Getting Ready for PACE in New Jersey — Part 12

In our last post, we addressed the project process, as currently detailed in the draft guidelines. In this section we look at the Technical Evaluation and Review requirements.

The standards in the current draft (V. 2) apply only to retrofits, though it’s anticipated that that the final version will also cover new construction (including gut rehabs).

“Technical Evaluation” means an evaluation of the proposed eligible improvements and the C-
PACE project to ensure that they satisfy program eligibility requirements. The evaluation includes a combination of (a) the basic documentation of the project, (b) a feasibility analysis or study, (c) an energy audit, and (d) special requirements for water conservation and other resilience projects.

The “basic evaluation” looks at the scope of the project; manufacturers’ data sheets and the effective useful life of each element of the improvements; direct and indirect costs; and any subsidies that might apply.

The “Feasibility Study” is required for renewable energy systems, multi-measure
energy efficiency improvements, water conservation, and other categories of C-PACE
projects as detailed in Table 1.

The Feasibility Study should include:

    1. Baseline electricity consumption and costs data
    2. A schematic of the improvement design
    3. Energy bills
    4. A commissioning plan
    5. Projected annual costs savings or, in the case of renewables, projected annual energy production
    6. In the case of water conservation projects, water consumption data, water utility data, and projected annual water savings

Finally, most energy efficiency improvements will require an ASRAE Level 1 or Level 2 energy audit.

The NJEDA will maintain a list of approved technical reviewers who can provide an independent assessment of the project. The technical review will confirm the anticipated useful life of the improvements, and a cost-benefit analysis or savings-to-investment ratio for most projects. The section then goes on to spell out the types of calculations required for the savings-to-investment ratio and the Weighted Average Usual Life (WAUL), which is used to determined the number of years that the C-PACE assessment can run for. Technical documentation, equipment manuals, etc. may also be required.


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