Proposed FY18 Program Changes EE Committee Meeting June 13, 2017 Presented by TRC Team

HVAC Program Propose to add an incentive tier for a cold climate mini split heat pump to increase COOLAdvantage Program participation Continue to include Geothermal Heat Pump and Solar Water Heaters as eligible measures as part of HPwES comprehensive projects, but no longer as stand-alone HVAC prescriptive measures Transition from paper to online applications – in stages and with exceptions, if needed

Home Performance Program Reduce required paperwork (e.g., audit report) If sufficient budgetary capacity remains later in FY, assess launching pilots: Pilot DI measure packages (LEDs, water measures) Pilot prescriptive measures (air sealing & insulation)

Residential New Construction Eliminate requirement to submit Construction Documents Change the 60/60 pre-drywall requirement to 120 days from the time the project is enrolled Simplify incentive structure and adjust for RESNET changes

Energy Efficient Products Lighting Program Program is currently closed and not expected to re-open for several months

Combined Heat & Power - Fuel Cell Systems fueled by Class 1 renewable source 30% bonus incentive (pro-rated if mixed fuel) Replace 10-year with 25-year payback requirement Size limited by capacity of fuel production, not on-site demand Systems serving Critical Facilities Require Blackstart capability Replace 10-year with 20-year payback requirement

Renewable Electric Storage No program changes proposed for FY18 No new funding proposed Existing active pipeline of commitments will be managed to completion and new projects will be accepted if any existing commitments cancel their projects

NJ SmartStart Buildings Redesign applications and correspondence documents Improve customer experience and usability Provide streamlined format for multiple site submissions Review and revise existing incentive levels as appropriate Make a series of adjustments to eligibility criteria (e.g., allow T12 lighting to be replaced with LEDs)

Direct Install Increase the entity cap for DI projects participating in cooperation with ESIP Add flexibility regarding current maximum kW demand eligibility requirement

Large Energy Users Review effectiveness of mid-FY17 program changes Recommend kickoff/scoping meeting after enrollment

Pay for Performance Existing Buildings Increase Incentive #1 amount and revise LGEA reductions ICP Path Incentive #1 bonus cap increases from $15k to $25k Add flexibility to the maximum lighting savings requirement Moving from absolute threshold to pro-rated approach for cases in which actual/reported savings below 15% when calculating Incentive #3 Kickoff/scoping meetings shortly after application receipt Partner renewal

Pay for Performance New Construction No major changes recommended (program re-designed in FY17) Similar administrative/procedural changes as P4P EB

Local Government Energy Audit Provide several types of audits in addition to the standard ASHRAE Level II Audits currently offered: ASHRAE Level I Audits Add-on scope audits (e.g., a more detailed review of an existing or potential CHP or renewable energy system)

Multi-family Program Development Continue work on design of new Multi-family Program that will include: Researching best practice MF program offerings in other jurisdictions Consolidation of existing Residential and C&I programs currently used by this sector. Tiered approach to reflect range of possible EE measures Stakeholder input

Outreach & Interim Marketing Account Manager focus on bringing in new projects or additional projects from existing customers for C&I Focus efforts on manufacturer/distributor relationships, builders and remodelers for Residential Programs Monitor program participation and refine strategies accordingly Establishing more specific goals and methods of measurement Refine event outreach strategies Enhanced coordination with utilities, Sustainable Jersey, NJIT and Ombudsmen’s office Prepare to support any pilots or new programs If approved, redesign NJCEP web site and develop limited marketing strategies to support under performing or new programs/pilots