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1.1.1.1. PPPPROGRAM ROGRAM ROGRAM ROGRAM DDDDESCRIPTIONESCRIPTIONESCRIPTIONESCRIPTION

The Energy Efficient Products Program promotes the sale and purchase of ENERGY STAR qualified and

other energy efficient products including lighting, appliances and consumer electronics, while also

supporting the “early retirement” and recycling of existing inefficient products in New Jersey

households. The long-term goal of the Program is to transform the market for energy efficient products

in New Jersey by removing barriers to new technologies and providing participants with the knowledge

and motivation they need to make cost-effective purchases.

The Energy Efficient Products Program provides targeted rebates and messaging to consumers,

community partners, manufacturers and retailers for the purchase/sale of selected energy efficient

products. The program continues to transition towards greater upstream and midstream initiatives that

leverage manufacturer, distributor and retailer incentives and marketing dollars. These initiatives

increase available funds for incentives and decrease program operating costs.

Aligned and complimentary to the Residential HVAC, New Construction, and Home Performance

programs, the Energy Efficient Products Program is focused on the reduction of plug load and lighting

energy usage in New Jersey households. Significant gains in market share of higher efficiency products

through coordinated voluntary efficiency programs nationwide have resulted in rapid advancements in

federal minimum standards, resulting in long term energy savings. The program also provides, when

necessary, technical support for the development of such upgrades to federal standards, tracking of

activities and monitoring developments, and review and modification of program designs to integrate

changes to the standards and codes.

The NJ Efficient Products Program:

• Partners with over 15 New Jersey based and national retailers through the lighting and

appliance initiatives, as well as hosts an online store and incorporates community-level events

to increase accessibility to a diversity of high efficiency products across New Jersey

• Provides point-of-sale rebates in the range of $0.50 to $15 to accelerate the adoption of CFL

and LED fixtures and replacement bulbs and $15 for advanced power strips

• Provides a dual approach of mail-in and point of sale rebates of $50-$75 for higher efficiency

ENERGY STAR clothes washers and refrigerators

• Offers an incentive of $50 for the “early retirement,” removal, and recycling of older, inefficient

refrigerators in New Jersey households

• Provides an upstream incentive to cable and satellite service providers serving New Jersey

customers for the installation of ENERGY STAR V4.1 set top boxes

Due to the nature of the funding derived from the societal benefits charge on investor owned utilities,

residential customers using oil, propane, and non-investor owned (municipal) electric are not technically

eligible to participate in the rebate promotions. However, some of the midstream or upstream

promotions assume a certain percentage of participants are not eligible, as the identification process

would be unduly cumbersome given that specific programmatic approach.

2

The Market Manager team has developed a set of recommendations for FY2016 to improve cost-

effectiveness, increase efficiency of qualified products, and identify potential new programs to enhance

market engagement.

In the first category, improving the cost-effectiveness of the Energy Efficient Products Program, the

Market Manager team has developed a set of proposals designed to maintain program impact. These

recommendations are described in detail in Section 9, Recommended Program Modifications, and

include:

• Increase shift to LEDs in lighting and eliminate the incentive for single package CFLs;

• Reduce CFL & LED incentives by a minimum of 10% and increase multi-pack sales;

• Update clothes washer and refrigerator rebates to include a two-tiered specification at ENERGY

STAR and CEE Tier 2, based on a review of available models in the NJ market;

• Add a Tier 2 Advanced Power Strip rebate to offer deeper savings opportunities for addressing

plug loads;

• Run a new annual solicitation for service provider promotions of whole-home set top box

replacements; and

• Review options for consolidating rebates for a combined ENERGY STAR clothes dryer and washer

pair and consider a shift to a paired rebate for new ENERGY STAR refrigerator with recycling of

old refrigerator.

Recommendations in the second category, potential new programs to engage a broader market, are

discussed in Section 10, Recommended New Programs, and include:

• Evaluate a New Jersey pilot of the ENERGY STAR Retail Products Platform to maintain a viable

long-term, cost-effective products program and leverage a national platform for greater

engagement with retailers to accelerate the stocking and sales of certain ENERGY STAR product

categories; and

• Continue to explore the ability for the BPU to access customer electric utility data to support the

development of a behavioral program for the NJCEP in FY2016.

2.2.2.2. PPPPROGRAM ROGRAM ROGRAM ROGRAM GGGGOALS AND OALS AND OALS AND OALS AND OOOOBJECTIVESBJECTIVESBJECTIVESBJECTIVES

The Energy Efficient Products Program promotes the sale and purchase of ENERGY STAR qualified and

other energy efficient products including lighting, appliances and consumer electronics, while also

supporting the “early retirement” and recycling of existing inefficient products in New Jersey

households. As with most efficiency programs in North America, the Products program has historically

been the most cost-effective approach to achieving residential program savings – largely driven by the

promotion of efficient lighting. For FY2015, the Energy Efficient Products Program has set annual targets

for participation and electric and natural gas savings of:

• Achieve savings of 243,119 in lifetime DTh savings and 1,339,454 in lifetime MWh savings;

• Achieve sales and distribution in excess of 5 million efficient lighting products in NJ in FY2015;

• Provide 27,000 incentives for clothes washers, refrigerators and clothes dryers;

• Remove 12,000 old, inefficient refrigerators and freezers from NJ homes;

• Provide 30,000 rebates for high efficiency set top boxes; and

• Provide efficient products distribution and customer outreach through creative partners.

In addition to these measureable objectives, the Program also focuses on:

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• Market transformation. In alignment with the economic development goals set out in New

Jersey’s Energy Master Plan, the Program seeks to transform the New Jersey retail market to

increase the stocking and sales of high efficiency ENERGY STAR qualified products. Collaborating

with other programs nationally, the program’s support results in increased federal standards for

efficient lighting and appliances and long term energy savings for New Jersey households. In

addition, the program partners with cable and satellite service providers in the state to develop

a coordinated approach to reducing the energy impact of the increasing quantity of consumer

electronics in New Jersey households. In the figure below, the successful market transformation

of refrigerators is highlighted as an example of market transformation. Increases of efficiency

over the past 40 years are matched against corresponding gains in performance and reduced

purchasing prices.

Figure 1. Analysis of Performance, Features and Price as Efficiency of Refrigerators Improves

Source: ASAP Report – Better Appliances: An Analysis of Performance, Features and Price as

Efficiency Has Improved, May 2013.

• Non-energy benefits. NJCEP’s approach to the efficient products market is to make use of

performance specifications like ENERGY STAR and CEE that achieve efficiency gains without

sacrificing overall product performance. In addition to energy savings, however, certain

initiatives result in significant water conservation (efficient clothes washers) and responsible

capture and disposal of refrigerants (refrigerator recycling).

