New Jersey 222nd Legislature Status: Introduced 5 D cosponsors

A 3974 — Modifies various provisions of State's renewable energy incentive programs; requires electric public utilities to consider interconnection applications for certain solar projects.*

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  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed General Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the General Assembly. Introduced January 13, 2026. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Prognosis

Advancing 36% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • Introduced

    Current position in the legislative process.

  • 5 sponsors

    2 primary, 3 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (5 D).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill modifies renewable energy incentive programs and requires utilities to consider solar project applications.

This bill changes certain aspects of the state's renewable energy incentive programs and mandates that electric utilities evaluate interconnection applications for specified solar projects. Its aim is to enhance the integration of solar energy into the power grid.

What this means for you
  • Environment: This means increased opportunities for solar energy projects, potentially leading to more renewable energy generation.

Summary

Renewable energy incentive programs-modifies various provisions

Bill Text

What changed in the latest version

282 added · 185 removed

Plain-language change summary

The amendments to Bill A3974 clarify requirements for solar project interconnections and co-location of facilities. The text adds that electric public utilities must consider interconnection applications for certain solar projects and specifies the conditions under which multiple solar facilities can be permitted for co-location. Additionally, it defines "Federal Energy Regulatory Commission" and removes earlier language about solar facilities being eligible metering customers. This matters because it provides clearer guidance on how solar projects can be developed and interconnected, potentially streamlining the process for developers.

