N.J. towns applying for money-saving energy audit

The rising cost of utilities has been a common gripe among local government officials in New Jersey as they try to balance budgets in tough financial times.

Mount Laurel, for instance, says it budgeted $360,000 for electricity in its municipal buildings this year, up 28 percent from the previous year.

In a bid to save money, the Township Council voted last week to apply for the state's new Local Government Energy Audit Program, which covers 75 percent of the cost of an audit that gauges the energy efficiency of municipally owned buildings. If the township agrees to implement the audit's recommendations, the state will pick up the remaining 25 percent.

Cherry Hill also voted to apply last week, as did Shamong and Evesham earlier in the month. The state says 96 local governments, including 15 in Burlington, Camden and Gloucester Counties, have applied.

"Energy efficiency is the first part of the governor's energy master plan, and towns and counties showing leadership will help and get the word out to people and businesses in their town so they'll do the same thing," said Jeanne Fox, president of the state Board of Public Utilities.

Towns, counties and local authorities that follow audit recommendations in the program, started last month under the BPU's Clean Energy Program, could cut their utility bills by 10 to 20 percent, according to state estimates. The initiative addresses Gov. Corzine's goal of reducing the state's energy consumption 20 percent by 2020, Fox said.

Rising energy costs have challenged municipalities, particularly after a drastic cut in state aid for many this year.

Evesham, Burlington County's most populous town, budgeted $330,000 for utilities this year, an 18 percent increase from 2007, and anticipates spending $343,000 next year, Township Manager Tom Czerniecki said. "It has been rising year after year. It is a bone of contention, and it's a place of concern for us," Evesham Mayor Randy Brown said. "That's why we wanted to be leaders in this area."

Though the municipal building was constructed in the 1990s, the audit would cover older township-owned buildings and help Evesham plan energy use for the future, Brown said.

Cherry Hill was already planning for solar panels on the roof of the municipal building, has begun using timers to control its heating and light systems better, and is buying more energy-efficient appliances when older ones need replacement, spokesman Dan Keashen said.

The township, he said, wants to audit the municipal building, the public works building, and the library. Cherry Hill's utility costs this fiscal year are $1.2 million, excluding street lighting.

Funding for the state program comes from a charge on New Jersey residents' utility bills that goes to clean-energy initiatives. The charge for 2008 amounts to $33 for a typical household, said Michael Winka, director of the Clean Energy Program.

The audit program requires local governments to pass a resolution to initiate the process. After the applicants complete a variety of steps, one of five auditors under state contract should start inspecting the buildings within 60 days, Fox said. Auditors evaluate the structure, lighting, windows, insulation, heating, ventilation and air-conditioning systems, and appliances, then submit a report that includes recommendations and their projected savings.

The BPU has $3 million set aside for the first-come, first-served program this year and $5 million for 2009, Winka said. The state caps spending for each participant at $100,000 annually.

Mount Laurel is looking to audit nine buildings spanning 90,000 square feet, including emergency medical service stations, the police garage, and the library. "In the long term it will save the taxpayers money for energy costs," Councilman Jim Keenan said.

Even so, most local governments have never undertaken an energy audit. "Maybe a couple towns have done it, and some are building green buildings, but I'm thinking very few" have, Fox said. "I think a lot of people didn't realize you should do this kind of thing."