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New Jersey Launches $180M Grant Program for Schools & Small Businesses
On October 7, the NJ Board of Public Utilities announced a $180 million grant program to improve energy efficiency, water conservation and indoor air quality in schools and small businesses. The incentive program will dedicate at least $135 million to schools and small businesses in under-served communities.

How the NJBPU Will Distribute Its $180M Energy Grant Budget

The incentive program is officially called the Schools and Small Business Energy Efficiency Stimulus Program. The NJ Board of Public Utilities has published separate guides for HVAC systems and for all other upgrades (including plumbing):

  • School and Small Business Ventilation and Energy Efficiency Verification and Repair Program (SSB-VEEVR)
  • School and Small Business Noncompliant Plumbing Fixture and Appliance Program (SSB-NPFA)

Under the HVAC program, schools and small businesses can apply for an assessment and maintenance grant, or a system upgrade grant. When an existing HVAC system cannot be upgraded according to current ventilation and filtration standards, the applicant is eligible for a larger incentive to install new equipment.

The NJ Board of Public Utilities has provided a breakdown of how much funding is available by building type (school or small business) and by program:

Program and Building Type

Underserved Communities

Not in Underserved Communities

HVAC Program, Schools

$75,937,500

$25,312,500

HVAC Program, Small Business

$25,312,500

$8,437,500

Plumbing Fixtures and Appliance Program, Schools

$25,312,500

$8,437,500

Plumbing Fixtures and Appliance Program, Small Business

$8,437,500

$2,812,500

Total

$135,000,000 (75%)

$45,000,000 (25%)

A large part of the budget ($101,250,000) is for school districts who apply for the HVAC program, and especially those in underserved communities. Since 2020, ASHRAE has been providing guidance on how to design HVAC systems that minimize the risk of getting an infectious disease like COVID-19. Their guidance focuses on three main areas:

  • Using as much outdoor air ventilation as possible.
  • Upgrading air filters to at least a MERV 13 rating.
  • Adding ultraviolet germicidal irradiation (UVGI) systems to HVAC systems.

All three measures are considered in the HVAC program (SSB-VEEVR), and eligible for funding. The program allows filter ratings below MERV 13 when the existing installation is not compatible, but applicants must use the highest possible rating. UVGI systems are eligible when installed as part of an HVAC upgrade, but separate UV air purifiers are not covered. HVAC projects that get funding must also meet the ventilation requirements of ANSI/ASHRAE Standard 62.1-2019.

Demand controlled ventilation (DCV) systems can be used to save energy, but they must be adjusted to a CO2 setpoint of 800 ppm or lower. Any DCV system that cannot reach a CO2 level below 1,100 ppm must be disabled while the NJ state COVID-19 restrictions remain in effect. Since DCV systems save energy by reducing airflow, they must be configured above a minimum ventilation rate that will not increase the risk of infection.