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A3974 1R [First Reprint] ASSEMBLY, No.
A3974 2R [Second Reprint] ASSEMBLY, No.
requires electric public utilities to interconnect certain solar projects.
requires electric public utilities to consider interconnection applications for certain solar projects.
  CURRENT VERSION OF TEXT      As reported by the Assembly Telecommunications and Utilities Committee on March 16, 2026, with amendments.
  CURRENT VERSION OF TEXT      As reported by the Assembly Budget Committee on 6/28/2026, with amendments.
      “Co-location” means siting two or more SREC-II eligible solar facilities on the same property or on contiguous properties, such that the individual facilities are eligible for a higher incentive value than they would be if they were combined into one single facility.  In the case of net metered projects, SREC-II eligible solar facilities shall 1[be]1 not be deemed co-located if they serve separate net metering customers.
      “Co-location” means siting two or more SREC-II eligible solar facilities on the same property or on contiguous properties 2[, such that the individual facilities are eligible for a higher incentive value than they would be if they were combined into one single facility.  In the case of net metered projects, SREC-II eligible solar facilities shall 1[be]1 not be deemed co-located if they serve separate net metering customers]2 .
      “Garden State Energy Storage Program” means the program established pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.).
      2“Federal Energy Regulatory Commission” or “FERC” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).2       “Garden State Energy Storage Program” means the program established pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.).
      “Mining site” means a sand mine, gravel pit, or mine, or former sand mine, gravel pit, or mine, closed resource extraction facility, or land classified as “extractive mining” in Level II of the modified Anderson classification system within the most recent Land Use-Land Cover geographic information system data layer produced by the Department of Environmental Protection.
      “Mining site” means a sand mine, gravel pit, or mine, or former sand mine, gravel pit, or mine, 2or2 closed resource extraction facility 2[, or] on2 land classified as “extractive mining” in Level II of the modified Anderson classification system within the most recent Land Use-Land Cover geographic information system data layer produced by the Department of Environmental Protection.
      “Renewable energy incentive program” means the competitive solicitation incentive program, remote net metering program, community solar program, administratively determined incentive program, T REC program, SREC-II program, or any other program administered by the board, which provides financial incentives to renewable energy projects or facilities.
      “Renewable energy incentive program” means the competitive solicitation incentive program, remote net metering program, community solar program, administratively determined incentive program, TREC program, SREC-II program, or any other program administered by the board, which provides financial incentives to renewable energy projects or facilities.
      b.   Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87), or any other law, rule, regulation, order, or board order to the contrary, there shall be no prohibition on the co-location of solar facilities either registered or seeking registration or participation in the administratively determined incentive program, the competitive solicitation incentive program, the community solar program, the remote net metering program, or any combination thereof.  Multiple solar facilities may be co-located, either on the same property, or on contiguous properties, so long as the facilities are 1[(1)] :1 developed as separate projects or separate phases of the same project 1[,] ;1 and 1[(2)]1 have separate interconnection facilities.
      b.   Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87), or any other law, rule, regulation, order, or board order to the contrary, 2[there shall be no prohibition on]2 the co-location of solar facilities either registered or seeking registration or participation in the administratively determined incentive program, the competitive solicitation incentive program, the community solar program, the remote net metering program, or any combination thereof 2[.  Multiple solar facilities]2 may be 2permitted by the board, upon a petition by the developer of the proposed2 co-located 2[, either on the same property, or on contiguous properties, so long as the facilities are] facility, if the proposed co-located facilities2 1[(1)] :1 2(1)  are2 developed as separate projects or separate phases of the same project 1[,] ;1 2[and]2 1[(2)]1 2(2)2 have separate interconnection facilities 2;
      c.   Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87), or any other law, rule, regulation, order, or board order to the contrary, there shall be no size or power output restriction for solar facilities that are located on landfills, brownfields, contaminated sites, or mining sites for the purposes of eligibility for the community solar program or the remote net metering program.
(3) are being proposed for co-location as a result of interconnection constraints;
      d.   Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87), or any other law, rule, regulation, order, or board order to the contrary, any project sited on a landfill, brownfield, contaminated site, or mining site that is participating in the community solar program, the remote net metering program, or any combination thereof shall have no less than 33 months from the date of registration in the applicable program to achieve commercial operation, as evidenced by a 1[permission to operate] permission-to-operate1 letter from the applicable electric public utility.
and (4) will not receive a higher incentive or more favorable incentive treatment than would be available if the facilities were developed as a single project, unless the board finds that there is a unique, project-specific reason to provide a different incentive level2 .
The 33-month period referenced above shall be automatically extended, on a day for day basis, without the need for additional board order or other confirmation, in the event of utility-caused delays regarding interconnection of the project to the local electric transmission or distribution system.
      c.  Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87), or any other law, rule, regulation, order, or board order to the contrary, 2[there shall be no size or power output restriction for] up to 300 megawatts, as measured in direct current, of2 solar facilities 2with a capacity from five megawatts to 20 megawatts, as measured in direct current,2 that are located on 2commercial or industrial rooftops,2 landfills, 2[brownfields,]2 contaminated sites, or mining sites 2[for the purposes of eligibility for] shall be eligible for registration in2 the community solar program 2[or the remote net metering program] until December 31, 2028, so long as the facility demonstrates that it is unable to interconnect as a PJM wholesale market participant in Transition Cycle 2 or earlier or as a Qualifying Facility pursuant to applicable orders from FERC and the “Public Utilities Regulatory Policies Act of 1978,” Pub.L.
      e.   1[A developer that previously received an approval in the TREC program for any project that has not achieved commercial operation as of the effective date of P.L.    , c.    (C.          ) (pending before the Legislature as this bill), shall register the project, within 90 days after the effective date of P.L.    , c.    (C.          ) (pending before the Legislature as this bill), in the community solar program, the remote net metering program, or both programs if the facilities are co-located, for registrations that do not cause a decrease in the previously approved facility size.  If the registration would cause a decrease in the previously approved facility size, the developer may register the project in the community solar program, the remote net metering program, or both, as the case may be.  The registration shall be conditional until the developer’s receipt of a conditional approval to construct from the applicable local public utility.
