New Jersey s Clean Energy Program Opportunities for Commercial, Industrial and Institutional Buildings

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1 New Jersey s Clean Energy Program Opportunities for Commercial, Industrial and Institutional Buildings Presented by Doug Shattuck TRC Energy Services c/o EAM Associates April 9, 2014

2 Overall Program Management NJ Board of Public Utilities Office of Clean Energy Renewables & Residential Market Manager: Honeywell Utility Solutions Commercial & Industrial Market Manager: TRC Energy Services Outreach Subcontractor: Conservation Services Group ( ) Outreach Subcontractor: EAM Associates ( )

3 NJ Clean Energy Program Background Introduced in 2001 as part of the NJ Clean Energy Act Provides energy efficiency project opportunities for: Residential Renewables Commercial & Industrial Funded from Societal Benefits Charge on utility bill

4 Program Goals Save energy and lower operating costs Protect environment and lower emissions Change the business mindset: Think high efficiency first Encourage early retirement of equipment Increase effective operations and maintenance Promote renewable energy alternatives

5 Commercial & Industrial Portfolio Benchmarking NJ SmartStart Buildings (prescriptive applications) Local Government Energy Audit Direct Install Pay for Performance Combined Heat & Power/Fuel Cells

6 Free Benchmarking Report Benchmarking assessments are designed to help: Understand energy cost trends and consumption at each building Use comparative data to see how building(s) compare to similar buildings using ENERGY STAR Portfolio Manager Identify opportunities for improving operations, reducing costs, and getting an energy efficiency project started

7 Free Benchmarking Report Reports Include: Building energy usage summary Data analysis graphs USEPA Portfolio Manager score (for most building types) Guidance on NJ Clean Energy Program options Program application information

8 To Request Free Benchmarking Visit NJCleanEnergy.com/BENCHMARKING Submit the data collection form provided by TRC Submit 12 consecutive months of energy data or a signed Fuel/Energy Release Authorization Form

9 NJ SmartStart Buildings Includes Provisions for: New Construction Projects Gut-Rehabilitation Projects Retrofit Projects (e.g., simple equipment replacement)

10 Pre-approved Technologies incentives caped at $500,000 per utility account per year Individual applications for: Electric Chillers ($8 to $170 / ton) Electric Unitary HVAC Systems ($40 to $92 / ton) Ground Source Heat Pumps ($450 to $750 / ton) - Gas Heating: ($300 minimum per furnace or boiler, and $50 min per domestic water heater) - Variable Frequency Drives ($60 to $155 / HP) - Premium Motors (Sandy victims only) ($40 to $700 per motor) Refrigeration Doors, Covers & Controls ($50 to $100 each) Lighting ($10 to $200 per fixture) Lighting Controls ($35 to $45 per fixture) Occupancy Controlled Thermostats for hospitality & institutional facilities ($75 each) Food Service Equipment (up to $2,000 per unit)

11 Prescriptive Lighting Incentives for Existing Facilities Replacement of T-12, HID, or incandescent fixtures with T-5 or T-8 Wattage of replaced fixture Type of new fixture Incentive per new fixture HID, Incandescent, (T-12 Sandy victims only) HID, Incandescent, (T-12 Sandy victims only) HID, Incandescent, (T-12 Sandy victims only) HID, Incandescent HID only HID only HID only >= 1000 watts 400 to 999 watts 250 to 399 watts 175 to 249 watts 100 to 174 watts 75 to 99 watts < 250 watts T-5, T-8 T-5, T-8 T-5, T-8 T-5, T-8 T-5, T-8 T-5, T-8 T-5. T-8 (1-4 lamps) $200 $100 $50 $43 $30 $16 $25 Retrofit of T-12 fixtures To T-8 or T-5 fixtures with electronic ballasts. (Sandy victims only) If reflectors and de-lamping also included New ballasts & lamps required Ditto 1-4 Lamp retro-fit 1-4 Lamp retro-fit $10per fixture $20 per fixture Retrofit of T-8 fixtures by permanent delamping, new: reflectors, electronic ballasts Must result in more efficient sys Must maintain existing lighting levels $15 per fixture if THD <20%

