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General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Cle

New Jersey’s Clean Energy Program . General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Clean Energy.

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General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Cle

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  1. New Jersey’s Clean Energy Program General OverviewMichael Winka, DirectorLance Miller Chief of StaffNew Jersey Board of Public Utilities Office of Clean Energy Clean Air Council Feb 14, 2007

  2. New Jersey’s Clean Energy Program is a statewide program administered by the New Jersey Board of Public Utilities that promotes energy efficiency and renewable energy for all New Jersey ratepayers including residences, businesses, schools and municipalities. Clean Air Council Feb 14, 2007

  3. New Jersey’s Integrated Approach Goals and Objectives • EE (including CHP) and RE will provide energy growth by 2012 • 20% annual increase in electric and natural gas energy efficiency saving • 785,000 MWh of electricity and 0.6 billion cubic feet of gas will be saved through EE programs by 2012 • 300 MW of Class I RE facilities by 2008 • 90 MW PV by 2008 Clean Air Council Feb 14, 2007

  4. New Jersey’s New Goals and Objectives • 20% reduction in energy use by 2020 • 20% Class I Renewables by 2020 • 2% or 1500 MW solar by 2020 • 20% reduction in 1990 GHG by 2020 • 50% reduction in 2006 GHG levels by 2050 Clean Air Council Feb 14, 2007

  5. New Jersey’s New Tools • Energy Master Plan (code, standards EE/RE CHP • New Jersey’s Clean Energy Program • Regional Greenhouse Gas Initiative RGGI • State Energy Director • Energy Certificate trading • Energy Star – Zero Energy Buildings USGBC – LEED other Clean Air Council Feb 14, 2007

  6. New Jersey’s Clean Energy Program 01 – 08 Funding Level Non-bypassable fee - all electric and natural gas customers Clean Air Council Feb 14, 2007

  7. New Jersey’s Clean Energy Program 05 – 08 Allocation Bill impact and rate impact • SBC Allocation • 44% of the SBC allocated for electric Energy Efficiency • 17% of the SBC allocated for natural gas Energy Efficiency • 37% of the SBC allocated for Renewable Energy • Bill Impacts • $18 per year per the average residential electric customer • $14 per year yr per the average residential natural gas customer • $14 per year per household for electric Energy Efficiency • $5 per year per household for natural gas Energy Efficiency • $12 per year per household for Renewable Energy • 1-2% rate impact over 4 years (2005 – 2008) or 0.25 - 0.5% PER YEAR Clean Air Council Feb 14, 2007

  8. NJCE Program 2003 – 2008 Annual Reporting and Goals Clean Air Council Feb 14, 2007

  9. New Jersey’s Integrated Approach for Renewable Energy • Net Metering/ • Standard Interconnections • Capital Cost Incentives/Rebates • Portfolio Standard – • Longer term financing Clean Air Council Feb 14, 2007

  10. Renewable Energy Incentives/Rebates Lower the initial capital cost Improve the payback period to 5-10 years or better – including REC value. 60% of capital cost for up to 1 MW 20% grants - 80% loan for RE Power Plants Clean Air Council Feb 14, 2007

  11. New Jersey’s Net Metering and Interconnections Standards • Up to 2 MW – 125% of Annual Use • Small Commercial Business • Up to 10 MW peak • < 10 kW Inverter-based - No fee • Reduce barriers • Set timeframes for review Clean Air Council Feb 14, 2007

  12. Onsite Renewable Energy Program Rebates History Clean Air Council Feb 14, 2007

  13. NJ’sCEP Solar Rebates Installed, in-Construction and Awaiting Approved As of September 2006 Clean Air Council Feb 14, 2007

  14. New Jersey Solar Installations & Capacity 4Q 2006 NJ Solar Market Stats as reported online at NJCleanEnergy.com Clean Air Council Feb 14, 2007

  15. The RPS requires all NJ electric supplier to provide a set percentage of their electricity as Class I renewable (wind, solar or sustainable biomass) EY 2005 0.75% including - 4 MW of PV EY 2009 4.0% including by 90 MW of PV EY 2021 20% including 2% solar PV or 1500 MW Bill cost to the average electric residential customer EY 2005 -- $1.40 per year per household EY 2009 -- $4.50 per year per household EY 2021 -- $23.00 per year per household Renewable Energy Portfolio Standard RPS Clean Air Council Feb 14, 2007