95-617.  The board may establish reasonable procedures to track and allocate such capacity consistent with this subsection.  Projects that registered or received awards under another New Jersey solar program prior to the effective date of P.L.    , c.    (C.          ) (pending before the legislature as this bill) shall not be eligible to register in the community solar program pursuant to this subsection unless the board finds that there is a unique, project-specific reason to allow the project to transfer programs.  Projects that submitted applications in the fourth solicitation of the board’s competitive solar incentive program shall only be eligible to register in the community solar program pursuant to this subsection if they do not receive awards in that program.
      f.]1  An electric public utility shall, 1[within 90 days of] upon1 receipt of a complete application, accept, process, and approve interconnection applications for community solar or remote net metering facilities on any electric line that is sized 34.5 kilovolts or less 1[and shall complete interconnection in no less than days from written notification from the developer of the project being ready for such interconnection.  These deadlines may be extended by written consent of the developer, for no more than 30 days.  Failure by the electric public utility to meet these deadlines will result in a penalty of $5,000 per day payable to the developer, which shall be paid by the electric public utility and shall not be passed on to ratepayers]1.
      d.  The board may establish, via board order, differentiated incentive levels based on project size and project type for co-located projects and projects larger than five megawatts, as measured in direct current, in the community solar program, and may from time to time adjust the categories and incentive levels2 .
      1[g.] f.1    Any electric line maintained by an electric public utility that is sized at 34.5 kilovolts or less shall be considered to be distribution lines, shall be subject to the board’s jurisdiction, and shall be eligible for interconnection by any project participating in the community solar program, remote net meter program, the competitively determined incentive program, the Garden State Energy Storage Program, or any other State-sponsored solar electricity incentive program or battery energy storage program.
      2[d.] e.2    Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87), or any other law, rule, regulation, order, or board order to the contrary, any project sited on a 2commercial or industrial rooftop,2 landfill, 2[brownfield,]2 contaminated site, or mining site that is participating in the community solar program, the remote net metering program, or any combination thereof shall have no less than 33 months from the date of registration in the applicable program to achieve commercial operation, as evidenced by a 1[permission to operate] permission-to-operate1 letter from the applicable electric public utility.
      1[h.  Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87) to the contrary, any renewable energy facility shall be eligible to utilize previously awarded, but not utilized TREC incentives, including for awarded TREC projects that either (1) did not achieve commercial operation by the required program deadline, (2) were awarded TRECs in excess of those actually utilized by the project, or (3) otherwise did not utilize the awarded TRECs.  Any project utilizing such previously awarded TREC incentives shall file a certification with the board detailing the TRECs being utilized and providing evidence of assignment from the prior developer of any right, title, and interest to any such previously awarded TRECs.  Any TRECs utilized in this way shall have a qualification life of 15 years from the date of the commercial operation of the facility at which they are utilized.]1        2.    Section 1 of P.L.2009, c.35 (C.40:55D-66.11) is amended to read as follows:
2[The 33-month period referenced above shall be automatically extended, on a day for day basis, without the need for additional board order or other confirmation, in the event of utility-caused delays regarding interconnection of the project to the local electric transmission or distribution system.] Facilities that do not achieve commercial operation by the deadline shall be allowed to re-register, regardless of whether capacity limits for the program have been reached.2        2[e.] f.2    1[A developer that previously received an approval in the TREC program for any project that has not achieved commercial operation as of the effective date of P.L.    , c.    (C.          ) (pending before the Legislature as this bill), shall register the project, within 90 days after the effective date of P.L.    , c.    (C.          ) (pending before the Legislature as this bill), in the community solar program, the remote net metering program, or both programs if the facilities are co-located, for registrations that do not cause a decrease in the previously approved facility size.  If the registration would cause a decrease in the previously approved facility size, the developer may register the project in the community solar program, the remote net metering program, or both, as the case may be.  The registration shall be conditional until the developer’s receipt of a conditional approval to construct from the applicable local public utility.
     1.    A renewable energy facility on a parcel or parcels of land comprising 20 or more contiguous acres that are owned by the same person or entity shall be a permitted use within every industrial district of a municipality.
      f.]1  An electric public utility shall, 1[within 90 days of] upon1 receipt of a complete application, accept, process, and 2[approve] respond to2 interconnection applications for community solar or remote net metering facilities on any electric line that is sized 34.5 kilovolts or less 1[and shall complete interconnection in no less than 30 days from written notification from the developer of the project being ready for such interconnection.  These deadlines may be extended by written consent of the developer, for no more than days.  Failure by the electric public utility to meet these deadlines will result in a penalty of $5,000 per day payable to the developer, which shall be paid by the electric public utility and shall not be passed on to ratepayers]1.
     For the purposes of this section:
      1[g.] 2[f.1] g.2     Any electric line maintained by an electric public utility that is sized at 34.5 kilovolts or less shall be 2[considered to be] classified as a2 distribution 2[lines,] line, unless the electric line in question is a transmission facility subject to the jurisdiction of the Federal Energy Regulatory Commission.  Any electric line that is classified as a distribution line2 shall be subject to the board’s jurisdiction, and 2[shall be eligible for interconnection by]2 any project participating in the community solar program, remote net 2[meter] metering2 program, the competitively determined incentive program, the Garden State Energy Storage Program, or any other State-sponsored solar electricity incentive program or battery energy storage program 2shall be allowed to interconnect to the electric line, subject to the provisions of subsection g.
     "renewable energy facility" means a facility that engages in the production or storage of electric energy from solar technologies, photovoltaic technologies, battery storage technology, or wind energy.
of this section2 .
