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New Jersey: Renovation Policy

Summary

The New Jersey Global Warming Response Act (2007) sets an emissions target of 1990 levels by 2020 and 80% below 2006 levels by 2050; however, no targets for the building sector (neither new build or renovations) currently exist. New Jersey’s Clean Energy Programme (NJCEP) offers financial incentives, advice and services to residents, business owners and local governments to help them save energy and money.  Through the NJCEP energy savings have continued to increase in the past few years. Running alongside the NJCEP is the Edison Innovation Clean Energy Fund that sponsors research on energy efficiency and development.  New Jersey State offers financial incentives for energy efficiency improvements.

The Policy Tool for Renovation highlights three key areas where New Jersey’s Renovation Policy Package excels: overall country reduction targets, utility-funded energy efficiency programmes and training and education campaigns.

The total residential energy consumption has continually decreased from 2003, with the consumption/capita, consumption/m2 and the consumption/dwelling following the same trend.  There was a dip in the consumption trend in the year of 2006, in 2007 this continued along the previous trend. The GDP has decreased annually from 2000 with a slight fluctuation in 2006 where it remained steady from then to 2009 where it began to decrease once more.  New Jersey’s population is 9 million (U.S. Census Bureau, 2012).

Regulatory Measures

Overall Targets

The New Jersey Global Warming Response Act (2007), sets an emissions target to 1990 levels by 2020 and 80% below 2006 levels by 2050. These goals are however advisory and not enforceable.

More info: Government website

Renovation Targets for Residential Buildings

There is no statewide renovation target for buildings.

Renovation Targets for Public Buildings

New Jersey enacted legislation in 2008 mandating high performance green building standards in all new state construction, they have not, however, set future energy reduction targets for the public building sector.

Building Assessment

Building Code Requirements for Renovation

The New Jersey building code is based on the 2009 International Energy Conservation Code with State Amendments and the Rehabilitation Subcode. The Rehab Subcode provides detailed instructions for the certain provisions of the IECC, it is the IECC that contains the specific energy requirements. Neither code requires any work to be done on existing buildings, but do kick in once an owner decides to do work.   The code is to be revised every 3-5 years.  It is not performance based.

Link to code here

Labelling Schemes

There is no mandatory labelling scheme in place for residential properties, but a free benchmarking service is offered through New Jersey Clean Energy Programme. The voluntary scheme ‘Home Performance with Energy Star’ is active in the state.

More info: New Jersey Clean Energy

Financial Instruments

Incentive Schemes

The state, through the Board of Public Utilities, offers both grants and loans.  These are funded through a Societal Benefit Charge, which is collected by the utilities from their customers. The New Jersey Board of Public Utilities (NJ BPU) offers the “Home Performance with Energy Star” programme for residents that want to improve the energy efficiency of their homes. The programme provides incentives that reduce the final cost to consumers for the installation of energy efficiency measures that are identified in a comprehensive home assessment. The predicted achievable energy savings potential for energy efficiency programmes in the residential sector is between 942 and 1798 GWh for electricity by 2016.

More info: US DOE Database

Taxation Mechanisms

There are many tax incentives for renewable energy, but none that specifically target energy efficiency.

Economic Instruments

Utility-Funded Energy Efficiency Programmes

Customers of the natural gas company in New Jersey are eligible to receive funding for energy efficiency and renewable energy projects. The funding is made available through the New Jersey Clean Energy Programme. Utility funded programmes cover a range of options from equipment replacement to whole house measures, and energy audits.  Around $6,500 is offered for efficient equipment and $10,000 is offered for a whole house retrofit.

More info: New Jersey Save Green Project

Market Instruments for Energy Efficient Renovations

An overall energy savings goal of 20% by 2020 has been set by New Jersey in its Energy Master Plan of 2008.  However, this is not a binding goal and there is no mandate to require electricity suppliers to meet the reduction targets.  As a result utilities have not formulated any plans to achieve intermediate targets. Additionally, the state’s budget to support clean energy has also been cut.

More info: NAESO Study

General Information & Capacity Building

Training and Education Campaigns

New Jersey’s Clean Energy Programme offers financial incentives, advice and services to residents, business owners and local governments to help them save energy, money and the environment. 

More info: New Jersey Clean Energy

One Stop Solution Centre

A one stop shop in New Jersey is not yet in place.

Overall Performance

Please see Create Graphs tab above. 

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