Shankar P. covers life sciences, energy and corporate strategy. He has been at NJBIZ since 1999. 
The BPU-run Local Government Energy Audit program now is available for select nonprofits covered by the so-called 501(c)(3) section of the tax code. Previously, the program’s eligibility was limited to local governments and state and community colleges, according to the BPU.
While the earlier program covered about 1,400 government buildings in the state, the revision takes the number of eligible entities to 30,000 buildings, according to Michael Winka, director in the state’s Office of Clean Energy at the BPU.
At last count, the BPU had received applications from 274 entities seeking incentives for energy audits at 1,842 buildings, of which 676 had been approved, according
to statistics.
Those numbers keep growing by the day, said Winka, as the program’s expanded eligibility is drawing in more interest. The new application procedure for this program is now available online at NJCleanEnergy.com.
“The goal is to give them a carrot to help them in the decision-making process to do the work,” Winka said.
Local governments across the state are displaying a “sufficient appetite” in conducting energy audits and making the subsequent investments in upgrades to achieve energy savings, said Paul Van Gelder, vice president and regional director at Clough Harbor & Associates, in Parsippany, one of five firms chosen by the state Treasury to conduct energy audits. The other firms approved to conduct the audits are Camp Dresser McKee, of Philadelphia; Concord Engineering Group, of Voorhees; Dome-Tech Group, of Edison; and Steven Winter Associates, of East Brunswick, according to the BPU.
And government participation is further energized following the Jan. 1 change in how the BPU pays out incentives to cover the audit costs.
Incentives in the new structure cover 100 percent of the cost of the energy audits, but the beneficiary must spend at least 25 percent of the audit cost on recommended efficiency improvements, according to the BPU. Previously, 75 percent of the audit was covered, though the beneficiary could recover more by implementing some of the audit’s recommendations.
The cost of an energy audit varies by the size of a building and other characteristics, but is about $8,000 on average, Winka said. In such cases, the BPU will reimburse local
Gerry Kerr, Kearny superintendent for public works, says the town has invested in more than a dozen fuel-efficient hybrid vehicles over the past six years. [Christina Mazza]
“In fronting the money, they are extracting a commitment from the local government to do a certain amount of implementation,” Van Gelder said. “So, they [the state] will ultimately expend the same amount of money” on incentives.
Van Gelder’s firm is conducting an audit for nearly a dozen government buildings in Kearny at a cost of $52,687, said Gerry Kerr, Kearny’s superintendent in its public works department.
“The town is making every effort to make sure we are not wasting energy,” he said; it’s prepared to spend more than the required minimum of 25 percent of the audit cost on energy equipment upgrades. He called Kearny an early adapter to the energy saving cause, as over the past six years, it has invested in more than a dozen fuel-efficient hybrid vehicles and those that run on compressed natural gas.
Incentives for energy audits and upgrades will help the state get closer to reaching the goals set out in its energy master plan, Winka said, but challenges remain: The state has 3.2 million residential homes and 450,000 commercial and industrial buildings that are candidates for energy efficiency improvements, he said, and “every building has to be upgraded to reach that goal of 20/20 by 2020,” Winka said. That refers to the plan’s goal of renewable energy accounting for 20 percent of consumption, and a 20 percent cut in overall energy consumption, by 2020.
“In fronting the money, they are extracting a commitment from the local government to do a certain amount of implementation,” Van Gelder said. “So, they [the state] will ultimately expend the same amount of money” on incentives.
Van Gelder’s firm is conducting an audit for nearly a dozen government buildings in Kearny at a cost of $52,687, said Gerry Kerr, Kearny’s superintendent in its public works department.
“The town is making every effort to make sure we are not wasting energy,” he said; it’s prepared to spend more than the required minimum of 25 percent of the audit cost on energy equipment upgrades. He called Kearny an early adapter to the energy saving cause, as over the past six years, it has invested in more than a dozen fuel-efficient hybrid vehicles and those that run on compressed natural gas.
Incentives for energy audits and upgrades will help the state get closer to reaching the goals set out in its energy master plan, Winka said, but challenges remain: The state has 3.2 million residential homes and 450,000 commercial and industrial buildings that are candidates for energy efficiency improvements, he said, and “every building has to be upgraded to reach that goal of 20/20 by 2020,” Winka said. That refers to the plan’s goal of renewable energy accounting for 20 percent of consumption, and a 20 percent cut in overall energy consumption, by 2020.
E-mail to shankar_p@njbiz.com