      1[h.  Notwithstanding the provisions of section 38 of P.L.1999, c.23 (C.48:3-87) to the contrary, any renewable energy facility shall be eligible to utilize previously awarded, but not utilized TREC incentives, including for awarded TREC projects that either (1) did not achieve commercial operation by the required program deadline, (2) were awarded TRECs in excess of those actually utilized by the project, or (3) otherwise did not utilize the awarded TRECs.  Any project utilizing such previously awarded TREC incentives shall file a certification with the board detailing the TRECs being utilized and providing evidence of assignment from the prior developer of any right, title, and interest to any such previously awarded TRECs.  Any TRECs utilized in this way shall have a qualification life of 15 years from the date of the commercial operation of the facility at which they are utilized.]1       2h.  Any application for interconnection submitted pursuant to this section shall be reviewed and processed in accordance with the board’s interconnection rules under N.J.A.C.14:8-5, or any successor regulations.  The applicant, developer, or owner of a solar facility or energy storage facility seeking to interconnect to an electric public utility’s distribution system shall pay the full cost of any required interconnection study.  Prior to the commencement of the study, the developer shall pay the estimated cost of the study.  An electric public utility shall not be required to initiate or continue an interconnection study until full up-front payment has been received.  The cost of the study shall be based on the electric public utility’s actual cost to perform the study within the timeframe established by the board, including costs incurred through third party contractors.  Upon completion of the study, the electric public utility shall recover from the applicant, developer, or owner of a solar facility any additional reasonable costs incurred beyond the estimated amount paid.  The applicant, developer, or owner of a solar facility or energy storage facility seeking to interconnect to an electric public utility’s distribution system shall also be responsible for all costs associated with the interconnection of such facilities, including, but not limited to, study costs, engineering costs, and the costs of any system upgrades or modifications required to accommodate the interconnection, as determined in accordance with the board’s interconnection rules.  Such costs shall not be borne by ratepayers and shall not be eligible for recovery through rates, except as otherwise permitted by the board in accordance with its interconnection rules.2         2.   Section of P.L.2009, c.35 (C.40:55D-66.11) is amended to read as follows:
      1.   A renewable energy facility on a parcel or parcels of land comprising 2[20] 102 or more contiguous acres that are owned by the same person or entity shall be a permitted use within every industrial 2or commercial2 district of a municipality.
      For the purposes of this section:
      "renewable energy facility" means a facility that engages in the production or storage of electric energy from solar technologies, photovoltaic technologies, battery storage technology, or wind energy.
P.L.2009, c.35, s.1)        3.  Section 2 of P.L.2011, c.141 (C.40:55D-66.16) is amended to read as follows:
P.L.2009, c.35, s.1)         3.  Section 2 of P.L.2011, c.141 (C.40:55D-66.16) is amended to read as follows:
     2.
      2.  a.  Notwithstanding any law, ordinance, rule or regulation to the contrary, a solar or photovoltaic energy facility, battery storage, or renewable energy facility or structure associated with either a solar or photovoltaic energy 2or battery storage2 facility constructed and operated on the site of any 2rooftop,2 landfill, brownfield, contaminated site, mining site, or closed resource extraction operation, shall be a permitted use within every municipality.
 a.
      b.  Notwithstanding any law, ordinance, rule or regulation to the contrary, a wind energy generation facility or structure constructed and operated on the site of any landfill or closed resource extraction operation, shall be a permitted use within every municipality outside the pinelands area as defined pursuant to section 3 of P.L.1979, c.111 (C.13:18A-3).
 Notwithstanding any law, ordinance, rule or regulation to the contrary, a solar or photovoltaic energy facility, battery storage, or renewable energy facility or structure associated with either a solar or photovoltaic energy facility constructed and operated on the site of any landfill, brownfield, contaminated site, mining site, or closed resource extraction operation, shall be a permitted use within every municipality.
      The Department of Environmental Protection may adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary to effectuate the purposes of this subsection.
     b.
 Notwithstanding any law, ordinance, rule or regulation to the contrary, a wind energy generation facility or structure constructed and operated on the site of any landfill or closed resource extraction operation, shall be a permitted use within every municipality outside the pinelands area as defined pursuant to section 3 of P.L.1979, c.111 (C.13:18A-3).
     The Department of Environmental Protection may adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary to effectuate the purposes of this subsection.
     (1)   The subject matter thereof consists of:
     (1)  The subject matter thereof consists of:
     (b)   The doing of any work by employees of the contracting unit;
     (b)  The doing of any work by employees of the contracting unit;
     (d)   The furnishing of a tax map or maps for the contracting unit;
     (d)  The furnishing of a tax map or maps for the contracting unit;
     (g)   The acquisition, subject to prior approval of the Attorney General, of special equipment for confidential investigation;
     (g)  The acquisition, subject to prior approval of the Attorney General, of special equipment for confidential investigation;
     (h)   The printing of bonds and documents necessary to the issuance and sale thereof by a contracting unit;
     (h)  The printing of bonds and documents necessary to the issuance and sale thereof by a contracting unit;
     (i)    Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with the service, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;
     (i)   Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with the service, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;
     (j)    The publishing of legal notices in newspapers as required by law;
     (j)   The publishing of legal notices in newspapers as required by law;
     (k)   The acquisition of artifacts or other items of unique intrinsic, artistic or historical character;
     (k)  The acquisition of artifacts or other items of unique intrinsic, artistic or historical character;
     (l)    Those goods and services necessary or required to prepare and conduct an election;
     (l)   Those goods and services necessary or required to prepare and conduct an election;
     (m)  Insurance, including the purchase of insurance coverage and consultant services, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;
     (m) Insurance, including the purchase of insurance coverage and consultant services, which exception shall be in accordance with the requirements for extraordinary unspecifiable services;
     (n)   The doing of any work by persons with disabilities employed by a sheltered workshop;
     (n)  The doing of any work by persons with disabilities employed by a sheltered workshop;
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     (o)   The provision of any goods or services including those of a commercial nature, attendant upon the operation of a restaurant by any nonprofit, duly incorporated, historical society at or on any historical preservation site;