12 Prescriptive Lighting Incentives (continued) Type of Fixture Requirement Incentive T-8 to reduced wattage T-8 (28W / 25W 4-foot) Hard-wired compact fluorescent with 4-pin or GU24 base lamps LED refrigerated / freezer case lighting Retrofit with new ballasts and lamps required N/A Replacing fluorescent lighting in medium / low temp display cases $10 per new 1-4 lamp fixture N/A $30 per 4-foot LED fixture $42 per 5-foot LED fixture $65 per 6-foot LED fixture LED exit signs N/A N/A Induction lighting fixtures upgrading HID fixtures >= 100W Must include power coupler and generator & use 30% less watts Pulse start metal halide > 150 watts (includes parking lots) $25 per fixture $50 per retrofit of existing fixture $70 per new fixture Screw-in CFL PAR 38 or Par 30 with aluminum reflectors N/A N/A

13 Additional LED Fixture Incentives (for replacement of incandescent, fluorescent, and HID only) Linear panels (2 x2 or 1 x4 or 2 x4 ) $50 per fixture Recessed down lights $35 per fixture Wall-wash lights. $30 per fixture Display case lighting. $30 per case Shelf-mounted display & task lights. $15 per foot High-bay and low-bay fixtures $150 per fixture High-bay aisle lighting $150 per fixture Track or mono-point directional fixtures.. $50 per fixture Portable desk lamps.. $20 per fixture Stairwell & passageway luminaires.. $40 per fixture Note: LED retrofit kits will be evaluated through custom measure path, as will LED tube fixtures

14 (continued) LED Fixture Incentives Parking garage luminaires... $100 per fixture Bollard fixtures... $50 per fixture Fuel pump canopy fixtures... $100 per fixture Outdoor wall-mounted area luminaires.. $100 per fixture Outdoor pole/arm-mounted decorative luminaires. $175 per fixture Outdoor pole/arm-mounted area & roadway luminaires.. $175 per fixture Screw-based & pin-based (PAR, MR, BR, R) standard $10-20 per lamp (A-Style) and decorative (globe, candelabras, etc.) lamps Note: All LED fixtures must be listed on Energy Star s or Design Lights Consortium s (DLC) Qualified Products Lists

15 Food Service Equipment A new line of incentives (up to $2,000 per unit) has been added for high efficiency food service equipment: Dishwashers Fryers Griddles Hot food holding cabinets Ice machines Ovens Refrigerators and freezers Steam cookers

16 Prescriptive Application Procedure Send Application to TRC Receive TRC s Approval Letter Install within approved timeframe Submit Proof of Purchase & Tax Clearance Include worksheet (if applicable) and: Copies of latest utility bills W-9 tax form Equipment manufacturer data sheets Prior to removal of existing equipment or installation of new equipment - 12 months from approval date for existing buildings - 18 months from approval date for new construction Incentive will be lesser of: Approved incentive amount Actual equipment cost Allow 60 days for delivery of incentive after submission of all required paperwork..

17 Hurricane Sandy Enhanced Incentives (until 6/30/14) Incentives are available to New Jersey businesses and local governments located in zip codes that suffered the most damage. Equipment purchased on or after October 29, 2012 (while funding is available) will qualify. Eligible zip codes: NJCleanEnergy.com/SANDY Customers outside eligible zip codes, who can demonstrate that they have experienced damaged caused by Hurricane Sandy, may be eligible. To find out if you can qualify call 866-NJ-SMART.

18 Enhanced Incentives Prescriptive Equipment Incentives have been increased by 50% in areas affected by super storm Sandy Incentives for upgrading T-12 lighting systems and HP motors still available to Sandy victims Include Sandy Certification Form with application

19 Custom Projects Opportunities for other than pre-qualified technologies, for example: Occupancy controlled ventilation systems High efficiency transformers First year savings must be at least 75,000 kwh or 1,500 therms of natural gas over the established base-line If project qualifies, incentive will be the lowest of: - $0.16 per kwh (or $1.60 per therm of gas) of estimated annual savings - 50% of total project installed cost - Buy down to a one year pay-back

20 Local Government Energy Audit This audit is available for municipal buildings, K-12 public schools, state & county facilities (including colleges & universities), and 501(c)(3) facilities. Facilities with an annual peak demand below 200 kw will be encouraged to go straight into the Direct Install Program.

