Governor Murphy, through Executive Order 28, has set New Jersey on the path toward transitioning to 100% clean energy by 2050. In June, the Board of Public Utilities (BPU) issued a draft of an updated Energy Master Plan (EMP) that encompasses a dramatically broader scope than previous EMPs, and features a series of seven strategies that will guide the state to address the imminent threat of climate change and to reach Governor Murphy’s 100 percent clean energy goal. This timely webinar features experts who will provide an overview of the EMP draft, and how it has the potential to result in significant economic benefits, including the creation of new jobs, industries and workforce development opportunities for the state’s residents and business community. The NJ BPU is accepting comments on the EMP draft until September 16th. Please join us so that you can add your voice with others in the sustainable business community to help make the EMP a strong and effective roadmap to creating a clean energy economy.

1. New Jersey’s Energy Master Plan
(EMP)
Why it’s critical to creating a clean
energy economy

2. 100% Clean Energy by 2050
Energy Master Plan (EMP)
“….set forth a strategic vision for the production,
distribution, consumption, and conservation of
energy..”
“...create new jobs, industries, and workforce
development as the state expands its green economy...”

3. EMP Draft: Seven Strategies
1. Transportation – reduce consumption and emissions
2. Accelerate deployment of renewables
3. Maximize energy efficiency and conservation
4. Building sector – reduce consumption and emissions
5. Modernize grid and utility infrastructure
6. Support energy planning in underserved communities
7. Expand clean energy innovation economy

4. Speakers
Julian Boggs – Policy Director, Energy Efficiency Alliance
Barbara Blumenthal – Research Director, NJ
Conservation Foundation
Jon Carnegie – Executive Director, Rutgers University –
Voorhees Transportation Center

5. Energy Efficiency in the Energy
Master Plan
Julian Boggs
Policy Director
Energy Efficiency Alliance

6. Potential for Energy Efficiency in NJ
New Jersey energy efficiency potential. Source: Optimal
Industrial efficiency potential by end use (MWh)

7. Partial Summary of the EMP
• Implement Clean Energy Act to achieve goals of
2% electricity and 0.75% gas savings for utilities.
• Expand and improve state programs to
supplement utility programs
– Financing
– Incentives & Rebates
– Education
– Low-income, hard-to-reach sectors
• Reduce peak demand and avoid unnecessary
capital investment in the grid.

8. Benefits to business: Utility efficiency
programs
• Incentives and rebates reduce upfront cost and
payback periods for capital investments.
• Companies, even those
with strong sustainability
commitments, usually
require short payback
periods on investments.
Source: ACEEE

9. Benefits to business: State programs
fill in gaps
• State-administered rebate and incentive
programs can fill in the gaps and deliver
efficiency for hard-to-reach and
expensive sectors such as small business
and low-income homeowners
• A Green Bank could help buy down
interest rates to make clean energy
finance more accessible for small
businesses
• Commercial Property Assessed Clean
Energy can provide long-term financing
for energy efficiency & clean energy
improvements
Source: PACE Nation

10. Benefits to business:
Grid improvement strategies
• Utility companies earn profit by
adding more poles, wires, and
substations to meet increasing
demand.
• Non-wires alternatives and peak
demand reduce the overall cost
of the grid (transmission &
distribution charges).
• Load shifting and peak demand
programs can create new
revenue streams for large and
small customers.
Net benefits of Con Ed non-wires alternatives, 2003 – 2010. Source: NEEP

11. Contact
Julian Boggs
Policy Director
Energy Efficiency Alliance
jboggs@keealliance.org
215.910.4790

12. New Jersey’s Energy
Master Plan: How to
achieve low-cost, low
emissions electricity
Barbara Blumenthal, Research Director,
New Jersey Conservation Foundation

13. Regional decarbonization will be important to
achieving state emissions goals
13
NJ emissions
PJM emissions
0
50
100
150
200
250
300
350
400
2018 2050
20
0
400
80
MillionMetricTonCO2

