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State Planning and Incentive Structures | Energy Efficiency Actions | Energy Supply Actions

State Planning and Incentive Structures

Lead By Example—Energy Efficiency in Public Facilities

Status: Completed

Details: Executive Order 11 (April 2006) requires the Director of Energy Savings to implement a program to increase energy efficiency, reduce energy use, and improve the procurement of energy for all state facilities. This includes overseeing energy audits to be conducted at state buildings, coordinating with the agencies that own, lease, occupy or maintain state buildings to implement immediate energy efficiency practices, and developing an annual report highlighting cost savings and environmental results. Executive Order 24 (July 29, 2002) requires all newly constructed schools in the state to be designed according to LEED standards.

Lead By Example—Energy Efficient Appliance and Equipment Purchase Requirements for Public Facilities

Status: Completed

Details: A. 3983 (August 21, 2007) requires all state agencies with purchasing authority to replace all incandescent light bulbs used in state-owned buildings with compact fluorescent light bulbs within three years. S. 341 (August 11, 2006) requires the state to purchase only products bearing the ENERGY STAR label when buying products for state government use. Executive Order 11 (April 2006) requires all state agencies to select ENERGY STAR products when acquiring new energy-using products or replacing existing equipment. It directs the Director of the Division of Purchase and Property in the Department of Treasury to issue standards and guidelines to implement this requirement. For products that do not have ENERGY STAR labels, state agencies are directed to follow guidelines established by the New Jersey Clean Energy Program. The order also creates the position of Director of Energy Savings in the Department of the Treasury, who will be responsible for improving the energy efficiency of all procurement programs for state facilities.

Lead By Example—Clean Energy Goals for Public Facilities

Status: Completed

Details: In 1999, NJ governor McGreevey's office delivered a mandate for a minimum of 10% green power purchases for all state agencies.

Lead By Example—Energy Efficiency and Alternative Fuel Goals for Public Fleets

Status: Completed

Details: Executive Order 94 (1999) affirms that New Jersey is committed to exceeding the EPAct's alternative fuel vehicle acquisition mandates for state government fleets by 5% per year. In model year 2001 and thereafter, the vehicles acquired to fulfill this enhanced commitment must meet or exceed California Air Resources Board Ultra Low Emission Vehicle standards.

State and Regional Energy Planning

Status: Completed

Details: New Jersey released its Energy Master Plan on October 22, 2008. The energy plan sets goals of reducing energy consumption at least 20% by 2020, generating 22.5% of the state’s electricity with renewable sources, reducing peak electricity demands, and developing new power plants. In October 2006, Governor Corzine first launched an Energy Master Plan (EMP) process, and a draft 2008 plan was released on April 17, 2008.

Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (NOX Budget Trading Program)

Status: Completed

Details: NJ's NOx set-asides account for 5% of its program budget, or 410 tons. Renewable energy projects started in or after 1992 are eligible for allocations, including: solar, wind, methane gas capture from landfills, fuel cell technology, and other environmentally beneficial projects approved by New Jersey Department of Environmental Protection.

Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (CAIR Budget Trading Program)

Status: Completed

Details: New Jersey has established set-asides for new source/growth (‘‘New Source/Growth Reserve’’), and energy efficiency and renewable energy programs or techniques (‘‘Incentive Reserve’’). Each year, New Jersey is allocating 10% of the State’s CAIR NOx annual and CAIR NOx ozone season budgets to the New Source/Growth Reserve, and 5% of the State’s CAIR NOx annual and CAIR NOx ozone season budgets to the Incentive Reserve.

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Energy Efficiency Actions

Energy Efficiency Portfolio Standards

Status: Completed/Further Work In Progress

Details: On April 17, 2008, the New Jersey Governor's office released a draft Energy Efficiency Portfolio Standard (EEPS), including an energy efficiency credit (EEC) component, as part a draft state energy master plan. The draft plan calls for a 20% reduction in energy use by the year 2020, as well as a reduction in peak energy demand by 5700 MW. A stakeholder input process is being coordinated by Rutgers University and the State Board of Public Utilities. New Jersey held a second round of public hearings on the state’s new energy master plan on July 15, 2008. The energy plan is due for adoption by year-end 2008.
The NJ Clean Energy Program 2005 report includes an EEPS of 785,000 MWh and 0.6 billion cubic feet of natural gas per year by 2012. The New Jersey Board of Public Utilities 2005 Strategic Plan aims to improve the statewide electric load factor by 5% (compared to the five-year average ending in 2003) by December 2008, using a combination of energy efficiency and load management.

