State and Local Policy Database

New Jersey

State Scorecard Rank


New Jersey

24.0Scored out of 50Updated 10/2019
State Government
Score: 2.5 out of 6
State Government Summary List All

The state offers grants and loans for energy efficiency investments, as well as PACE financing. The state government leads by example by requiring the benchmarking of energy use in public buildings and encouraging the use of energy savings performance contracts. Research focused on energy-efficient vehicles and building components is conducted at several institutions.

Financial Incentives List All

Financial Incentive information for New Jersey is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE New Jersey). In addition to the state-funded incentives on DSIRE, New Jersey has enabled Property Assessed Clean Energy (PACE) financing and has an active program. For additional information on PACE, visit PACENation.

Last Updated: July 2018

Carbon Pricing PoliciesList All

New Jersey is a member of the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program for reducing GHG emissions in North America that began its compliance period in 2009. Capping CO2 emissions from the power sector, the program aims to reduce emissions by 45% below 2005 levels by 2020 and additionally by 30% by 2030.

New Jersey is also a participant in the Transportation and Climate Initiative’s effort to develop a cap-and-invest program for transportation emissions. This team is engaged in modeling, outreach, and program development efforts and is targeting December 2019 for announcement of potential program design.

Last Reviewed: August 2019

Building Energy Disclosure List All

The Clean Energy Act of 2018 (P.L.2018 c. 17 “Clean Energy Act”) provides that within five years the NJBPU require benchmarking by owners and operators of commercial buildings over 25,000 sq. ft. using the USEPA Portfolio Manager tool.

Last Reviewed: July 2019

Public Building Requirements List All

In January 2008, New Jersey enacted legislation mandating the use of high performance green building standards in new state construction. The standard requires that new buildings larger than 15,000 square feet constructed for the sole use of state entities achieve US Green Building Council LEED* Silver certification, a two-globe rating on the Green Building Initiative Green Globe rating system, or a comparable numeric rating from another accredited sustainable building certification program. New Jersey's Clean Energy Program now offers free benchmarking for specific commercial & industrial sectors, including hospitals and healthcare, municipalities, industries, hospitality, multifamily, higher education, K-12 public schools, retail and others. The proposed FY20 budget recommends increasing the cap on energy audits on hospitals from $100,000 to $300,000, which should increase program participation and energy savings among potential participants that tend to have large, complex facilities. Since 2008, the Clean Energy Division has done nearly 1500 audits and benchmarks across all sectors.

New Jersey leads by example with an initiative to increase the energy efficiency of state owned or operated facilities and buildings. Energy Savings Improvement Programs (ESIP) will be used for energy efficiency and energy conservation improvements, renewable energy upgrades, and the expansion of other green oriented programs - particularly demand response and combined heat and power. These initiatives will contribute to the state’s goal of reducing energy usage across the state 20% by 2020. The FY20 proposed budget includes an increase in funding for State Facilities for a total of $37,810,430 to go to various energy efficiency programs.

Through the BPU, the State Facilities Initiative identifies and implements energy efficiency projects in State-owned facilities with the objective of producing energy and cost savings. The Energy Capital Committee (“ECC”) consisting of members from Treasury and the BPU Division of State Energy Services coordinates and recommends approval of these projects based on evaluation of capital costs and anticipated energy savings.

The list of planned projects includes those identified through energy audits completed, in progress or proposed for various State facilities, as well as projects requested by State agencies on an annual basis and in support of policy goals identified in the Energy Master Plan. In FY18, the State Facilities Budget was $100,000 with a carryover commitment for $7.6 million for three major EE upgrades. In FY19, the State Facilities initiative budget was increased to $5 million plus additional committed carryover. Additionally, state agencies are encouraged to utilize the New Jersey Clean Energy Program’s Local Government Energy Audit program which provides 100% of the costs of audits to local and state facilities.