21 Local Government Energy Audit Participants select from a list of pre-qualified auditing firms who follow strict parameters to analyze the buildings and prepare the audit report The program subsidizes 100% of the audit cost, subject to an annual $100,000 incentive cap per entity Audit generates a list of recommended, cost-effective energy efficiency measures and facility upgrades to reduce operating expenses Many of the recommended measures are eligible for additional incentives offered by New Jersey s Clean Energy Program

22 Local Government Energy Audit Audit must be performed by one of five preselected engineering firms: Camp Dresser and McKee, Inc. Clough Harbour and Associates, LLP Concord Engineering Group Inc. Dome-Tech Group Steven Winter Associates, Inc. Firms were selected by NJ Department of Treasury Rates for services posted on DOT site

23 Direct Install A turn-key, retrofit program addressing the replacement of lighting, HVAC, refrigeration and other outdated operational equipment in facilities with a peak electric demand not exceeding 200 kw in preceding 12 months Provides incentives of up to 70% of the installed cost Incentives are paid directly to the contractor customer pays remaining 30% $125,000 project cap $250,000 annual entity cap

24 Direct Install Contractors Contractors assigned by region Assist with applications/agreements Guide participants through program steps Perform free energy assessments Install cost-effective measures Process all necessary paperwork The list of authorized contractors is posted on NJCleanEnergy.com/DI

25 Direct Install Examples

26 Jamesburg Township Municipal Building (10,000 sq. ft.) T-12 to T-8 lighting fixtures Two 10 year old HVAC units Occupancy sensors, Air-side economizers programmable thermostats Total Project Cost = $38,541 Direct Install Incentive = $23,125 (60%) Customer Share of Cost = $15,416 (40%) Annual Savings 12,036 kwh, and 1,538 therms natural gas $3,925 utility costs Payback Period 3.9 years

27 Avon Foods Grocery Store (10,000 sq. ft.) T-12 to LED light fixtures Motor retrofit Compressor/freezer door control Aluminum night covers & novelty cooler shutoff Total Project Cost = $38,969 Direct Install Incentive = $27,278 (70%) Customer Share of Cost = $11,691 (30%) Annual Savings: 66,879 kwh $8,776 utility costs Payback Period = 1.33 Years

28 Pay for Performance Comprehensive, whole-building approach to saving energy in existing or new facilities Goal is to reduce facility energy consumption by 15% or more (or as little as 4% for eligible high-energy intensity facilities such as data centers and processing plants) Relies on a network of program partners who provide technical services under direct contract to customer

29 Pay for Performance Eligibility Existing Building Paying Societal Benefits Charge on utility bills Annual peak demand in excess of 100kW New Construction At least 50,000 gross heated square feet of planned space Thresholds waived for hospitals, non-profits, local government buildings, affordable multi-family housing and public universities and colleges

30 Pay for Performance Incentives Incentives up to $2 million per project, assuming both gas and electric improvements are made. $4 million annual entity cap Incentives paid out in three installments at program milestones: 1. Completion of comprehensive energy audit and development of an Energy Reduction Plan (paid only if upgrades installed) 2. Installation completion of recommended measures 3. End of 12-month energy savings verification period

31 Pay for Performance Examples

32 Saker ShopRite Supermarket (91,707 square feet) T-12s to T-8s, LED retail display Compressor upgrade, new condensers Radiant floor heat recovery Additional wall & roof insulation Reach-in refrigerators/freezers with LED lighting, ECM motors, and control upgrades High efficiency RTUs Project Cost = $1,201,830 Incentives = $329,205 Annual Savings: 1,354,812 kwh and 8,790 therms of natural gas $186,886 utility costs Payback Period = 4.7 years