Public Benefit Funds for Energy Efficiency

Status: Completed

Details: New Jersey's Societal Benefits Charge (SBC) funds the NJ Clean Energy Program, run by the NJ Board of Public Utilities. A total of $745 million will be collected in 2005, 2006, 2007 and 2008, with any unused funds from previous years carried into the next year's budget. 75 percent goes to energy efficiency and 25 percent to renewable energy.

Building Codes for Energy Efficiency—Commercial Programs

Status: Goes Beyond ECPA

Details: Approved on August 6 , 2007, Assembly Bill 4336/Senate Bill 2796 revised school construction regulations to include energy conservation measures.
Adopted on February 20, 2007 ASHRAE/IESNA 90.1-2004 with minor amendments as the new commercial code. Can use COMcheck to show compliance.

Building Codes for Energy Efficiency—Residential Programs

Status: Goes Beyond ECPA

Details: On February 20, 2007, New Jersey adopted the 2006 IECC with amendments. REScheck can be used to show compliance (the 2003 IECC code option should be used rather than the 2006, but compliance should exceed the 2003 IECC by at least 2 percent).

State Appliance Efficiency Standards

Status: Completed

Details: Minimum energy efficiency standards legislation (A516) passed on March 8, 2005 . The bill sets minimum efficiency standards for everyday products that waste large amounts of electricity, such as traffic lights, and commercial/residential appliances.

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Energy Supply Actions

Renewable Portfolio Standards

Status: Completed/Further Work In Progress

Details: New Jersey held a second round of public hearings on the state’s new energy master plan on July 15, 2008. The energy plan, due for adoption by year’s end, include a goal of generating 22.5 percent of the state’s electricity with renewable sources.
In April 2006, the NJ Board of Public Utilities (BPU) set a goal of 22.5% renewable energy by 2021, including a 2% (1500 MW) solar set aside. In May 2004, the NJ Board of Public Utilities approved a rule requiring 4% of retail electricity sales from Class I and 2.5% from Class I or Class II resources by May 31, 2008. Class I: wind, solar electric generation, fuel cells powered by renewable fuels, geothermal technologies, wave or tidal action, and/or methane gas from landfills or anaerobic digestion of food waste or sewage sludge at a biomass facility, and other biomass. Class II: hydroelectric (<30MW) and electricity from resource recovery facilities in NJ that comply with environmental laws.

Public Benefit Funds for Clean Energy Supply

Status: Completed

Details: New Jersey's Societal Benefits Charge (SBC) funds the NJ Clean Energy Program, run by the NJ Board of Public Utilities (BPU); A total of $745 million will be collected in 2005, 2006, 2007 and 2008, with any unused funds from previous years carried into the next year's budget. 75% goes to energy efficiency and 25% to renewable energy.

Output-Based Environmental Regulations

Status: Completed

Details: New Jersey has output-based regulations for new and existing units as well as their energy efficiency/renewable energy set-asides as a part of CAIR.

Interconnection Standards—Clean Distributed Generation

Status: Completed/Further Work In Progress

Details: In October 2004, final rules were adopted to clarify and simplify interconnection for most residential and small commercial facilities (part of net metering legislation). These rules apply to all DG up to 2MW and simplified rules exist for systems up to 10kW. In September 2007, in an order issued in Docket No. EO06100744, the Office of Clean Energy (OCE) recommended that the RPS and net metering and interconnection rules be amended to remove the 2 MW cap on eligibility. The Board of Public Utilities directed the OCE to develop proposed modifications by May 1, 2008, with these modifications to be adopted by May 1, 2009.

Interconnection Standards—Net Metering

Status: Completed/Further Work Proposed

Details: As of August 2008, New Jersey lawmakers are reviewing S-1538, a bill that would allow the owners of preserved farmland to construct, operate, and install solar or wind energy facilities or equipment on their farms. The generated power could be used to operate the farm or be sold to a utility company.
New Jersey has state-wide net metering for all utility types that applies to wind and solar installations of up to 100 kW. In September 2007, an order was issued in Docket No. EO06100744 the Office of Clean Energy (OCE) recommended that the RPS and net metering and interconnection rules be amended to remove the 2 MW cap on eligiblity. The Board of Public Utilities directed the OCE to develop proposed modifications by May 1, 2008, with these modifications to be adopted by May 1, 2009.

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