The New Jersey Board of Public Utilities established the Office of State Energy Facilities in order to advance energy efficiency and renewable energy in state facilities. This office has access to the suite of energy efficiency and renewable energy incentives in the NJ Clean Energy Program (NJCEP). Through this program, the state offers free energy audits and benchmarking for public facilities, including state, county, and local governments, non-profits, and state colleges and universities. Benchmarking reports for these facilities are posted online. The Division of State Energy Services, as part of the ECC, has access to a $100 million line of credit for state energy efficiency and renewable energy projects and strongly encourages and promotes the use of these programs that result in energy efficient improvements. While the original $100 million backing has been almost exhausted through projects and commitments, a new line of credit will be established later in 2019 to continue these efforts. New Jersey Treasury uses a statewide system called Energy Solves to track energy bills and usage and identify outlying state facilities that need energy efficiency upgrades. The Division of State Energy Services has started to develop a plan forward to tackle these largest energy users.

The New Jersey Department of Community Affairs and the Rutgers Center for Green Buildings have developed a green building manual for owners and builders interested in designing, constructing, and operating their buildings above code. In addition, Rutgers has developed a Municipal Guidance for Promoting Energy Efficiency in the Private Sector, which describes policies and local planning/zoning tools available for local governments. Municipalities and schools can use this manual to achieve certification under the Sustainable Jersey program.

Last Reviewed: July 2019

Fleets List All

All state government fleets and certain businesses are subject to regulation under the 1992 Energy Policy Act (EPAct). Under the DOE website EPAct Transportation Regulatory Activities, state vehicles are required to operate with increased energy efficiency standards. State vehicles are to utilize fuel types most appropriate for the vehicle by promoting alternative fuels such as compressed natural gas, propane, biodiesel, and ethanol to reduce the use of petroleum based fuels. State conduct under the following fleets will follow this regulation:

•             State of New Jersey
•             Rutgers, The State University of New Jersey
•             Port Authority of New York and New Jersey
•             Electric and gas utilities, and propane providers

The above regulations require fleet operators of light duty AFVs to maintain a pre-determined percentage of vehicles annually.  Development of AFV infrastructure will serve as an improved compliance measure. Increasing fleet efficiency will reduce our carbon footprint in the State of New Jersey.

In the winter of 2019, NJ Department of Treasury issued a significant bid solicitation for passenger battery electric and hybrid vehicles, which will enable state government agencies to purchase vehicles for the first time. The Energy Master Plan draft sets forth a goal of seeking to transition its light-duty fleet to electrification as vehicles reach the end of their useful life, beginning in July 2020, if not sooner.

Through funding from BPU, non-profit Sustainable Jersey is also working with their Electric Vehicle Working Group to review their guidance for municipalities that participate in their programs (450 “Participating” municipalities and 203 “Certified” municipalities partner with Sustainable Jersey to advance various initiatives including energy efficiency).

The Sustainable Jersey Purchase Alternative Fuel Vehicle Action (aka guidance) is now updated to reflect technology changes and options for fleet procurement. They are also in contact with Sawatch, Electrification Coalition, and Nissan regarding potential outreach projects to promote municipal fleet adoption of electric vehicles.

Note: For state efficient fleet initiatives, policies listed must make a specific, mandatory requirement for increasing state fleet efficiency. State alternative-fuel vehicle procurement requirements that give a voluntary option to count efficient vehicles are thus not included.

Last Reviewed: July 2019

Energy Savings Performance Contracting List All

New Jersey’s ESPC policies stem from 2009 legislation which allows New Jersey state facilities to enter into ESPCs through the New Jersey Energy Savings Improvement Program (ESIP). The program complements the New Jersey Clean Energy Program, which provides some model ESIP documents.

The ESIP allows public facilities to enter into long-term energy savings agreements. New Jersey has had 147 ESIP projects to date, with $636 million in total contracts worth $78.8 million in annual savings. The State Energy Office in the NJBPU manages the performance contracting process for public facilities and has assisted school districts with poor bond ratings to actually finance energy efficiency projects through ESIP.

