LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3415
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: OCTOBER 23, 2024
SUMMARY
Synopsis: Establishes "Energy Infrastructure Public-Private Partnerships
Program"; amends law concerning NJ Infrastructure Bank; and
authorizes certain energy contracts under "Public School Contracts
Law" and "Local Public Contracts Law" up to 25 years.
Type of Impact: Annual State expenditure increase from the General Fund.
Agencies Affected: New Jersey Infrastructure Bank; Department of Law and Public
Safety.
Office of Legislative Services Estimate
Fiscal Impact Year 1 Subsequent Years
State Expenditure Increase $1.2 million At least $600,000
 The Office of Legislative Services (OLS) estimates initial startup administrative costs to create
the Energy Infrastructure Public-Private Partnership Program (Energy P3 Program) in the New
Jersey Infrastructure Bank would be approximately $1.2 million. This estimate includes
additional work by existing staff at the Infrastructure Bank and the Attorney General's Office,
as well as the use of outside consultants and attorneys.
 The estimated annual administrative costs of the program in subsequent years would be
approximately $600,000; however, the OLS notes the total annual program costs could be
higher.
 The true extent of future expenditure increases would be determined by the Infrastructure
Bank, which is authorized to issue bonds and request future legislative appropriations to
support 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
 FE to S3415 [1R]
2
BILL DESCRIPTION
The bill would create the Energy P3 Program and an Energy Infrastructure Financing Program
within the New Jersey Infrastructure Bank, which is in, but not of, the Department of the Treasury.
The Energy P3 Program would execute a comprehensive Statewide policy for public-private
partnership agreements that would facilitate the development of energy-related projects and would
provide for the development, promotion, coordination, oversight, and approval of public-private
partnership agreements for energy-related projects. The Energy Infrastructure Financing Program
would provide loans and other forms of financial assistance to eligible entities that are parties to
public-private partnership agreements to develop and finance energy-related projects pursuant to
the bill.
Public entities that would qualify to receive financial assistance under the bill would include
the State, its subdivisions, and any department, agency, commission, authority, board, or
instrumentality thereof, a county, a municipality, a board of education, a State college or
university, a county college, a private not-for-profit higher education institution, a regional or
municipal utility authority, a quasi-State agency, a State-created corporation, and a private not-
for-profit hospital licensed by the Department of Health pursuant to the Health Care Facilities
Planning Act.
Eligible projects would be required to be partially owned or leased by a qualified public entity
and would include: (1) energy efficient appliances, lighting, heating, ventilation, and air
conditioning systems, motors, building controls, and other energy conservation measures; (2)
Class I and Class II renewable energy sources; (3) building and transportation-related
decarbonization measures including electric vehicle infrastructure; (4) smart metering and smart
grid technologies; (5) distributed electric generation resources; (6) district energy systems; (7)
renewable natural gas and hydrogen production facilities; (8) geothermal energy systems; and (9)
biogas, biomass, and waste-to-energy technologies.
The bill would provide the Infrastructure Bank with the authority to issue bonds to fund the
program, as well as to use State and federal appropriations. Bonds for energy-related projects
would have a maximum duration of 25 years. The bill would require the Infrastructure Bank to
develop and maintain a project priority list, known as the Energy Project Priority List, which would
then require legislative approval in the form of a supplemental appropriations bill, before projects
could receive funding. This process would be similar to the process for the drinking water,
wastewater, transportation, and hazard mitigation programs currently operated by the
Infrastructure Bank.
The bill creates an interim financing program for energy-related projects and establishes an
Energy Loan Origination Fee Fund similar to the existing interim financing programs and fee funds
for environmental and transportation projects. The bill limits the total amount expended by the
Infrastructure Bank for administrative and operating expenses, from the Energy Loan Origination
Fee Fund, to $8 million annually.
FISCAL ANALYSIS
EXECUTIVE BRANCH
The Executive has not submitted a formal fiscal note on this bill, but the administrative cost
estimates below were provided to the OLS by the New Jersey Infrastructure Bank upon request
and serve as the basis for the OLS cost estimate.
 FE to S3415 [1R]
3
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates initial startup administrative costs to create the Energy P3 Program in the
Infrastructure Bank would be approximately $1.2 million. This estimate includes additional work
by existing staff at the Infrastructure Bank and the Attorney General's Office, as well as the use of
outside consultants and attorneys. The estimated annual administrative costs of the program in
subsequent years would be approximately $600,000; however, the OLS notes the total annual
program costs could be higher. The bill limits the total amount expended by the Infrastructure
Bank for administrative and operating expenses, from the Energy Loan Origination Fee Fund, to
$8 million annually.
However, the true extent of future expenditure increases would be determined by the
Infrastructure Bank, which is authorized to issue bonds and request future legislative
appropriations to support the program. The amount of funding that would be requested is difficult
to predict, since existing Infrastructure Bank programs are supported by federal appropriations,
bond revenues, and the Transportation Trust Fund, which derives from the motor fuel tax, the
petroleum products gross receipts tax, and other taxes. This bill would not establish any such
dedicated stream of revenue for the Energy P3 Program. However, for reference, in FY 2023, the
Infrastructure Bank issued around $134 million in loans for drinking water and wastewater
projects, and around $17 million in loans for transportation projects, according to its 2023
Financial Report.
The OLS notes that the issuance of funding for energy-related projects under the program is
subject to future legislative appropriations acts. Thus, the bill itself does not mandate such
increased expenditures. In addition, the issuance of bonds by the Infrastructure Bank is subject to
approval by the Governor and the State Treasurer, and requires notification to the Legislature.
Once operational, the program would create a complex system of relations between private
companies, which would be responsible for carrying out each energy-related project, and eligible
public entities, which would receive loans from the Infrastructure Bank and would retain an
ownership or leasehold interest in the land or property upon which the energy-related project is
developed. Furthermore, the bill would create certain exemptions from property taxation, State
and municipal special assessments, and requirements for payments in lieu of taxes for energy-
related projects that participate in the program. This could lead to several fiscal implications for
the State, including increased indebtedness if the Infrastructure Bank were to issue bonds to fund
the program, and for local governments, including reduced property tax collections if an energy-
related project were to qualify for a property tax exemption under the program.
Section: Environment, Agriculture, Energy, and Natural Resources
Analyst: Anna Heckler
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: 58:11B-2, 58:11B-3, 58:11B-4, 58:11B-5, 58:11B-6, 58:11B-7, 58:11B-9, 58:11B-13, 58:11B-14, 58:11B-15, 58:11B-17, 58:11B-18, 58:11B-19, 58:11B-23, 58:11B-25, 58:11B-27, 40A:11-15