LGEA Guide
The Local Government Energy Audit (LGEA) Program provides an energy audit at no cost on eligible facilities owned by municipalities, school districts, 501(c)(3) non-profits, and other local and state government entities (applicants).\
The goal of the energy audit is to provide applicants with information on how their facilities use energy, identify energy conservation measures (ECMs) that can reduce energy, and put applicants in a position to implement these ECMs. The energy audit also guides applicants towards financial incentives offered by utilities and the state for implementing the ECMs.
The program is also used as a means of qualifying applicants for other relevant initiatives, most notably the Energy Savings Improvement Program (ESIP), Sustainable Jersey’s municipal and school programs, and GreenFaith. Collaboration with these programs can provide cost-effective benefits to these publicly funded facilities while helping to achieve mutual goals.
The LGEA Program is open to the following eligible entities that contribute to the Societal Benefits Charge (SBC) fund through either of their gas and/or electric IOU utility service providers:
State contracting agency as defined by N.J.S.A. 52:34-35
Public agency as defined by N.J.S.A. 52:35A-1
Local governments per Local Public Contracts Law (N.J.S.A. 40A:11-1)
Local governments per Public School Contracts Law (N.J.S.A. 18A:18A-1)
County colleges per County College Contracts Law (N.J.S.A.18A:64A-25.1)
NJ State Colleges or State Universities per State College Contracts Law (N.J.S.A.18A:64-52)
Non-profit charitable organizations per Section 501(c)(3) of the Internal Revenue Code
Typical building types include but are not limited to offices, courtrooms, town halls, police/fire stations, sanitation buildings, transportation structures, schools, and community centers. All local governments, New Jersey State Colleges or State Universities, County Colleges, Public Schools, and non-profit agencies exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code that are located within the service territory of at least one of the state's regulated utilities are eligible.
Applicants may apply for an energy audit for buildings that they own, although a building may still be eligible if the applicant leases the building and provides supporting documentation from the building owner authorizing the energy audit before it is performed.
Participating local government agencies do not need to pass a resolution to apply to the program.
The LGEA Program is available to buildings never previously audited under the program, as well as buildings that have received an audit no less than three (3) years earlier (measured from the audit report approval date). All program requirements must be met in order for an entity to qualify for a second energy audit.
The LGEA audit is comprehensive and will include the following elements:
- Historic Energy Consumption – Compile energy usage and costs for each facility/building for the most recent twelve (12) months prior to the audit, identify the utility rate schedule under which services are provided to each meter, and benchmark each building with the US Environmental Protection Agency’s (EPA) ENERGY STAR® Portfolio Manager® (a proprietary energy benchmarking database that generates its own score). If water bills are supplied, these will also be included in benchmarking. Facilities owned by the state of New Jersey are required to supply water bills.
- Facility and Measure Description – Characterize building usage and occupancy profiles, facility size, construction features including an assessment of the building envelope (windows, doors, insulation, etc.), along with equipment description and operations.
- Equipment List – Create inventory of energy consuming equipment, with estimated efficiency and remaining useful life of the equipment.
- Energy Conservation Measures – Provide a narrative summary for each ECM and key assumptions made in analyzing each measure, describing the method of analysis, along with the estimated installation cost, estimated energy savings, and estimated annual energy cost savings. Return on Investment (ROI) and payback calculations will also be calculated.
- Renewable/Distributed Energy Measures – Perform a high-level assessment of renewable and distributed energy technologies, including recommendations on the potential/viability of various renewable technologies, and cost analysis.
- Electric Vehicle (EV) Charging Stations – Perform a high-level assessment on the possibility of installing EV charging stations.
- Energy Purchasing and Procurement Strategies – Develop a load profile for each electric and natural gas account, provide an analysis of the utility tariff under which the facility is currently served, and assess potential savings available through entering a contract with a third-party supplier.
- Method of Analysis – Provide a description and documentation for and tools used to perform energy use and energy savings estimates; clearly identify all assumptions/estimates used.
- Incentives – Guide applicants towards financial incentives offered by utilities and state for implementing the ECMs.
* In cases where ESIP will be sought, the audit will also comply with the program requirements by including energy related water conservation measures, demand response potential, and estimated greenhouse gas reductions for each measure.
** Applicants have the option to add a more in-depth assessment for rooftop photovoltaic (PV) systems, an electrification study, ENERGY STAR® building certification (to be determined post audit). Program Manager will work with applicant to determine if add on scopes are appropriate for the facilities coming through LGEA.
***State of New Jersey owned facilities have additional add-on scope options that will be approved on a case-by-case basis, listed below. State owned facilities may need to reach out to discuss add-on scope options with the Program Manager.