The Energy Efficient Products Program is designed to address several key market barriers:

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• Incremental price difference between conventional and higher efficiency appliances, lighting,

and electronics products; and

• Limited customer and retailer awareness of the availability and economic and environmental

benefits of energy efficient products.

To address the first market barrier, the program provides incentives to reduce the incremental price to

the customer either through direct mail-in, manufacturer markdown, or retailer point-of-sale (instant)

rebates.

The second market barrier reflecting the need for increasing the awareness and availability of new, high

efficiency products is primarily addressed through cooperative marketing campaigns, targeted

incentives for the highest performing equipment, and competitive solicitations for promotional

partnerships with the program’s trade allies – including retailers, manufacturers and cable service

providers.

Lighting is the largest savings opportunity targeted by the Products program and reflects the “best

practice” of providing rebates to the manufacturer to markdown the price of their CFLs, LEDs and other

efficient lighting products through cooperative partnerships with retailers. A second path has been

developed over the last several years for community event promotions to engage customers outside of

traditional retail venues. Promotions through both the markdown and community lighting initiatives are

selected annually through a competitive solicitation issued by the Program.

Rebates for appliances are provided to residential customers through either mail-in or point-of-sale

rebates with participating retailers. Recently the program has shifted to offer more rebates at point-of-

sale to reduce the administrative cost of processing mail-in rebates and to streamline the customer

participation process. However, the absence of a national approach to this midstream engagement with

retailers has created a barrier to achieving the desired level of participation from national retailers. In

the case of the consumer electronics initiative supporting ENERGY STAR cable set top boxes, incentives

are paid to the cable service provider to promote the accelerated deployment of higher efficiency

equipment.

The Products Program is very cost-effective in achieving its savings goals, but the continued

advancement of federal minimum (and industry voluntary) standards for lighting, appliances, and cable

set top boxes has placed a higher burden on programs. The program shift to higher efficiency products

(e.g. LEDs from CFLs) has also reversed, albeit temporarily, the trend towards reduced lighting

incentives. These shifts in program cost-effectiveness require greater emphasis on partnerships with

retailers to focus greater attention on the stocking and sales of efficient products and away from

providing incentives to the end-customer.

3.3.3.3. HHHHISTORIC ISTORIC ISTORIC ISTORIC PPPPROGRAM ROGRAM ROGRAM ROGRAM RRRRESULTSESULTSESULTSESULTS

All results presented in this section are from internal Market Manager databases and official program

results filed in annual reports.

The Energy Efficient Products Program grew rapidly from 2006 to 2009, more than doubling the budget

and participation primarily through the shift to upstream markdown promotions with manufacturers

and increased performance and availability of various CFL lighting products. In 2010, the program

introduced several new initiatives in consumer electronics, refrigerator recycling, and community

focused lighting promotions. However, budget reductions in 2010 resulted in the elimination of a few

appliance categories as well as significant reductions in the budgets for lighting promotions. These

reductions were partially offset by more aggressive pricing and availability of CFLs, allowing for similar

5

participation levels with lower incentive budgets. However, this ultimately resulted in a more limited

offering for the community focused lighting promotions and fewer and reduced funding for individual

markdowns and manufacturer/retailer promotions.

Starting in 2012, the commercialization of LEDs and initial impacts of the Energy Independence and

Security Act of 2007 (EISA) began to substantively affect the markdown program for lighting – both in

increasing the availability of lower cost CFLs, as well as the promising opportunity around LEDs. The

markdown promotions in 2012 included significant increases in LED downlights and availability of 40W

replacement lamps.

The vast majority (87%) of program spending is for customer incentives, in the form of either point-of-

sale or mail-in rebates, with the exception of the consumer electronics promotion for set top boxes. In

the case of refrigerator recycling and the set top box initiative, a portion of the rebate is paid to the

third party promotional partner to cover the implementation cost of the measure.

Table 2. FY2015 Program Budget by Initiative

Rebated Retail Measures 2015 Measures

2015

Incentive

Level

Total FY2015

Incentives

Creative Lighting – Community Initiatives 120,000 $11.00 $1,386,000

Lighting Markdown - CFL & LED Replacement Lamps 3,500,000 $2.55 $9,371,250

Lighting Markdown – CFL and LED Fixtures 50,000 $22.50 $1,181,250

Refrigerators - CEE Tier 2 9,000 $50.00 $497,500

Clothes Washer – CEE Tier 2 (MEF 2.2) 19,000 $50.00 $1,022,500

Other Upstream Incentives - CEE Tier 2 Refrigerators 5,000 $50.00 $362,500

Other Upstream Incentives - Clothes Washers 5,000 $50.00 $312,500

Other Upstream Incentives – ENERGY STAR V1 Dryers 1,000 $100.00 $105,000

Other Upstream Incentives – ENERGY STAR ETA Dryers 500 $300.00 $157,500

Energy Efficient Set-Top Box (ENERGY STAR Tier 1&2) 35,000 $11.20 $411,600

Refrigerator/Freezer Early Retirement Program (JACO) 12,000 $107.00 $1,508,700

Refrigerator/Freezer Early Retirement Program (Cust) 12,000 $50.00 $705,000

Total Rebates 28,000 87% $17,021,300

Total Rebate Processing, Inspections and QC 3% $445,883

Total Administration, IT and Program Development 10% $2,001,757

Total FY2015 Efficient Products Budget $19,468,939

Table 3 summarizes Efficient Products program results for 2009-2012, as well as budgets for FY2015.

While there has been general growth in participation, along with electric and gas savings, recent

downward trends in the budget, as well as increased shift to more expensive lighting products (e.g.

LEDS) have reversed the previous trends in cost per unit of energy savings. Actual expenditures have

generally been fairly well aligned with budgeted levels and often the Products program can accelerate

and/or expand lighting promotions to accommodate lower spending in other residential programs. Note

that detailed cost-benefit results and projections are discussed in Section 4, below.

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Table 3. Program Budget vs. Actual Expenditures 2009-2012

2009 2010 2011 2012

(18 mo.)

