Energy Audit
5 Points 10 Points 15 Points 20 Points Bronze Priority Silver Priority School
Updated March 2016
There are no formal prerequisites for this action, although Sustainable Jersey strongly
recommends completing the Energy Tracking and Management (ET&M) action before, or at the
same time as, completing this action. The ET&M action will collect much of the information
needed by the audit, and establish a process for ongoing tracking and reporting that is critical to
assessing the impact of implemented measures. The Energy Audit is a Priority Action.
Points for this action are awarded to the individual school where the audit occurs, but the action
will usually require active involvement by district staff. In many cases, especially where more
comprehensive audits are being done, it makes sense to organize the project at the district
level with audits being done for multiple schools. In that case, however, the individual schools
involved in the audit can each apply for certification based on the work done by the district.
This action awards a variable number of points, depending on the scope of work completed:
one mandatory step (of varying complexity) and one optional step that can be completed for ten
additional points.
Complete a simple walk-through audit (Direct Install energy assessment or private ASHRAE
Level 1) on at least one school building (preferably more): 5 Points
OR
Complete an in-depth audit (Local Government Energy Audit or private ASHRAE Level 2 audit)
on at least one school building (preferably more): 10 Points
AND optionally,
Audit ALL buildings in the school's portfolio: Additional 10 points
These audits may take advantage of NJ Clean Energy Program (NJCEP) offerings, and/or
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incentives offered by utility companies serving the area, many of which include significant
incentives that offset or completely eliminate cost.
This action is related to other Sustainable Jersey energy actions, and is intended to be a critical
part of overall building improvement planning. Sustainable Jersey has developed a guidebook
that contains more information about all the efficiency actions and how they are best used
together. Please refer to the Sustainable Jersey Guidebook to School Energy Efficiency Actions
for more detailed information
Why is it important?
According to the Pew Center on Global Climate Change, buildings account for over 40% of
United States carbon dioxide emissions. Most of these emissions occur during building
operation, which includes the burning of fossil fuels at power plants to provide electricity, or
direct on-site use for heating. According to the EPA, schools nationwide have the opportunity to
save $2 billion in energy costs through the implementation of energy efficiency strategies and
technologies that exist today. Making buildings more energy efficient is one of the most
effective strategies for not only reducing costs, but also reducing greenhouse case emissions,
reducing dependence on fossil fuels, and numerous other strategic benefits associated with a
more sustainable energy supply. When deployed in a school setting, these solutions also have
significant educational and community outreach potential. Building efficiency is a key part of an
overall sustainable energy program, and the work covered by this audit action is a crucial step
in that program.
The audit will help guide the school toward the strategies that are most relevant to its particular
situation. Most importantly, based on an in-depth exploration of the building and its particular
characteristics, analysis of historical energy usage, and up-to-date consideration of current
incentives, the audit will identify and prioritize the energy improvements that are possible. The
audit will specifically identify potential savings, both in energy and dollars, and allow the school
to prioritize those efforts that have the greatest impact. Completing a comprehensive audit is
one of the most important planning steps in developing a sustainable energy program, since it
creates an inventory of all potential improvement from which specific projects can be selected
for implementation. Without knowing the full scope of options possible, optimal energy
improvement planning is not feasible.
Who should lead and be involved with this action?
Work on this action will typically engage members of the school Green Team, school and
district leadership, school and/or district staff, and supporting professionals. Students may also
be involved, and there are multiple opportunities for curriculum linkages and student
engagement. See "What to do, and how to do it" for more information on organizing people for
this action.
Timeframe
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The timeframe required for this action can vary widely depending on the scope and complexity
of the project, and the procurement methods involved. Typical audit timeframes can range from
a couple of weeks to six months. See "What to do, and how to do it" for more information about
typical project timeframes for each type of audit. Refer to the Sustainable Jersey Guidebook to
School Energy Efficiency Actions for more information.
Project Costs and Resources Needed
Project costs, and associated school (or district) resource requirements, can vary widely
depending on the scope and complexity of the project, and the procurement methods involved.