     (o)  The provision of any goods or services including those of a commercial nature, attendant upon the operation of a restaurant by any nonprofit, duly incorporated, historical society at or on any historical preservation site;
     (p)   (Deleted by amendment, P.L.1999, c.440.)      (q)   Library and educational goods and services;
     (p)  (Deleted by amendment, P.L.1999, c.440.)      (q)  Library and educational goods and services;
     (r)    (Deleted by amendment, P.L.2005, c.212).
     (r)   (Deleted by amendment, P.L.2005, c.212).
     (t)    (Deleted by amendment, P.L.1999, c.440.)      (u)   Contracting unit towing and storage contracts, provided that all of the contracts shall be pursuant to reasonable non-exclusionary and non-discriminatory terms and conditions, which may include the provision of the services on a rotating basis, at the rates and charges set by the municipality pursuant to section 1 of P.L.1979, c.101 (C.40:48-2.49).  All contracting unit towing and storage contracts for services to be provided at rates and charges other than those established pursuant to the terms of this paragraph shall only be awarded to the lowest responsible bidder in accordance with the provisions of the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.) and without regard for the value of the contract therefor;
     (t)   (Deleted by amendment, P.L.1999, c.440.)      (u)  Contracting unit towing and storage contracts, provided that all of the contracts shall be pursuant to reasonable non-exclusionary and non-discriminatory terms and conditions, which may include the provision of the services on a rotating basis, at the rates and charges set by the municipality pursuant to section 1 of P.L.1979, c.101 (C.40:48-2.49).  All contracting unit towing and storage contracts for services to be provided at rates and charges other than those established pursuant to the terms of this paragraph shall only be awarded to the lowest responsible bidder in accordance with the provisions of the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.) and without regard for the value of the contract therefor;
     (v)   The purchase of steam or electricity from, or the rendering of services directly related to the purchase of steam or electricity from a qualifying small power production facility or a qualifying cogeneration facility as defined pursuant to 16 U.S.C.
     (v)  The purchase of steam or electricity from, or the rendering of services directly related to the purchase of steam or electricity from a qualifying small power production facility or a qualifying cogeneration facility as defined pursuant to 16 U.S.C.
     (x)   The printing of municipal ordinances or other services necessarily incurred in connection with the revision and codification of municipal ordinances;
     (x)  The printing of municipal ordinances or other services necessarily incurred in connection with the revision and codification of municipal ordinances;
     (y)   An agreement for the purchase of an equitable interest in a water supply facility or for the provision of water supply services entered into pursuant to section 2 of P.L.1993, c.381 (C.58:28-2), or an agreement entered into pursuant to N.J.S.40A:31-1 et al., so long as the agreement is entered into no later than six months after the effective date of P.L.1993, c.381;
     (y)  An agreement for the purchase of an equitable interest in a water supply facility or for the provision of water supply services entered into pursuant to section 2 of P.L.1993, c.381 (C.58:28-2), or an agreement entered into pursuant to N.J.S.40A:31-1 et al., so long as the agreement is entered into no later than six months after the effective date of P.L.1993, c.381;
     (2)   It is to be made or entered into with the United States of America, the State of New Jersey, county, or municipality, or any board, body, officer, agency, or authority thereof, or any other state or subdivision thereof.
     (2)  It is to be made or entered into with the United States of America, the State of New Jersey, county, or municipality, or any board, body, officer, agency, or authority thereof, or any other state or subdivision thereof.
     (3)   Bids have been advertised pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4) on two occasions and (a) no bids have been received on both occasions in response to the advertisement, or (b) the governing body has rejected the bids on two occasions because it has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the contracting agent prior to the advertising therefor, or have not been independently arrived at in open competition, or (c) on one occasion no bids were received pursuant to (a) and on one occasion all bids were rejected pursuant to (b), in whatever sequence;
     (3)  Bids have been advertised pursuant to section 4 of P.L.1971, c.198 (C.40A:11-4) on two occasions and (a) no bids have been received on both occasions in response to the advertisement, or (b) the governing body has rejected the bids on two occasions because it has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the contracting agent prior to the advertising therefor, or have not been independently arrived at in open competition, or (c) on one occasion no bids were received pursuant to (a) and on one occasion all bids were rejected pursuant to (b), in whatever sequence;
     (i)    A reasonable effort is first made by the contracting agent to determine that the same or equivalent goods or services, at a cost which is lower than the negotiated price, are not available from an agency or authority of the United States, the State of New Jersey or of the county in which the contracting unit is located, or any municipality in close proximity to the contracting unit;
     (i)   A reasonable effort is first made by the contracting agent to determine that the same or equivalent goods or services, at a cost which is lower than the negotiated price, are not available from an agency or authority of the United States, the State of New Jersey or of the county in which the contracting unit is located, or any municipality in close proximity to the contracting unit;
     (4)   The contracting unit has solicited and received at least three quotations on materials, supplies, or equipment for which a State contract has been issued pursuant to section 12 of P.L.1971, c.198 (C.40A:11-12), and the lowest responsible quotation is at least percent less than the price the contracting unit would be charged for the identical materials, supplies, or equipment, in the same quantities, under the State contract.  A contract entered into pursuant to this subsection may be awarded only upon adoption of a resolution by the affirmative vote of two-thirds of the full membership of the governing body of the contracting unit at a meeting thereof authorizing the contract.  A copy of the purchase order relating to the contract, the requisition for purchase order, if applicable, and documentation identifying the price of the materials, supplies or equipment under the State contract and the State contract number shall be filed with the director within five working days of the award of the contract by the contracting unit.  The director shall notify the contracting unit of receipt of the material and shall make the material available to the State Treasurer.  The contracting unit shall make available to the director upon request any other documents relating to the solicitation and award of the contract, including, but not limited to, quotations, requests for quotations, and resolutions.  The director periodically shall review material submitted by contracting units to determine the impact of the contracts on local contracting and shall consult with the State Treasurer on the impact of the contracts on the State procurement process.  The director may, after consultation with the State Treasurer, adopt rules in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to limit the use of this subsection, after considering the impact of contracts awarded under this subsection on State and local contracting, or after considering the extent to which the award of contracts pursuant to this subsection is consistent with and in furtherance of the purposes of the public contracting laws.