FY2014

(Budget)

FY2015

(Budget)

Annual Units 6,643,677 3,986,463 5,269,102 7,751,359 5,372,188 3,761,000

Annual MWH Savings 348,036 191142.8 247,222 353,325 242,192 180,166

Annual kW Reduction 18,591 24,688 30,815 50,083 NA NA

Annual Gas Savings

(Dtherm)

22,843 26,540 27,056 24,756 29,419 23,983

Annual MMBtu

(Gas + Elec)

1,209,646 678,337 870,083 1,229,594 855,294 638,348

Total Program Budget $25,315,444 $17,936,074 $18,193,381 $26,137,799 $18,256,233 $19,468,939

Actual Expenditures $19,623,880 $16,082,752 $16,643,931 $21,407,141 NA NA

kWh/Unit 52 48 47 46 45 48

Therms/Unit 0.03 0.07 0.05 0.03 0.05 0.06

MMBtu/Unit (Gas + Elec) 0.18 0.17 0.17 0.16 0.16 0.17

$/MMBtu $16 $24 $19 $17 $25 $30.50

Program Cost/Unit $2.95 $4.03 $3.16 $2.76 $4.04 $5.18

Data sources:

www.njcleanenergy.com/files/file/2001-2012%20Program%20Results.xls

FY2015 NJCEP budget and savings

4.4.4.4. RRRRESULTS OF ESULTS OF ESULTS OF ESULTS OF BBBBENEFITENEFITENEFITENEFIT/C/C/C/COST OST OST OST AAAANALYSISNALYSISNALYSISNALYSIS

Historically, the Efficient Products Program has been a cost-effective program and largely attributed to

the significant savings opportunity associated with CFLs and the development of the partnership

between manufacturers and retailers on markdown lighting promotions. However, recent advances in

federal standards for lighting, appliances, and consumer electronics have greatly reduced the attributed

savings to the program for these existing measures. In the table below, program cost-effectiveness was

reviewed based on the FY2015 budget, based on updates to the savings protocols made during the

FY2015 program year, and finally based on an analysis of the FY2016 program with the proposed

program modifications described in Section 9.

As the proposed new program initiatives described in Section 10 – including the introduction of a pilot of

the ENERGY STAR Retail Products Platform and potential behavioral programs – require substantive

changes to the program and engagement with multiple stakeholders, they were not included in this

analysis. However, both proposed new program initiatives have either demonstrated to be very cost-

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effective in the case of behavioral platforms or exemplified by earlier cost-effective midstream

promotions of televisions in the case of the ENERGY STAR Retail Products Platform.

Table 4. Cost Benefit Analysis for FY2015 Budget, Savings Updates and FY2016

FY2015 Budget FY2015 Savings

Update FY2016 Proposal

Total Resource Cost Test $25,520,386 $11,879,717 $19,108,724

Benefits-Cost Ratio 1.8 1.4 1.5

Societal Cost Test $ 64,968,282 $ 39,930,321 $ 54,322,632

Benefits-Cost Ratio 2.9 2.2 2.4

5.5.5.5. CCCCOMPARISON TO OTHER POMPARISON TO OTHER POMPARISON TO OTHER POMPARISON TO OTHER PROGRAMSROGRAMSROGRAMSROGRAMS

5.15.15.15.1 Incentive levelsIncentive levelsIncentive levelsIncentive levels

The Efficient Products program offers comparable incentive levels to many other leading efficiency

programs nationally for its lighting, appliance and refrigerator recycling program. Specific details for

each initiative are included below.

Lighting

Although some program information is available for other leading lighting programs in the Northeast

and nationally, final incentives are typically determined through negotiations with the manufacturers

based on the individual proposals received through the competitive solicitation. These can range from

as low as $0.25 to 0.50 per individual and multi-pack of standard CFLs up to $15 for omnidirectional

LEDs. The differentiation of single and multi-packs, as well as the allowance for ranges of incentives, has

allowed for annual adjustments and reductions to reflect advancements in the market.

• In the approved markdown promotions for FY2015, the average CFL incentive was $0.73

including an average across all standard and specialty replacement lamps and CFL fixtures.

• In the approved markdown promotions for FY2015, the average LED incentive was $5.40

including an average across all LED replacement lamps and fixtures.

• In the approved community-focused creative lighting promotions for FY2015, the average

incentive was $9.01 including an average across all CFLs, LEDs, and fixtures.

• In FY2015, LEDs represented 35% of all lighting products supported through the markdown and

community promotions.

Table 5. Lighting Markdown Incentive Schedule for 2012/2013 and FY2015 Program Years

Lighting Markdown Promotional Products NJCEP 2012-2013 NJCEP 2015

Bare Spiral CFL or A-Lamp Covered CFL (single

pack) $0.50 - $0.70/bulb $0.60/bulb

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Bare Spiral CFL or A-Lamp Covered CFL (multi-

pack)

$0.25 - $0.50/bulb ($6

max per package)

$0.50/bulb ($6 max per

package)

Specialty CFL (single pack) $2.00 - $3.00/bulb $2.00/bulb

Specialty CFL (multi-pack) $1.25 - $2.00/bulb ($8

max per package)

$1.50/bulb ($6 max per

package)

Omni directional A19 LED (single pack) $4.50 - $10.00/bulb $4.50 - $7.00/bulb

Omni directional A19 LED (multi pack)

$3.00 - $5.00/bulb ($30

Max per package)

LED Reflectors - R20, R30, R40, PAR38 (single

pack)

$5.00 - $10.00/bulb ($30

Max per package)

LED Reflectors - R20, R30, R40, PAR38 (multi

pack)

$3.00 - $7.00/bulb ($30

Max per package)

LED MR16 or Candle Shape (multi pack) $1.00 - $2.00/bulb ($30

Max per package)

LED MR16 or Candle Shape (multi pack) $1.00 - $1.50/bulb ($30

Max per package)

ENERGY STAR qualified LED Recessed

Downlights** (single pack) $10.00 - $20.00/unit $5.00 - $15.00/unit

ENERGY STAR qualified LED Recessed

Downlights** (multi pack)

$3.50 - $10.00/unit ($60

Max per package)

Desk / Clip Lamps $3.00 - $5.00/fixture ($5

Max per package)

Indoor Portable Light Fixtures (Table, floor,

torchiere) $4.50 - $7.00/fixture

$4.50 - $7.00/fixture ($7

Max per package)

Indoor Permanent Light Fixtures (single pack) $7.50 - $15.00/unit $5.00 - $15.00/unit

Indoor Permanent Light Fixtures (multi pack)

$3.50 - $10.00/unit ($60

Max per package)

Outdoor Light Fixtures (single pack) $4.50 - $10.00/fixture $4.50 - $10.00/fixture

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Outdoor Light Fixtures (multi pack)

$3.00 - $7.00/fixture ($7

Max per package)

Ceiling Fans w/lights or light kits** $7.50 - $15.00/unit $7.50 - $15.00/unit ($15

Max per package)

Appliances, Refrigerator Recycling, Advanced Power Strips and Cable Set Top Boxes

As noted above, the shifting cost-effectiveness for appliance initiatives has decreased the number of

efficiency programs supporting them with rebates. Most programs offer rebates through direct

customer mail-in rebates, but a handful of programs are supporting appliances with point-of-sale

(instant) rebates with participating retailers. In New Jersey during FY2015:

• ENERGY STAR Clothes washers and refrigerators are supported with mail-in and point-of-sale

rebates of $50 with participating retailers. Clothes washers and refrigerators must achieve an

advanced performance criteria of CEE Tier 2. As noted in the table below, this is in line with

other programs.