Last Reviewed: July 2019

Research & Development List All

The Rutgers Center for Green Building (RCGB) is contracted by New Jersey’s Office of Clean Energy to serve as an independent evaluator and provide regular analyses of NJCEP energy efficiency programs as well as develop research and recommendations related to new programs. RCGB promotes green building through research, advocacy and education. The Center conducts applied research utilizing planned and existing green building projects, works with industry and government to promote these concepts, and develops undergraduate, graduate and professional education programs. It seeks to establish itself as the pre-eminent interdisciplinary center for green building excellence in the Northeast, while serving as a single accessible locus for fostering collaboration among green building practitioners and policy-makers.

The proposed FY2020 budget also includes $4,000,000 for Research and Development Energy Tech hub which will include energy efficiency measures, $4,000,000 to support innovation in clean energy including energy efficiency and $8,152,103 for incentives for Smart technology devices that allow ratepayers to reduce their own energy consumption (i.e. smart thermostats). In June 2019, the BPU will initiate a proceeding to establish a process and mechanism for achieving the state’s goals of energy storage, allowing for more efficient use of energy and addressing peak demand issues.

Working with other partner agencies and stakeholders, the Clean Energy Program will also provide critical curriculum funding in the amount of $3,000,000 to support the development of curricula around energy savings for elementary, middle school and high school students.

Last Reviewed: July 2019

Score: 6 out of 8
Buildings Summary List All

One and two-family detached dwellings are to comply with Chapter 11 of the 2015 International Residential Code (IRC), as adopted at N.J.A.C. 5:23-3.21; all other residential buildings three or fewer stories are to comply with residential portion of the 2015 International Energy Conservation Code (IECC), as adopted at N.J.A.C. 5:23-3.18.  The residential provisions are identical and included in the IRC for ease and usability of the code dedicated to one- and two-family detached dwellings.  All other buildings (i.e. commercial) are to comply with ASHRAE Standard 90.1-2013, as adopted at N.J.A.C. 5:23-3.18. 

The Department of Community Affairs has issued several rule proposals which will update residential and building codes to include additional efficiency.   The BPU continues to work with the Department of Community Affairs to identify opportunities for energy savings through building codes or through code-related options. 

Last reviewed: July 2019

Residential Codes List All

Compliance with the energy provisions of the New Jersey Uniform Construction Code (UCC) for residential is mandatory statewide as of September 21, 2015, with a six-month grace period for the previously adopted codes to be used to not disrupt projects currently in design-stage. Residential construction must comply as mentioned above. The code includes a modification to Section N1102.4.1/R402.4.1 (Building thermal envelope) of the IRC and IECC which allows for either a visual inspection with checklist or [blower door] testing for compliance with the air barrier and insulation aspects of the building thermal envelope requirements. If testing is used, the 2015 criteria of 3 air changes per hour is the criteria to meet. 

For existing buildings, the Rehabilitation subcode (NJAC 5:23-6) applies certain energy conservation provisions of the new codes based on the scope of the project.

Last reviewed: July 2019

Commercial Code List All

Compliance with the energy provisions of the New Jersey Uniform Construction Code (UCC) for residential and commercial buildings by the aforementioned code is mandatory statewide as of September 21, 2015, with a six-month grace period for the previously adopted codes to be used to not disrupt projects currently in design-stage. The current commercial codes are based on ASHRAE 90.1-2013 and the Department of Community Affairs will be updating energy codes to ASHRAE 90-1-2016 in the summer of 2019.

On September 21, 2015, the Department adopted revisions to the 2015 editions of the International Building Code (IBC), International Residential Code (IRC), International Mechanical Code (IMC), International Fuel Gas Code (IFGC), and International Energy Conservation Code (IECC) as the building, one- and two-family dwelling, mechanical, fuel gas, and energy subcodes, respectively, of the UCC and the 2014 edition of the National Electrical Code (NEC).

In order to implement the most recent published technical standards, in keeping with its statutory charge (N.J.S.A. 52:27D-120), the Department proposes the 2018 editions of the IBC, IRC, IMC, IFGC, IECC, and NSPC, and the 2017 edition of the National Electrical Code (NEC) to update the above referenced subcodes of the UCC with amendments. These proposed amendments, expected to be adopted by August 2019, reflect the changes to the IBC/2018, IRC/2018, IMC/2018, IFGC/2018, IECC/2018, NSPC/2018, and NEC/2017 that modify the codes to align with New Jersey conditions and law.

