1. New Jersey’s Clean Energy Program Opportunities for Commercial, Industrial and Institutional Buildings Doug Shattuck, P.E. TRC Energy Services c/o EAM Associates June 19, 2013 Greening Your Company in 2013

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 (732-218-3400) Outreach Subcontractor: EAM Associates (732-267-1174)

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

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. 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

6. 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 Free Benchmarking Report

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

8. NJ SmartStart Buildings Prescriptive applications for: – New Construction Projects – Gut-Rehabilitation Projects – Retrofit Projects (e.g., simple equipment replacement)

9. 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 ($20 to $75 per unit) – Occupancy Controlled Thermostats for hospitality & institutional facilities ($75 each) – Food Service Equipment (up to $2,000 per unit) NEW

10. 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 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 (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 $10per fixture $20 per fixture Retrofit of T-8 fixtures by permanent de- lamping, new: reflectors, electronic ballasts Must result in more efficient sys Must maintain existing lighting levels $15 per fixture if THD <20%

11. Prescriptive Lighting Incentives (continued) Type of FixtureRequirementIncentive T-8 to reduced wattage T-8 (28W / 25W 4-foot) Retrofit with new ballasts and lamps required $10 per new 1-4 lamp fixture LED refrigerated / freezer case lighting Replacing fluorescent lighting in medium / low temp display cases $30 per 4-foot LED fixture $42 per 5-foot LED fixture $65 per 6-foot LED fixture Induction lighting fixtures upgrading HID fixtures >= 100W Must include power coupler and generator & use 30% less watts $50 per retrofit of existing fixture $70 per new fixture Pulse-start metal halide> 150 watts (includes parking lots)$25 per fixture

12. 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 Note: LED retrofit kits will be evaluated through custom measure path, as will LED tube fixtures

13. (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 …… $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

14. Food Service Equipment A new line of incentives has been added for high efficiency food service, including: Dishwashers Fryers Griddles Hot food holding cabinets Ice machines Ovens Refrigerators and freezers Steam cookers

15. Prescriptive Application Procedure Send Application to TRC 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 Receive TRC’s Approval Letter Install within approved timeframe - 12 months from approval date for existing buildings - 18 months from approval date for new construction Submit Proof of Purchase & Tax Clearance Incentive will be lesser of:  Approved incentive amount  Actual equipment cost Allow 60 days for delivery of incentive after submission of all required paperwork..

16. Hurricane Sandy Enhanced Incentives 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.

17. Sandy Enhanced Incentives Prescriptive equipment incentives have been increased by 50% in areas affected by Hurricane Sandy. Incentives to upgrade T-12 lighting and 3-phase motors damaged by Sandy will be available until 6/30/13.

18. 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 Custom Projects

19. Local Government Energy Audit This audit is available for municipal buildings, K-12 public schools, county facilities (including county colleges), State colleges and 501(c)(3) non-profit facilities. Facilities with an annual peak demand below 150 kW will be encouraged to go straight into the Direct Install Program.

20. 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 Local Government Energy Audit

21. 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 Local Government Energy Audit

22. Direct Install A turn-key, retrofit program designed to address the replacement of lighting, HVAC, refrigeration and other outdated operational equipment in small to medium size facilities with a peak electric demand not exceeding 200 kW in the 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

23. Direct Install Contractor Responsibilities 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

24. Direct Install Example

25. 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 Payback Period – 3.9 years Jamesburg

26. 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 4% for eligible high-energy intensity customers) Relies on a network of program partners who provide technical services under direct contract to customer

27. Pay for Performance Eligibility Existing Building – Located in New Jersey & Paying Societal Benefits Charge – Annual peak demand in excess of 100kW New Construction – Located in New Jersey (within Smart Growth area) – 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

28. 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 energy savings verification period

29. Pay for Performance Examples

30. 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 Payback Period = 4.7 years Saker ShopRite

31. 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 Payback Period – 7 Years Wyckoff Public Schools

32. 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 Two funding paths are available – Small Scale CHP/Fuel Cells (≤ 1 MW) – Large Scale CHP/Fuel Cells (> 1 MW)

33. Small Scale CHP/Fuel Cells New Jersey’s Clean Energy Program accepts applications for small scale CHP/FC projects on a rolling basis until funds are exhausted. Program supports CHP or standalone fuel cell projects with electric generating capacity of 1 MW and below. Funds are provided for project-specific, fixed asset purchases for new installations and expansions.

34. Small Scale CHP/Fuel Cells Incentive Amounts CHP Projects ≤ 500 kW$2.00 per watt 501 kW – 1 MW$1.00 per watt Heat Recovery or other Mechanical Recovery (all sizes) $1.00 per watt Maximum Incentive$2 million Maximum % of Project Cost30-40% Fuel Cell Projects All sizes with Waste Heat Utilization $4.00 per watt All sizes without Waste Heat Utilization $3.00 per watt Maximum Incentive$2 million Maximum % of Project Cost60% Incentives shown are for systems powered by non-renewable fuel sources. Additional incentives available for systems powered by Class 1 renewable fuel sources.

35. Large Scale CHP/Fuel Cells Clean Energy Solutions LSCHP-FC is a competitive grant offered through NJ Economic Development Authority Supports CHP or stand-alone fuel cell projects with electric generating capacity exceeding 1 MW Funds are provided for project-specific, fixed asset purchases for new installations and expansions of existing facilities with new equipment

36. Large Scale CHP/Fuel Cells Grants awarded under a tiered incentive structure based on system size and amount of electricity generated by project CHP Projects >1 MW to 3 MW$0.55 per watt > 3 MW$0.35 per watt Maximum Incentive$3 million Maximum % of Project Cost 30% Fuel Cell Projects > 1 MW With Waste Heat Utilization $2.00 per watt > 1 MW Without Waste Heat Utilization $1.50 per watt Maximum Incentive$3 million Maximum % of Project Cost45%

37. 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 Annual system efficiency minimum – Systems with waste heat utilization – at least 65% – Systems without heat recovery (fuel cells) – at least 45% Equipment must be new, commercially available and permanently installed Must have 10 year all-inclusive warranty or service contract

38. CHP & Fuel Cell Eligibility 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 The Following are Not eligible:

39. 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