STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblywoman NANCY J. PINKIN
District 18 (Middlesex)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
SYNOPSIS
Authorizes NJ Infrastructure Bank to issue up to $20 million in bonds to finance cost-effective energy efficiency improvements in State, local, and school district buildings.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning energy efficiency in State, local, and school district buildings, supplementing Title 58 of the Revised Statutes, and amending P.L.1999, c.23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) This act shall be known and may be cited as the Energy Efficiency and Renewable Energy Financing Act.
2. (New section) As used in this act:
Department means the Department of Environmental Protection.
Energy efficiency improvement means a modification or improvement to a building that is designed to reduce energy consumption or provide a renewable energy source, and reduce energy costs for a State entity, local unit, or school district. Energy efficiency improvement shall include, but need not be limited to, insulation; storm windows or doors; caulking, weather-stripping, or other window and door system modifications or improvements that reduce energy consumption; automated or computerized energy control systems; energy efficient heating, ventilation, or air conditioning systems; energy efficient lighting systems; on-site solar energy systems or other renewable energy systems; energy recovery systems; cogeneration or combined heat and power systems; and other modifications or improvements as may be determined appropriate by the department.
Local unit means a county or municipality, or any agency, authority, or other entity thereof.
Program means the Energy Efficiency and Renewable Energy Financing Program established pursuant to this act.
School district means any local or regional school district established pursuant to chapters 8 or 13 of Title 18A of the New Jersey Statutes.
State entity means a department, agency, or office of State government, including a State university or college, or an authority created by the State.
Trust means the New Jersey Infrastructure Bank, created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4).
3. (New section) There is established in the New Jersey Infrastructure Bank the Energy Efficiency and Renewable Energy Financing Program. The purpose of the program shall be to provide loans and other forms of financial assistance, as the trust deems appropriate, to State entities, local units, and school districts to finance cost-effective energy efficiency improvements in buildings owned or operated by the State entities, local units, or school districts.
4. (New section) a. A State entity, local unit, or school district seeking financial assistance under the Energy Efficiency and Renewable Energy Financing Program shall first submit an application to the Department of Environmental Protection in a form and manner as determined by the department. The department, in consultation with the New Jersey Infrastructure Bank, shall develop criteria for the approval or disapproval of applications pursuant to this section.
b. As part of the application process, the department shall perform, or require the applicant to perform, an energy efficiency assessment of the buildings owned or operated by the applicant. The assessment shall identify the energy efficiency improvements that can be installed and operated in the buildings at a total cost that is less than the energy cost savings, in the form of lower energy bills, realized by the applicant over a 10-year period, or such shorter time as the department deems appropriate. The assessment shall include a schedule for funding and installing the energy efficiency improvements that will realize the greatest cost savings to the applicant.
c. Upon approval of an application pursuant to this section, the department shall submit a copy of the application and the energy efficiency assessment to the trust. Subject to the availability of funds under the program, the trust may make and contract to make loans or other forms of financial assistance, as the trust deems appropriate, to the applicant to finance the cost of the energy efficiency improvements as identified in the energy efficiency assessment and approved by the department. The loans and other forms of financial assistance may be made subject to such terms and conditions as the trust shall deem appropriate.
5. (New section) Pursuant
to an energy efficiency assessment performed pursuant to section 4 of this act,
and with the approval of the department and the trust, a State entity, local
unit, or school district may install or contract for the installation of,
energy efficiency improvements on its buildings, as identified in the
assessment. The installation or contract shall address provisions concerning
payment schedules, monitoring, inspection, measuring, and warranties as are
necessary to ensure that the energy efficiency improvements will be installed
and operated in the buildings at a total cost that is less than the energy cost
savings realized by the applicant over the 10-year period or such other
timeframe as the department deems appropriate.
6. (New section) a. The New Jersey Infrastructure Bank is authorized, from time to time, to issue bonds, pursuant to the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) and any other applicable laws, in an amount outstanding at any one time not to exceed $20,000,000, for the purpose of providing financial assistance to State entities, local units, and school districts under this act. The payment of interest on, and repayment of principal of, these bonds shall be secured by and paid out of:
(1) moneys obtained from the payment of interest assessed on, and the repayment of principal of, any loans made pursuant to this act;
(2) moneys transferred to the trust from the Board of Public Utilities pursuant to section 7 of this act; and
(3) any other moneys appropriated by the Legislature or otherwise made available to the trust for the purposes of this act.
b. The trust may establish such reserves, funds, or accounts as, in its discretion, are necessary or desirable to carry out the purposes of this act, within the limits of funds appropriated or otherwise made available to the trust for its purposes.
7. (New section) Notwithstanding the provisions of section 12 of P.L.1999, c.23 (C.48:3-60), or any rul