Energy Savings Improvement Program
A new State law allows government agencies to make energy related improvements to their facilities and pay for the costs using the value of energy savings that result from the improvements. Under Chapter 4 of the Laws of 2009 (the law), the “Energy Savings Improvement Program” (ESIP), provides all government agencies in New Jersey with a flexible tool to improve and reduce energy usage with minimal expenditure of new financial resources.
This Local Finance Notice outlines how local governments can develop and implement an ESIP for their facilities. Below are two sample RFPs:
All RFPs and final Energy Savings Plan (ESP) must be submitted to the Board for approval at ESIP@bpu.state.nj.us.
The Board also adopted protocols to measure energy savings:
The ESIP approach may not be appropriate for all energy conservation and energy efficiency improvements. Local units should carefully consider all alternatives to develop an approach that best meets their needs. Local units considering an ESIP should carefully review the Local Finance Notice, the law, and consult with qualified professionals to determine how they should approach the task.
The NJ Board of Public Utilities sponsored Sustainable Jersey in the creation of an ESIP Guidebook that explains how to implement the program. The guidebook also includes case studies of successful projects and a list of helpful resources.
For local governments interested in pursuing an ESIP, the first step is to perform an energy audit, as prescribed in P.L.2012 c.55.
If you have an ESIP plan that needs to be submitted to the Board of Public Utilities, please email it to ESIP@bpu.state.nj.us. Please limit the file size to 3MB (or break it into smaller files).