33 Wyckoff Public Schools Eisenhower Middle School, Washington, Coolidge, Lincoln Elementary Schools Energy Efficiency Measures: T-12 to T-8 light fixtures Lighting occupancy sensors Stream trap replacements Building automation systems Project Cost = $1,189,879 Incentives = $201,448 (integrated with ESIP) Annual Savings: 474,274 kwh & 34,840 therms of natural gas $138,417 utility costs Payback Period 7 Years

34 Combined Heat & Power (CHP) and Fuel Cell Overview The NJ Energy Master Plan, calls for 1,500 MW of Distributed Generation (DG) and CHP resources $38 million budgeted for non-renewable CHP and Fuel Cell projects in fiscal year 2014

35 CHP & Fuel Cell Eligibility Must be installed within NJ on the customer side of the meter Sized for no greater than 100% of historical peak demand of customer electrical or thermal load Annual system efficiency minimum 65% (lower heating value) for systems with waste heat utilization 50% (lower heating value) for electric only fuel cell systems Must be new, commercially available, and permanently installed natural gas-fired (or hydrogen FC) equipment Must operate at least 5,000 hours/year at full rated kw output (or as low as 3,500 hours/year for critical facilities) Must have 10 year all-inclusive warranty or service contract

36 CHP & Fuel Cell Eligibility The Following are not eligible: Prior installations Portable and emergency backup power systems Used, refurbished, temporary, pilot, or demonstration equipment Systems using diesel fuel (other types of oil) or coal for continuous operation

37 CHP/Fuel Cell Projects up to 1.0 mw Incentive Amounts CHP Projects Fuel Cell Projects 500 kw $2.00 per Watt 501 kw 1 MW $1.00 per Watt 1 MW with Waste Heat Utilization $4.00 per Watt Heat Recovery from existing equipment utilizing new electric generation equipment e.g. steam turbine Maximum Incentive $1.00 per Watt $2 Million 1 MW without Waste Heat Utilization Maximum Incentive $3.00 per Watt $2 Million Maximum % of Project Cost 30-40% Maximum % of Project Cost 60% Incentives shown are for systems powered by non-renewable fuel sources. Additional incentives available for systems powered by Class 1 renewable fuel sources. P4P bonus = $0.25 per watt ($250,000 max).

38 CHP/Fuel Cell Projects >1.0 mw Grants awarded under a tiered incentive structure based on system size and amount of electricity generated by project CHP Projects Fuel Cell Projects >1 MW to 3 MW $0.55 per Watt > 1 MW with Waste Heat Utilization $2.00 per Watt > 3 MW $0.35 per Watt Heat recovery from existing equipment utilizing new electric generation equip. (e.g. steam turbine) Maximum Incentive $0.50 per Watt $3 Million Maximum % of Project Cost 30% > 1 MW without Waste Heat Utilization Maximum Incentive $1.50 per Watt $3 Million Maximum % of Project Cost 45% Note: P4P Bonus = $0.25 per Watt ($250,000 max)

39 CHP/Fuel Cells Funds are provided for project-specific, fixed asset purchases for new installations and expansions Incentives paid as follows: 30% upon proof of equipment purchase 60% upon project completion and verification of installation 10% after 12 months of operation and confirmation that thresholds of performance are being achieved Can submit questions to

40 Rider University CHP College Campus (280 acres) Combined Heat and Power Project: 1,100 kw gas-fired internal combustion engine with heat recovery 80-ton absorption chiller Project Cost = $4,594,188 Incentives = $1,000,000 System provides for: 76% of university s heating & hot water load 23% of university s cooling load Annual Savings = $527,973 utility costs Payback Period = 6.8 years

41 ESIP Energy Savings Improvement Program Allows government agencies & school districts to pay for energy efficiency improvements using the value of the energy savings No new bonding required or impact on your budget Administered directly by the NJBPU (not TRC): Mike Thulen (ESIP Coordinator) Gary Finger (Ombudsman)

42 For More Information Visit NJCleanEnergy.com/SSB Call (866) NJSMART For the latest updates on program announcements or new incentives, subscribe to the NJ Clean Energy E-Newsletter at NJCleanEnergy.com

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