In most cases, however, NJ Clean Energy Program incentives (NJCEP), along with additional
incentives offered by utility providers, can offset most or all of audit costs, so there is frequently
little to no cost to the school or district. See "What to do, and how to do it" for more information
about typical cost for the different types of audits. Also refer to the Sustainable Jersey
guidebook for building efficiency actions for more information.
What to do and how to do it ("How to")
The focus of this action is the completion of an energy audit, which inventories the school
building portfolio, captures historical energy usage, and identifies potential upgrades that can
be done to the building to reduce energy use. There are three main options for completing
the energy audit:
Direct Install is a NJCEP program for energy upgrades in small-to-medium sized buildings.
The Direct Install process begins with a walkthrough energy assessment, which can serve
as a simple audit and is eligible for 5 points under this action.
PSE&G offers its own Direct Install program for government and nonprofits with peak
demand of less than 200kW. The program provides free on-site energy audit of electrical
equipment. PSE&G will pay 100% of the costs of the upgrades upfront; the customer will
repay 20% of the cost interest-free over a two year repayment period.
Utility incentive programs supplement the NJ CEP Direct Install program by offering 0%
loans that can be repaid on the consumer’s utility bill. NJNG offers a repayment period on
the loan of three years; South Jersey Gas offers a two year repayment period on the loan.
Another NJCEP program, the Local Government Energy Audit (LGEA), is a much more
thorough energy audit and is eligible for 10 points.
The third option is for the school or district to pursue a private energy audit with differing
level of points depending on the detail of the audit completed.
The information gathered in the separate Energy Tracking and Management action may aid
schools or districts in the decision making process about what level energy audit would be most
advantageous. Energy benchmarking may provide good guidance. In general, a school that is
performing below national medians for similar buildings is a good candidate for a more detailed
audit because it will likely receive substantial cost and energy savings.
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Audit projects typically include the following steps:
1. Form the Energy Management sub-group within the Green Team, with support from staff,
volunteers, and professionals as appropriate. This group may be an excellent opportunity for
student involvement.
2. Gather information (preferably through completion of the previous ET&M action) about the
school's building portfolio and audit options, and decide which energy audit approach is the
best fit for the school. It may be necessary to consult with the district on this decision, since
audits (especially LGEAs) are frequently organized at a district level.
3. Implement the audit, depending on the approach selected:
If pursuing Direct Install:
Contact the NJCEP participating contractor and set up an energy assessment.
Complete the walk-through part of the Direct Install program for use as an audit.
If pursuing LGEA: Utilize the information from the school building inventory to complete
the registration form and a facility data form for each building.
Apply for funding from the NJ Board of Public Utilities' Local Government Energy Audit
Program. Normally, the LGEA requires a minimum peak electricity load of 200 kW.
However, districts can apply for a waiver if it expresses a reasonable desire to participate.
Acceptable reasons include that the district plans on conducting an Energy Savings
Improvement Program (ESIP); the building has significant shell issues; the project involves
campus metering; if the building has already attempted or completed the Direct Install
program. If a given building peak energy load falls below 150 kW and does present an
acceptable reason for a waiver, the district can work with NJCEP to pursue other options.
If approved for funding, follow the LGEA requirements for hiring a pre-qualified auditing firm
through a standard RFP process. Once approved, this RFP must be submitted to all preapproved auditing firms.
Before choosing an auditing firm, submit a Firm Selection Form to NJCEP and get approval.
The district must notify the auditing firms that are not chosen.
Work with the chosen auditing firm to collect facility information and at least twelve
consecutive months of utility data for all fuel types, including electricity, natural gas, and
heating fuel accounts. Water and wastewater data can also be collected but will not affect
the energy performance metrics. This step of the process is greatly facilitated if the ET&M
action has been completed previously.
