State Energy Efficiency Policy Database

Energy efficiency and renewable energy programs in New Jersey are administered by the Office of Clean Energy within the Board of Public Utilities (BPU) under the New Jersey Clean Energy Program. Prior to 2003, the utilities were required to administer and implement energy efficiency programs with oversight from the Board of Public Utilities. The utilities worked together through a collaborative to coordinate their efforts and ensure program consistency. This approach was taken for the initial "Comprehensive Resource Analysis" (CRA) period—2001–2003—and was the result of the BPU’s Final Decision and Order on the CRA proceeding, issued March 9, 2001. In this order, the BPU directed the utilities to administer the energy efficiency and renewable energy programs jointly.

In 2002, the New Jersey BPU began a re-assessment of this administrative structure. In 2003, the BPU established the New Jersey Clean Energy Council as advisors to the BPU. The council provides planning assistance for the administration of the programs. It also was charged in this initial order to work with BPU staff to assess components of the programs and make recommendations. The BPU decided in 2003 to revise the structure of program. The BPU  gave responsibility for program administration to the Office of Clean Energy. The utilities are still responsible for collecting revenues for the programs, but they transfer these funds over to a third-party fiscal agent supervised by the Office of Clean Energy. Utilities are responsible for program implementation only. Individual energy efficiency and renewable energy programs are offered statewide, with each utility providing program services to its customers.

New Jersey electric utilities, through the NJ Clean Energy Program,  reported efficiency program savings of 347,906 MWh in 2010, equivalent to around 0.44% of sales.  Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

In New Jersey there is a pilot self-direct program run by TRC for the New Jersey Clean Energy Program, funded by the cost-recovery mechanism (CRM).  To qualify, customers must have contributed at least $300,000 in CRM funds in 2010 and be among the 25 top contributors in 2010.  The pilot program reserves a specific amount of CRM contributions for use as a grant towards future energy efficiency investments.  Customers will receive between $200,000 and $1 million based on a variety of factors and have one year to complete their project.  Self-direct customers may not participate in other New Jersey Clean Energy Program programs.  They may take advantage of incentive programs offered by other state and local entities but the total incentives may not exceed 100% of the project costs.  More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.

Links:

• Database of State Incentives for Renewables and Efficiency

New Jersey’s set energy savings goals of 20% savings by 2020 relative to predicted consumption in 2020 in its Energy Master Plan of 2008, which guided the Clean Energy Program’s approved budget request for 2009-2011. However, these goals are advisory and lack consequence if they are missed. Utilities have not formulated any Furthermore, the $158 million taken by the Christie Administration from the Clean Energy Fund demonstrates the uncertainty surrounding these goals. 

The BPU has yet to pursue a binding EERS that would require each electricity supplier/provider to meet energy efficiency goals. Although they are required to submit individual energy master plans pursuant to the New Jersey Energy Master Plan, these have been delayed indefinitely until the new administration sets forth its own Master Plan. 

Links:

• New Jersey Energy Master Plan
• Order Approving Clean Energy 2009-2011 Funding Level
• Order delaying individual utility master plans

In New Jersey, traditionally, there were third party “Market Managers” selected by the NJ Office of Clean Energy (OCE) to run the energy efficiency programs in New Jersey. These Market Managers were eligible to receive a performance incentive, however in 2011, the OCE requested that the Market Manager significantly reduce their budgets and eliminate their performance incentive. (Docket Nos. Eo07030203 and Eo10110865)