LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 419
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: FEBRUARY 28, 2022
SUMMARY
Synopsis: Establishes Renewable and Efficient Energy Financing Program;
authorizes BPU to transfer up to $20 million annually in societal
benefits charge revenues to New Jersey Infrastructure Bank for
purposes of program.
Type of Impact: Annual increase in State expenditures. Annual increase in local
revenues and expenditures.
Agencies Affected: Board of Public Utilities; New Jersey Infrastructure Bank; certain State
entities, local units, and school districts.
Office of Legislative Services Estimate
Fiscal Impact
Annual State Expenditure Increase Up to $20 million
Annual Local Revenue Increase Up to $20 million
Annual Local Expenditure Increase Up to $20 million
 The Office of Legislative Services (OLS) estimates that the bill would result in an annual State
expenditure increase of up to $20 million to fund energy efficiency improvement projects
under the new Renewable and Efficient Energy Financing (REEF) Program.
 Local units and school districts that receive REEF Program funds would experience a revenue
increase and a corresponding expenditure increase for the projects. The local units and school
districts may also incur additional expenditures to perform energy efficiency assessments of
their buildings and other property.
 The fiscal impacts could exceed $20 million per year if the REEF Program were to provide the
financial assistance as non-forgivable loans. In that event, loan interest and repayment
amounts would become an additional source of financing for the program that would increase
the estimated fiscal impacts accordingly. The OLS, however, has no substantiated information
on the types of financial assistance that would be awarded under the program.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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BILL DESCRIPTION
This bill would establish the REEF program in the New Jersey Infrastructure Bank (NJIB) to
provide loans and other forms of financial assistance to State entities, local units, and school
districts to finance energy efficiency improvements in buildings and other property. The Board of
Public Utilities (BPU) would be required to annually support the program with up to $20 million
from available balances accumulated in the board’s accounts from societal benefits charge
collections. The charge is included in electric and natural gas bills of ratepayers.
Applicants would be required to perform an energy efficiency assessment of the buildings or
other property they own or operate. Upon approval of an application, the NJIB would provide
loans or other forms of financial assistance to the applicant to finance all or a portion of the cost
of the energy efficiency improvements identified in the assessment.
The BPU, in consultation with the NJIB, would be required to develop a priority system for
energy improvement projects and establish ranking criteria and funding policies for the energy
efficiency improvement projects to be funded under the program. The BPU would also be required
to set forth a “Renewable and Efficient Energy Financing Program Project Priority List” for
funding each fiscal year. Additionally, the BPU and the NJIB would have to submit an annual
report to the Governor and the Legislature on the effectiveness of the program in promoting energy
efficiency and producing energy cost savings for State entities, local units, and school districts.
Lastly, the bill would establish in the NJIB the special, nonlapsing Renewable and Efficient
Energy Financing Fund. Moneys in the fund would be used to provide loans and other financial
assistance under the bill, and for administration of the REEF program. The fund would be credited
with: (1) payments of principal and interest on loans made under the bill; (2) societal benefits
charge collections transferred from the Board of Public Utilities; (3) any other moneys
appropriated by the Legislature or made available thereto; and (4) any investment income earned
on the moneys in the fund.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates that the bill would result in an annual State expenditure increase of up to
$20 million to fund energy efficiency improvement projects under the new Renewable and
Efficient Energy Financing Program. Local units and school districts that receive program funds
would experience a revenue increase and a corresponding expenditure increase for the projects.
The local units and school districts may also incur additional expenditures to perform energy
efficiency assessments of their buildings and other property.
The fiscal impacts could exceed $20 million per year if the REEF Program were to provide the
financial assistance as non-forgivable loans. In that event, loan interest and repayment amounts
would become an additional source of financing for the program that would increase the estimated
fiscal impacts accordingly. The OLS, however, has no substantiated information on the types of
financial assistance that would be awarded under the program.
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Section: Environment, Agriculture, Energy, and Natural Resources
Analyst: Christina Denney
Assistant Research Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).


Statutes affected:
Introduced: 48:3-60
Reprint: 48:3-60