LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3407
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 2, 2024
SUMMARY
Synopsis: Requires payment of prevailing wage for projects financed through
commercial property assessed clean energy program.
Type of Impact: Increase in annual State and local expenditures.
Agencies Affected: Department of Labor and Workforce Development; Economic
Development Authority.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
Local Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) determines that the bill will result in an indeterminate
increase in annual State and local expenditures by requiring the payment of the prevailing wage
for projects financed through the commercial property assessed clean energy (C-PACE)
program.
 The bill makes no changes to current law that allows the Economic Development Authority to
charge administrative fees to review proposed C-PACE ordinances and property owner
applications. Since these revenue-generating aspects remain unchanged, there is no change in
revenues associated with C-PACE activities.
BILL DESCRIPTION
This bill removes provisions in the current law that exclude financing under the commercial
property assessed clean energy (C-PACE) Program from being considered as “authority
financial assistance”, or financial assistance that would require payment of the prevailing
wage. The bill expressly provides that any direct financing provided by a capital provider for
a C-PACE project is considered "authority financial assistance" and that work on the project
is subject to the prevailing wage requirements.
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
 FE to S3407
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The C-PACE program provides financing for renewable energy, energy efficiency, water
conservation, and certain types of resiliency-related improvements for New Jersey.
Pursuant to the bill, employers are required to ensure that not less than the prevailing wage
rate is paid to workers involved in construction contracts connected to C-PACE program
financing. The prevailing wage rate, determined by the Commissioner of Labor and Workforce
Development, applies to any authority financial assistance including loans, loan guarantees,
grants, incentives, tax exemptions, or other financial assistance provided by the authority.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that the bill will result in an indeterminate increase in annual State and
local expenditures by requiring the payment of the prevailing wage for projects financed through
the C-PACE program.
The bill removes provisions in the current law that exclude financing under the C-PACE
program from being considered as “authority financial assistance”, or financial assistance that
would require payment of the prevailing wage. The Economic Development Authority provides
general oversight of the program and along with the Department of Labor and Workforce
Development will need to implement additional monitoring and enforcement mechanisms to
ensure adherence to the Prevailing Wage Act, which may create additional administrative costs.
However, these costs may be partially offset by the fees the authority may charge to review a C-
PACE program ordinance or project application.
Under current law, the authority is authorized to potentially recoup administrative costs by
charging a county or authorized municipality a one-time fee, not to exceed $5,000, to review the
proposed C-PACE program ordinance. Additionally, the authority may charge a property owner
a fee for the review of an application for a C-PACE project in the Garden State C-PACE program
and for its fulfillment of such obligations.
The OLS notes that the bill is permissive regarding a municipality’s or county’s participation
in the C-PACE program. As a result, the OLS is unable to quantify the impact of the bill on local
finances. Any local government that participates in and provides financing through a C-PACE
program may experience increased costs due to the requirement to pay the prevailing wage.
Section: Commerce, Labor and Industry
Analyst: John Gaudioso
Assistant Fiscal 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: 34:1B-382
Advance Law: 34:1B-382
Pamphlet Law: 34:1B-375, 34:1B-382