Trenton Mayor Douglas Palmer, Governor Jon Corzine and Highland Park Meryl Frank, co-chair of Mayors' Committee for a Green Future, pose with a solar panel following the introduction of the new state Energy Master Plan.
New Jersey, like the rest of the nation, is faced with serious energy challenges that if not addressed, threaten our environment and economic future. New Jersey’s economy depends on a reliable supply of energy at a reasonable price. New Jerseyans use electricity in more ways than ever, and the cost of it—as with all energy—is increasing because of economic and jurisdictional factors beyond our state’s borders. Likewise, our ability to shoulder our share of the responsibility to combat global warming is thwarted by the state’s aging generation and distribution infrastructure.
If we continued to conduct our energy business as usual, we would face a future with rising energy bills and greenhouse gas emissions, and potentially compromise the reliability of our energy supplies. However, these energy challenges also provide the state with an incredible opportunity that I am proud to say that we have taken head on, with a far reaching Energy Master Plan that will result in the development of a 21st century energy infrastructure that grows our economy while being responsible to our environment.
Oct. 22, 2008 was the first day of New Jersey’s energy future. On that day, I was pleased to launch New Jersey Energy Master Plan, a road map that will move us toward a future where a new, robust energy industry is a major engine of New Jersey’s economy. The Plan offers us the ability to reduce everyone’s energy bills, while increasing the reliability of the system and significantly decreasing greenhouse gas emissions from the electricity and heating fuel sectors.
If fully implemented, this plan will result in the creation of nearly 20,000 jobs, stimulate $33 billion of private investment, increase our renewable sources to reach 30 percent of our electricity supply, and save consumers nearly $30 billion in energy costs between 2010 and 2020. It will also result in the establishment of a vibrant clean energy industry as a cornerstone of the New Jersey economy.
We formulated this Plan because it’s clear that old assumptions about energy no longer serve us. New approaches to energy provide the direct pathways to economic prosperity.
By offering solutions to our energy challenges through investment in energy savings, job creation, building a 21st century energy structure and committing to innovation and further research into new technologies, the EMP aligns with that new economic order and captures the momentum of the gathering green revolution.
New Jersey’s local governments are on the front lines to meet—and take on—the energy challenges that currently face the state and the nation. You are faced with these challenges every day, as energy prices and the impacts of climate change continue to impact businesses and residents in your towns. You have also seen the costs to light and heat municipal buildings and schools continue to increase, as you struggle to balance your budgets and lower property taxes. For New Jersey to successfully change its energy future, local governments must be the engine that powers our energy revolution.
Many local governments in New Jersey are already doing their part to establish a more responsible energy future for the state. They are building green town halls, adding electric and hybrid vehicles to their fleets, promoting mass transit, installing solar panels and supporting the development of local green businesses. While I commend these efforts, I also know that it is incredibly difficult to continue to build that energy future without a coordinated, statewide effort to join with you.
Through the EMP, New Jersey will have a roadmap that will guide us all—from local municipalities, to counties, to the state as a whole. New Jersey is choosing a better future, in which we use energy more efficiently, cut costly peak energy demand, and produce more clean energy right here in New Jersey.
The first step that the state’s Plan takes on is the challenge of reducing our overall demand for energy 20 percent by 2020. The Plan will close the gap between supply and demand, reduce energy costs, increase reliability and reduce harmful greenhouse gas emissions through a sustained and multi-faceted effort to make New Jersey more energy efficient. By working with the utilities and retooling our current energy efficiency programs—building by building—we plan to enhance energy performance both structurally, in the equipment, and by educating the people who interact within the building.
Green Buildings We aim to give our 3.7 million buildings—homes, commercial and government structures—an energy check-up that will uncover the best ways to improve the building’s performance. We have already improved the energy performance of 500,000 homes, businesses and other structures in New Jersey. Now, we undertake the task of accomplishing more – to improve the energy performance of 300,000 buildings each year between now and 2020. In addition, we will promote new laws, regulations and incentive/rebate programs that will make new buildings 30 percent more efficient and require more energy efficient appliances.
Job Creation The EMP is also a key to sustained job creation. Its policies will foster a clean-energy industry that can be the cornerstone of our economy and the backbone of our boroughs, towns and cities, much like the pharmaceutical industry. We estimate that by investing approximately $33 billion over the next decade or so, New Jersey will see, by 2020, 20,000 jobs including energy auditors, energy service contractors, appliance manufacturers and installers, electricians, insulation installers, window installers, EnergyStar home developers and builders, and engineers. Some of that $33 billion will come from strategic public investment, but most of the funds will come from private capital—from investors who see the potential for prosperity these investments offer.
State-local partnerships will be essential as well. The state will rely on feedback from local government leaders so that it can most judiciously deploy its resources.
I chose to launch our completed EMP at a gathering held at ISLES in Trenton, an organization that offers hands-on training for “green-collar” job skills. With us on that day were young men and women who are already helping their communities to benefit from the clean technology economy of New Jersey. I look forward to seeing that benefit extend in ever widening waves to every one of New Jersey’s municipalities through the continued green job creation that the EMP will foster.
New Jersey’s new economy and approach to energy require an energy delivery system less dependent on “older generation” fuels such as fossil fuels and more dependent on “new generation” fuel sources, which are more local and thus more reliable.