For existing buildings, the Rehabilitation subcode (NJAC 5:23-6) applies certain energy conservation provisions of the new codes based on the scope of the project.

Last reviewed: July 2019

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: NJ has an Evaluation Plan which was last made public in May 2017. The BPU’s Office of Clean Energy, in conjunction with the independent evaluator, Rutgers Center for Green Buildings, continually updates an Evaluation Plan in order to track previous evaluation activities, provide an indicator regarding planned, future evaluations and solicit input from stakeholders on what future evaluations are needed. In addition to highlighting current priorities, the Evaluation Plan is an important record of regular and cyclical evaluation work, such as cost-benefit analyses and baseline studies, which are used towards more effective policy making.
  • Baseline & Updated Compliance Studies: A baseline study of the multifamily sector in New Jersey was completed in April 2019, the results are still being compiled and reviewed ahead of public release. Energy efficiency market potential studies were completed in 2012 and 2019. An energy code compliance study is also slated to be conducted in 2019.
  • Utility Involvement: The Clean Energy Act requires the NJ Board of Public Utilities to develop “quantitative performance indicators” (QPI) via public rulemaking that establishes targets and takes into account each utility’s “support (for) the development and implementation of building code changes…”  The Board established interim QPIs in May 2019 as well as establishing an Advisory Group which will meet to help inform future QPIs. Additionally, utilities may participate on the NJDCA mechanical/energy subcode committee and support the enactment of energy codes as a cost-effective means to reduce energy usage.  They can participate on the advisory board but participation is not mandated.    
  • Stakeholder Advisory Group: The Uniform Construction Code Act establishes a Uniform Construction Code Advisory Board. And under the Uniform Construction Code Advisory Board, there is a mechanical/energy subcode committee which includes code officials, engineers and other stakeholders. This board meets three to four times per year.  
  • Training/Outreach: The Department of Community Affairs offers spring and fall semesters of training each year.  Licensed code officials are required to complete continuing education to maintain their licensed. Visit the NJ Department of Community Affairs for more info regarding NJDCA Continuing Education Seminars.  There are 50+ different Code Official training courses offered, some of which are energy subcode specific.

Last reviewed: July 2019

Score: 3 out of 3
CHP Summary List All

New Jersey includes CHP in its energy efficiency resource standard and offers several incentives and financing programs for CHP projects. Seventeen new CHP installations were completed in 2018.

Interconnection StandardsList All

Policy: New Jersey Administrative Code 14:4-9

Description: As required by the Board of Public Utilities, each electric utility in the state has approved interconnection standards applicable to CHP and other forms of generation. The interconnection standards have 3 levels: Level 1 for projects <= 10kW; Level 2 for projects <= 2 MW; and Level 3 for projects < 2MW. There are varying fees that scale up in accordance with system size, and varying degrees of review that must occur before a system can interconnect.

Last Updated: August 2019

Encouraging CHP as a ResourceList All

CHP in energy efficiency standards: New Jersey adopted an EERS in May 2018 with 2% electric and 0.75% gas savings goals. The policy specifically excludes natural gas used for CHP from gas savings goals. 

The state also adopted a budget of $29 million in FY 2018 for CHP incentives.

Last Updated: August 2019

Deployment IncentivesList All

Incentives, grants, or financing: New Jersey provides incentives for CHP deployment through several programs.

New Jersey’s Clean Energy Program (NJCEP) offers financial incentives for several types of CHP facilities, including non-renewable, renewable, fuel cell, and waste heat to power systems. The program provides an incentive ($/W) depending on system type and size for projects that meet a 60% HHV CHP efficiency standard. A bonus incentive of 25% of the total system incentive for a system incorporating blackstart technology at a critical facility is now available.

