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In 2003, the program approved Aluminum Shapes' application for production incentives for its use of electricity generated using landfill gas from the adjoining Pennsauken Landfill.
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Clean Energy Program
New Jersey’s 1999 electricity restructuring legislation included a provision to collect a “Societal Benefits Charge” from all electric public utility customers to fund renewable energy initiatives through the New Jersey Clean Energy Program (NJCEP). NJCEP’s Clean Energy Financing and Assistance Programs are designed to make it more affordable and cost effective for businesses to make investments in renewable energy systems and energy efficient equipment. These programs will encourage businesses to invest in the best-performing equipment, which will realize substantial energy cost savings as well as environmental benefits through the use of the cleanest forms of energy.
Renewable energy project grants and financing are available under the Grid Supply and Market Development Program to encourage the development of large-scale renewable energy facilities larger than 1 MW. Renewable energy includes the use of wind, solar (photovoltaics), landfill gas, digester gas, and methane from sustainable biomass to generate clean electricity. Grants are available for up to 20 percent of eligible project development costs. The New Jersey Economic Development Authority (EDA) may arrange long-term, low-interest rate bonds or loans to provide affordable financing for the balance of project costs. Borrowers are required to make a minimum 10 percent equity contribution to the project. In 2002, an award was made to a 4 MW landfill gas project for 2.93¢/kWh over 5 years, for a total of $3.9 million.
Under the Customer On-Site Renewable Energy (CORE) Program, clean energy project financing for businesses are available in the form of grants, rebates, or loans for up to 60 percent of the installation costs of renewable energy systems, including solar, wind, and biomass. In addition to rebates, businesses may receive up to $1 million in low-interest loans and loan guarantees through a combination of EDA and traditional bank financing. EDA may provide up to 25 percent of the loan for a maximum of $500,000 at a 3 percent fixed interest rate, and may guarantee up to 30 percent of the bank loan for a maximum of $500,000.
In 2003, NJCEP approved financing for a landfill gas project in Pennsauken. A third party will provide the Aluminum Shapes factory with electricity using a gas collection system from the adjoining Pennsauken Landfill. Two collection systems that are capable of generating a combined 5.7 MW of electricity will receive $1.195 million each, or $2.39 million total.
Landfill gas project developers, landfill owners and operators, and others planning a project in New Jersey can apply for zero- or low-interest loans or technical assistance.
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Clean Energy Financing for Schools and Local Government offers financial incentives and low-interest financing to schools and governments for energy efficiency upgrades in combination with installation of distributed renewable energy.
Landfill gas energy projects up to 4 MW in size qualify under NJCEP’s sustainable biomass criteria, pending review of the incremental value of the project’s environmental benefit. Eligible systems should be sized to produce no more than 125 percent of the historical or expected (if new construction) amount of electricity consumed on site. The New Jersey Board of Public Utilities (BPU) administers all programs.
Applications must be submitted prior to equipment installation. Landfill gas projects must document:
- The availability of at least five years of methane fuel.
- The current operational process/use of flare gas and incremental benefits related to the application.
- Compliance with the emission standards specified in the New Jersey State of the Art Manual (SOTA).
Upon review and approval the BPU will issue a commitment letter approving the installation of the system and reserving the production incentive rebate. Program administrators inspect installations in the first year prior to distributing funds.
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