This bill amends existing legislation to enhance the financial viability of energy savings improvement programs (ESIPs) for boards of education in New Jersey by allowing the value of Solar Renewable Energy Certificates II (SREC-IIs) to be included in cost-benefit calculations. It specifies that energy savings calculations must now factor in the current value of SREC-IIs, along with applicable state and federal rebates and tax credits, while explicitly excluding costs related to energy audits and verification of energy savings. Furthermore, during the procurement phase, energy services companies are restricted from including savings calculations that reference capital cost avoidance savings or the value of other renewable energy certificates, except for SREC-IIs.

The bill also clarifies definitions of key terms related to energy savings and outlines requirements for energy savings services contracts, including the necessity for energy audits by qualified third parties and the development of detailed energy savings plans. It mandates that energy services companies provide an energy savings guarantee option to ensure that projected savings will cover costs associated with lease-purchase agreements or energy savings obligations. Additionally, the bill empowers relevant state officials to implement its provisions through the adoption of guidelines and administrative rules, which can be enacted immediately and will remain effective for up to 12 months before requiring further amendment or re-adoption. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 18A:18A-4.6