  16. Compliance with NJ’s RPS is through Renewable Energy Certificates (RECs) issued and tracked through either PJM’s Generator Attributes Tracking System (GATS) or NJCEP’s Behind the Meter system Each MWh of energy produced by a renewable energy generator creates 1 REC. This REC has a unique serial number. When it is traded and used for compliance, it is matched with a MWh or energy supply and retired. In NJ system RECs have a 1 year life and most be used in the year they are generated plus a 3 month true up period Current prices for RECs: LFG REC $5, Wind REC $15, Solar REC $200 NJ’s RE goals will be achieved through the RPS and financed by RECs Renewable Energy Portfolio Standard Clean Air Council Feb 14, 2007

  17. Renewable Generator: Production of Renewable Energy Solar Renewable Energy Certificates (RECs) Commodity Electricity Environmental Benefits (S02, NOX,CO2 ) New Jersey REC or Solar REC Electric Supplier: Retires the REC Certificates represent the environmental benefits and other attributes associated with electricity generated from a renewable energy generator . May be traded independently of underlying electricity. Clean Air Council Feb 14, 2007

  18. New Jersey’s RPS Value of RECs Clean Air Council Feb 14, 2007

  19. New Jersey SRECs Clean Air Council Feb 14, 2007

  20. PJM – Environmental Information Systems (EIS launched its Generator Attributes Tracking System (GATS) in Oct 2005 for the Mid-Atlantic States NJ, MD,PA, DE and DC all use GATS for their RPS Compliance Reporting Feb 2006 GATS reported 14,282,070 REC generated during the first 2005 trading period This represents 2.02% of PJM total system mix 82 account holders 734 generators More info available at www.pjm-eis.com New Jersey RECs Reporting in PJM GATS Clean Air Council Feb 14, 2007

  21. New Jersey’s 20 % by 2020 Renewable Energy Portfolio Standards (RPS) will require at minimum approximately 4,400 MW of renewable energy capacity and 1500 MW of Solar capacity. NJ cannot simply “buy” our way to the RPS goals by providing rebates or grants to construct this capacity. We must consider other models …. New Jersey’s Transition to an Open Market RECs based System Clean Air Council Feb 14, 2007

  22. Installed Cost: $77,500 Electric cost savings / Net Metering: $1,500/ yr NJCEP Rebate: $38,000 New Jersey Residential 10 kw Solar Electric System Insert Residential Home Federal Tax Credit: $2,000 Out of Pocket Expense: $37,500 Total savings : $1,500 assuming a 12,000 kWh annual energy usage Payback Period: 25 yrs Clean Air Council Feb 14, 2007

  23. Installed Cost: $77,500 Electric cost savings / Net Metering: $1,500/ yr NJCEP Rebate: $38,000 New Jersey Residential 10 kw Solar Electric System Insert Residential Home 2008 $5.00/hh/yr SRECs Income: $2,400 / yr 2005 $0.14/hh/yr 2009 $1.40/hh/yr 2020 $23/hh/yr Federal Tax Credit: $2,000 Out of Pocket Expense :$37,500 Total savings : $3,900 assuming a 12,000 kWh annual energy usage Payback Period: 9.6 yrs Clean Air Council Feb 14, 2007

  24. Installed Cost: $77,500 Electric cost savings / Net Metering: $1,500/ yr NJCEP Rebate: $0.00 New Jersey Residential 10 kw Solar Electric System Insert Residential Home Federal Tax Credit: $2,000 Out of Pocket Expense : $75,500 Total savings : $1,500 assuming a 12,000 kWh annual energy usage Payback Period: 50.3 yrs Clean Air Council Feb 14, 2007