If electing to have the audit firm paid directly by the program, the audit firm will prepare the
LGEA Incentive Request Form and send to the district for signing. The LGEA Incentive
Request Form can then be sent to NJCEP. This will provide the applicant number and audit
information for each audited building; this is the mechanism through which the district will be
reimbursed. (Note: Even if the district has decided to bypass the reimbursement process
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and have to the incentives go directly to the auditing firm, this form must still be completed
in its entirety.)
Receive the LGEA audit report.
If pursuing a Private Audit:
When pursuing a private audit, the school (or district) must decide what type of audit is needed.
Audits are usually characterized by comparison with a national engineering standard called
ASHRAE, which defines three levels of audits with a different level of detail.
ASHRAE Level 1 is sometimes also referred to as a walkthrough audit. This involves an
energy professional walking through the school's facilities with a goal of identifying low, nocost, and simple energy-efficiency opportunities. They may also involve interviews with the
facility manager and some analysis of utility data. The audit will provide the school with
rough estimates on potential project costs and energy savings.
ASHRAE Level 2 is often referred to as a "single system" or "targeted" audit. This involves
more detailed analysis of building systems with proposed energy efficiency measures
(EEMs) and the associated costs and energy savings. These figures are more accurate
than those provided by a Level 1 audit. These audits can be targeted to particular buildings
that the school feels need to be analyzed.
ASHRAE Level 3 audit is the most comprehensive option and is considered to be
investment grade. This includes analysis of all buildings systems as well as their
relationship to one another utilizing a whole building energy simulation. These interactions
are important to understand before committing to large, capital intensive upgrades.
The energy assessment that occurs in the Direct Install program is roughly equivalent to an
ASHRAE Level 1 audit. However, it exceeds Level 1 criteria in some areas while it is
deficient in other areas, as it was designed specifically for the Direct Install program. The
LGEA is equivalent to an ASHRAE Level 2 in most areas, and Level 3 for lighting, but
generally covers all building systems (not just a targeted audit). In comparison to the Direct
Install energy assessment, the LGEA provides more accurate cost and savings estimates, a
more comprehensive evaluation of building systems including the building envelope, and an
extensive list of potential energy improvement measures. Private audits are typically either
ASHRAE Level 1 or Level 2, depending on what is requested by the town.
When doing a private audit, there are several steps:
Decide what level of detail the school wishes to pursue.
If the school is targeting a Level 1 audit, it can be conducted by the facility manager, an
ESCO, or an energy consultant.
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A Level 2 audit will require an outside ESCO or energy consultant. The school should go
through its usual RFP process to secure these services.
Make sure to collect a report that summarizes the findings of the school or district's energy
audit.
All schools may optionally apply for an additional 10 points if they audit all buildings in their
portfolio (at any level of audit) using the above process.
People Involved In This Action
The school or district should form an Energy Management sub-group within the School or
District Green Team. This will most likely be the same group involved in the completion of the
Energy Tracking and Management action. In its simplest form, the individual or department
responsible for paying utility bills, facility managers, and key staff should be directly involved in
pursuing the energy audit. If the school has previously completed the ET&M action (strongly
recommended), the person who manages the ET&M system should be involved in the audit
process to facilitate the dissemination of energy and other utility data.
In addition, an energy audit can provide an opportunity to get the school community involved.
This means engaging with the school's green team, student organizations dedicated to
environmental issues and business, and students and teachers involved with courses in
environmental science. These participants will not conduct the audit themselves, but their
participation and interest can foster school and district-wide support, creating momentum
toward a sustainable energy future.
The School Green Team will frequently need to collaborate with staff or volunteers at the district
level, as the decision to pursue an audit will frequently be a district-wide decision.
Typical Project Schedule
The energy audit timeline depends on a few factors, including the type of audit conducted, the
size of the school and building portfolio, and the difficulty of access to at least twelve
consecutive months of energy data. The more difficult the data collection process, and the
larger and more complicated the building portfolio, the longer the process will take. In general,
however, previous completion of the ET&M action can facilitate a more rapid and complete
audit project. Depending on these factors, the audit process typically takes anywhere from
several weeks to six months.