• ENERGY STAR and 2014 Emerging Technology Award (ETA) winning clothes dryers rebates at

$100 and $300 respectively are new for FY2015 following the introduction of the new ENERGY

STAR specification and advanced criteria supporting heat pump clothes dryers. The significantly

higher 2014 ETA rebate is targeted to support the early market adoption of the heat pump

technology in New Jersey.

• “Early Retirement” of secondary refrigerators receives a customer rebate of $50. As noted in

the table below, this is in line with other programs, but as with other programs this does not

include the JACO per unit payment of approximately $107 for the pickup, processing, and

recycling of the refrigerator.

• Advanced power strips are supported with a $7 - $10 rebate through the creative and

markdown lighting promotions. Comments during the Efficient Products stakeholder

subcommittee meeting from NEEP suggested that this incentive was on the low end and

suggestions were made to increase it to be more in line with other efforts.

• Cable and satellite set top boxes are supported with a midstream rebate of $8 directed to the

service provider to support the accelerated deployment of ENERGY STAR V4.1 qualified set top

boxes. There are only 1-2 other programs currently piloting cable set top box initiatives and

both are negotiated agreements with the service provider.

Table 6 below demonstrates that New Jersey’s rebates for the appliance, appliance recycling, and

Advanced Power Strip measures are comparable to regional and national efficiency programs. Of

particular note are the handful of programs, including New Jersey, the California investor owned

utilities, and Con Edison, offering point of sale rebates through participating retailers and those

working with regional or local water districts/utilities to offer combined rebates.

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Table 6. Appliance Incentives Comparison for Regional and National Programs

Figure 7. Comparison of NJ Lighting Program to Other Northeast Programs

CEE MemberState /

Prov

ENERGY STAR

Clothes Dryers

Other Efficiency

Criteria

Clothes

WasherRefrigerator

Refrigerator

Retirement

Advanced

Power Strip

Baltimore Gas

and ElectricMD CEE Tier 1 & 2 $50 - 100 $100 - 150

BC Hydro BC $100 CEE Tier 2 & 3 $50-$100 $50-$75

CL&P / UI CT TopTen USA $50 $50

Con Edison NY CEE Tier 2 & 3 $50 $50 $50 Free with

Energy Audit

MassSaves MAENERGY STAR /

Most Efficient$30 - 75 $30 - 75

$15 - Tier 1

$40 - Tier 2

DC SEU DC $50 & $400 ETACEE Tier 2 & 3 /

Most Efficient$50 - $75 $50 - $75

Efficiency

VermontVT $50 & $400 ETA CEE Tier 3 $40 - $75 $40 - $75 $50 $7-10

NJCEP NJ$100 & $300

ETACEE Tier 2 $50 $50 $50 $7-10

PG&E CEE Tier 3 $75 $75

PSEG Long

IslandNY

$150 & $300

ETA

ENERGY STAR /

Most Efficient$40 - 75

SCE CAENERGY STAR /

Most Efficient$50 $35 -75

BPA NW $40 (Tier 2)

Notes: "ETA" denotes clothes dryers qualifying for the ENERGY STAR 2014 Emerging Technology Award

Source: Consortium for Energy Efficiency (CEE) 2014 Program Summaries

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Proposed Adjustments to Incentives

Lighting

• Modest reductions (~ 10%) in markdown incentives will continue based on the continued

market shift to higher performing LEDs and continued price reductions for standard CFLs;

• The same growing market share of LED and CFL replacement lamps could support the removal

of most fixture incentives with the exception of downlights; and

• Consider removal of incentives for standard single pack CFLs to reflect the low cost of multi-

packs as a more cost-effective option for customers and the program.

Appliances, Advanced Power Strips, Refrigerator Recycling & Cable Set Top Boxes

• Monitor clothes dryer participation and consider a potential shift to a single paired incentive for

ENERGY STAR and 2014 ETA clothes dryers purchased with an ENERGY STAR clothes washer;

• Increase advanced power strip rebates for Tier 1 to $15 within the community-based

promotions and introduce a new Tier 2 rebate at $40 as a mail-in or point-of-sale rebate with

participating retailers;

• Engage retailers partnering on point-of-sale rebates to support a new refrigerator recycling

“piggy-back” rebate to combine with the existing ENERGY STAR refrigerator rebate;

• Introduce a new whole-home rebate of up to $100 for multiple set top box replacements in a

single home to align with targeted promotions with partnering service providers; and

• Add a two-tier rebate structure for clothes washers and refrigerators at $50 and $75 for

products meeting the new ENERGY STAR and CEE Tier 2 performance criteria

CFLsSpecialty

CFLs

CFL

FixturesTotal CFLs LEDs Total Units % LEDs Households Units/HH

New Jersey 1,839,415 488,959 15,299 2,343,673 1,279,160 3,622,833 35% 3,578,141 1.01

Connecticut 2,493,909 577,203 6,844 3,077,956 867,980 3,945,936 22% 1,392,677 2.83

DC SEU 350,000 350,000 100,000 450,000 22% 112,500 4.00

Long Island (PSEG) 1,200,000 575,000 3,000 1,778,000 650,000 2,428,000 27% 999,172 2.43

Massachusetts 4,578,769 1,160,063 213,967 5,952,799 926,584 6,879,383 13% 2,053,361 3.35

NYSERDA 206,632 73,311 279,943 216,328 496,271 44% 6,275,695 0.08

Rhode Island 580,000 420,000 64,200 1,064,200 172,000 1,236,200 14% 425,083 2.91

Vermont 361,000 187,200 1,900 550,100 276,035 826,135 33% 309,019 2.67

New Hampshire 210,951 3,249 214,200 25,696 239,896 11% 518,973 0.46

Notes:

• New Jersey data includes both markdown and creative lighting promotions

Data Sources:

• Northeast Residential Lighting Strategy Report: 2014-2015 Update, NEEP, November 2014

• New Jersey Clean Energy Program Approved FY2015 Markdown Promotions

• US Census, Historical Census of Housing Tables, www.census.gov/hhes/www/housing/census/historic/units.html

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Current and proposed incentive levels and proposed modifications are shown in Table 8. These changes

are further described in Section 9, below.

