Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
Senator CHRISTOPHER "KIP" BATEMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Directs EDA to establish program for public or private financing of certain renewable energy, water, and storm resiliency projects through use by municipalities of voluntary special assessments for certain property owners.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the implementation of renewable energy and energy efficiency systems and water conservation, flood and hurricane resistance projects, energy storage, and microgrids, supplementing Titles 34 and 40 of the Revised Statutes, and amending P.L.2011, c.187 and P.L.1960, c.183.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The Legislature finds and declares it to be the public policy of this State that:
a. Investing in water conservation, stormwater management, renewable energy, and energy efficiency improvements to real property is beneficial over time, and flood and hurricane mitigation projects for existing properties is a critical component in conserving natural resources and mitigating the effects of floods and hurricanes, and upfront costs are a barrier to investing in such major energy, water, and resiliency improvements;
b. There are few financing options for such improvements that combine easy qualification, an attractive interest rate, and a relatively long repayment term;
c. Property accessed clean energy, or PACE, lending, in which repayment is by way of a special assessment on the real property to which the improvement was made, provides an innovative way for property owners to finance renewable energy, energy and water efficiency, and other eligible improvements which, in turn, results in property owners saving a significant sum in energy costs, helps communities create local jobs, results in lower mortgage foreclosures, and stimulates local economies and lower emissions;
d. PACE financing will enable New Jersey municipalities to contribute toward meeting community sustainability, greenhouse gas emissions reductions, and energy goals, and will provide a valuable service to the citizens of their communities; and
e. PACE financing, and the powers conferred and expenditures made pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), serve a valid public purpose and enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) is expressly declared to be in the public interest.
2. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
Authority means the New Jersey Economic Development Authority, and for purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) shall also include other related State agencies and or third-party administrators as may be engaged by the authority for the purposes of providing the services authorized by the rules and regulations adopted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
Energy efficiency improvement means an improvement to reduce energy consumption through conservation or a more efficient use of electricity, natural gas, propane, or other forms of energy, including, but not limited to: air sealing; installation of insulation; installation of energy-efficient electrical, heating, cooling or ventilation systems; building modifications to increase the use of daylight; replacement of windows; installation of energy controls or energy recovery systems; installation of electric vehicle charging equipment; and installation of efficient lighting equipment.
Flood resistant construction project means a project that mitigates the likelihood of substantial flood damage, including but not limited to the installation of break-away walls and building elevation alterations.
Hurricane resistant construction project means an improvement that brings a component of a structure into compliance with the standards for a wind-borne debris region adopted pursuant to the State Uniform Construction Code Act, P.L.1975, c.217 (C.52:27D-119 et seq.), or into compliance with a successor standard under that code.
Microgrid means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid and that connects and disconnects from the grid to enable it to operate when both connected to, or independent of, the grid.
NJPACE program means the program established by the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) in which a municipality may elect to participate.
PACE is an acronym for the term property assessed clean energy.
PACE project means any category of improvement that the authority identifies pursuant to rules or regulations, including but not limited to an energy efficiency improvement, renewable energy system, energy storage, microgrid, water conservation project, stormwater management system, zero emission vehicle charging infrastructure, flood resistant construction project, and hurricane resistant construction project which is undertaken by the owner of real property located within a participating municipality and permanently affixed to such property.
PACE special assessment means a local improvement assessment, in accordance with chapter 56 of Title 40 of the Revised Statutes, imposed by a participating municipality on a property, with the consent of the owner of such property, as a means of securing a loan made by a lender to finance a PACE project at such property, payments in respect of which assessment are collected by the participating municipality and remitted to the lender.
Participating municipality means a municipality that has adopted an ordinance in the form prescribed by the authority authorizing its participation in the NJPACE program, as well as taken such other actions as the authority may establish in rules and regulations adopted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), including designating the authority to manage, oversee, and administer its participation in the program implementation or any combination thereof.
Private entity means a private for-profit or non-profit corporation, partnership, or any other form of private organization, including but not limited to a related competitive business segment of a public utility holding company, or a related competitive business segment of an electric public utility or gas public utility, as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51), so long as the organization is not subject to the jurisdiction of the Board of Public Utilities.
Project costs mean the costs associated with a PACE project, and shall include: the hard costs of purchasing, constructing