15. Adding 100% renewables, alone, does not
eliminate the need for gas to provide flexibility
NUCLEAR
SOLAR
WIND
GAS
GAS
BATTERY
RESOURCE MIX #1
Variable
Limited duration,
flexible
Long duration,
flexible
Long duration,
inflexible
RESOURCE TYPE

16. 100% Clean = Optimized clean energy portfolios includes the
right mix of clean flexible resources to replace gas
OPTIMIZED MIX #2
Right mix of regional renewables and
flexible clean resources
NUCLEAR
SOLAR
WIND
NEW NUCLEAR?
SOLAR
WIND
GAS
GAS
BATTERY
STORAGE
DEMAND
RESPONSE
FLEX LOAD
BATTERY
TBD
Variable
Limited duration,
flexible
Long duration,
flexible
Always available,
inflexible
RESOURCE TYPE
RESOURCE MIX #1

17. Corporate support for clean energy pathways
17
1. Invest in PPAs for solar and wind projects in
PJM
2. Invest in resources that will provide clean
flexibility: EVs, electrify heating and cooling
systems, storage, demand response
3. Advocate for states to engage in state-of-art
modeling and planning to identify clean energy
pathways
4. Advocate for regional collaboration to
decarbonize PJM
5. Update corporate compliance to go beyond

18. LevelTen Energy provides transparent pricing
for projects in PJM
As of June 2019, LevelTen prices for 160 projects:
PJM solar projects, P25 price = $33; P75 = $39
PJM wind projects, P25 price = $33; P75 = $35
18

19. High renewables lead to a seasonal problem
Wind and sun do not just vary on daily cycles; they vary substantially over weekly and monthly periods. The seasonal effect
can be seen in California for onshore wind and solar photovoltaics. We see a variation in output of 300% or more between
seasons. What happens when we combine wind and solar output to equal 100% of California electric demand on an annual
basis, and contrast it to actual demand in each day, week and month? Assuming that we have a 50% wind/50% sun system,
we get a pattern like the Figure below. (see Cohen)
19
Seasonal surplus
Seasonal deficit
Smoothed Daily Load & Renewable Energy Generation, Mixed Renewable Scenario (MW)
Smoothed Daily CAISO Load (MW)
Smoothed Daily Renewable Generation (MW)
Scenario definition: 2018 wind and solar generation scale to each meet 50% of total 2018 CAISO load

20. Optimized portfolios of clean energy resources
Achieve 80% or higher reductions in emissions
at lower cost than business-as-usual
Scenarios that electrify and de-carbonize are
estimated to produce savings of between $600
to $1,200 per Minnesotan household per year
by 2050.
Low-cost scenarios depend on building
electrification and EVs as a new source of
flexibility
20

21. State policy steps leading to clean energy portfolios
21

22. LevelTen Energy is a new platform that enables buyers to
participate in aggregated projects
“Aggregation is one of the industry’s highest priorities. Competitively priced wind
and solar farms are typically 100 MW in capacity or higher, and most corporate
buyers’ appetites are a fraction of that. Aggregation bridges the gap, and expands
renewable markets beyond niche procurement for a few large corporations.” Herve
Touati, Managing Director, Rocky Mountain Institute
LevelTen’s technology-enabled two-sided market connects electricity sellers and
buyers in highly sophisticated ways. We do this by blending resources from wind and
solar projects into optimally-shaped power portfolios and syndicating the energy to
individual customers in suitable volumes
LevelTen syndicates buyers so you can access the 99% of the market that can’t buy
your whole project.
LevelTen has reimagined the RFP process from start to finish. Built specifically for
renewable energy, LevelTen’s new RFP Automation solution eliminates hours of
tedious data analysis and spreadsheet management. With the only comprehensive
view of the best projects in the market, and access to real-time pricing and analytics,
RFPs are now completed in weeks, not months.
22