The state’s Cogeneration Tax Exemption provides a sales and use tax exemption on natural gas purchases for customers using gas to fuel on-site energy generation. Additionally, the Act amended the definition of “contiguous property” to include those buildings attached to or served by a district thermal energy system. This definition allows electricity generated by the system to be delivered to other facilities served by the same thermal district energy system, using existing infrastructure and at prevailing wheeling tariffs.

Last Updated: August 2019

Additional Supportive PoliciesList All

Some additional supportive policies exist to encourage CHP in New jersey. The state’s Superstorm Sandy Action Plan includes funding specifically for CHP and recommends that critical infrastructure use CHP in order to increase the system resiliency. New Jersey also changed the definition of contiguous property to help promote CHP system incorporation with district energy systems.

The state's CHP incentive program provides additional bonus incentives to CHP systems with blackstart capabilities at critical infrastrucutre, and supports renewable-fueled systems.

New Jersey has also streamlined its air permitting process by offering a general permit for some eligible CHP systems, allowing a range of facilities to more quickly and easily install CHP technology. The New Jersey Department of Environmental Protection (DEP) developed two GPs: one for internal combustion engines (General Permit CHP-022) and one for turbines (General Permit CHP-021). Each GP contains four different sets of fuel and emission limits, depending on the size of the equipment and how the source plans to operate the equipment.

Last Updated: August 2019

Score: 6.5 out of 20
Utilities Summary List All

Since 2003, the Office of Clean Energy within the Board of Public Utilities has administered the New Jersey Clean Energy Program, which has offered statewide customer energy efficiency programs. Prior to this, the regulated energy utilities in New Jersey had been responsible for administering electric and natural gas efficiency programs.

New Jersey electric programs have been successful in generating significant savings. However, portions of the state’s societal benefit charge (SBC) have been re-allocated to pay state energy bills in recent years, reducing potential energy efficiency programming.

Natural gas programs are also available to customers within the state.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Customer Energy Efficiency Programs List All

Prior to 2007, utilities were required to administer and implement energy efficiency programs with oversight from the BPU. In 2002, the New Jersey BPU began a re-assessment of this administrative structure and in 2007 program administration was turned over to the Office of Clean Energy (OCE). OCE meets monthly with energy efficiency and renewable energy program managers, the New Jersey Clean Energy Program, and the state's utilities to plan and coordinate programs. The OCE also chairs monthly meetings with stakeholders to solicit input on programs and budgets.

Several utilities provide incentives that supplement New Jersey’s Clean Energy Program or administer energy efficiency programs that do not compete with those offered through NJCEP.  For example, several utilities offer incentives for highly efficient hot water heaters, boilers, and furnaces. While the NJCEP already offers incentives for these products, the aforementioned utilities offer additional incentives to further encourage their customers to purchase these efficient technologies. Some utilities also offer financing options to customers in their service territory who wish to participate in specified NJCEP residential and commercial programs. By offering on-bill repayment options and low-to-zero interest loans to participating customers, these utilities both lessen the cost burden for customers and attract additional participants that may have been otherwise unable to enroll in these programs.

Additionally, several companies offer residential behavioral analysis programs that utilize customer data to provide residents with breakdowns of their energy usage, comparisons to similar homes in the area, and recommendations to optimize their energy use and conserve energy (including enrolling in other energy efficiency programs). Utilities also offer programs focusing on low-to-moderate income customers, small businesses, and hospitals to ensure that all customer segments have the ability to participate in energy efficiency. 

Today, investor-owned utilities are still responsible for collecting the Societal Benefit Charge (SBC) for the programs and then transfer these funds to the state. However, state’s societal benefit charge has repeatedly been reallocated away from energy efficiency programming.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last reviewed: July 2019

Energy Efficiency as a Resource List All

New Jersey's restructuring statute requires the Board of Public Utilities to perform “comprehensive resource assessments” (CRAs) for energy efficiency and renewable energy resources every four years. These assessments account for system needs and costs. The CRA typically commences with a potential study. The results of the latest benchmarking study of the NJCEP can be found on the NJ Clean Energy Program web site.