Table 8. Proposed Efficient Products Incentives

Current Rebate FY2016 Proposed Rebate

Lighting • Avg. $0.73 CFLs

• Avg. $5.40 LEDs

• Reduction of average incentives by 10% in

markdown promotions

• Removal of standard single pack CFL incentive

• Removal of fixture incentives except LED down

lights

Clothes Washer

• $50 for CEE Tier 2 (pre-

specification update in

2015)

• $50 for new ENERGY STAR V7.0

• $75 for CEE Tier 2

• Potential shift to paired rebate with ENERGY

STAR and 2014 ETA clothes dryers

Refrigerator

• $50 for CEE Tier 2 (pre-

specification update in

2014)

• $50 for new ENERGY STAR V5.0

• $75 for CEE Tier 2

• Potential pilot of piggy-back rebate for

refrigerator recycling with POS retailers

Advanced Power Strips • $7-10 for Tier 1 • $15 for Tier 1

• $40 for Tier 2

Cable Set Top Boxes • $11.20 for ENERGY STAR

V4.1 deployed STBS

• Add additional rebate of up to $100 for whole-

home replacement of existing STBs with thin

client technology

Refrigerator Recycling

• $50 customer rebate

• >$100 JACO processing

payment

• Potential pilot of piggy-back rebate for

refrigerator recycling with POS retailers

5.25.25.25.2 Program requirementsProgram requirementsProgram requirementsProgram requirements

The Efficient Products Program supports targeted ENERGY STAR products with the exception of

advanced power strips (no current ENERGY STAR specification). However, in order to maintain cost-

effective initiatives and accelerate the market adoption of higher efficiency products, the program often

will adopt higher performance specifications aligned historically with CEE or potentially the ENERGY

STAR Most Efficient or 2014 ETA criteria.

Table 9. Proposed Efficient Products Incentives

Measure Existing Requirement FY2016 Proposed Requirement

Lighting

• ENERGY STAR V1.1 for lamps

• ENERGY STAR 1.2 for

Luminaires

• No changes

Clothes Washer • CEE Tier 2 (ENERGY STAR

V6.1)

• ENERGY STAR 7.0

• (New) CEE Tier 2 (2015)

13

Refrigerator • CEE Tier 2 (ENERGY STAR

V4.1)

• ENERGY STAR V5.0 (10% better than federal

standard)

• (New) CEE Tier 2 (15% better than federal

standard)

Advanced Power Strips • Tier 1 • Tier 1

• Tier 2

Set Top Boxes • ENERGY STAR V4.1 deployed

STBS • No changes

Refrigerator Recycling • Secondary

Refrigerator/Freezer

• Potential pilot with replacement and pickup of

primary and secondary refrigerators with

participating POS retailers

• Refrigerators – The new ENERGY STAR V5.0 specification was effective in September 2014, but

the slow market adoption and flooring new ENERGY STAR models required the program to

maintain the existing CEE Tier 2 qualified product list and adding new ENERGY STAR refrigerators

once available. Full transition to the ENERGY STAR V5.0 and proposed CEE Tier 2 based on

market availability will take place in FY2016.

• Advanced power strips – An industry accepted, two-tiered performance criteria was developed

in collaboration by the National Renewable Energy Laboratory (NREL) and the Northeast Energy

Efficiency Partnerships (NEEP). In FY2016, the program will add the Tier 2 requirements in

addition to the existing Tier 1 criteria.

• Clothes Washers – Although the new ENERGY STAR V7.0 specification will be effective in March

2015 an anticipated delay in market adoption and flooring of new ENERGY STAR models requires

the program to maintain the existing CEE Tier 2 qualified product list and to add new ENERGY

STAR refrigerators as available. Full transition to the ENERGY STAR V7.0 and proposed CEE Tier

2 specification, based on market availability, will take place in FY2016.

• Set Top Boxes – The criteria was increased to ENERGY STAR V4.1 in FY2015 to reflect the

industry adoption of a voluntary agreement to achieve ENERGY STAR V3.0 for all new set top

boxes. The changes to this program requirement are anticipated in FY2016.

• Refrigerator Recycling – A proposed pilot with partnering retailers in FY2016 would allow for the

pickup and recycling of replaced primary refrigerators in addition to the existing requirement for

secondary refrigerator/freezers.

5.35.35.35.3 IdenIdenIdenIdentify best practicestify best practicestify best practicestify best practices

Table 10 highlights several notable differences between the New Jersey Efficient Products Program

design compared to other programs regionally and nationally. In general, the Efficient Products Program

is well-aligned with best practices and we do not propose major changes to the program design outside

of the smaller pilots proposed above. As discussed previously, the program is performing quite well in

terms of participation, comprehensiveness, and market transformation, though continued cuts in overall

budgets and shifts to other programs have limited the potential participation especially in the lighting

initiatives when compared on a per household basis with other programs. There is a new focus and

series of opportunities for achieving greater cost-effectiveness in the appliance programs through

greater midstream partnership with retailers, which we describe in Section 10.

14

Figure 10. Differences between New Jersey Program and Other Leading Programs

New Jersey Other Programs

Lighting

• Two separate solicitations for retail

markdowns and community-level

promotions.

• New Jersey represents most “best

practices” in existing lighting promotions

and high % of LEDs in-program.

• Leading programs often have a similar “hard-to-reach” solicitation

similar to the “Creative” solicitation in New Jersey. However in some

cases it specifically targets low income partners (e.g foodbanks, etc.).

• Some programs are achieving a higher per household sales due to higher

respective lighting budgets.

Appliances

• New Jersey offers both mail-in and pint-

of-sale (POS) rebates with partnering

retailers.

• The number of POS retailers has declined

in participation since FY2014.

• Programs with strong retail account representatives have experienced

fewer rejected rebates which remain as a difficulty with advanced

performance criteria (e.g. CEE Tiers) in NJ.

• (New) Pilot ENERGY STAR Retail Products Platform offers a new national

approach for stronger promotional partnerships with retailers. Potential

shift to influence retailer stocking and sales of higher efficiency

appliances vs. end-customer rebates.

• Support tiered incentives for new clothes washer and refrigerator

specifications (ENERGY STAR and CEE Tier 2).

Advanced Power Strips

• New Jersey currently offers Tier 1 APS

through lighting promotions.

• Leading programs now often support Tier 2 APS products with either

motion detection or other secondary signal for turning off primary plug

load (computer/TV).

• New opportunities with dormitories and small businesses, as well as

retail promotions.

Cable Set Top Boxes

• Service providers develop promotional

partnerships to accelerate ENERGY STAR

V4.1 deployments and pilot new

initiatives (e.g. DIRECTV technician direct

installs of APS in customer homes in

FY2014).

• Few programs are running STB initiatives, but SCE partnered with

DIRECTV in CA to support whole-home replacement of STBs with more

efficient comprehensive design.

• Comcast has been a previous NJ partner, but other programs are more

recently engaged with them in potential pilots.

Refrigerator Recycling

• New Jersey supports only secondary

refrigerators and not retailer pickup of

primary refrigerator/freezer.