  25. Installed Cost: $77,500 Electric cost savings / Net Metering: $1,500/ yr NJCEP Rebate: $0.00 New Jersey Residential 10 kW Solar Electric System Insert Residential Home SRECs Income: $6,050 / yr $502/ SREC Federal Tax Credit: $2,000 Out of Pocket Expense : $75,500 Total savings : $7,550 assuming a 12,000 kWh annual energy usage Payback Period: 10 yrs Clean Air Council Feb 14, 2007

  26. 2001 -2005 Energy Efficiency Programs - Residential Clean Air Council Feb 14, 2007

  27. Energy Efficiency Programs - Residential Home Energy Analysis is a free online audit to help residential customers understand and reduce their home energy use links the audit to our residential rebates Home Performance with Energy Star – In home audit - Contractors certified by the Building Performance Institute work with homeowners to identify sources of energy loses and recommend energy saving improvements linked to utility financing and residential rebates – performed additional incentives for affordable housing up to 300% of the federal poverty level Clean Air Council Feb 14, 2007

  28. 2005 Energy Efficiency Programs - Residential Warm Advantage and Cool Advantage Programs Provides rebates and promotes energy efficient heating and cooling systems in homes 27,510 participants saved 15,000,000 kWh, 13 MW and 1,400,000 therms. Energy Star Homes Provides incentives for energy efficient new construction that target NJ area designated for growth (Smart Growth) 8,000 participants 20% market share for new homes construction saved 6,100,000 kWh, 19 MW, and 2,395680 therms. An Energy Star home certification is acceptable as the local energy code costruction review Clean Air Council Feb 14, 2007

  29. 2005 Energy Efficiency Programs - Residential Energy Star Products Public education and incentives for home energy efficient appliances and lighting over 1.2 million rebates provided for room air conditions and compact fluorescents saving 63,500,000 kWh and 5 MW Comfort Partners Provides 100% installation of energy saving measures to low income customers at no cost to improve their energy affordability linked with our other energy assistance programs. Over 6,000 customers saving each homeowner on average 880 kWhs and 76 therms for an annual savings over $200. Clean Air Council Feb 14, 2007

  30. 2001 – 2005 & 2005 Energy Efficiency Programs – C&I Smart Start Buildings Program Provides technical assistance and incentives for new and retrofit efficiency upgrades for commercial office buildings, industrial facilities, schools, hospitals and government building owners. Provided rebates to 2,400 businesses and government building owners that saved 288,439,000 kWh, 36.5 MW, and 1,900,000 therms saving these building owners over $60,000,000 annually. Over the last 5 years 21,394 participants have saved 10,858,892,000 kWh and 68,853,920 therms Clean Air Council Feb 14, 2007

  31. Energy Efficiency Programs – C&I Combined Heat and Power Provides incentives up to 30% to purchase and install various types of combined heat and power systems up to 1 MW that have at minimum 68% efficiency and meet all NJDEP State of the Art air quality control limits – provided 10 rebates with commitments of $7.4 million. Clean Air Council Feb 14, 2007

  32. Energy Efficiency Programs – C&I • Larger Projects 50,000 sq ft - starting in planning stage are eligible for for up to $12,000 in incentives : • Three step process to plan in overall energy efficiency into and project in a coordinated approach: • Pre-Design Planning Session up to $2,000 • Design Simulation and Screening up to $5,000 • Detailed Analysis of Energy-Efficient Measures up to $5,000 • And…Equipment Incentives • Additional Multiple Measures Bonus (Two or More Approved Measures) Clean Air Council Feb 14, 2007

  33. Energy Efficiency Programs – C&I • Smaller Projects, or Those Begun After the Design Stage, May Take Advantage of: • Project Review and Screening • Recommendations for Energy-Efficiency Measures • Equipment Incentives • Additional Multiple Measures Bonus (Two or More Approved Measures) Clean Air Council Feb 14, 2007

  34. Categories: Electric Chillers Natural Gas Cooling Desiccant Units Electric Unitary HVAC Systems Natural Gas Heating Systems Energy Efficiency Programs – C&I • Natural Gas Water Heating • Premium-Efficiency Motors • Prescriptive Lighting • Lighting Controls • LED Traffic Signals • Variable Frequency Drives • Ground Source Heat Pumps Clean Air Council Feb 14, 2007