Last reviewed: July 2019

Energy Efficiency Resource Standards List All

In May 2018 New Jersey adopted an EERS when the governor signed clean energy bill A3723, which features 2% electric and 0.75% gas savings goals. 

The Board of Public Utilities has adopted preliminary utility savings targets, quantitative performance indicator, and other related matters based on the completion of a baseline energy efficiency study. These preliminary targets will be updated and amended after a significant period of stakeholder review, including the establishment of an Independent Advisory Group. This group will consist of representatives from various business sectors, New Jersey’s Division of Rate Counsel, all Investor-Owned Utility companies operating in New Jersey, environmental groups, and other stakeholders, and will be tasked with carefully reviewing the savings targets, performance indicators, proposed program administration details, and other related information to provide Board Staff with informed recommendations in advance of the program transition slated to occur by July 1, 2020. 

Last reviewed: July 2019

Utility Business Model List All

The New Jersey Board of Public Utilities (BPU) does not permit utilities to collect lost revenues related to reduced sales resulting from energy efficiency programs. Since the NJBPU administers and manages the NJ Clean Energy Program, as a state agency it is not eligible to receive performance incentives for achieving energy savings targets.

Last reviewed: July 2019

Evaluation, Measurement, & Verification List All
  • Primary cost-effectiveness test(s) used: total resource cost

  • Secondary cost-effectiveness test(s) used: utility cost test, participant cost test, societal cost test, and ratepayer impact measure

The NJBPU’s Clean Energy Program evaluation plan is developed and approved annually as part of the establishment of the NJBPU’s Clean Energy Program’s funding level and annual budget (see NJ evaluation plan 2017, on the NJCEP Home page under Public Reports).

The Protocols to Measure Resource Savings (and Generation) are updated annually. The latest EM&V Protocol was approved by the Board at its June 22, 2018, agenda meeting Docket No QO16060525. The protocols are available on the NJCEP Home page under Public Reports.

The NJBPU’s Clean Energy Program is evaluated through a third party contract with Rutgers University Center of Energy, Economic and Environmental Policy (CEEEP) in order to keep the evaluation independent from the direct oversight of the NJBPU and the Program.

According to the Database of State Efficiency Screening Practices (DSESP), New Jersey relies on the Total Resource Cost Test (TRC) and considers it to be its primary cost-effectiveness test. Nominally, New Jersey’s TRC accounts for non-energy benefits such as other energy fuel savings and water savings and quality benefits, but values do not appear to be included in practice. Low-income programs are not required to pass cost-effectiveness tests.

Further information on cost-effectiveness screening practices for New Jersey is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP).

Last reviewed: July 2019

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

The State’s low-income energy efficiency program, New Jersey Comfort Partners, arose out of 1999 restructuring legislation that designated a systems benefit charge as the funding source for energy efficiency programs. A low-income program is required as set forth in EDECA 1999 at NJSA 48:3-61. The NJBPU has approved a low-income energy efficiency program since 2001. There appear to be no specific levels of required of spending, although each year the program budget does specify annual goals for number of customers served.

For FY20, the NJBPU has also proposed an increase in the income eligibility limits, from 225% of Federal Poverty Guidelines to 250% of Federal Poverty Guidelines in order to expand the program’s availability and increase access for residents of New Jersey. Annual goals for energy savings and the number of customers served are established in the program filings, during FY2018 the program served 3,894 households and saved 4,394,902 kWh and 248,973 Therms.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

The NJBPU does not require that the Comfort Partners Program meet any cost-effectiveness tests. Implementation of a low income energy efficiency program is required by NJSA 48:3-61 and does not require any cost effectiveness tests. The low income EE CPP based on the energy audit implements all measures at the full cost plus measures required to address health and safety that are within the budget and seasonal spending guidelines.  If this level is not sufficient to implement the measures, the program can request additional approved spending. This process is set in the utilities filing and approved priority list.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

In addition to opportunities through Comfort Partners, New Jersey’s Department of Community Affairs (NJDCA) administers the federally-funded Weatherization Assistance Program (WAP). The Office of Low-Income Energy Conservation (OLIEC) within the New Jersey Department of Community Affairs (DCA) is responsible for administration of the state’s Weatherization Assistance Program (WAP).The DCA established WAP to aid low-income households, with an emphasis on those who are high-energy users, have a high energy burden, are elderly or disabled, in order to decrease fuel consumption and related energy costs. The program is intended to reduce both the national energy consumption and the impact of higher fuel costs on low-income families. Funds are provided to facilitate several energy conservation measures, including but not limited to building shell, air-sealing, hot water conservation measures, attic, sidewall, and foundation insulation and electric base load measures.   