• Some programs offer both primary and secondary refrigerator/freezer

promotions.

• AHAM and EPA ENERGY STAR are soliciting programs to pilot direct

partnership with retailers to piggy-back rebate for new ENERGY STAR

refrigerators.

Two specific areas of improvement at a broad level are:

• Marketing. NJ’s marketing approach is extremely modest compared to other leading programs.

There are opportunities to offer much more robust marketing of the NJCEP and engage new

partners in customer engagement, such as through community organizations and the real estate

15

sector. The timing and process for approval of marketing materials has been highlighted by

program partners as an area of improvement.

• Market transformation strategy. Although the program has historically been successful with its

specific promotions, stronger alignment with the other residential – and commercial – programs

would offer a more comprehensive solution for New Jersey households and businesses.

6.6.6.6. SSSSUMMARY OF INPUT FROMUMMARY OF INPUT FROMUMMARY OF INPUT FROMUMMARY OF INPUT FROM CONTRACTORS AND CUSTCONTRACTORS AND CUSTCONTRACTORS AND CUSTCONTRACTORS AND CUSTOMERSOMERSOMERSOMERS

The feedback received from trade allies and customers outside of the more recent subcommittee calls

for the Efficient Products program has historically been from informal engagement through the

solicitation and close collaboration during promotional partnerships. Typical feedback from other

national programs seems to align behind a few key themes:

• Most trade allies and their customers would prefer a streamlined process for rebate fulfillment

including instant rebates (e.g. markdown lighting vs. appliances);

• Budget limitations – especially in lighting solicitations – have resulted in manufacturers and their

retail partners either not receiving the full requested promotional funding or none at all based

on the ranking of lighting promotions; and

• Customers struggle to properly identify specific appliance models that qualify for the advanced

CEE tiers.

The team participated in two Products subcommittee calls in December 2014 that solicited feedback

from participating trade allies, regional and national program partnerships (NEEP & CEE), and other

program partners and stakeholders including representatives of EPA ENERGY STAR. Figure 11

summarizes key feedback related to the Products program. Feedback was provided by individuals and is

not intended to indicate that the group reached consensus.

Figure 11. Current and Proposed Product Programs

Topic Feedback

Incentives • Recommend increase in rebate levels for Tier 1 APS and addition of Tier 2

• Dissatisfaction from certain lighting manufacturers with available funding to support

greater diversity in manufacturers and retailer promotions represented in the markdown

promotion

• General shift to multi-pack sales for standard CFLs

• General support for NJCEP incentive levels, but need to be high enough to sway the

customers purchasing decision

• Point of sale / instant rebates are the best approach for streamlining consumer process and

avoiding breakage in program participation

New Measures • Recommend addition of Tier 2 APS

• Strong support for program adoption of a behavioral program (e.g. OPOWER) but the

absence of electric utility data could make implementation impossible

Marketing • Continued emphasis on education of consumers at the point-of-sale due to the limited

engagement before being “in the aisle”

• Expedite approval of marketing collateral for lighting promotions

Program

Administration

• Increased transparency through periodic messaging to trade allies on program

opportunities and requirements

• Streamline paperwork and reduce the time required to process incentives.

• Improved communication on how lighting proposals are evaluated

16

7.7.7.7. CCCCODES AND ODES AND ODES AND ODES AND SSSSTANDARDS TANDARDS TANDARDS TANDARDS IIIIMPACTS ON MPACTS ON MPACTS ON MPACTS ON PPPPROGRAMROGRAMROGRAMROGRAM

The Energy Efficient Products Program is directly and substantively impacted by increases in federal

standards and gains in market share from ENERGY STAR lighting and appliances. Over the last decade,

there have been frequent increases to the federal standards, including a significant advancement of

lighting standards through the Energy Independence and Security Act of 2007 (EISA).

EISA pertains to the efficiency of newly manufactured bulbs, not existing stock. Baselines and measure

lifetimes were adjusted as the impacts of the standard were fully measured and quantified. Starting in

FY2015, the protocols for lighting measures were revised to reflect the changes from the full

implementation of EISA on replacement lamps.

During the FY2015 period, new federal standards and ENERGY STAR specifications for clothes washers,

refrigerators and clothes dryers will have all become effective. The cumulative impact of both federal

standards and increased market share of higher efficiency appliances supported by programs is

highlighted in the shipment-weighted average annual energy use of primary appliances in the U.S.

shown in the figure below.

17

Figure 12. U.S. Shipment-Weighted, Average Annual Energy Use of Major Appliances from 1990-20101

Absent from this trend has been clothes dryers, experiencing little efficiency improvement over the last

several decades. Based in large part on the leadership of the NJCEP and its participation in the Super

Efficient Dryers Initiative, for the first time, an ENERGY STAR specification for clothes dryers became

effective on January 1, 2015 offering a 20% improvement over conventional dryers.

Due to the lag between the effective date of new minimum efficiency standards and the availability of

those products at retail, the timeline for program incorporation of these changes can be slowed down to

accommodate the need for product availability and program consistency with industry trade allies.

Increases to the program performance criteria for clothes washers and refrigerators have been delayed

due to the absence of qualified products in NJ retail stores.

In the case of set top boxes, the cable and satellite industry adopted a voluntary agreement with the

Department of Energy, several states, and energy efficiency advocates to advance the minimum

performance criteria for set top boxes. This advancement allowed the NJCEP to accelerate its adoption

of a higher program performance criteria (ENERGY STAR Version 4.1) for the Set Top Box initiative.

1 Source: ENERGY STAR® Appliance Specification Updates / 2014 ENERGY STAR Products Partner Meeting October 27, 2014

http://www.energystar.gov/ia/partners/downloads/meetings/2014/Fiffer_ES_Spec_Update_102714.pdf?0544-2a1e

18

8.8.8.8. CCCCHANGING HANGING HANGING HANGING BBBBASELINES ASELINES ASELINES ASELINES IIIIMPACTS ON MPACTS ON MPACTS ON MPACTS ON PPPPROGRAMROGRAMROGRAMROGRAM

Changes in federal standards noted in the previous section, as well as increasing market share of

ENERGY STAR products, often results in the need for a programmatic approach for selecting advanced

tiers of performance either through the Consortium for Energy Efficiency or, more recently, through

ENERGY STAR’s Most Efficient performance criteria.

Although many efficiency programs have effectively used this approach to maintain cost-effectiveness

and address freeridership concerns, diminished savings compared to the baseline and limited market

share of higher tier products have placed a strain on program planning.

Recent updates to federal standards, test procedures, and ENERGY STAR specifications for clothes

washers and refrigerators have required the program to review the market presence in NJ retail stores

before rolling out new incentives (rather than selecting a date based on ENERGY STAR effective date).