As identified above, there are different kinds of audits, and some of them can be completed at
different levels of detail. Timeframes for each will vary, as follows:
For the Direct Install program, the school will have to schedule the energy assessment
based on the contractor schedule. The actual energy assessment will be conducted in less
than a day and contractor "walk-through" reports can usually be received quickly. The
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simple audit included in the Direct Install program is the preferred approach for smaller
schools where there are a small number of buildings, lower levels of energy use, and fewer
energy improvement options to consider.
For the more comprehensive Local Government Energy Audit (LGEA), the school has six
months from receiving NJCEP approval to enter into a contract with a prequalified auditing
firm, have the energy audit conducted, and submit a draft report to NJCEP. Once the
auditor has been chosen, the audit must be carried out within 60 days. Schools may have to
work within a greater district context if the district is pursuing an LGEA for its buildings.
Districts with large portfolios can stagger energy audits over the course of multiple years to
avoid exceeding the $100,000 cap outlined in the Project Costs section. The school can
work with its district to get a sense of where it falls within this larger LGEA timeline.
Sustainable Jersey strongly recommends the use of the NJCEP LGEA program for
situations where it is appropriate.
Schools may also complete a "private audit" using an appropriate consulting firm or
contractor. The time required for this approach will vary widely depending on the contractor
involved, and may be affected by public procurement and contracting requirements.
Costs and Resources
Each of three main audit options (Direct Install, LGEA, or private audit) will have different costs
and may require different resources. It is important to note that significant state incentives are
available for either Direct Install or LGEA programs, potentially covering all audit costs incurred
by the school or district. PSE&G offers its own Direct Install program while NJNG and South
Jersey Gas provide additional financing to supplement the NJCEP Direct Install program
incentives. (Links to these programs are available in the Resources section.) Private audits are
typically not covered by NJCEP incentives. Sustainable Jersey recommends the Direct Install
walk-through audit for smaller, less complex scenarios, and a full LGEA for all other
configurations.
Direct Install
The Direct Install program begins with an energy assessment and continues through the
implementation of energy upgrades. The energy assessment itself has no cost, but the full
Direct Install program should be considered before requesting the energy assessment. The
NJCEP program will pay for up to 70% of the school or district's energy efficiency upgrade with
a $125,000 cap on each incentive project. Utility incentive programs supplement the NJCEP
Direct Install program by offering 0% loans that can be repaid on the consumer’s utility bill.
NJNG offers a repayment period on the loan of three years; South Jersey Gas offers a two year
repayment period on the loan.
LGEA
NJCEP will reimburse the cost of an audit if the following criteria are met: buildings are owned
by local governments, including schools and school districts, and the buildings are located
within the service area of at least one of the state's regulated utilities. Please see the NJCEP
for a list of full requirements.
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From 2011 forward, schools do not have to implement any of the audit's recommended
changes to receive full reimbursement. The up-front costs (even if eventually reimbursed) can
vary. Pricing is heavily dependent on the specific characteristics of the school's building
portfolio, and can vary from $0.10 to $0.70 per square foot. In general, smaller buildings will
cost more per square foot than larger buildings. The school must submit an RFP to receive
specific cost estimates. The auditing firm will provide costs per building inclusive of travel
expenses, supplies, managerial support and all documents, forms, and reproductions.
LGEA reimbursements are capped at $100,000 per entity to allow many districts to participate
in the program. However, this cap is renewed on a fiscal or program year basis. Therefore, a
district with a large building portfolio can utilize the LGEA for multiple years as long as each
building is only audited once. No building can be audited multiple times through the LGEA
program. Therefore, the school must get a sense of where it fits into the district's larger LGEA
plan if the cap is an issue. Additionally, schools and districts may apply for a waiver from
NJCEP to conduct more than $100,000 worth of energy audits in a year.
Beginning in 2014, districts are encouraged to utilize a financing option that lowers up-front
costs and bypasses the reimbursement system. NJCEP offers the option of assigning the
incentive payment directly to the auditing firm, thereby decreasing any liability associated with
the up-front cost of the audit. If a school or (more likely) district wished to pursue this option, it
must be explicitly stated in the RFP that goes to audit firms.
