Fire Stations• Courtrooms• Community Centers• School Buildings

• Participants select from a list of pre-qualified auditing firms who follow strict parameters to analyze the buildings and prepare the audit report

• The program subsidizes 100% of the audit cost, subject to an annual $100,000 incentive cap per entity

• Audit generates a list of recommended, cost-effective energy efficiency measures and facility upgrades to reduce operating expenses

• Many of the recommended measures are eligible for additional incentives offered by New Jersey’s Clean Energy Program


• Audit must be performed by one of five preselected engineering firms:

• Camp Dresser and McKee, Inc.• Clough Harbour and Associates, LLP• Concord Engineering Group Inc.• Dome-Tech Group• Steven Winter Associates, Inc.

• Firms selected by Department of Treasury• Rates for services posted on DOT site


Direct Install

• A turn-key, retrofit program designed to address the replacement of lighting, HVAC and other outdated operational equipment in small to medium size facilities with a peak electric demand not exceeding 200 kW in the preceding 12 months

• Provides incentives of up to 70% of the installed cost

• Incentives are paid directly to the contractor– customer pays remaining 30%– $125,000 project cap– $250,000 per entity cap

Direct Install Features

• Minimal customer investment• Generous incentives and fast paybacks• Participating contractors provide support • Average length of time for job completion, 4-6

months• Measures include lighting, occupancy sensors,

pipe insulation, variable speed drives, refrigeration, HVAC and low flow water devices

Direct Install Contractors

• Assigned by region• Assist with applications/agreements• Guide participants through program steps• Perform free energy assessments • Install cost-effective measures• Process all necessary paperwork

The list of authorized contractors is posted on NJCleanEnergy.com/DI

Direct Install Examples

• House of Worship & Offices• HVAC & Controls

• 5 Packaged HVAC Units, Economizers• Programmable T-stats & Occupancy

Sensors• Total Project Cost $114,052• Direct Install Incentive $75,000 (capped)• Customer Share of Cost $39,052• Annual Savings

• 83,308 kWh, 6,478 Therms• $19,622

• Payback Period - 2 Years

Temple Beth-El

• 15,000 sq.ft. Retail Building• Lighting & HVAC

• Incandescents to Screw-in CFLs• T-12 Fluorescents to T-8• 5 Packaged HVAC Units

• Total Project Cost $112,964• Direct Install Incentive $75,000 (Capped)• Customer Share of Cost $37,964• Annual Savings

• 141,311 kWh• $28,283

• Payback Period – 1.34 Years

Bob Danzeisen, Inc.

• 50,000 sq.ft. Warehouse• Lighting & HVAC

• HID to T-5• Fluorescents to T-8• 4 Packaged HVAC Units, Economizers


• 140,203 kWh, 5,200 Therms• $33,073


Prudential Stainless & Alloys

• 17,000 sq.ft. Office Space• Lighting & HVAC Retrofit

• Screw-in CFLs, Exit Signs, T-8s• 13 HVAC Units• Economizers, Programmable T-stats• Faucet Aerators


• 90,620 kWh, 2,588 Therms• $16,614


Galloway Township Municipal Building

• Office Facility• Lighting & HVAC Retrofit

• Screw-in CFLs, Occupancy Sensors, T-8s• 4 HVAC Units• Economizers, Programmable T-stats• Faucet Aerators, Pipe Wrap Insulation

• Total Project Cost $96,741• Direct Install Incentive $67,719 (70%)• Customer Share of Cost $29,022 (30%)• Annual Savings

• 83,681 kWh, 3,079 Therms• $14,124


Eden Autism Services

• 10,000 sq.ft. Grocery• Lighting, Motors, Refrigeration

• T-12 to LED Sticks• Motor Retrofit• Compressor/Freezer Door Control• Aluminum Night Covers, Novelty Cooler

Shutoff• Total Project Cost $38,969• Direct Install Incentive $27,278 (70%)• Customer Share of Cost $11,691 (30%)• Annual Savings

• 66,879 kWh• $8,776


Avon Foods (Roebling Town Market)

