Oilheat Efficiency

1
Oilheat Efficiency

• Report on Developments in NJ for the RI GHG
  Stakeholders
• David Nichols
• April 26, 2007

2
NJ Context

• Comprehensive gas and electric energy efficiency
  through statewide Clean Energy Program
• Almost 25 of homes heat with oil, along with
  some commercial bldgs.
• Little oilheat EE programming outside low income
  weatherization
• Governors goal 20 total energy use reduction
  by 2020

3
Oilheat Efficiency Opportunities

• Has been some baseline improvement
• Inefficient older coal conversions remain esp. in
  rental market
• Newer oilheat equipment includes condensing
  boilers, dual pass condensing furnaces, etc.
• Insulation and weatherization of existing and new
  buildings

4
FMA NJ Proposal

• Advanced in context of statewide Energy Master
  Plan process
• Establish oilheat efficiency trust fund
• Legislature retail surcharge to support EE fund,
  programs incentives
• Equipment efficiency calculation utilizing an
  input/output BTU ratio concept as opposed to
  reliance on the DOE AFUE standard.

5
NJ Proposal -- Additional Elements

• Sales tax exemption for heating equipment which
  meets or exceeds established minimal efficiency
  ratings.
• Develop a consumer tax credit program for
  installation of energy efficient equipment and
  energy conservation shell improvements.
• Include Oilheat consumer energy evaluation tools
  and efficiency alternatives in Building Analysis.

6
NJ Proposal -- Recent Progress

• Extensive discussion among decentralized industry
  players
• Discussion with NORA
• Discussion with BPU integrate into CEP program
  and portal
• Possible legislation 4th quarter 2007
• Possible surcharge level 2
• Would yield about about 20,000,000 from
  residential users