Private Audit
If the school or district decides that neither Direct Install nor LGEA is a good fit, they can pursue
an energy audit through an independent energy consultant or contractor. In general, audit costs
will increase as the complexity of the audit increases. Also, small schools will typically have
higher costs per square foot than larger schools. Therefore, more comprehensive audits tend to
make more financial sense for larger schools (or groups of schools). State incentives are not
available to assist with the costs of private audits, and, given the availability of both the Direct
Install and LGEA programs, are less preferable options for most schools or districts. As a
general guide, prices for a more comprehensive audit (similar to LGEA) may vary from $0.100.70 per square foot, while a simple "walkthrough audit" may only cost between $0.02-0.06 per
square foot.
What to submit to earn points for this action
Only schools can apply for points under this action. In many cases, however, the district may
have been actively involved, or the school may have been part of a district-wide effort. Even in
those cases, however, the individual school must apply for the action based on audits done on
the school's building portfolio.
Submit separate information for the base points (5 or 10 points, depending on the level
of audit completed), and the optional additional 10 points if all buildings are covered by
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the audit.
For the base 5 or 10 points:
1. Description of Implementation. In the text box provided on the submission page for this
action provide a short narrative (300 words or less) of what has been accomplished. Make
sure to summarize which audit approach was taken and high-level conclusions (total
potential energy that can be saved, for example). Specifically identify whether you are
requesting certification for the base 5-or-10-point effort, or the optional 10 points based on
an audit of all buildings.
2. Submit a summary of the audit results, depending on the type of audit, as noted
below.
For Direct Install (5 points) - Submit NJEP Direct Install Energy Assessment Tool sheet for
each building audited. The reports must be from within the 5 years prior to date of certification
application.
For LGEA (10 points) - The school must submit an energy performance report or summary for
each building for which it has conducted an LGEA. If the report exceeds the upload limit, upload
the executive summary only. The reports must be from within the 5 years prior to the date of
certification application, to ensure that the recommendations are up to date with current
technologies, subsidies, and the cost estimates for implementation must reflect current energy
prices.
For Private Audit (5 or 10 points, depending on ASHRAE level) - Submit a summary report
from the facility manager, ESCO, or energy consultant detailing the energy audit at whichever
level the school pursued. A walkthrough report from the facility manager is only acceptable for
the first 10 -point level in this action. The reports must be from within the 5 years prior to the
date of certification application.
For the additional 10 points: - Upload a summary of the full building portfolio, and a summary
of audit results for each building (spreadsheet format is preferred), including building name,
current energy usage (of all types), total potential savings from all measures (energy and
dollars), and the number of measures identified. As part of this summary, including a certifying
statement that all buildings in the school's portfolio have been included in the audit.
Approved actions will be set to expire 3.5 years from the date of the energy audit submitted. To
reapply for points under this action, upload documentation demonstrating that a new or updated
audit was completed.
IMPORTANT NOTES:
There is a limit of six uploaded documents per action and individual files must not exceed 20
MB. Excerpts of relevant information from large documents are recommended.
All action documentation is available for public viewing after an action is approved. Action
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submissions should not include any information or documents that are not intended to be
viewed by the public.
Spotlight: What New Jersey schools are doing
Great Meadows Regional School District
In April 2012, the Great Meadows Regional School District participated in a LGEA covering all
three of its schools: Great Meadows Middle School,and Central and Liberty Elementary
Schools. The audit made use of historical energy data collection and benchmarking through the
Energy Star Portfolio Manager (ESPM). The project scope included the 147,000 square feet of
space over the three schools. The twelve months of prior utility information showed that the
district used 1,133,155 kWh of electricity at a cost of $164,658 and 52,408 gallons of fuel oil at
a cost of $145,307.