In order to expand access for low-income residents to energy efficiency opportunities, in 2018 the NJBPU and NJDCA approved a Memorandum of Understanding (MOU), to jointly deliver Comfort Partners and WAP services, in particular situations. The similar mission statements and target populations of the programs make the combination of efforts and resources a good fit for both programs and the MOU allows the NJ to more efficiently and comprehensively serve New Jersey’s residents and provide critical upgrades to residents. Through this MOU, NJBPU and NJDCA are able to coordinate the delivery of Comfort Partners and WAP services, streamline and increase customer access and are ultimately able to address concerns and provide weatherization in homes where otherwise the barriers to efficiency and weatherization were too great for one program to handle alone.

Last reviewed: July 2019

Self Direct and Opt-Out Programs List All

There are no opt-out programs in New Jersey.

Societal Benefits Credit (SBC) program, with elements of a self-direct program, allows commercial and industrial (C&I) ratepayers to establish a credit against their SBC contributions. No company has implemented an SBC program to date. The credit would be equal to one-half of the costs incurred for the purchase and installation of Clean Energy Program-supported energy efficiency products and services in the preceding calendar year, and up to 50% of the SBC contributions for a given year, per utility account.

The Large Energy Users Program is designed to promote self-investment in energy efficiency and combined heat and power projects with incentives up to $4 million for eligible projects in the states' largest commercial and industrial facilities.

Last reviewed: July 2019

Data AccessList All

Guidelines for Third party access

No requirements are in place, but all usage data will be provided to third party supplier through an EDI system on request.

Requirements for Provision of Energy Use Data

There are no requirements in place, but utilities have been asked to provide this information voluntarily and have done so provided that confidentiality requirements are met.

Energy Use Data Availability

The state does not have an online standardized system through which access to individual and aggregated energy use data may be requested.

Last reviewed: July 2019

Score: 6 out of 10
Transportation Summary List All

The state integrates transportation and land-use planning and has a complete streets policy in place. New Jersey offers incentives for high efficiency vehicles and devotes a significant amount of funding to transportation initiatives.

Tailpipe Emission Standards List All

In January 2006, New Jersey adopted rules to implement the California Low Emission Vehicle (LEV) program beginning in 2009. These rules implement the Air Pollution Control Act provisions at N.J.S.A. 26:2C-8.15, which require the Department to promulgate rules to implement the California LEV program in New Jersey. The New Jersey program contains three components: vehicle emission standards, fleet wide emission requirements, and a Zero Emission Vehicle (ZEV) sales requirement. The rules will require automakers to reduce fleet-wide greenhouse gas emissions from the vehicles they sell in New Jersey 30% by 2016. The state has also adopted California's Zero-Emission Vehicle (ZEV) program, which requires increasing production of plug-in hybrid, battery electric, and fuel-cell vehicles from 2018 to 2025.

On April 3rd, 2018, Governor Murphy reaffirmed New Jersey’s support for federal fuel emissions standards and signed a multi-state agreement on clean vehicles. Furthermore, in December 2018, New Jersey committed to working with Northeast and Mid-Atlantic states in designing a new regional low-carbon transportation policy proposal that will reduce greenhouse gas emissions from the transportation sector. The Transportation and Climate Initiative (TCI) recognizes that a regional low-carbon transportation policy will spur policies and programs to reduce carbon emissions, improve air quality, help communities become more resilient to extreme weather, spur economic growth, and address the disproportionate burdens of climate change on environmental justice communities.