23. At high levels of renewables, energy systems require
additional flexible resources to replace gas
• Currently, flexible gas generation is used to balance generation with
demand: filling in by the minute, hour, and for days.
• At higher levels of renewables, the addition of more renewables can lead
to incremental curtailment rather than further reductions in emissions.
Portfolios of clean energy resources
• High levels of renewables combined with complementary clean resources
can provide reliable electric service with little to no natural gas – often at
lower cost than business as usual
• Renewables -- the right type, amounts and locations create a flatter
supply curve that requires fewer balancing resources
• Flexible resources – the right type, amounts and locations balance high
levels of renewables at low cost
• Planning is required to identify low-cost portfolios
23

24. Baseline = 40%
reduction in EI power
sector GHGs
2017 to 2050
Decarb cases ~ 90%
reduction in Eastern
Interconnect GHGs
2017 to 2050
Minnesota’s Smarter Grid, Vibrant Clean Energy, 2018
(Vibrant Clean Energy, Minnesota study, 2018)
24

25. Flexible resources (EVs and storage) save money
25

26. Alexander E. MacDonald, Christopher T. M. Clack, Anneliese Alexander, Adam Dunbar, JamesWilczak and Yuanfu Xie, “Future
cost-competitive electricity systems and their impact on US CO2 emissions,” Nature Climate Change PUBLISHED ONLINE: 25
JANUARY 2016
Western regional grid: https://www.securecaenergyfuture.org/news/a-western-regional-grid-legislative-faq/
Williams, J.H., Jones, R., Kwok, G., and B. Haley, (2018). Deep Decarbonization in the Northeastern United States and
Expanded Coordination with Hydro-Québec. A report of the Sustainable Development Solutions Network in cooperation
with Evolved Energy Research and Hydro-Québec. April 8, 2018. https://www.evolved.energy/single-
post/2018/04/09/Decarbonizing-the-Northeast-and-Coordination-with-Hydro-Qu%C3%A9bec
LevelTen Energy Q2 2019, https://leveltenenergy.com/blog/ppa-price-index/q2-2019/
Flexibility Solutions for High-Renewable Energy Systems Germany, BloombergNEF, November 2018.
https://data.bloomberglp.com/professional/sites/24/2018/11/Germany-Flexibility-Solutions-for-High-Renewable-Energy-
Systems-2018-BNEF-Eaton-Statkraft.pdf
"BUILDING AMERICA'S CLEAN FUTURE: PATHWAYS TO DECARBONIZE THE ECONOMY", Testimony of Armond Cohen, Clean
Air Task Force, July 24, 2019. https://energycommerce.house.gov/committee-activity/hearings/hearing-on-building-
americas-clean-future-pathways-to-decarbonize-the
Nestor A. Sepulveda, Jesse D. Jenkins, Fernando J. de Sisternes, Richard K. Lester, “The Role of Firm Low-Carbon Electricity
Resources in Deep Decarbonization of Power Generation”, Sepulveda et al., Joule 2, 2403–2420, November 21, 2018,
Elsevier Inc., https://doi.org/10.1016/j.joule.2018.08.006
For an example of how a much more detailed power system model can be used to identify more and less cost-effective
pathways for a state to decarbonize, see “Minnesota’s Smarter Grid - Pathways Toward A Clean and Affordable
Transportation and Energy System”, July 2018, prepared by Vibrant Clean Energy, LLC, for McKnight Foundation and GridLab,
available at: https://www.mcknight.org/wp-content/uploads/MNSmarterGrid-VCE-FinalVersion-LR-1.pdf.
Wholesale Electricity Market Design For Rapid Decarbonization: Long-Term Markets, Working with Short-Term Energy
Markets, by Steven Corneli, Eric Gimon, and Brendan Pierpont, Energy Innovation, June 2019
https://energyinnovation.org/publication/wholesale-electricity-market-design-for-rapid-decarbonization/
Resources referenced
26

