LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4360
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: NOVEMBER 14, 2023
SUMMARY
Synopsis: Creates grant program for business accelerator and incubator
networks; transfers $1 million in societal benefits charge revenues to
EDA to administer program.
Type of Impact: Time-limited State expenditure increase. Potential State revenue
increase. Potential local expenditure increase.
Agencies Affected: Board of Public Utilities.
Economic Development Authority.
Office of Legislative Services Estimate
Fiscal Impact FY 2024 – FY 2030
State Expenditure Increase Indeterminate
Potential State Revenue Increase Indeterminate
Potential Local Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that the bill will result in an indeterminate
State expenditure increase for the Economic Development Authority to establish and
administer the new Business Accelerator and Incubator Network Grant Program. Any fiscal
impact associated with the bill is temporally limited since the program is set to expire six years
following enactment of the bill.
 The bill authorizes the Economic Development Authority to determine the grant award
amounts for the new program. The OLS cannot predict the demand for the grants established
by the bill nor the amount of funding that would be allocated to the grant program.
 The OLS notes that the bill caps the total amount of societal benefits charge collections that
may be used to support the program at $1 million.
 The bill allows electric and gas public utilities to recover some or all of the costs associated
with societal benefit charge collections used to support the program. Given that all State and
local government entities consume and pay for energy, indirect State and local costs would
increase based on the increase in their utility bills which will be spread across the entire rate
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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base paid by all energy consumers. The Board of Public Utilities would realize an increase in
societal benefits charge revenues collected from the electric and natural gas ratepayers.
BILL DESCRIPTION
The bill directs the Economic Development Authority to establish and administer the Business
Accelerator and Incubator and Network Grant Program for the purpose of awarding grants to an
individual or network of business accelerators or incubators that provide support to incubator
businesses that are located within a business accelerator or incubator in this State. Grants may be
made to a business accelerator or incubator in an amount as determined by the authority. Grant
funds may be applied to: 1) any aspect of the business accelerator or incubator that provides
support to incubator businesses in the business accelerator or incubator as determined by the
authority; or 2) any aspect of an incubator business operating within the business accelerator or
incubator.
The bill requires the Economic Development Authority to support the program with the
following sources of funds: 1) societal benefits charge revenues collected by the Board of Public
Utilities that the authority determines are necessary in response to the demand for the program, up
to $1 million; 2) funds as may be available to the Economic Development Authority from other
business development programs administered by the authority or other State agencies or
authorities, and which the authority determines to be necessary in light of the volume of
applications from business accelerator or incubators and incubator businesses for grants under the
grant program as necessary to implement the bill; and 3) other monies as may be made available
to the authority from public or private sources.
The bill requires the Economic Development Authority to prepare an annual report on the
program, deliver the report to the Governor and the Legislature, and make the report available on
the authority’s website. The program is to expire six years after its establishment upon the
effective date of the bill.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will result in an indeterminate State expenditure increase for
the Economic Development Authority to establish and administer the new Business Accelerator
and Incubator Network Grant Program. Any fiscal impact associated with the bill is temporally
limited since the program is set to expire six years following enactment of the bill.
The bill authorizes the Economic Development Authority to determine the grant award
amounts for the new program. The OLS cannot predict the demand for the grants established by
the bill nor the amount of funding that would be allocated to the grant program. For reference, the
OLS notes that the Economic Development Authority currently administers two programs that
support business accelerators and incubators: NJ Accelerate and NJ Ignite.
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The OLS notes that the bill caps the total amount of societal benefits charge collections that
may be used to support the program at $1 million. Pursuant to the Electric Discount and Energy
Competition Act, P.L.1999, c.23, the societal benefits charge is embedded in electrical and natural
gas ratepayers’ utility bills. The proceeds of the charge are used to finance energy assistance
programs administered through the Universal Service Fund, energy demand management
programs (e.g., the Clean Energy Program and electric vehicle incentives), energy consumer
education programs, nuclear plant decommissioning, and manufactured gas plant remediation.
Under the bill, the Economic Development Authority may also use available funding from other
business development programs it administers or solicit funding from other public or private
sources to cover the cost of the program.
The bill allows electric and gas public utilities to recover some or all of the costs associated
with societal benefit charge collections used to support the program. Given that all State and local
government entities consume and pay for energy, indirect State and local costs would increase
based on the increase in their utility bills which will be spread across the entire rate base paid by
all energy consumers. The Board of Public Utilities would realize an increase in societal benefits
charge revenues collected from the electric and natural gas ratepayers.
The Economic Development Authority may incur additional costs to prepare a required annual
report on the Business Accelerator and Incubator Network Grant Program. The OLS does not
have the necessary data to quantify the additional cost the authority may incur as a result of the
bill; however, the OLS assumes any costs would be absorbed into the authority’s operating budget.
Section: Revenue, Finance, and Appropriations
Analyst: Scott A. Brodsky
Staff Fiscal and Budget 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