9.9.9.9. SSSSUMMARY OF UMMARY OF UMMARY OF UMMARY OF RRRRECOMMENDED ECOMMENDED ECOMMENDED ECOMMENDED PPPPROGRAM ROGRAM ROGRAM ROGRAM MMMMODIFICATIONSODIFICATIONSODIFICATIONSODIFICATIONS

This section recommends modifications to the Efficient Products program for FY2016.

Recommendations in this section are designed to result in incremental improvements to the current

program model and meet the following objectives:

• Reduce average lighting incentive levels by at least 10% and eliminate the incentive for

standard CFLs to increase the participation levels and program cost-effectiveness;

• Maintain customer participation at similar levels to FY2015 but increase percentage of point-

of-sale rebates and number of participating retailers;

• Develop two-tiered rebate for refrigerators and clothes washers to support advancement of

higher efficiency ENERGY STAR products meeting CEE Tier 2 specifications;

• Add Tier 2 APS incentive at $40 and increase existing Tier 1 rebate to $15;

• Run a new annual solicitation for set top box promotions of whole-home replacements;

• Consolidate clothes washer with dryer rebates and the refrigerator and refrigerator recycling

rebates; and

• Allow for multiple appliance rebates with property owners and builders of new construction

single and multifamily buildings.

9.19.19.19.1 Recommendations for increased participation Recommendations for increased participation Recommendations for increased participation Recommendations for increased participation and costand costand costand cost----effectivenesseffectivenesseffectivenesseffectiveness

Reduce average lighting incentive levels by 10% and request budget increase for lighting promotions

While lighting remains the most cost-effective savings opportunity for the residential programs, lighting

budgets have decreased over the last several years. With the transition of the market to LEDs and LED

prices coming down, the LED incentives can be reduced (as can CFL incentives as those products become

more mainstream). While reducing the per-unit lighting incentives by 10%, the Market Manager Team

also recommends an increase in the total lighting budget to bring more products through the program.

This recommendation is based on the continuing cost effectiveness of lighting and based on a desire to

keep manufacturer and retail partners engaged.

Increase percentage of point-of-sale / instant rebate promotions with participating retailers

Instant rebates started in New Jersey during the government-funded State Energy Efficient Appliance

Rebate Program (SEEARP) that encouraged developing retailer partnerships for targeted instant rebates

on qualifying ENERGY STAR appliances. After SEEARP ended in 2010, the number of participating

19

retailers continued to decline despite common agreement that instant rebates offer the program,

retailers, and customers a streamlined process for reducing the cost of qualified efficient appliances.

With the addition of clothes dryers in FY2015 and the potential for new pilots around the ENERGY STAR

Retail Products Platform (described in Section 10) and a piggy-back incentive for refrigerator recycling,

the opportunity to aggressively reengage with retailers leading in to the FY2016 program period is

warranted.

New annual solicitation for cable service provider promotions of whole-home replacements

Although the original selection of an independent partner (Ecova) in the set top box initiative initially

provided enhanced industry knowledge and engagement, recent developments from service providers

may warrant a new solicitation for promotional partnerships directly with the program. Similar to the

existing promotion with DIRECTV, the service provider may turn to a third party, like Ecova, to provide

logistical support, but it would also open up an opportunity for new partnerships and approaches.

In addition, the program would benefit by aligning with the service providers in supporting a whole-

home replacement of multiple energy intensive set top boxes in a single home with a single central box

with smaller, more efficient set top boxes (thin clients) in other rooms. This alignment would offer

customers both efficiency and performance gains in their television viewing experiences.

Add Tier 2 Advanced Power Strip rebate to offer deeper savings for addressing plug loads

The program had received direct requests from Tier 2 APS manufacturers to consider adding a Tier 2 APS

product rebates to the existing initiative. After review the significant savings opportunity from Tier 2

APS’s by controlling both the primary and secondary plug loads in home entertainment and office

applications, the Market Manager Team supports the addition of this product criteria with incentives in

line with other regional and national programs - $15 for Tier 1 and $40 for Tier 2 products.

Add Smart Thermostats and Lighting to Eligible Measure List

“Smart” or communicating thermostats, have entered the residential market and are capable of saving

more energy and peak power than the previous generation of programmable thermostats. According a

recent ACEEE paper, “recent pilots for communicating thermostats, occupancy-responsive thermostats,

and adaptive control schemes have shown significant annual HVAC savings on the order of 10-20%.”

Energy savings come from more accurately operating the HVAC system according to people’s actual

schedules, as well as greater use of setbacks because of easier programming and less chance of

discomfort. In addition, some thermostats have special settings for heat pumps that can prevent the

backup resistance heat from engaging by increasing the length of time used to warm the space. We

recommend that smart thermostats be added to the program.

9.29.29.29.2 Consolidate incentives to reduce program costs Consolidate incentives to reduce program costs Consolidate incentives to reduce program costs Consolidate incentives to reduce program costs andandandand expand toexpand toexpand toexpand to encourage encourage encourage encourage

greater market adoption of higher efficiency performance criteriagreater market adoption of higher efficiency performance criteriagreater market adoption of higher efficiency performance criteriagreater market adoption of higher efficiency performance criteria

Potentially consolidate the clothes washers/dryers into a single laundry rebate, and add a “piggy-

back” of the refrigerator and recycling rebates

With the advent of the ENERGY STAR clothes dryer specification, new products identified on the

qualified product list are paired with a matching high efficiency clothes washer – currently a CEE Tier 3

or Most Efficient ENERGY STAR clothes washer. This poses a unique opportunity to offer a combined

laundry rebate opportunity to achieve increased market share of ENERGY STAR clothes dryers in New

20

Jersey retail stores, greater retailer and customer engagement with a larger incentive and the high

percentage of paired sales would support a combined savings opportunity for the program.

In the case of refrigerators, the program would offer a combined point-of-sale, piggy-back rebate to

residential customers for qualified ENERGY STAR refrigerators along with a second rebate for recycling

the existing primary refrigerator at the same time. A Washington Post article recently highlighted that

New Jersey has one of the highest rates of second refrigerator ownership in the U.S., but an aggressive

approach to address this would require a lower cost programmatic approach to the current third party

recycling services offered by JACO.