Pay for Performance

• Comprehensive, whole-building approach to saving energy in existing or new facilities

• Goal is to reduce facility energy consumption by 15% or more, or 4% for eligible high-energy intensity customers

• Relies on a network of program partners who provide technical services under direct contract to customer

Pay for Performance Eligibility

• Existing Building– Located in New Jersey

– Annual peak demand in excess of 100kW

• New Construction – Located in New Jersey within Smart Growth area– 50,000 gross heated square feet of planned space

Thresholds waived for hospitals, non-profits, local government buildings, affordable multi-family housing and public universities and colleges

Pay for Performance Incentives

• Incentives up to $2 million per project, assuming both gas and electric improvements are made; $4 million annual entity cap

• Incentives paid out in three installments at program milestones:1. Completion of comprehensive energy study (“Energy

Reduction Plan”)2. Installation completion of recommended measures 3. End of 12-month energy savings verification period

Pay for Performance Partners

For a complete list of approved partners, as well as information on becoming a partner, visit…

NJCleanEnergy.com/P4P

Pay for Performance Examples

• 60,000 sq.ft. Existing Building• Energy Efficiency Measures

• Induction and LED retail display lighting• Defrost cycling • ECM motors• New compressors and condensers

• Project Cost $578,541• Incentives $260,747• Annual Savings 1,332,296 kWh, 226 kW,

$172,151• Payback Period: 1.85 years

Rockaway ShopRite Associates

Perth Amboy

• 27,000 sq.ft. Healthcare Laundry• Energy Efficiency (EE) Measures:

• Boiler Economizer• HID/T-12s to T-8s• New High Efficiency HVAC Unit• Variable Frequency Drives on Compressors

• 200 kW Combined Heat & Power (CHP) System

• Project Cost $211,314 plus $980,766 CHP

• Incentives $110,657 (EE) plus $200,000 (CHP)

• Annual Savings and Heat Recovery• 116,002 kWh, 94,390 Therms,

$130,594 (EE)• 1,244,486 kWh, 93,270Therms (CHP)

• Payback Periods – EE 10 Months, CHP 5 Years

FDR Services Corp

• Eisenhower Middle School, Lincoln, Coolidge, Washington Elementary Schools

• Energy Efficiency Measures:• T-12s to T-8s• Lighting Occupancy Sensors• Stream Trap Replacements• Building Automation Systems

• Project Cost $1,189,879• Incentives $201,448 (integrated with ESIP)• Annual Savings

• 474,274 kWh, 34,840 Therms, $138,417• Payback Period – 7 Years

Wyckoff Public Schools

• 866,020 sq.ft. Office and Datacenter• Energy Efficiency Measures:

• Optimization of VAV, Fan Powered Terminal, AHU Control, Chiller & Cooling Tower Sequencing, Water Temperature & Datacenter Control Set-Points

• Kitchen Hood VFD w/ Temp and VOC Sensors• VFDs: Primary, Secondary, Condenser, Hot Water Pumps

and Datacenter Unit Fans• Convert Cooling Coils from 3 Way to 2 Way Valves• Re-piping Water-Side Economizer

• Project Cost $1,532,205• Incentives $731,323• Annual Savings

• 3,289,880 kWh, 49,530 Therms, $634,060• Payback Period – Less Than 2 Years

ATT Corp - Bedminster

• 91,707 sq.ft. Supermarket• Energy Efficiency Measures:

• T-12s to T-8s, LED Retail Display• Compressor Upgrade, New Condensers

• Radiant Floor Heat Recovery• Additional Wall & Roof Insulation

• Reach-in Refrigerators/Freezers with LED Lights and ECM Motors, Controls

• High Efficiency RTUs• Project Cost $1,201,830• Incentives $329,205• Annual Savings

• 1,354,812 kWh, 8,790 Therms, $186,886• Payback Period – Less Than 5 Years

Saker ShopRite

• 248,358 sq.ft. Multifamily• Energy Efficiency Measures:

