Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
Requires BPU to designate solar portion of critical renewable microgrid as solar energy project under Community Solar Energy Program; requires Office of Homeland Security and Preparedness to designate certain microgrids as assets of importance.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning critical renewable microgrids and supplementing P.L.2018, c.17 (C.48:3-87.8 et al.) and P.L.2001, c.246 (C.App.A:9-64 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
Critical renewable microgrid means a microgrid that utilizes renewable energy as its primary source of energy, to the largest extent technically and economically feasible, and that serves a critical function in protecting the States economy, public health and safety, and transportation sector during power outages caused by natural or man-made disasters.
Microgrid means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the electric grid, which can connect and disconnect from the electric grid to enable it to operate both connected to, or independent of, the electric grid.
"SREC-II" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).
b. No later than three months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall develop a program that would allow certain solar energy systems that are connected to a critical renewable microgrid to be designated as solar energy projects under the permanent Community Solar Energy Program, established pursuant to subsection f. of section 5 of P.L.2018, c.17 (C.48:3-87.11). A solar energy system that is approved for designation in the program shall be eligible for SREC-IIs at the monetary value designated for low- or moderate-income customers, and, notwithstanding the provisions of any rules or regulations adopted pursuant to P.L.2021, c.169 (C.48:3-114 et seq.) to the contrary, may have a rated capacity larger than five megawatts. In order for a solar energy system to receive this designation, the solar energy system shall:
(1) demonstrate that the solar energy system will devote at least 75 percent of its energy output to low- or moderate- income customers, at a price that is at least 20 percent lower than the value of a community solar credit provided on a community solar program subscribers utility bill; and
(2) meet the eligibility requirements, developed by the board pursuant to subsection c. of this section.
c. In developing the program pursuant to subsection b. of this section, the board shall establish eligibility criteria for solar energy systems that are connected to a critical renewable microgrid and an application and approval process for such systems. The program shall require approved solar energy systems that have a rated capacity of up to 20 megawatts to commence commercial operation no later than three years from the date of designation, and approved solar energy systems that have a rated capacity of greater than 20 megawatts to commence commercial operation no later than four years from the date of designation. When determining the size of a solar energy system for the purposes of this subsection, the board shall use the portion of the system that is connected to a single critical renewable microgrid.
d. The board shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations to establish and implement the program. The rules and regulations shall, at a minimum:
(1) limit the total annual capacity of approved solar energy systems that are connected to a critical renewable microgrid to no more than 100 megawatts per year;
(2) provide that an approved solar energy system's designation as a community solar project shall be for a term of 25 years;
(3) require that the solar energy systems connected to a single critical renewable microgrid account for no more than 15 megawatts per year of the total annual capacity of projects approved to participate in the program, unless there are no other eligible applicants;
(4) establish a process, in a form and manner determined by the board, for municipalities to partner with, support, and acquire customers for a solar energy system that is connected to a critical renewable microgrid, which may include the use of automatic enrollment of customers to participate in the solar energy system as long as the customers are notified of their enrollment and ability to opt out;
(5) provide that any incentives, including SREC-IIs, provided to a solar energy system that is approved for designation in the program and is designated as part of an asset of importance for homeland security pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be subject to the Class I renewable energy requirement cost cap established by paragraph (2) of subsection d. of section 38 of P.L.1999, c.23 (C.48:3-87); and
(6) provide that any solar energy system that meets the eligibility requirements established in this section and in the rules and regulations adopted pursuant to this section shall be eligible to participate in the program, and that the owners or operators of the system may apply or reapply until accepted into the program.
e. The solar capacity of solar energy systems that are connected to critical renewable microgrids and designated by the board as community solar projects shall be in addition to the capacity of community solar projects approved by the board pursuant to subsection f. of section 5 of P.L.2018, c.17 (C.48:3-87.11).
2. No later than six months after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Director of the New Jersey Office of Homeland Security and Preparedness shall develop standards for designating a critical renewable microgrid as an asset of importance for homeland security. If a critical renewable microgrid is so designated by the director, the State incentives provided for the solar energy system connected to the critical renewable microgrid, pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall not be subject to the Class I renewable energy requirement cost cap established by paragraph (2) of subsection d. of section 38 of P.L.1999, c.23 (C.48:3-87).
As used in this section, critical renewable microgrid means the same as defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. This act shall take effect immediately.
STATEMENT
This bill would require, no later than three months after the bill is enacted into law, the Board of Public Utilities (BPU) to develop a program that would allow certain solar energy systems that are connected to a critical renewable microgrid to be designated as solar energy projects and eligible for incentives under the permanent Community Solar Energy Program, established pursuant to subsection f. of section 5 of P.L.2018, c.17 (C.48:3-87.11). A solar energy system that is approved for designation in the program would