The suggested actions from the audit have the potential to make a huge difference in each of
the three schools. $95,900 in potential annual savings were identified. This compares to
$621,600 estimated implementation costs, which translates to an approximate 6.5 year simple
payback period. Because the audit was organized at the district level, the district also received
information about where to target efficiency efforts. Great Meadows Middle School was
performing significantly better than either elementary school. The LGEA gave the district's
energy management approach direction and purpose. Although the LGEA was organized at the
district level, each of the schools involved could apply for points individually under this action.
West Morris Regional High School District
The district analyzed three buildings: two large high schools, West Morris Central High School
and West Morris Mendham High School, and one board office. In total, the building portfolio
was using 3,941,116 kWh of electricity at a cost of $612,441 and 226,924 therms of natural gas
at a cost of $254,242.
The LGEA highlighted many opportunities for greater efficiency and savings in the district's two
high schools. The building portfolio presents $158,730 in potential annual savings. The cost to
implement the necessary upgrades for these savings would be $547,790. Overall, the project
would have a 3.5 year simple payback. Thanks to the information uncovered in the energy
audit, both West Morris Central and West Morris Mendham are well positioned for upgrades
that pay for themselves in the short term, and create value across the building portfolio in the
long term. Although the audit was targeted across multiple schools as organized by the district,
each individual school covered in the audit can apply for points under this action.
Resources
Sustainable Jersey Guidebook to School Energy Efficiency Actions
Click here for pdf
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ASHRAE's Procedures for Commercial Building Energy Audits, Second Edition
https://www.ashrae.org/resources--publications/bookstore/procedures-for-commercial-buildingenergy-audits?utm_source=Community&utm_medium=BlogCTA&utm_campaign=ASHRAE
NJCEP Direct Install Program
http://www.njcleanenergy.com/commercial-industrial/programs/direct-install
New Jersey Clean Energy Program's (NJCEP) Local Government Energy Audit (LGEA)
http://www.njcleanenergy.com/lgea
Pacific Northwest National Laboratory's Guide to Energy Audits
Click here for pdf
US Department of Energy- Energy Efficiency Information
http://energy.gov/science-innovation/energy-efficiency
UTILITY INCENTIVE PROGRAMS
Utility incentive programs vary and may include low interest loans for the remaining percent of
the cost of the efficiency upgrades paid for via NJ Clean Energy Program incentives. Check the
utility website for the most up to date information on current incentive programs, which may
have changed.
Elizabethtown Gas provides supplemental financing for the NJ Clean Energy Program
SmartStart or Pay for Performance programs; the incentive is currently 25% of the NJ CEP
incentive. https://elizabethtowngas.com//media/Files/ETG/2013%20%202015%20ETG%20eS%20Commercial%20Rebate%20TsCs.pdf
New Jersey Natural Gas provides supplemental financing for the NJ Clean Energy Program
Direct Install (DI) program. DI provides up to 70% of the cost, NJNG offers a loan (at 0% over a
three year repayment period) for the remaining 30% of the costs.
http://www.savegreenproject.com/featured-pages/o-apr-on-bill-repayment-program#commercial
http://www.savegreenproject.com/wp-content/uploads/2011/03/CommercialOBRPAppDIFY2016.pdf
PSE&G Direct Install for Government and Nonprofit
PSE&G offers its own Direct Install program for government and nonprofits with peak demand
of less than 200kW. The program provides free on-site energy audit of electrical equipment.
PSE&G will pay 100% of the costs of the upgrades upfront; the customer will repay 20% of the
cost interest-free over a two year repayment period.
https://www.pseg.com/business/small_large_business/save_energy/gov_efficiency.jsp
South Jersey Gas provides supplemental financing for the NJ Clean Energy Program Direct
Install (DI) program. DI provides up to 70% of the cost; South Jersey Gas offers a loan (at 0%
over a two year repayment period) for the remaining 30%. South Jersey Gas also provides
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supplemental financing for the NJ CEP SmartStart program: loans up to $100K, at 0% interest
over a five year repayment period. http://www.southjerseygas.com/for-my-business/financingand-rebates.html
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