• T-12s to T-8s, Incandescents to CFLs• Lighting Occupancy Sensors

• Additional Wall Insulation• Solar Thermal Water Heater

• Pool Insulation and New Heater• Project Cost $566,600• Incentives $96,500• Annual Savings

• 341,259 kWh, $53,578 • Payback Period – Less Than 9 Years

Camelot Condominium Association

• 67,079 sq.ft. Nursing Home• Energy Efficiency Measures:

• T-12s to T-8s• VFD Kitchen Hood Controls• High Efficiency Space Heating• High Efficiency Water Heating Boilers

• Project Cost $314,074• Incentives $72,140• Annual Savings

• 157,612 kWh, Therms 20,590, $47,601 • Payback Period – 5 Years

Genesis Healthcare Voorhees Center

NJ CHP Background

• NJ currently has 3,000 MW of CHP at 209 facilities

• Governor Christie’s EMP set a goal of adding 1,500 MW of CHP by 2021 or approx 150 MW

per year. Market potential study performed by MA CEAC • Goal was for duel economic and

environmental benefits – facilities must demonstrate net benefits.

NJ CHP Policy – for Critical Facilities

CHP more than just an emergency measure - operates 24/7

Can generate a portion/all of the facilities energy needs including electric and thermal

What is needed for CHP for Critical FacilitiesOperate isolated from the grid – IslandingUndergrounding of wiresBlackstart - (Code issues)TestingTraining

Combined Heat & Power/ Fuel Cells- Small Scale program

All system size limited to one MW or less

100% or less of facility’s historic usageNew equipment or incremental for existing system

Non-RE Fuel < 500 kW $1000/kw > 500 kW $500/kW $250/kw bonus w PfP capped at 30% or 40% with

cooling

RE Fuel < 500 kW $3000/kw > 500 kW $2000/kW Capped at 40%

Fuel cells HR $2000/kWFuel cells w/o HR $1500/kW$250/kW bonus w PfP capped at 60%

Combined Heat & Power / Fuel Cells – Large scale

programAll system sizes greater > 1 MW

• 1-3 MW $550/ kW• > 3 MW $350 / KW • Capped at $3 M or 30%

Fuel cells• $2000 per kW w HR• $1,500 per kW w/o HR• Capped at $3 M or 45%

Must be “new” and no export -100% on site use

NJ CHP Background

Small scale – Non-RE fuel 26.3 MW 2006- 2012 $ 17.6 M RE fuel 3.2 MW $ 6.8 M

Fuel Cells 1.5 MW $ 4.7 M7 projects approved 2.3 MW 5 under review 2.8 MW

Large scale – 24 MW $11M – 2012 6 projects ($67.5M)ARRA - 34 MW $15 M 2010-2011

NJ CHP Policy – storm Response

– Power was out in Princeton for over a week but Princeton University was able to switch off grid and power a large part of the campus with an 11 MW CHP unit

– The College of NJ was able to island their facilities because of their CHP units and continue to stay open while the 26kV line that feeds power to the campus was down and was being repaired

NJ CHP Policy – Storm Response for Critical

Facilities

• To highlight the importance of training and testing

• Rutgers attempted to isolate and black start their CHP facility but it was determined that the control logic prevented the black start system from functioning.

• Rutgers needed to upgrade that logic as required to perform in island mode with installation of a new and upgraded 69 KV substation that was recently installed.

• This requires both software and electrical equipment upgrade. The estimated cost is $350,000.

NJ CHP Policy

If we were to fund the installation of 1500 MW of CHP in the same manner as in the current Large Scale CHP and Fuel Cell program

This would cost the ratepayers approximately $700M over 8 years and over $1B if that includes the small scale CHP- Fuel cell program

Approximately $100 M per year (0.3% rate impact)

Rebates and grants are not the more effective and efficient way to incentivize actions

Uncertainty in the start and stop of a rebate budget – CHP needs a larger degree of certainty because of sizeand timeframe needed to develop CHP

Pike Research estimates that the global CHP market will enjoy a period of strong growth over the next decade, and forecasts that more than 8.5 million CHP systems, mostly small residential units, will be shipped between 2011 and 2021. With reduced natural gas prices, CHP has become more popular in the U.S. The DOE goal is to reduce these costs to $1000 per kW , which is expected to support increased demand for micro CHP products.

http://www.navigantresearch.com/newsroom/combined-heat-and-power-unit-shipments-to-total-8-5-million-by-2020.