Develop two-tiered rebate for refrigerators and clothes washers to support advancement of higher

efficiency ENERGY STAR products meeting CEE Tier 2 specifications

Support for a two tiered incentive and performance criteria for refrigerators and clothes washers to

allow for the greater product diversity necessary in the short term and greater market adoption of the

higher efficiency tiers either during FY2016 or transition in FY2017. In the table below, the currently

available qualified ENERGY STAR products that meet the new 2015 specifications and a subset meeting

the advanced CEE Tier 2 specifications. Market introduction of higher efficiency refrigerators has been

slow since the new specification becoming effective in September 2014. Although it is anticipated that

the ENERGY STAR qualified product list for clothes washers will grow significantly before the new washer

specification becomes effective in March 2015, the limited current visibility supports a two tiered

approach for washers as well. During FY2016, the number of qualified refrigerators and clothes washers

will continue to increase and allow for greater product diversity and customer selection at retail.

ENERGY STAR Models CEE Tier 2 Models

Clothes Washers 43 8

Refrigerators 317 20

9.39.39.39.3 OtherOtherOtherOther RecommendationsRecommendationsRecommendationsRecommendations

Engage the Single and Multifamily New Construction industry

Appliance manufacturers offer property owners and builders packaged deals for new residential

buildings. This is an untapped opportunity to promote a suite of ENERGY STAR appliances including the

new heat pump clothes dryers and helps avoid the lost opportunities associated with new construction.

The addition of marketing the existing rebates to builders and developers can raise issues with allocating

savings and costs across programs, but also conflict with the requirement of only 1-2 rebates per

customer. For new construction, a builder or developer may have multiple buildings or units within a

building and also purchasing the units. Flexibility in the end-customer rebate requirements are required

to support this engagement with the new construction industry.

10.10.10.10. SSSSUMMARY OF UMMARY OF UMMARY OF UMMARY OF RRRRECOMMENDED ECOMMENDED ECOMMENDED ECOMMENDED NNNNEW EW EW EW PPPPROGRAMSROGRAMSROGRAMSROGRAMS

This section recommends consideration of a new program within the NJCEP residential portfolio. This

program would represent a substantial change to Efficient Products program delivery in New Jersey, and

we recommend that a process be established to enable deeper consideration of these proposals by

program implementers, partners, and stakeholders to determine whether these programs should be

21

adopted and, if so, the program design details. Given the need for this more in-depth process, it may not

be possible to fully implement this program in FY2016.

10.110.110.110.1 National National National National EEEENERGY STAR NERGY STAR NERGY STAR NERGY STAR Retail Products Platform (RPP) Retail Products Platform (RPP) Retail Products Platform (RPP) Retail Products Platform (RPP)

When the consumer electronics initiative was first proposed in 2009/2010 for the Efficient Products

Program, it included both televisions and cable set top boxes. Both products benefited from midstream

engagement with the primary partners – the retailer in the case of televisions and the service provider in

the case of set top boxes. In the case of televisions, however, the retailers purchasing and stocking

decisions were often influenced by a razor thin margin and a small program incentive had an outsized

impact on the customer accessibility and ultimate purchasing of higher efficiency products.

In turning to the appliance sector, rapid increases in federal standards and baselines and corresponding

reductions in program attribution of savings have eroded many programs’ ability to either continue with

appliance promotions or alternatively required reductions in the rebate amount to the point that it no

longer plays a sizable role in the consumer’s purchasing decision.

An alternative approach supported by EPA ENERGY STAR, major retailers, and efficiency programs in

California, the Northwest and on the East Coast is to shift to a midstream, retailer targeted incentive.

This midstream promotion is being proposed as a national ENERGY STAR Retail Products Platform with

plans to pilot in several of the aforementioned states in 2015. Key highlights of the RPP are:

• A coordinated approach to align energy efficiency programs with retailers’ business models

• A national effort to achieve scale through consistent program design—including product

categories, specifications, data requirements, and midstream delivery—to reduce costs for

program sponsors and retailers, and to increase energy savings benefits for consumers

• Significant budgets through aggregation of low-per unit incentives and low administrative costs

create a strong value proposition for retailers

• Program model offers options for addressing energy savings opportunities in growing

“miscellaneous/plug load” product categories

For 2015, the RPP is proposing to adopt a shortlist of ENERGY STAR products for promotion:

• ENERGY STAR certified dryers–new category

• ENERGY STAR certified air cleaners–small unit sales, high per unit energy savings

• ENERGY STAR certified freezers – difficult to administer cost effective downstream rebates

• ENERGY STAR certified sound bars (+15%) – high growth category, limited per unit savings

• ENERGY STAR certified home theater systems (+15%) – high growth category, limited per unit

savings

• ENERGY STAR certified room air conditioners – revised specification, positioned to influence

stocking plans for 2016

Adding the NJCEP to the list of FY2016 RPP pilot participants is still feasible, but there are many

unanswered variables around program costs associated with the individual rebate levels, quantities, and

implementation and evaluation costs. As this would be a long-term investment – necessary in the

relative short-term to maintain viability of the appliance and consumer electronics initiatives – the

Market Manager Team proposes to assess the opportunity and options prior to the FY2016 program

compliance filing and potentially submit an amended filing if piloting the RPP in New Jersey in FY2016 is

feasible.

22

10.210.210.210.2 Behavioral ProgramBehavioral ProgramBehavioral ProgramBehavioral Program

The Market Manger Team, New Jersey Gas Utilities, and the New Jersey BPU program staff are aligned

in support for launching a behavioral program similar to the pilot initiative supported by the New Jersey

Gas Utilities on the OPOWER platform.

Independent evaluations of behavior programs nationally have demonstrated direct conservation

measures being taken as a result of utilizing societal norms to influence customer actions. In addition,

more recently the behavioral programs have tracked significant increases in program participation in

other affiliated programs (e.g. energy audits, home performance and purchases of efficient products).

However, as noted on the recent Products Subcommittee call, absent the access to individual customer

electric usage, NJCEP’s adoption of a more substantive behavioral platform cannot be supported. The

absence of the necessary usage data makes the critical analytical component to the program impossible

and also diminishes the ability of the customer to get actionable information out of their participation in

the platform.

As the BPU considers the type, frequency and extent of data sharing between the Clean Energy

Programs and NJ Utility Companies, the Market Manager Team strongly encourages and supports the

BPU and utilities working together to find a solution to accessing the necessary data to support a pilot

behavioral program in FY2017. This coordinated approach could include a process where the Program

provides funding to launch and maintain a program. In exchange for sharing usage data the utilities and

the program would share the data from the behavioral program to support marketing efforts, program

branding and other critical customer communication vehicles. .

23

AAAAPPENDIX PPENDIX PPENDIX PPENDIX AAAA.... ENERGYENERGYENERGYENERGY STARSTARSTARSTAR RRRRETAIL ETAIL ETAIL ETAIL PPPPRODUCTS RODUCTS RODUCTS RODUCTS PPPPLATFORM LATFORM LATFORM LATFORM OOOOVERVIEWVERVIEWVERVIEWVERVIEW

(Insert RPP Program Overview Document as a PDF)