Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Co-Sponsored by:
Senators A.M.Bucco and Space
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.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning energy infrastructure public-private partnerships, supplementing Titles 52 and 58 of the Revised Statutes, and amending P.L.1985, c.334, N.J.S.18A:18A-42, and P.L.1971, c.198.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 20 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Energy Infrastructure Public-Private Partnerships Act."
2. (New section) a. The Legislature finds and declares that:
(1) It is the public policy of this State to assure that the State's energy infrastructure is developed and maintained in a manner that assures, to the greatest extent possible, the availability of reliable and resilient state-of-the-art energy resources to the State and, in particular, to the critical facilities that provide necessary lifeline services to the State's citizens and businesses;
(2) The recent occurrence of severe weather events, and the current condition of the State's aging energy systems underscore the vulnerability of the State's energy infrastructure and the substantial and immediate need for the State to improve the energy resources available to State, county, and municipal facilities that provide critical lifeline services, including hospitals, police and fire departments, water and wastewater treatment facilities, shelters, colleges, universities, schools, and prisons;
(3) The urgent need to decarbonize the energy sector will require a significant expansion of intermittent renewable energy sources. In order to facilitate the expansion of solar photovoltaic and wind resources, the State's infrastructure must include dispatchable resources at the location of use in order to mitigate the significant economic and potential physical damage that could result from poor power quality issues. Grid-edge, on-demand energy generation that is efficient and clean is necessary to support the continued development of renewable resources;
(4) The reliability, resiliency, and efficiency of the State's energy infrastructure will be improved if the State encourages the development of the energy-related projects contemplated by P.L. , c. (C. ) (pending before the Legislature as this bill), which will reduce the vulnerability of critical facilities to threats posed by weather and other exogenous factors, minimize equipment failures caused by deterioration, disrepair, and obsolescence, enhance the production and delivery of energy, including clean energy resources, improve the energy efficiency of facilities, reduce peak demand, energy costs, and greenhouse gas emissions, and promote economic development and foster job creation;
(5) The implementation of energy-related projects through public-private partnerships will enable the State to leverage the capital and expertise of the private sector, which will permit needed energy-related projects to be developed, in many instances on a self-funded basis, without taxpayer or ratepayer support; and
(6) The use of energy infrastructure public-private partnerships will contribute to the attainment of the goals of the State's Energy Master Plan, which include aggressive initiatives to expand the implementation of renewable energy and building and transportation decarbonization initiatives, improve energy reliability and resiliency, and introduce state-of-the-art technologies that can make buildings more energy efficient and reduce energy usage, peak demand, energy costs, and greenhouse gas emissions.
b. The Legislature therefore determines that:
(1) It shall be the public policy of this State to foster energy public-private partnerships to develop state-of-the-art energy-related projects that obviate or minimize the need for capital investments in such projects by governmental entities, taxpayers, and utility ratepayers;
(2) In order to foster the energy-related projects contemplated by P.L. , c. (C. ) (pending before the Legislature as this bill), it is necessary and appropriate for the Legislature to authorize the use of public-private partnerships that leverage private sector financial resources and expertise and provide a platform for governmental and private entities to share the responsibilities and benefits of these projects;
(3) Current economic conditions, combined with the critical and immediate need to improve the State's energy infrastructure and achieve the State's near and long-term energy goals, compel the State to pursue the energy-related public-private partnerships contemplated by P.L. , c. (C. ) (pending before the Legislature as this bill), which will enhance the reliability, resilience, and efficiency of the State's energy infrastructure. by introducing state-of-the-art energy technologies; and
(4) The energy-related public-private partnerships contemplated by P.L. , c. (C. ) (pending before the Legislature as this bill) will encourage private capital investment and leverage the technical, financial, and managerial expertise of the private sector to assist eligible public entities that otherwise lack the necessary capital, resources, or expertise to design, develop, own, manage, operate, and maintain needed energy infrastructure projects.
3. (New section) As used in sections 1 through 20 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Class I renewable energy" and "Class II renewable energy" mean the same as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51).
"Distributed electric generation resource" means distributed sources of electric power generation and energy storage facilities including, but not limited to, Class I and Class II renewable energy facilities, solar photovoltaics, wind, solar thermal, hydroelectric and biofuels, dispatchable generation, combined heat and power, fuel cell, and battery storage technologies.
"District energy system" means a