NJ CHP Policy

Combined Heat & Power Examples

• 500,000 sq.ft. manufacturing facility • Combined Heat & Power (CHP)

• 390 kW installation consisting of six 65 kW inverter-based, grid connect microturbines with integral heat recovery modules

• Three 30-ton absorption chillers• Project Cost $2,367,006 - Incentives $877,500• Annual Savings 979,928 kWh generation, 7,360

MMBtu recovered waste heat to offset 85% of the facility’s electrical load and 100% of the heating and cooling loads

• Annual Cost Savings $111,902 • Payback Period 10.5 Years • 200 new jobs added; additional 175 jobs by end

of current year as a result of energy and cost savings

Viking Yacht

• 280 acre college campus • Combined Heat and Power (CHP)

• 1,100 kW internal combustion engine with heat recovery

• 80-ton absorption chiller• Project Cost $4,594,188 (estimated)• Incentives $1,000,000• Annual Savings 8,545,053 kWh generation, 21,029

MMBtu recovered waste heat to provide 47% of campus electric load, 76% heating and hot water load, and 23% cooling load

• Annual Cost Savings $527,973• Payback Period 6.8 Years • Manufacturing and construction anticipated to

generate 25 temporary full-time jobs

Rider University

Free Benchmarking Report

Benchmarking assessments are designed to help:

• Understand energy cost trends and consumption at each building

• With sufficient comparative data, see how building(s) compare to similar buildings using EPA Portfolio Manager

• Identify relevant incentives for energy efficiency projects

• The benchmarking report is valued at $1,500

Includes:

• Data analysis graphs• Explanation of how fuel is used• For most buildings – a Portfolio Manager score• Suggestions for improving operations and

maintenance• Guidance on NJ Clean Energy Program options• Program application information

Free Benchmarking Report

To Request Free Benchmarking

• Visit NJCleanEnergy.com/BENCHMARKING• Submit the online data collection form• Submit 12 consecutive months of energy data

or a signed Fuel/Energy Release Authorization Form

Edison Innovation Clean Energy Manufacturing Fund

(CEMF)

• Administered jointly by New Jersey Board of Public Utilities and the N.J. Economic Development Authority.

• Supports the commercialization and development of Class 1 renewable energy and energy efficiency technologies in New Jersey. Eligible technologies include:

– Class I renewable energy, such as photovoltaic, solar, wind energy, renewably fueled fuel cells, wave, tidal, renewably generated hydrogen, sustainable harvested biomass and methane gas from landfills.

– Energy efficiency equipment and technology that reduce electric or natural gas consumption, such as furnaces, boilers and air conditioning systems with higher efficiencies than adopted New Jersey building energy codes or federal or New Jersey appliance standards; as well as lighting systems, including LED lights and energy monitoring and control systems would qualify.

– Other technologies or equipment that can demonstrate their integral nature to the development of Class I renewable energy and energy efficiency technologies, including "balance of system" technologies that produce or support the production of renewable or clean electricity generation.

• For more information, please visit: www.njeda.com.

http://www.njeda.com/

Edison Innovation Green Growth Fund

• Offers loans up to $2 million with a performance grant component to support technology companies with Class 1 renewable energy or energy efficiency products or systems that have achieved "proof of concept" and successful independent beta results, have begun generating commercial revenues, and will receive 1:1 match by time of loan closing.

• Growth capital to advance newly discovered energy efficient, renewable energy or supply chain products that will assist Class I renewable energy or energy efficient technologies in becoming competitive with traditional sources of electric generation.

For more information, please visit: www.njeda.com.

http://www.njeda.com/

For More Information

Visit NJCleanEnergy.com/SSBCall (866) NJSMART

For the latest updates on program announcements or new incentives, subscribe to the NJ Clean Energy E-

Newsletter at NJCleanEnergy.com

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