- Develop hourly coincident electric and thermal load profiles for typical year (where data is available)
- Develop high-level assessment for utilizing new major mechanical equipment at each site
- Estimate high level logistics of hot water and chilled water system redesign as a capital project
- Evaluate the proposed mechanical equipment capacities
- Evaluate new configuration energy consumption and costs
- Develop cost estimate from RS Means and other available resources
This program is implemented as follows:
- The applicant will submit one application per entity. The application includes building type, square footage, utility account information, associated bills, and other applicable energy usage information for each building to be audited.
- When an applicant is enrolled in LGEA and participating in NJCEP and/or utility-managed energy efficiency programs at the same time for the same facility(ies), the Program Manager will assess the impact that the work may have on the energy audit and require the applicant take one of the following actions, depending on the level of impact:
- Proceed with energy audit and equipment upgrades (minimal impact) Please note that the program may require you to submit specifications for both old and new equipment.
- Complete equipment upgrades prior to proceeding with energy audit process or vice versa (moderate impact) Please note that if the upgrades take over 30 days, your application may be canceled and recommended to reapply when upgrades are complete.
- Cancel energy audit application (significant impact)
- If the initial program eligibility and application requirements have been met and the applicant is approved to have an energy audit performed under this program, the Case Manager will issue an approval letter to the applicant.
- The energy audit scope of work is consistent with ASHRAE Level II2 audit. Audit scope may vary depending on the specific needs and circumstances of the applicant within limitations of the LGEA Program. Smaller facilities with a legitimate waiver under 200kW average peak demand may receive an ASHRAE Level I or II audit.
- In order to provide compatibility with the Energy Savings Improvement Program (ESIP), the energy audit scope will include an evaluation of energy related water conservation measures, demand response potential, and estimated greenhouse gas reduction for each recommended measure.
The Program Manager oversees the audit, preparation of the draft audit report, and LGEA Presentation where next steps for implementing measures recommended in the report will be discussed. The Presentation will also include information on potential incentive programs.
Prior to the LGEA Presentation, applicants are given 30 days to review the draft audit report and provide comments. If no edits are required, a final report will be issued and will be posted on the NJCEP website.
The LGEA Program will provide audits up to a value of $150,000 per program year, per applicant. For larger applicants, if the audit cost exceeds or is expected to exceed $150,000, the Program Manager will work with Board Staff to determine and authorize a larger cost cap, not to exceed $300,0003 . Approval of a higher cost cap will be contingent on a commitment from the applicant to pursue ESIP (by selecting intent to pursue ESIP on the application). Board Staff may also consider permitting 501c3 healthcare entities to exceed the $150,000 fiscal year entity cap; however, the funds exceeding the initial $150,000, not to exceed $300,000 total, would be for auditing facilities designated as hospitals by the NJ Department of Health (DOH).
For the avoidance of doubt, the Board itself, in accordance with the rules, may consider granting waivers that would authorize incentives that exceed $300,000 on whatever terms and conditions the Board determines appropriate.
This guide is not legally binding on the New Jersey Board of Public Utilities (Board), the Program Administrator, or the Program Manager. If there is any conflict between this document and a Board Order, the applicable Compliance Filing, any legally binding agreement(s), or any other legally binding document(s), such other document(s) shall take precedence and control over this document.
Documented policies and procedures provide proper guidelines to ensure consistency in the processing and quality control for all LGEA participants. All applications are reviewed upon receipt to verify adherence to eligibility requirements and technical information. Applicant-supplied information is entered into the database and files are created for all documents, including project correspondence. The program will perform internal quality assurance reviews on audit reports.
Disputes, concerns, or complaints that arise will be addressed initially by the Program Manager or Program Staff at the point of contact. If resolution for whatever reason is not possible, there is a dispute resolution process backed by the NJ Board of Public Utilities (NJBPU).
Dispute Resolution Process
It is the goal of all parties involved in New Jersey’s Clean Energy Program (NJCEP) to conduct business in a professional manner, without giving rise to any complaints or disputes. However, it is reasonable to expect that as in any other business, disputes may arise.
Regardless of who originates it, a dispute should always first be presented to the appropriate Program Manager who will make every attempt to resolve it. Contact us at 866-657-6278 and ask to speak to a supervisor or Program Manager.
If attempts to resolve the issue at the Program Manager level are unsuccessful, an appeal may be presented to the Program Administrator for further review. The appeal may be submitted by email to issues@njcleanenergy.com and must be submitted within 45 days of the Program Manager's determination regarding the subject of the appeal or dispute. Please provide a copy of the NJCEP letter or other document from which you are appealing and as much other information as possible, including a detailed description of the issue, why you think your appeal should be granted, etc. The Program Administrator will review it and respond as soon as possible. (The Program Administrator typically acknowledges appeals within 5 business days of their submission. If you have not received an acknowledgment by then, you should contact the Program Administrator at 732-447-1359).
New Jersey’s Clean Energy Program operates a call center staffed weekdays between 8 AM and 7 PM. The phone number is 866-657-6278 and the email is LGEA@NJCleanEnergy.com. The call center is trained in answering general questions about the program and application processes as well as able to provide specific information pertaining to an application.