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Michael Winka, Director New Jersey Board of Public Utilities Office of Clean Energy March 27, 2009

New Jersey’s Clean Energy Program: Opportunities of Green Jobs. Michael Winka, Director New Jersey Board of Public Utilities Office of Clean Energy March 27, 2009. Why are we Here ? Why are we Doing This ?. C x H y O z + O 2 = CO 2 + H 2 0 NO X SO2 Hg.

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Michael Winka, Director New Jersey Board of Public Utilities Office of Clean Energy March 27, 2009

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  1. New Jersey’s Clean Energy Program: Opportunities of Green Jobs Michael Winka, DirectorNew Jersey Board of Public Utilities Office of Clean EnergyMarch 27, 2009

  2. Why are we Here ? Why are we Doing This ? Cx Hy Oz + O2 = CO2 + H20 NOX SO2 Hg

  3. How to Manage CO2 , GHG Emission , Global Warming and Sea Level Rise Make the Energy Cleaner or Renewable and/or Use the Energy More Efficiently

  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 • Reduction to 1990 GHG by 2020 (20%) • 80% reduction in 2006 GHG levels by 2050

  5. $245 million new funding for 2009 Including carryover $445 million ($1.22 B) $350 million in EE Utility stimulus $75,000,000 in REC/SREC 1.12 B in energy infrastructure $2.0 B in energy jobs in NJ Federal energy stimulus $18.5 B national NJ $73 M in SEP and $73 in EECBG $0.6 B maybe NJ share New Jersey’s Clean Energy Program: Green Jobs

  6. Energy Efficiency Opportunities • Savings achieved from our first 600,000 rebates (2001-08) • new ES home, new ES office building, CHP, HE HVAC, HE HWH, lighting upgrade, solar, tree, RAC • 1,768,050 MWh of electricity savings • Changes planned in new construction building codes • Targeting existing buildings for energy efficiency upgrades • -3.7 million buildings, 300,000 buildings per year by 2020 • -Potential savings of 15,000,000 MWh of electricity

  7. Residential Energy Efficiency Programs Comfort Partners provides energy saving measures to low income customers at no cost to improve their energy affordability and comfort. Energy efficiency measures may include air sealing against drafts, insulation, and duct sealing, installation of high-performance products and appliances such as compact fluorescent lighting and ENERGY STAR refrigerators, and performance of health and safety testing to detect, reduce, or prevent the existence of dangerous combustion by-products. In 2008 The Comfort Partners Program served 7,190 households and delivered a total of 10,277 MWh in annual electric savings.

  8. Local Government Energy Audit Program • Eligible facilities include town halls, courtrooms, police & fire stations, offices, sanitation or transportation structures, schools, community centers, and any other local government owned buildings • Five pre-qualified, pre-selected energy auditing firms • 75% of audit cost paid after completion of audit • Remaining 25% paid if net cost of installed measures exceeds remaining cost of audit • $100,000 annual incentive cap (in process of raising) • Participants must pass a resolution enabling application submittal • Prioritization Process with Sustainable Jersey

  9. Direct Install(anticipated launch May 2009 • Provides direct installation of prescribed measures that save electric and/or natural gas • Local contractors install measures based on building needs • 80% of the material and labor costs are incentivized • Business owner only pays for remaining amount (20%) • Provides for immediate savings • No cap on measure installation per customer site (as long as measures hit savings criteria)

  10. Pay for Performance launching March20th • Buildings over 200kW average peak demand • Holistic building approach for higher levels of energy performance • Must exceed ASHRAE 2004, Appendix G Guidelines • May include CHP • Incentives of up to $1 million/meter for natural gas and electric • Another incentive of up to $1 million for CHP • Incentives split and paid upfront, upon completion and one year after built (measured savings) • The more you save the more you receive

  11. Treating the house as a system Understanding the interactions between all systems in a home: air leakage, insulation, combustion appliances, heating & cooling systems and ventilation Looking at the big picture Home Performance with ENERGY STAR® Residential - Retrofit

  12. CoolAdvantage ProgramWarmAdvantage Program Central Air Conditioning Efficiency Levels and Incentives Air to Air Heat Pump Efficiency Levels and Incentives Geothermal Heat Pump Efficiency Levels and Incentives Ductless Mini Split: Efficiency Levels and Incentives Gas Boilers: Efficiency Levels and Incentives Gas Furnaces Efficiency Levels and Incentives Domestic Hot Water Heaters: Efficiency Levels and Incentives

  13. New Jersey ENERGY STAR Homes • Builders now have choices: The Introduction of Tiers… • Tier 1- ENERGY STAR (the current performance level, HERS Index of 85 or less, plus all mandatory requirements); or an alternative prescriptive EPA National Builder Option Package (climate zone specific BOP) • Tier 2- ENERGY STAR with a HERS Index of 65 or less (approximately equivalent to the current Federal Energy Tax Credit level); • Tier 3- “NJ Climate Choice Home”- Proposed (a customized high performance level at or approaching Net-Zero Energy).

  14. Renewable Energy Certificates (RECs) Renewable Generator: Production of Renewable Energy Commodity Electricity Environmental Benefits (S02, NOX,CO2 ) New Jersey REC or Solar REC -1 MWh 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.

  15. New Jersey Residential 10 kw Solar Electric System Installed Cost: $77,500 Electric cost savings / Net Metering: $1,500/ yr NJCEP Rebate: $38,000 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 10,000 kWh annual energy usage Payback Period: 9.6 yrs

  16. New Jersey Residential 10 kW Solar Electric System Installed Cost: $77,500 Electric cost savings / Net Metering: $1,500/ yr NJCEP Rebate: $0.00 Insert Residential Home SRECs Income: $3,730 / yr $373/ SREC Federal Tax Credit: $23,200 Out of Pocket Expense : $52,300 Total savings : $5,230 assuming a 10,000 kWh annual energy usage Payback Period: 10 yrs

  17. Community Partners • Integrate with NJ League of Municipalities Sustainable Jersey Initiative • -Communities earn points for sustainable actions • -Communities earn NJCEP incentives for either participating in programs • or bring residents to programs • Coordinate with Green NJ Resource Team (GNJRT) activities • -GNJRT targeted to Sustainable Jersey communities • -Community support for GNJRT activities earns incentives and points Green Resource Team Project Porchlight TechniArt Green Market Fundraising GreenFaith HelpLight Double D EFI online store – NJCleanEnergy.com/shopnow

  18. For more information please call: 1-866-NJSMART Or look us up on the web at: www.NJCleanEnergy.com Thank You!

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