     (4)  The contracting unit has solicited and received at least three quotations on materials, supplies, or equipment for which a State contract has been issued pursuant to section 12 of P.L.1971, c.198 (C.40A:11-12), and the lowest responsible quotation is at least percent less than the price the contracting unit would be charged for the identical materials, supplies, or equipment, in the same quantities, under the State contract.  A contract entered into pursuant to this subsection may be awarded only upon adoption of a resolution by the affirmative vote of two-thirds of the full membership of the governing body of the contracting unit at a meeting thereof authorizing the contract.  A copy of the purchase order relating to the contract, the requisition for purchase order, if applicable, and documentation identifying the price of the materials, supplies or equipment under the State contract and the State contract number shall be filed with the director within five working days of the award of the contract by the contracting unit.  The director shall notify the contracting unit of receipt of the material and shall make the material available to the State Treasurer.  The contracting unit shall make available to the director upon request any other documents relating to the solicitation and award of the contract, including, but not limited to, quotations, requests for quotations, and resolutions.  The director periodically shall review material submitted by contracting units to determine the impact of the contracts on local contracting and shall consult with the State Treasurer on the impact of the contracts on the State procurement process.  The director may, after consultation with the State Treasurer, adopt rules in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to limit the use of this subsection, after considering the impact of contracts awarded under this subsection on State and local contracting, or after considering the extent to which the award of contracts pursuant to this subsection is consistent with and in furtherance of the purposes of the public contracting laws.
     (5)   Notwithstanding any provision of law, rule, or regulation to the contrary, the subject matter consists of the combined collection and marketing, or the cooperative combined collection and marketing of recycled material recovered through a recycling program, or any product intentionally produced or derived from solid waste received at a resource recovery facility or recovered through a resource recovery program including, but not limited to, refuse-derived fuel, compost materials, methane gas, and other similar products, provided that in lieu of engaging in public advertising for bids and the bidding therefor, the contracting unit shall, prior to commencing the procurement process, submit for approval to the Director of the Division of Local Government Services, a written detailed description of the process to be followed in securing the services.  Within 30 days after receipt of the written description the director shall, if the director finds that the process provides for fair competition and integrity in the negotiation process, approve, in writing, the description submitted by the contracting unit.  If the director finds that the process does not provide for fair competition and integrity in the negotiation process, the director shall advise the contracting unit of the deficiencies that must be remedied.  If the director fails to respond in writing to the contracting unit within 30 days, the procurement process as described shall be deemed approved.  As used in this section, “collection” means the physical removal of recyclable materials from curbside or any other location selected by the contracting unit.
     (5)  Notwithstanding any provision of law, rule, or regulation to the contrary, the subject matter consists of the combined collection and marketing, or the cooperative combined collection and marketing of recycled material recovered through a recycling program, or any product intentionally produced or derived from solid waste received at a resource recovery facility or recovered through a resource recovery program including, but not limited to, refuse-derived fuel, compost materials, methane gas, and other similar products, provided that in lieu of engaging in public advertising for bids and the bidding therefor, the contracting unit shall, prior to commencing the procurement process, submit for approval to the Director of the Division of Local Government Services, a written detailed description of the process to be followed in securing the services.  Within 30 days after receipt of the written description the director shall, if the director finds that the process provides for fair competition and integrity in the negotiation process, approve, in writing, the description submitted by the contracting unit.  If the director finds that the process does not provide for fair competition and integrity in the negotiation process, the director shall advise the contracting unit of the deficiencies that must be remedied.  If the director fails to respond in writing to the contracting unit within 30 days, the procurement process as described shall be deemed approved.  As used in this section, “collection” means the physical removal of recyclable materials from curbside or any other location selected by the contracting unit.
     (6)   Notwithstanding any provision of law, rule, or regulation to the contrary, the contract is for the provision of electricity by a contracting unit engaged in the distribution of electricity for retail sale, for the provision of wholesale electricity by a municipal shared services energy authority as defined pursuant to section 3 of P.L.2015, c.129 (C.40A:66-3), or for the provision of administrative or dispatching services related to the transmission of electricity, provided that in lieu of engaging in public advertising for bids and the bidding therefor, the contracting unit shall, prior to commencing the procurement process, submit for approval to the Director of the Division of Local Government Services, a written detailed description of the process to be followed in securing these services.  The process shall be designed in a way that is appropriate to and commensurate with industry practices, and the integrity of the government contracting process.  Within 30 days after receipt of the written description, the director shall, if the director finds that the process provides for fair competition and integrity in the negotiation process, approve, in writing, the description submitted by the contracting unit.  If the director finds that the process does not provide for fair competition and integrity in the negotiation process, the director shall advise the contracting unit of the deficiencies that must be remedied.  If the director fails to respond in writing to the contracting unit within 30 days, the procurement process, as submitted to the director pursuant to this section, shall be deemed approved.