Last Reviewed: July 2019

Transportation System Efficiency List All

Transportation and Land use Integration: The New Jersey State Development and Redevelopment Plan aims to implement statewide planning objectives that encourage development in recognized city, town and village centers and a balance of conservation in rural areas to enhance the quality of life for residents. The plan is a cross-institutional effort to promote smart growth across the state, estimated to save as much as $2.3 billion in capital costs in the process, if fully implemented.  Unfortunately, implementation of the state planning effort has languished in recent years. As of August 2009, a required update to the State Plan was long overdue, the State Planning Commission was suffering from a lack of appointments and staff levels at the Office of Smart Growth continued to shrink.

The New Jersey Department of Transportation (NJDOT) continues to run the New Jersey Future in Transportation (FIT) program in an effort to provide affordable and sustainable transportation solutions that break the sprawl cycle and integrate land use and transportation planning. The NJDOT also runs the Transit Village program which encourages transit-oriented development, and the Mobility and Community Form project, which helps communities plan future transportation and land use by preparing a Mobility and Community Form (MCF) Element that combines the circulation and land use elements of their master plans. NJDOT is currently completing signal optimization pilots to reduce congestion and emissions on various major highways throughout the State.

In January 2008, New Jersey passed the “Urban Transit Hub Tax Credit Act,” providing businesses that choose to locate in “urban transit hubs” – defined as the area in a one-half mile radius around rail stations -- with tax credits. This law was amended by the New Jersey Economic Stimulus Act of 2009, requiring businesses to invest at least $50,000,000 in a business or residential facility before it can earn tax credits that can be applied to corporate business taxes, insurance premiums tax or income tax.

On November 2, 2018, Governor Phil Murphy signed into law a bill requiring NJ TRANSIT to establish an office of real estate economic development and TOD. The purpose of the new office was to assess and develop recommendations for economic development and TOD opportunities for parcels of real property owned by NJ Transit. The hope is that the full inventory and emphasis on economic development within NJ Transit will generate more private-sector interest in developing agency-owned properties, ultimately creating a new revenue stream that could ease the burden on riders. Such development could, in turn, complement existing and contemplated TOD projects in both designated Transit Villages and in non-designated municipalities.

VMT Targets: No policy in place or proposed.

Complete Streets: The New Jersey DOT adopted a complete streets policy in 2009 to provide safe access and mobility to pedestrians, bicyclists, transit users of all ages and abilities through the planning, design, construction, maintenance and operation of new and retrofit transportation facilities.

FAST Freight Plans and Goals: New Jersey has a state freight plan that identifies a multimodal freight network, but it does not include freight energy or greenhouse gas reduction goals. One interesting efficiency measure in the state’s freight plan is the goal to move road freight traffic away from peak travel hours to take advantage of off-peak period roadway capacity and subsequently reduce idling and congestion.

Last Reviewed: July 2019

Transit Funding List All

No policy in place or proposed.

Last Reviewed: July 2019

Incentives for High-Efficiency Vehicles List All

All zero emission vehicles (ZEV) in the state of New Jersey are exempt from state sales and use taxes.

Last Reviewed: July 2019

Equitable Access to TransportationList All
New Jersey does not have any state programs in place to incentivize the creation of low-income housing near transit facilities, but it does consider the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners. Last Reviewed: July 2019
Appliance Standards
Score: 0 out of 3
Appliance Standards Summary List All

Policy: N.J. Stat. § 48:3-99 et seq., New Jersey Energy Efficiency Product Standards

Description: In 2005 New Jersey Governor Richard J. Codey signed a bill introducing Energy Efficiency Product Standards that established minimum standards for eight products. All eight standards have been preempted by the 2005 federal Energy Policy Act, the latest as of January 1, 2010. Appliance standards in New Jersey are considered and adopted by the Board of Public Utilities in consultation with the Commissioner of Environmental Protection, as established by New Jersey Statute 48:3-99 and the Administrative Procedure Act (N.J.S.A. 52:14B-1 et seq.).

Last Reviewed: June 2019