  35. Customers May Request Technical Assistance and Receive an Incentive for Qualified Energy-Efficient Equipment Not on the Prescriptive Technologies List. • Customer project in New Jersey • Custom Measure application • Screening process • Incentive Up to 80% of measure or 1.5 year payback New Jersey SmartStart Buildings® — The Program Custom Measures Clean Air Council Feb 14, 2007

  36. • Local Government Energy Audits – up to 90% of cost but will require all cost effective (LT 2 yr PB) to be implemented. • Demand Response – Load Management Incentives • Pay for Performance pilot • Zero Energy Buildings (Energy Star Benchmarking) Linking EE and RE in congested areas New Jersey Clean Energy Programs – New Developments Custom Measures Clean Air Council Feb 14, 2007

  37. FreeFuel Power & Hot Water from Microturbine Waste Heat Natural Gas Integrated Heat Exchanger ~45% Total Energy Utilization 70%+ MicroTurbine ~26% + = PPT06287 032207 Clean Air Council Feb 14, 2007

  38. Energy Efficiency: Avoided Energy Use Saved Energy Energy Efficiency Portfolio Standard (EEPS) and EE Certificates Energy Savings Environmental Benefits (S02, NOX,CO2 ) New Jersey EEC Electric Supplier: Retires the EEC Certificates represent the environmental benefits and other attributes associated with electricity generated from a energy efficiency system. May be traded independently of underlying electricity. Clean Air Council Feb 14, 2007

  39. New Jersey’s EEPS Value of EECs Clean Air Council Feb 14, 2007

  40. New Jersey’s Clean Energy Program provides incentives for investments in energy efficiency and renewable energy $492million in energy efficiency investments These investments help to: reduce customers energy bills reduce pollution levels reduce reliance on imported fuels stimulate the local economy and keep energy dollars in the State New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  41. The programs reduced electrical usage by 1,216,403 MWh over 5 years 243,280 MWH of energy savings per year These savings are equivalent to the electric usage of approximately 135,000 average homes New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  42. These savings continue over the life of the measures which averages 15 years Savings over the life of the measures: 14,888,209 MWH of energy savings New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  43. These programs also reduced natural gas usage by 2,048,981 Dtherms per year These savings are equivalent to the annual usage of over 20,000 average homes heated with natural gas Savings over the life of the measures: 38,943,822 Dtherms New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  44. The programs have also reduced electric demand by 450 MW This has eliminated the need to site, build and operate a mid-sized power plant Reducing demand also improves the reliability of the electric transmission and distribution system New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  45. Energy efficiency and renewable energy generation also reduce emissions resulting in cleaner air and other environmental and health benefits Annual Emission Reductions: CO2: 317,467 metric tons NOX: 550 metric tons SO2: 1,217 metric tons HG (mercury): 15 lbs New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  46. Cumulative emission reductions over the life of the measures over the five years of the program: CO2: 13,190,265 metric tons NOX: 21,798 metric tons SO2: 46,283 metric tons HG: 558 pounds New Jersey’s Clean Energy Program2001-2004 Results Clean Air Council Feb 14, 2007

  47. You can either incorporate more energy efficiency (including increased building energy codes and appliance standards) including combined heat and power and clean distributive and renewable energy into the over energy mix or pay for larger and larger transmission lines into NJ that will move your payments to out of state facilities and out of state jobs with the associated transport of out of state emissions contributing to the reasons NJ does not meet its clean air states putting more pressure on existing NJ business to reduce emissions BOTTOM LINE Clean Air Council Feb 14, 2007

  48. New Jersey’s Integrated Approach • New Jersey’s Clean Energy Program: • www.njcleanenergy.com • Rutgers’ Center for Energy, Economics and Environmental Policy (CEEEP) • http://policy.rutgers.edu/ceeep • Clean Energy Council – Committees • Portfolio Management Work Group • State Energy Master Plan and Energy data management Clean Air Council Feb 14, 2007

  49. Thank you • Questions ?? • YOUR POWER TO SAVE • Energy, Money and the Environment • Visit: NJCleanEnergy.com Clean Air Council Feb 14, 2007

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