An Energy Efficiency An Energy Efficiency Strategy for New Jersey: Strategy for New Jersey: Achieving the Achieving the Energy Master Plan Goals Energy Master Plan Goals Presentation to the: Presentation to the: NJ Board of Public Utilities NJ Board of Public Utilities By: Sue Coakley, Executive Director By: Sue Coakley, Executive Director Northeast Energy Efficiency Partnerships Northeast Energy Efficiency Partnerships April 16, 2009 April 16, 2009
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An Energy Efficiency Strategy for New Jersey: Achieving the Energy Master Plan Goals
An Energy Efficiency Strategy for New Jersey: Achieving the Energy Master Plan Goals Presentation to the: NJ Board of Public Utilities By: Sue Coakley, Executive Director Northeast Energy Efficiency Partnerships April 16, 2009. NJ 2020 Energy Efficiency Strategy. Background Results - PowerPoint PPT Presentation
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An Energy Efficiency Strategy for An Energy Efficiency Strategy for New Jersey: New Jersey: Achieving the Achieving the
Energy Master Plan GoalsEnergy Master Plan Goals
Presentation to the:Presentation to the: NJ Board of Public UtilitiesNJ Board of Public Utilities
By: Sue Coakley, Executive DirectorBy: Sue Coakley, Executive DirectorNortheast Energy Efficiency PartnershipsNortheast Energy Efficiency Partnerships
April 16, 2009April 16, 2009
NJ 2020 Energy Efficiency StrategyNJ 2020 Energy Efficiency Strategy
Background Results Report Structure Recommendations Next Steps 20% by 2020
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: BackgroundBackground
Governor Corzine’s 2008 Energy Master Plan:
“Place New Jersey at the forefront of a growing clean energy economy with aggressive energy efficiency and renewable energy goals and action items, and the development of a 21st century energy infrastructure.”
20% by 2020Goal 1: Maximize Efficiency - Reduce projected energy
consumption by 20% by 2020
http://nj.gov/nj/trans/http://nj.gov/nj/trans/
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: BackgroundBackground
Energy Efficiency Strategy Purpose: Achieve the 2020 Master Plan energy savings
goal cost-effectively and expeditiously Develop a “best in class” program portfolio to
overcome market barriers to cost-effective energy efficiency
20% by 2020
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: BackgroundBackground
Approach: NEEP team of national experts Address all customer sectors, all fuels, all demand side resources Build on experience of successful programs in New Jersey and other
states and regions
20% by 2020 Stakeholders to guide development –
provide data and perspective Cost-effectiveness assessment to
support strategies
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: BackgroundBackgroundParticipants:
Stakeholder Comments: Gas and electric utilities + NJUA Office of Ratepayer Counsel Rutgers CEEEP NJ Homebuilders Isles, Inc CMC Energy Associates
20% by 2020
Project Team:• NEEP • Dunsky Energy Consulting• Vermont Energy Investment Corporation• Optimal Energy Inc. • North Atlantic Energy Advisors• Ecos Consulting• Applied Energy Group
NJ Assoc of Realtors NJ Apartment Owners Assoc NAESCo Assemblyman Chivukula Assemblyman McKeon NJ Institute of Technology Fuel Merchants Assoc. of NJ NJ Business & Industry Assoc. Alliance to Save Energy The E-Cubed Company
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: ResultsResultsEfficiency Strategy Meets or Exceeds Energy Master Plan Goals
20% by 2020
Energy Master Plan 2020 Goal‡
Energy Efficiency Strategy
Portfolio*
% of EMP Goal
Electric Energy 14,000 GWh 17,800 GWh 127%
Electric Capacity 3,300 MW 6,400 MW 194%
Other Energy 75,000 BBTUs 74,000 BBTUs 99%
‡ EMP energy efficiency program goals ONLY EMP efficiency programs adjusted for the impact of new federal incandescent lamp standards* Considers only efficiency programs and building energy rating policies). Excludes on-site power
NJ 2020 ENERGY EFFICIENCY STRAGEGY: NJ 2020 ENERGY EFFICIENCY STRAGEGY: RESULTSRESULTS
Efficiency program portfolio nearly meets total electric reduction goal. Codes + standards necessary to meet goal.
