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Enigin News

Enigin News - Budget Cuts and Energy Efficiency Money Diversion

Enigin News - Budget Cuts and Energy Efficiency Money Diversion

IN AN era when governments, nationally and regionally, are busy promoting energy efficiency and renewable energy due to it obvious financial and environmental impact, it is surprising to hear that one of the more environmentally aware states in the US could be at the center of controversy over energy efficiency funding.

According to New Jersey’s (NJ) Daily Record newspaper, in an article by Michele S. Byers executive director of the New Jersey Conservation Foundation, the state is facing a storm over the diversion of energy efficiency and renewable energy funds,

Byers reveals what Matt Elliott of Environment New Jersey calls an unknown story of the recent state budget season. NJ Governor Chris Christie raided more than $400 million from various clean energy and energy efficiency programs that were intended to help businesses and people save money and save energy with efficiency products.

Enigin Distributors in New Jersey though are already helping businesses and organisations in the state benefit financially by becoming energy efficient, in a cost effective way, despite the diversion of funds intended to encourage energy saving.

According to the Daily Record the NJ Legislature allowed him to do it, giving him the authority to raid the funds.

As an example the newspaper refers to the fiscal year 2010, when $60.8 million fewer dollars was available for energy efficiency programs, including rebates for efficient products, and upgrading heating, ventilation and air conditioning systems, new residential construction, commercial and industrial efficiency projects, and local government energy audits, plus $46.6 million less for renewable projects.

The fiscal year 2011 has seen another $52 million in cuts to the Clean Energy Program. $42 million of these ratepayer dollars went to pay the state's electric bills, while another $10 million were diverted to the general fund.

The Clean Energy Program was established 10 years ago. A small fee known as the Societal Benefits Charge was added to NJ's utility bills, with a significant portion of the money dedicated to the Clean Energy Program to fund solar and wind projects, as well as efficient appliances and home and business energy efficiency retrofits.

The Daily Record reports that the Clean Energy Program was funded by the utility dollars from businesses and residential consumers, not state money or tax revenue, with the intention that these funds be used for energy efficiency and clean energy programs.

The diversion of these funds potentially will hurt small business, the environment, and every ratepayer in the state. Although it is too late for 2010 and 2011, the paper calls on its readers to work to ensure that these funds are protected and used on the clean energy projects for which they were intended.


Meanwhile, the publication calls for its fellow citizens to do their best to conserve energy, which businesses, organisations and local authorities can do via their local Enigin Distributors.

This is a surprising story as the state are active in promoting energy efficiency and renewables, with the Governor announcing recently the proposal for off-shore wind turbines, the Daily Record may have raised genuine concerns but expect New Jersey to adjust matters soon to the benefit of all its populace and businesses.

Globally Enigin Distributors are helping businesses and organisations in their territories to save energy and money, with governmental incentives or without. To discover how you can make substantial savings contact your local Enigin Distributor now.

Picture by Marion Touvel

Tuesday 7th September 2010