Smart Grid: New Jersey Stimulus Toolkit - Smart Grid News - Grid Modernization and the Smart Grid

· New Jersey’s State Energy Program (SEP) will receive $73,643,000 from the American Recovery and Reinvestment Act (ARRA) to support clean energy efforts in the State. The SEP, which is administered by the New Jersey Board of Public Utilities, is funded by grants received from the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. The grants are used by states to advance their clean energy goals including renewable energy and energy efficiency programs. A majority of the funds, $47 million, is aimed at the private sector. These funds will be leveraged with private dollars in order to maximize the investment in energy efficiency, renewable energy projects and job creation.

The remaining funds will support state government’s clean energy activities, including those undertaken by colleges and universities. State government entities have large energy loads that can be extremely inefficient. That reality coupled with this funding represents an opportunity to realize significant energy savings. Such investments will reduce state costs, save taxpayers money and create jobs.

Among the programs to be funded:

Clean Energy Program - $17 million
The Clean Energy Program (CEP), administered by the BPU, provides incentives to individuals, businesses and local governments to invest in a variety of clean energy initiatives. Such initiatives include rebates for Energy Star appliances, incentives for green buildings, and free energy audits. All programs provided by the CEP are administered on a first-come, first-served basis.

Innovative Energy Projects for New Jersey Businesses - $15 million
The New Jersey Economic Development Authority (EDA) will administer a new competitive program to provide financial assistance to businesses in New Jersey that are pursuing innovation in energy efficiency, renewable energy or alternative energy. The program is specifically designed to push clean energy technologies beyond conceptual stages of development and into the marketplace. Technologies such as energy storage, geothermal, biofuels and innovative uses for solar energy projects will be supported under this program.

HMFA Solar Fund Program - $7 million
Expanding on the efforts of the Green Homes Office and the energy efficiency program above, an additional $7 million will be allocated to the HMFA to supply grants for the construction of solar energy projects on income qualified multifamily buildings across the state.

Grants and Loans for Energy Efficiency, Renewable Energy and Alternative Energy Applications

· $15 million will be committed to a competitive grant program administered by the New Jersey Economic Development Authority (EDA). The program will fund public and private renewable energy projects that are classified as a Class 1 or Class 2 renewable energy technology as well as energy efficiency and alternative energy projects. Applications will be prioritized based on the ability to create jobs, potential reductions in greenhouse gas emissions, the amount of energy saved or created and innovative aspects of the technology to be used or its application.

Grants for State-Sponsored Renewable Energy and Energy Efficiency Projects

· $20,643,000 will be dedicated to a new BPU-administered program to invest in renewable energy and energy efficiency projects at state departments, agencies, authorities and public colleges and universities. Applications will be prioritized based on the ability to create jobs, potential reductions in greenhouse gas emissions, the amount of energy saved or created and innovative aspects of the technology to be used or its application.

New Jersey Housing and Mortgage Finance Agency (HMFA) Solar Financing Program for Residential Solar

· $7 million will be dedicated to the HMFA for grants to construct solar energy projects on HMFA’s income- qualified multifamily buildings. The funds will be leveraged with existing state rebate programs and the federal investment tax credit. HMFA will own the Solar Renewable Energy Credits (SRECs) and the funds generated by the credits will be used to establish a revolving fund to finance additional solar installations.

New Jersey Housing and Mortgage Finance Agency Low-Interest Loan Program for Residential Energy Efficiency

· $8 million will be dedicated to the HMFA for a low-interest loan program for energy efficiency upgrades at single-family and multifamily homes. These loans will be made available to households that are at or below 250% of Area Median Income (the higher of statewide or county median income) based on a family of four, and affordable multifamily building owners that meet HMFA’s affordability requirements. Participation will also be limited to those ineligible for other equivalent financing programs offered by the utilities or New Jersey’s Clean Energy Program. Loan repayments will be used to establish a revolving loan fund to finance additional energy efficiency projects.

UTILITIES

Regulatory Authority:

New Jersey Board of Public Utilities

Private Companies:

Atlantic City Electric Co.

Jersey Central Power & Lt. Co.

Public Service Electric & Gas Co.

Rockland Electric Co.

The New Jersey Board of Public Utilities does not have ratemaking authority over municipal electric utilities.

Municipals:

City of Vineland

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