     (6)  Notwithstanding any provision of law, rule, or regulation to the contrary, the contract is for the provision of electricity by a contracting unit engaged in the distribution of electricity for retail sale, for the provision of wholesale electricity by a municipal shared services energy authority as defined pursuant to section 3 of P.L.2015, c.129 (C.40A:66-3), or for the provision of administrative or dispatching services related to the transmission of electricity, provided that in lieu of engaging in public advertising for bids and the bidding therefor, the contracting unit shall, prior to commencing the procurement process, submit for approval to the Director of the Division of Local Government Services, a written detailed description of the process to be followed in securing these services.  The process shall be designed in a way that is appropriate to and commensurate with industry practices, and the integrity of the government contracting process.  Within 30 days after receipt of the written description, the director shall, if the director finds that the process provides for fair competition and integrity in the negotiation process, approve, in writing, the description submitted by the contracting unit.  If the director finds that the process does not provide for fair competition and integrity in the negotiation process, the director shall advise the contracting unit of the deficiencies that must be remedied.  If the director fails to respond in writing to the contracting unit within 30 days, the procurement process, as submitted to the director pursuant to this section, shall be deemed approved.
P.L.2017, c.131, s.174)        5.    Section 6 of P.L.2018, c.17 (C.48:3-87.12) is amended to read as follows:
P.L.2017, c.131, s.174)         5.   Section of P.L.2018, c.17 (C.48:3-87.12) is amended to read as follows:
     6.  a.
      6.  a.
     A remote net metered solar energy project shall:
      A remote net metered solar energy project shall:
     (1) have a capacity up to [five] 20 megawatts, as measured in direct current;
      (1) have a capacity up to [five] 2[20] five2 megawatts, as measured in direct current 2(DC)2 ;
     (2) exclusively serve public entities certified by the board to act as receiving customers and located within the same electric distribution company service territory as the project;
      (2) exclusively serve public entities certified by the board to act as receiving customers and located within the same electric distribution company service territory as the project;
     (3) be located on any property owned, licensed, or leased by any public entity or on any suitable private property, including, but not limited to, rooftops of commercial buildings, parking lots, brownfields [for which a final remediation document has been issued, or properly closed sanitary landfill facilities] , contaminated sites, landfills, or mining sites;
      (3) be located on any property owned, licensed, or leased by any public entity or on any suitable private property, including, but not limited to, rooftops of commercial 2or industrial2 buildings, parking lots, 2[brownfields]2 [for which a final remediation document has been issued, or properly closed sanitary landfill facilities] , contaminated sites, landfills, or mining sites 2, so long as:
     (4) not be sited on:
      (a) prior to commencing construction of the project:  (i) for a contaminated site, a remedial action work plan has been approved by either the Department of Environmental Protection or a licensed site remediation professional pursuant to the regulations adopted under chapter 26C of Title 7 of the New Jersey Administrative Code, and the regulations adopted under chapter 26E of Title 7 of the New Jersey Administrative Code;
     (a) land preserved under the Green Acres Program;
and (ii) for a landfill, a closure plan has been approved by the Department of Environmental Protection;
     (b) land designated as freshwater wetlands as defined pursuant to P.L.1987, c.156 (C.13:9B-1 et seq.), or coastal wetlands as defined pursuant to P.L.1970, c.272 (C.13:9A-1 et seq.);
and       (b) after the time the solar project construction is complete:  (i) if required for a contaminated site, an engineering control has been installed and the Department of Environmental Protection has issued a remedial action permit;
     (c) forested lands, as defined by the board in consultation with the Department of Environmental Protection;
or (ii) the Department of Environmental Protection has deemed a landfill has been properly closed2 ;
or      [d)] (d) prime agricultural soils and soils of Statewide importance, as identified by the United States Department of Agriculture’s Natural Resources Conservation Service, which are located in Agricultural Development Areas certified by the State Agricultural Development Committee;
      (4) not be sited on:
     (5) have a facility size calculated based upon the total aggregate electricity usage of the receiving public entity customer utility accounts to be served by the project, based on the total usage of each proposed customer account over the previous twelve months;
      (a) land preserved under the Green Acres Program;
and      (6) be metered separately.
      (b) land designated as freshwater wetlands as defined pursuant to P.L.1987, c.156 (C.13:9B-1 et seq.), or coastal wetlands as defined pursuant to P.L.1970, c.272 (C.13:9A-1 et seq.);
     b.    The board shall establish a remote net metering application process to approve remote net metered solar energy projects and certify public entities to act as receiving customers for remote net metering generating capacity.  The process shall be modeled after the relevant rules and regulations adopted by the board for the community solar energy program pursuant to section 5 of P.L.2018, c.17 (C.48:3-87.11), including, but not limited to, the calculation of the value of the net metering credit.  An electric public utility shall be entitled to full and timely cost recovery, including the full value of public remote net metering credits provided to customers and billing system investments, associated with public remote net metering consistent with the Community Solar provisions pursuant to subsection e.
      (c) forested lands, as defined by the board in consultation with the Department of Environmental Protection;
or       [d)] (d) prime agricultural soils and soils of Statewide importance, as identified by the United States Department of Agriculture’s Natural Resources Conservation Service, which are located in Agricultural Development Areas certified by the State Agricultural Development Committee;
      (5) have a facility size calculated based upon the total aggregate electricity usage of the receiving public entity customer utility accounts to be served by the project, based on the total usage of each proposed customer account over the previous twelve months;
and       (6) be metered separately.
      b.   The board shall establish a remote net metering application process to approve remote net metered solar energy projects and certify public entities to act as receiving customers for remote net metering generating capacity.  The process shall be modeled after the relevant rules and regulations adopted by the board for the community solar energy program pursuant to section 5 of P.L.2018, c.17 (C.48:3-87.11), including, but not limited to, the calculation of the value of the net metering credit.  An electric public utility shall be entitled to full and timely cost recovery, including the full value of public remote net metering credits provided to customers and billing system investments, associated with public remote net metering consistent with the Community Solar provisions pursuant to subsection e.
     c.     (Deleted by amendment, P.L.2023, c.190)      d.    The electric distribution company that serves the location of a solar energy project approved pursuant to this section shall be responsible for reviewing and approving the interconnection of the solar energy project.
      c.   (Deleted by amendment, P.L.2023, c.190)       d.   The electric distribution company that serves the location of a solar energy project approved pursuant to this section shall be responsible for reviewing and approving the interconnection of the solar energy project.
(cf:
      2e.  For the purposes of this section, a solar facility located on a landfill, brownfield, contaminated site, or mining site may include associated or contiguous lands developed as part of the same project, and no limitation shall be imposed based on the proportion of such associated or contiguous lands relative to the total project area or capacity.2 (cf:
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Action History