27. Presented by:
Jon Carnegie, AICP/PP, Executive Director
Alan M. Voorhees Transportation Center
Rutgers, The State University of New Jersey
2019 Draft New Jersey Energy Master Plan
Transportation Sector Goals and Strategies
NJ Sustainable Business Council Webinar
August 20, 2019

28. Climate change in action…Kennicott
Glacier, AK (2019)

29. GHG Emissions in New Jersey
Reductions in the transportation sector will be critical
to achieving NJ’s emissions target
Source: NJ Draft 2019 Energy Master Plan, June 2019
60.0%
23.0%
9.0% 2.0% 2.6% 3.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
U.S. Transportation Emissions

30. EMP’s Overarching Goal: 100% Clean Energy by 2050
100% carbon neutral electricity generation and maximum transition to electrification of
the transportation and building sectors by 2050.
Strategy 1: Reduce Energy Consumption and Emissions
from the Transportation Sector
• Goal 1.1 - Electrify the Transportation Sector
• Goal 1.2 - Decrease Vehicle Miles Traveled
• Goal 1.3 - Reduce Port and Airport Emissions
• Goal 6.3 – Prioritize Clean Transportation Options
in Low- and Moderate-income and Environmental
Justice Communities

31. What does this mean for
transportation?
“Early analysis suggests that NJ must electrify close to
100% of its light-duty vehicles and a substantial number of
medium- and heavy-duty vehicles and off-road mobile
sources to meet emissions targets.”
Zero Emission Vehicle MOU = 330,000 light-duty electric
vehicles on the road by 2025

32. Electrification: Recent Trends – New
Jersey
Source: Electric Vehicles in New Jersey: Costs and Benefits, Gabel
Associates, Inc. and Energy Initiatives Group, LLC., 2018

33. NJ Resident’s greatest concerns regarding buying an electric car
Source: 2019 NJ Climate Change Alliance / Eagleton Poll
0 0.1 0.2 0.3 0.4 0.5 0.6
Can't afford an EV
Don't have a place to charge an EV at home
Worried about running out of power on the road
Don't think EV will performa as well as a traditional
car
Don't Know Not a Reason at All
Minor Reason Major Reason

34. Why should businesses care?
• Opportunities:
– Green leadership can provide reputational/brand benefits
– EV uptake can provide new and different business opportunities
– Installing EV chargers can add value to a business by attracting and
retaining high-value workers and customers
– EV fleet vehicles are cheaper to operate and maintain
– Reduced GHG emissions benefits everyone
• Challenges:
– Demand for charging infrastructure will increase steadily and may
grow quickly
– Electrifying commercial vehicle fleets will require commitment and
significant investment
– EV range limits may impact operational efficiency
– Changing behavior is hard!

35. What can businesses do?
• Implement programs that allow employees to drive less
• Consider the transportation outcomes of facility and location decisions
• Increase employee/customer awareness and knowledge regarding the benefits
of EVs
• Make sure your employees/customers have an easy time charging their vehicles
• Create incentive programs to encourage employees to purchase EVs
• Create purchasing collectives to harness multi-business buying power
• Lead by example, share best practices, and engage with the policymakers,
industry leaders and investors who are shaping the transition to a clean energy
economy in New Jersey

36. Get involved
• BPU stakeholder meetings 5 & 6 – Camden
Thursday, Sept. 12; 1 - 4pm, 4:30 – 7:30pm
Black Box Theater, The Kroc Center
1865 Harrison Ave., Camden NJ
• Written comments due Sept. 16 by Noon
E-mail to: EMP.Comments@bpu.nj.gov
• Implement clean energy initiatives
• Help amplify the sustainable business policy voice

37. Contact Info.
Richard Lawton
rlawton@njsbcouncil.org
Trina Mallik
Trina.mallik@TNC.ORG
John Carlson
jcarlson@ceres.org