as attractive as other regulated investments Remove regulatory barriers to aggressive programs Streamlined regulations - accountability for results
20% by 2020 4-year plans w/ annual reports & plan
updates Budget & program flexibility to meet goals
Active ongoing stakeholder process –
stay informed, provide feedback
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations#3 Flexible Energy Efficiency Program Strategies
Statewide programs – consistent, integrated, leveraged Serve specific market segments with customer-oriented approach
“sells” energy efficiency: Make efficiency investments attractive, affordable and accessible - cost-effective
“deal customers can’t refuse”. • Targeted marketing • Understand and address customer needs and barriers• Flexible program services and financial assistance• Whole solutions – all fuels, all cost-effective demand-side options
20% by 2020
• Incentives and financing to close the deal, maximize cost-effective savings
Use and expand existing market channels Statewide marketing campaign use social
marketing strategies, consistent messages
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#4#4 Aggressive State and Local PoliciesAggressive State and Local Policies Progressive building energy codes – net zero energy as long-
term goal:• Auto update to national energy code updates• Adopt optional advanced “stretch code” • Allow third party certified inspectors
Time of Sale Building Energy Rating and Performance Strong federal and state appliance standards
20% by 2020
State and local government “Lead by Example” (e.g., 21st Century Schools)
Government leveraged financing tools State tax incentives
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#5#5 Energy Rates, Prices and Usage InformationEnergy Rates, Prices and Usage Information Rate designs to encourage reduced energy consumption:
• Inverted block rates residential and small commercial • Time of use rates and metering customers with flexible loads
Bill comparisons:• Usage history relative to similar customers• Support building energy rating
20% by 2020
Sub-metering for master-metered buildings “Dashboard” products and building controls that
inform actual usage Pilot “smart” meters and devices for price-
responsive load control (“prices to devices”) Smart Grid to scale-up clean distributed
generation net zero energy buildings
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#6#6 Community Initiatives to Scale-UpCommunity Initiatives to Scale-Up Community participation in NJ efficiency programs
• Improve municipal facility energy performance • Social marketing campaigns to encourage program
participation “be part of the solution”• Support door-to-door direct installation initiatives for
residents and small businesses
20% by 2020 Community-wide energy efficiency initiatives
achieve specific energy reduction goals Municipal financing property-owners repay
efficiency loans on property tax bill Community workforce development initiatives –
vocational training, community colleges, CEET
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#7#7 Consistent Evaluation, Measurement and Verification Consistent Evaluation, Measurement and Verification (EM&V) (EM&V)
“Prove the efficiency resource” Maintain comprehensive multi-year EM&V plan to inform:
• Regulatory oversight of and accountability of ratepayer funding• Program planning, goal setting and budgeting; • Progress towards goals - energy, environmental, economic• Program implementation and resource allocation; • Award of performance incentives• Program participation in PJM capacity markets 20% by 2020
Fund EM&V (3-5% of program costs)Provide statewide:
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#8#8 Workforce DevelopmentWorkforce Development Train and credential a wide range of green jobs:
• Engineers, architects, designers• Tradesmen and women, builders, contractors, installers• Auditor, inspectors, building energy raters• Program planners, managers and evaluators• Financial product manager
Use reach of:• Universities, colleges and community colleges• Technical and vocational schools• Community development, trade and professional
associations• Labor unions and employer training programs
Coordinate statewide – e.g., NJ Department of Labor - Industry Workforce Advisory Council
20% by 2020
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#9#9 Ongoing Learning and InnovationOngoing Learning and Innovation Give NJ Efficiency Utility goals and budgets to:
• Attract creative ideas• Vet and fund promising delivery approaches • Assess new technologies and program designs controlled
studies and field trials• Improve or discontinue technologies, approaches not delivering
20% by 2020
Efficiency Utility Efficiency Technical Committee:Utilities, academia, state agencies, stakeholders Review, vet new options for cost-effective savingsComplement EMP expansion of Edison Innovation
Fund: Clean Energy Technology Commercialization Fund Clean Energy Manufacturing Fund Energy Institute of New Jersey
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: RecommendationsRecommendations
#10#10 Regional and National CoordinationRegional and National Coordination Efficiency ramping up across the region from $850 million in 2008 to $2
billion+ by 2011 Manage and leverage this policy convergence to:
• Build market momentum• Facilitate a culture to value increased energy efficiency• Engage the muscle and creativity of the market place• Address increased demand for high efficiency products
20% by 2020 Coordinate with relevant regional and national efforts:
• Consistent messages,• Common standards, specifications, definitions,
protocols • Share learning, R&D costs
• Many vehicles – NEEP, NASEO, CEE, ASERTTI, ASE, etc.
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: Transition PlanTransition PlanFinancing the Efficiency Expansion
$11.2 billion over 12 years - $6.8 billion public/ratepayer + $4.4 billion participant cost
Inflation adjusted dollars – not net present value
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: FundingFunding
Financing the Efficiency Expansion Ratepayer Funding: Efficiency as a Least Cost Resource increase from $16 per
capital to year up to $50 Establish non-regulated heating fuels efficiency charge Access federal funding apply stimulus funding (e.g., oil heat) Direct market-based revenues to fund efficiency
• RGGI• PJM RPM Revenues from efficiency program participation
Utility Financing – on-bill and companion bill financing
20% by 2020 Municipal Financing – “Clean Energy Tax District”
• Bond to create municipal fund for local efficiency investments
• Repayment with property tax bill• Legislation approved in CA and Colorado
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: FundingFundingFinancing the Efficiency Expansion Leveraging private investment:
• Energy Service Companies Performance based financing Focus: Institutional and municipal buildings
• Secured, wholesale energy efficiency loan fund Offer attractive wholesale interest rates to retail lenders Sourced by private capital Secured by the State
• Dedicated energy efficiency deposit fund State financial account deposits to a local bank Deposits exclusively fund energy improvements.
• Energy Efficient Mortgages State and Federal Tax Incentives and Credits
20% by 2020
NJ 2020 Energy Efficiency Strategy: NJ 2020 Energy Efficiency Strategy: FundingFunding
2010 as Transition Year Establish the NJ Energy Efficiency Utility concept Adjust BPU program plan, budget filing requirements and
schedules Make financial resources available to implement the plan Develop, approve a Statewide 2010 Program Plan, Goals and
Budget
20% by 2020 Transfer OCE Programs to NJ Energy Efficiency
Utility Expand CEEEP responsibilities and funding to
provide technical support to the BPU Establish a Public Policy Agenda to complement