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  2. REP/ACA 2RA

  3. TRANS ABU

  4. REP/ACA REF AAP

  5. INT 1RA REF ATU

Sponsors

Sponsorship breakdown

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2 sponsors · 3 co-sponsors · 115 not signed on · 4 voted No

Sponsors (2)

Co-sponsors (3)

Not signed on (115)

115 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Committee vote — ATU

Passed 7 Yea · 2 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 7000
Republican 0201
Total 7201
% of votes cast 70%20%0%10%
How each member voted (10)
Member Party Vote
Bailey Jr., David Democrat Yea
DeAngelo, Wayne P. Democrat Yea
Egan, Kevin P. Democrat Yea
Karabinchak, Robert J. Democrat Yea
Katz, Andrea Democrat Yea
Spearman, William W. Democrat Yea
Walker, Jerry Democrat Yea
Barlas, Al Republican Nay
Myhre, Gregory E. Republican Not Voting
Sauickie, Alex Republican Nay

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Committee vote — ABU

Passed 11 Yea · 3 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 11000
Republican 0301
Total 11301
% of votes cast 73%20%0%7%
How each member voted (15)
Member Party Vote
Abdelaziz, Al Democrat Yea
Freiman, Roy Democrat Yea
Murphy, Carol A. Democrat Yea
Park, Ellen J. Democrat Yea
Pintor Marin, Eliana Democrat Yea
Reynolds-Jackson, Verlina Democrat Yea
Rodriguez, Gabriel Democrat Yea
Schaer, Gary S. Democrat Yea
Schnall, Alexander Democrat Yea
Spearman, William W. Democrat Yea
Venezia, Michael Democrat Yea
Barlas, Al Republican Nay
Inganamort, Michael Republican Not Voting
Rumpf, Brian E. Republican Nay
Scharfenberger, Gerry Republican Nay

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Subjects

energy
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Frequently asked questions

What does A 3974 do?
Renewable energy incentive programs-modifies various provisions
Who sponsors A 3974?
A 3974 is sponsored by Tully, Chris (Democrat), Swain, Lisa (Democrat), Brennan, Katie (Democrat), DeAngelo, Wayne P. (Democrat), and Karabinchak, Robert J. (Democrat).
What is the current status of A 3974?
This bill has been introduced in the General Assembly. Introduced January 13, 2026. It must pass committee before a floor vote.
Where can I track A 3974?
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