New Jersey closes $179 million energy efficiency program benefiting schools, small businesses
NEW JERSEY — The New Jersey Board of Public Utilities has announced the closeout of a five-year energy efficiency program that committed nearly $180 million in federal funding to improve heating, ventilation, air conditioning and plumbing systems at schools and small businesses across the state.
The Schools and Small Business Energy Efficiency Stimulus Program funded 364 projects with $179.2 million from the federal American Rescue Plan Act, according to an announcement Tuesday, Oct. 27. Of that amount, approximately $166.2 million has been paid out, with the remaining $13 million designated for 19 projects undergoing final inspections, verification and payment processing.
“With nearly $180 million in federal funds committed, this program transitioned schools and small businesses from outdated systems to verified, code-compliant HVAC and plumbing upgrades,” said NJBPU President Ben Hertz-Shargel. “The result is better indoor air quality and lower operating costs that will persist beyond the program’s closeout.”
The program was established through legislation signed in August 2021 to help schools and small businesses recover from disruptions caused by the COVID-19 pandemic while improving indoor air quality, public health and energy efficiency.
Grants covered up to 75% of eligible project costs, with recipients responsible for the remaining 25%. The program prioritized schools and small businesses in underserved communities, including school districts where at least 75% of students qualified for free or reduced-price meals.
Most of the funding went toward heating, ventilation and air conditioning improvements, with approximately $171.4 million, or 96% of the total, committed to HVAC projects. The remaining $7.8 million, or about 4%, supported plumbing fixture and outdated commercial appliance replacements. Approximately $72.3 million, representing 40% of the funding, went to projects in underserved communities.
The HVAC portion included 206 projects totaling $171.4 million in funding commitments, with approximately $158.4 million paid out so far. Those projects served 84 school districts and small businesses, according to NJBPU.
Among the recent projects completed were HVAC improvements at High Point Regional High School in Sussex County, which received $1,981,350 for one project, and the Denville Board of Education in Morris County, which received $1,767,432 for two projects.
Other recently completed HVAC projects included two at Irvington Public Schools totaling $4,996,659; two at the Plainfield Board of Education totaling $4,995,733; and two at Union Township Public Schools totaling $1,285,215.
The Swedesboro-Woolwich School District received $2,029,935 for four HVAC projects, while Salem City Board of Education received $3,083,047 for one project. Elizabeth Public Schools completed 14 projects totaling $4,369,036, and Paulsboro Public Schools completed three projects totaling $4,999,988.
Additional HVAC improvements included one project at Egg Harbor City Public Schools totaling $929,548 and two projects at Manasquan Public School District totaling $1,836,996.
The program also supported plumbing improvements, including nine projects at Toms River Regional Schools totaling $429,760 and five projects at the Bridgeton Board of Education totaling $212,107.
According to NJBPU, the energy efficiency improvements were verified by certified energy auditors and qualified HVAC technicians. The verification process included ventilation rate testing, filtration upgrades and carbon dioxide monitoring in schools to ensure systems met current standards.
Of the 364 projects funded statewide, 206 involved HVAC improvements and 158 involved plumbing or appliance replacements. School projects accounted for the majority of the funding, with approximately $164.98 million committed to HVAC improvements at schools and another $6.8 million to school plumbing projects.
The remaining 19 projects awaiting final payments include work in the Lenape Regional High School District and the Long Branch, Newark, Passaic, Brick Township, Hasbrouck Heights, Washington Township and Union Township school districts, as well as City of Burlington Public Schools.
Although the program has formally closed, NJBPU said final inspections, verification and incentive payments are continuing for those projects.
The agency said preventative upgrades and replacements made through the program are expected to improve building conditions and reduce operating costs beyond the program’s conclusion.
A complete list of projects and recipients is available through the NJBPU Schools and Small Business Energy Efficiency Stimulus Program summary.
