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Jersey City Public Schools - Energy Savings Improvement Program

JCPS – Energy Savings Improvement Program (ESIP) Project

Jersey City Public Schools issued an RFP on December 17, 2022, seeking qualified Energy Services Companies (ESCOs) for an Energy Savings Improvement Program (ESIP).

· Proposal Submission: December 2022

· Project Awarded: February 2023

· Project Financed: October 2023

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What is the Energy Savings Improvement Program?

What are Jersey City Public Schools Goals?

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With the “Energy Savings Improvement Program” (ESIP), government entities in New Jersey can pay for energy-related improvements to their facilities using the value of energy savings that result from the improvements. The ESIP law, enacted in 2009, governs a type of performance contract. It provides all types of government entities – from school boards to municipalities to state governments – with a flexible tool to lessen their environmental impact, save money, and reduce their energy usage for minimal costs.

NAESCO Project Finalist

DCO Energy partnered with Jersey City Public Schools (JCPS) to implement New Jersey’s largest $122 million Energy Savings Improvement Program (ESIP). Spanning 44 schools and administrative buildings, the project integrates solar panels, LED lighting, HVAC upgrades, and building automation, generating significant annual savings:

  • 9.67M kWh of electricity

  • 308,947 therms of natural gas

  • 201,895 gallons of fuel oil

These savings will be reinvested into the district, improving educational resources without taxpayer impact. Utilizing Green Refunding Bonds, the project is financially self-sustaining, aligning with New Jersey’s commitment to reducing CO₂ emissions by 19.3M lbs and improving air quality in underserved communities.

Beyond energy improvements, DCO Energy’s community outreach includes:
✔ A 12-week live classroom program
✔ A Women in Engineering educational program
✔ A Train-to-hire workforce development initiative

Procurement & Financing

  • Contract Value: $111M | Total Project Value: $120M

  • Contract Term: 20 years

  • Projected Year 1 Savings: $2.5M

  • Financing: $55.9M Green Refunding Bonds + $64.2M Capital Appropriations

  • Incentives: $1.73M in rebates (PSE&G & NJ Clean Energy)

Project Status

  • Award Date: February 16, 2023

  • Construction Progress: ~50% Complete

  • No upfront cost to JCPS

Superintendent Dr. Fernandez: “This project is a testament to JCPS’s commitment to sustainability and student well-being. It improves indoor air quality, reduces emissions, and redirects savings into education.”

Carbon Emission Reductions

JCPS Schools will receive many physical infrastructure improvements that also generate energy savings.  Projects include, but are not limited to:

 

LED Lighting

Solar Renewable Energy

Building Automation

Heating and Air Conditioning System Upgrades

Building Envelope Improvements

Jersey City Public Schools with DCO Energy, and funding through the American Rescue Plan, has served to implement the most significant school investment in energy-saving improvements in New Jersey’s history. The plan consists of adding HVAC to eight schools with poor ventilation, solar renewable energy for 33 schools, boiler replacements and conversions, upgraded roofs for 21 schools and LED lighting for all schools. This partnership will bring solar energy to over 33 schools and save over $88 million in energy costs for the district over the next 20 years, enabling a financial and sustainable energy structure, whose effect will span a generation. The Honorable Mayor, Steven Fulop, provided a Proclamation at an ESIP commemoration event, in which he declared June 12th as “Sustainability Day” in Jersey City. The message sent by this action supports our Superintendent's efforts in making Jersey City a greener and more livable area. A wide variety of news media outlets covered the ESIP from concept to implementation thus far. This far-reaching news coverage helped to unite our community in seeing the efforts of the Jersey City Public Schools, as well as engage members of the business world, school districts nationwide, and conscientious construction. The knowledge that facilities and building improvements of this magnitude are possible, and economically sound, has been an inspiration, and provided a blueprint for those inclined to make sustainability a reality in their communities.

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