NJ SmartStart BuildingsNew Jersey Higher Education

Partnership for Sustainability (HEPS)January 20, 2012

Presenter: BPU President Robert Hanna

Commercial & Industrial Program Focus Commercial Buildings Local Government Facilities Schools – K-12 Industrial Facilities Manufacturing Healthcare Facilities Multifamily Buildings Hospitality Industry Higher Education Institutions

NJCEP Overview NJ SmartStart Incentives

Prescriptive and Custom Direct Install P4P (Pay for Performance) Local Government Energy Audit Benchmarking New for 2012

NJ SmartStart Incentives Applicable to new construction, rehab, and

retrofit projects $500k annual cap (electric/gas) per

customer meter Incentives - not rebates

Do no install equipment before applying Over $70 million of the total incentive pool

of $250 million is budgeted for Smart Start incentives in 2012

Prescriptive Incentives – Pre-qualified Technologies

• Electric Chillers• Natural Gas Cooling• Electric Unitary HVAC

Systems & Controls• Ground Source Heat

Pumps• Gas Heating • Water Heating• LED Lighting

• Variable Frequency Drives• NEMA Premium Motors• Prescriptive & Performance

Lighting• Lighting Controls• Refrigeration Doors/Covers

and Controls

Custom Electric/Gas Projects Custom measures may provide incentives for

unique energy-efficiency measures Incentives paid upfront on a per therm and/or

kWh saved basis during the first year. Eligible projects must have a minimum first year

energy savings of 75,000 kWh or 1,500 therms

Direct Install (DI) A turn-key, retrofit program designed to

replace eligible lighting, HVAC and other inefficient operational equipment within your building

For buildings ≤150kW peak monthly demand

Provides incentives of up to 70% of the project cost, customer pays remaining 30%

NJCEP incentives are paid directly to the contractor on your behalf

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Key DI Program Features Minimal customer investment Generous incentives and fast paybacks Each project starts with a detailed no-cost

measure assessment by the participating contractor

A select group of pre-qualified contractors deliver all program services at negotiated flat fees for measures

All permitting and disposal included Clean Energy staff oversee each project

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Pay for Performance (P4P) Program Comprehensive, whole-building approach to

saving energy in existing or new facilities Goal is to reduce facility energy consumption

by 15% or more New construction projects must save 15% over

current ASHRAE building code Uses a network of program partners who

provide technical services under direct contract to you

We monitor their performance on your behalf

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P4P Eligibility Requirements Existing Building

Located in New Jersey Annual peak monthly demand in excess of 100kW

New Construction Located in New Jersey within Smart Growth area* 50,000 square feet of conditioned planned space

* Smart Growth requirement may be eliminated in 2012

P4P Incentives Participants pay partner fees Requests for incentives filed by partner Paid directly to participants to improve the

performance of their buildings Incentives up to $1 million per gas/electric meter or

up to $2 million total per project, assuming there is both gas and electric savings, additional $1.25 million for CHP (if part of project).

Low interest EDA financing is available ($250k to $2.5 million/project)

CHP/Fuel Cells No maximum system size for incentive

1MW, larger systems directed towards future BPU CHP/FC Program

Incentive payment structure Incentive #1 – 20% - Proof of equipment purchase Incentive #2 – 60% - Project completion Incentive #3 – 20% - Efficiency verification (i.e. 12

months post construction) Incentive cap of $2M (combination utility plus NJCEP)

CHP Incentives Paid By Program Raritan Valley Community College - $1,000,000 Rowan University - $1,000,000 Princeton University - $243,000 Salem Community College - $130,000

Local Government Energy AuditThe Local Government Energy Audit is available for:• NJ Local Governments• 501(c)(3) Non-profit Agencies• NJ State Colleges and Universities

Covers a wide range of building types, including: Offices, Town Halls, Police Stations, Fire Stations, Courtrooms, Schools, Community Centers, etc.

• Workshop later today will cover more details on this free audit service

In the Works for 2012• Retro-commissioning Pilot

• Incentives for improving the operating efficiency of your energy systems

• Continuation of the Large Energy Users Program• Enables the largest energy users to submit their

internal energy efficiency projects for review and approval paid for by their own SBC funds

• Large CHP and Fuel Cell Incentives• Systems over 1MW in size

Building energy performance assessments designed to help you: Understand how energy is consumed and the cost trends at each building See how your building(s) compare to similar buildings using EPA Portfolio Manager Identify relevant NJCEP incentives for each facility

For more information and new program announcements:

NJCleanEnergy.com/MUNIor call 866-NJSMART