We’re dedicated to building this 21st century energy infrastructure for our state, and that’s another important element of the EMP. New Jersey will have a new kind of infrastructure—an electricity grid that is more efficient (a “smart” grid) and supported by renewable energy technologies in every setting. This is an investment that is both economically and environmentally responsible. Specifically, the goals of the EMP are to surpass the current Renewable Portfolio Standard goals with a goal of obtaining 30 percent of the state’s electricity needs from renewable sources by 2020—an aggressive goal that I know New Jersey is ready to achieve.
In-state Generation With the strongest solar renewable energy program in the nation, perhaps the first offshore wind project in the works, and the most aggressive greenhouse-gas emission reduction targets in the nation—New Jersey has already taken the lead. And we intend to hold onto it, too.
The 2008 EMP will accelerate our leading role by increasing the portion of the electric supply that comes from renewable sources including offshore wind, solar, onshore wind, biomass and new and emerging technologies. By 2020, New Jersey aims to generate 121 percent of its electricity from in-state generation sources. Of that, offshore wind would account for 13 percent, biomass 7 percent, and solar 2 percent.
Fossil fuel-based generation would decrease from 50 percent in 2004 to 43 percent of the state’s total electricity generation under the EMP. Combined heat and power, a more efficient form of generation that uses natural gas would account for 30 percent of the fossil fuel based generation.
There is unlimited potential for jobs, for clean sources of generation and for economic prosperity waiting to be exploited when it comes to new and emerging clean energy technologies. For this reason we have projected a 50 MW carve-out for as-yet unperfected RE technologies. And for this reason the state plans to invest substantially in emerging technologies to nurture this potential.
New Technologies To achieve the comprehensive and aggressive goals of the EMP, we’re going to need additional solutions, in some cases to implement technologies already available, and in some cases to invest in new ones. Both of those efforts require research and development. We’ll support both
public and private research efforts—
at universities & colleges through the creation of an “Energy Institute,” a clearinghouse and a guide for new energy projects that will help entrepreneurs and innovators obtain grants, share ideas, and explore best practices; and in the private sector leveraging existing structures like the Edison Innovation Fund.
Through the Energy Master Plan, I am confident that we’ve produced a roadmap that will enable New Jersey to assert greater control over its energy destiny and become less subject to uncertainties we face now. The 2008 EMP proposals shift and reorder the way New Jersey manages energy and which energy sources we rely on to ensure a safe, reliable supply of energy for electricity and heating that is produced in an environmentally responsible manner and is priced competitively. To make this new energy future a reality, we will need to work closely with our local government leaders to develop an energy future that is clean, reliable and affordable.
For more information on the Energy Master Plan, visit www.nj.gov/emp. The EMP solutions will be combined with policies that address transportation, and greenhouse gas emissions that are addressed in the New Jersey Global Warming Action Plan. The EMP and the GWAP together form a comprehensive and innovative approach to energy and greenhouse gas reduction.
As the Governor unveiled his far-reaching energy master plan that will change the course of New Jersey’s energy future, municipalities across the state have stepped up to lead the way. The New Jersey Clean Energy Program, a program of the New Jersey Board of Public Utilities, is available to assist municipalities in their efforts to invest in energy efficiency and renewable energy through incentives, rebates and technical support. In 2007 alone, the program expended more than $180 million, helping more than 50,000 residents, businesses and municipalities save energy, reduce their costs and help protect the environment by installing energy efficient measures and renewable technologies.
The following programs through New Jersey’s Clean Energy Program will be particularly helpful to municipalities across the state:
Local Government Energy Audit Program The recently launched Energy Audit Program for Municipalities and Local Governments provides incentives covering 75 percent of the cost of an investment-grade energy audit of municipal and local government. Additionally, the program includes provisions to allow for recovery of the remaining 25 percent of the audit’s cost depending on whether recommended energy efficiency measures are installed and the cost of those measures net New Jersey SmartStart Buildings incentives.
Pay for Performance The Pay for Performance Program, expected to be launched by the end of the year, is directed at large existing commercial and industrial facilities linking incentives to energy savings in a whole-building approach. Pay for Performance will rely on a network of Program Partners who provide technical services under direct contract to building owners.
Teaching Energy Awareness with Children’s Help (TEACH) TEACH is a recently approved pilot program targeting approximately 100 K-12 schools statewide. This pilot will provide services designed to educate students, teachers and administrative staff regarding energy efficiency and renewable technologies while building a self-sustaining culture of environmental awareness. Simultaneously, TEACH will provide energy use and cost benchmarking to the school’s building staff and business officials, allowing them to make informed decisions about potential energy improvements.
CleanPower Community Partners The CleanPower Community Partners program offers communities a forum to participate in statewide clean energy campaigns to educate and help enroll residents, businesses and municipalities in New Jersey’s Clean Energy programs and take advantage of valuable technical assistance and financial incentives. Community Partners receive support to set clean energy goals, develop outreach plans and educate residents about the economic and environmental benefits of clean energy and simple climate change solutions. CleanPower Community Partners are eligible for local support from New Jersey’s Clean Energy Program, including: energy savings, incentives and technical support; biannual training sessions, campaign literature, and networking opportunities.
For more information on the resources available to assist municipalities in their energy efforts, visit www.njcleanenergy.com.