To reduce greenhouse gases effectively without hurting the economy or putting New Jersey businesses at a competitive disadvantage, New Jersey should provide financial incentives for renewable energy projects and efficiency upgrades to commercial and industrial electricity users, NJBIA Assistant Vice President Sara Bluhm said today.

Bluhm is scheduled to testify at a March 19 public hearing before the NJ Department of Environmental Protection (DEP), the NJ Board of Public Utilities (BPU) and the NJ Economic Development Authority (EDA) on ways to reduce greenhouse gases as part of the Regional Greenhouse Gas Initiative (RGGI).

As part of RGGI, the State will auction carbon credits to electricity producers and use the money collected to pay for clean-energy projects, such as solar power, wind power, and energy efficiency upgrades.  Bluhm said the best approach is to provide financial incentives to help private-sector businesses overcome the high initial costs of alternative energy projects.

“We need to protect the environment, but we also need to protect our fragile economy,” Bluhm said.  “The best way to do that is to encourage and assist, not mandate and regulate.  Renewable energy and increased efficiency make good business sense.  Employers will do anything they can to reduce energy costs, the problem is paying for the technology upfront.”

“If the State mandates expensive capital improvements or imposes new regulations,” Bluhm said, “it will add to an already burdensome cost of doing business and put our companies at a competitive disadvantage.”

“Assisting businesses financially to undertake these improvements will help both the business climate, and the environment,” she said.  “Businesses will become more efficient and reduce their energy costs without breaking the bank, while the public will benefit by the reduction in greenhouse gas emissions.  It’s a classic win-win solution.”

Bluhm noted that investments in clean energy projects with private-sector businesses have a proven track record of reducing greenhouse gases significantly.  In 2006, the State’s existing Clean Energy Program budgeted over $79 million for residential efficiency programs, while budgeting only $39 million for commercial and industrial projects.  Yet, the Clean Energy Program Report for 2006 showed that commercial and industrial programs reduced carbon emissions by 67,969 metric tons, compared to residential programs, which reduced them by only 19,032 metric tons.

“In other words, commercial and industrial projects achieved nearly three times the benefit at half of the cost,” Bluhm said.

In fact, Bluhm noted, commercial and industrial energy users achieved a greater reduction in greenhouse gases than any other sector.  She said the business community is committed to continuing its good track record.