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Energy Savings Improvement Programs (ESIP)

Energy Consulting Services

Energy Savings Improvement Programs (ESIP)

Falcon Engineering provides program management and “trusted advisor” services to K-12 and government entities that want to participate in NJBPU’s Energy Savings Improvement Program (ESIP)

We are providing this service for Newark Public Schools, the largest school district in the state of NJ, and can help others.Newark Public Schools is undertaking energy saving improvements under the provisions of Public School Contracts P.L. 2009, c. 4, N.J.S.A. 18A:18A-4.6 and N.J.S.A. 18A:18A-42 which allows schools to make energy related improvements to their facilities and pay for the costs using the value of energy savings that result from the improvements. The Energy Saving Improvement Program (ESIP) allows local units to use “energy savings obligations” to pay for the capital costs of energy improvements to their facilities, and paying for annual costs of the obligations with the savings from reduced energy costs. Energy savings obligations are not considered “new general obligation debt” of a local unit and do not count against debt limits or require voter approval. They may be issued as refunding bonds or leases.

The law also addresses the individual team tasks and concerns avoiding conflicts of interest in the ESIP. For example, the ESCO cannot hire the Energy Auditing firm. Under this framework, Newark Public Schools will be teaming with Energy Finance, Energy Audit, and Energy Service Companies utilizing independent 3rd Party verification on a multi-phase effort using an open and transparent process. Newark’s annual energy usage as the buildings currently operate today is estimated at 60,000,000 KWH of electricity, 5,000,000 therms of natural gas and 210,000 gallons of fuel oil at a cost of more than $13 million dollars. Over the next 15-20 years, with a conservative 1% escalation in energy consumption and costs, staying on the current path, the District will spend over $370M.

The ESIP effort at Newark Public Schools is estimated to generate more than $100 million in construction activity over a 5 year period. The ESIP managed by Falcon Engineering that will provide the district with 30-40% savings on energy costs, estimated at $4 to 8 million annually. The energy improvements will include such items as: new LED lighting systems, heating and cooling plants, pumps and motor controls, HVAC equipment, and web-based building and energy monitoring and control systems.

The work at 68 buildings includes benchmarking, ASHRAE Level II energy audits, energy management planning, and bringing together the team of ESCO’s, architects & engineers, contractors, and commissioning specialists to design, implement the district wide energy projects. The ESIP effort also includes a database of all district facilities, continuously tracking hundreds of utility meters and the performance of all facilities within the district.

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