S 1757 — Establishes Office of Clean Energy Equity in BPU; directs establishment of certain clean energy, energy efficiency, and energy storage programs for overburdened communities; makes change to community solar program.

     (7)  the cost-effectiveness of the programs established pursuant to P.L.    , c.

    (C.          ) (pending before the Legislature as this bill);

and      (8)  whether program targets should be modified, expanded, suspended, or extended.

     i.1  As used in this section:

       2.  (New section) a.  (1)  The Office of Clean Energy Equity established pursuant to section 1 of P.L.   P.L.    , ,c.    c.  (C.          )  (C.          ) (pending before the Legislature as this bill) shall collaborate with the Department of Labor and Workforce Development, the New Jersey Economic Development Authority, the New Jersey Commission on Science, Innovation, and Technology, the Office of the Secretary of Higher Education, and any other staff or resources designated by the Board of Public Utilities, to develop program guidelines for clean energy job training and workforce development grants to be issued by the New Jersey Economic Development Authority, Department of Education, and the Department of Labor and Workforce Development.  The grants shall be provided to community-based, diversity-focused nonprofit organizations, community colleges, vocational-technical schools, and other qualified training partners including union apprenticeship programs that demonstrate a commitment to focused work in overburdened communities, demonstrate partnerships with employers located in close proximity to overburdened communities who will employ program participants, and will hire individuals from the communities where the work is located.  The purpose of the grants shall be to develop energy efficiency or clean energy paid workforce training programs that provide training to at least 2,500 individuals from overburdened communities by1[by 2025. 2025] within five years after the first grant is issued1 .  The grant issuer shall require, as a condition of a grant award, that the programs be updated every two years to ensure that they prepare participants adequately for the current job market in the energy efficiency or clean energy industry.       (2)   The Department of Labor and Workforce Development shall develop, in coordination with community-based organizations, programs to provide entrepreneurial training, mentoring, apprenticeships, investment capital, loans, or other training, capacity building, technical, and financial support to residents of overburdened communities to help launch new clean energy enterprises or establish careers in the clean energy workforce.

The department shall give preference to applications for onsite, community solar, energy storage, or other clean energy projects that are sited in overburdened communities or include minority or women-owned businesses.businesses.  1The department shall further require that all new construction, which is located in an overburdened community, and for which the installation of a rooftop or other solar energy system can be demonstrated to be economically feasible over the lifecycle of the building, shall include a rooftop or other solar energy system.  In implementing the provisions of this subsection, the department shall:

     b.   (1)  Theaccount commissionerfor shalldifferences adoptin rulesbuilding andtype, regulations,including pursuantowner-occupied tohomes, themultifamily "Administrativehomes, Procedureand Act,"subsidized P.L.1968,housing; c.410 (C.52:14B-1 et seq.), in order to effectuate the purposes of this section.

     (2)  provide appropriate flexibility or waivers where installation would materially impact the feasibility of a new construction project, affordability requirements, or site suitability;

     (3)  align the requirements of this subsection with available State and federal incentives and financing mechanisms;

and      (4)  ensure coordination with the Board of Public Utilities to develop clear, administrable standards.1      b.    The commissioner shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), in order to effectuate the purposes of this section.

       4.   1[4. Section 5 of P.L.2018, c.17 (C.48:3-87.11) is amended to read as follows:

Section 5 of P.L.2018, c.17 (C.48:3-87.11) is amended to read as follows:

P.L.2018, c.17, s.5)s.5)]1        5.   14.  (NewSection section) 5 The board shall conduct a study to examine utility rate schedules applied to customers living in multi-family housing served by a single meter, and the community solar bill credits and effective savings available to those customers.  The study shall assess whether customers living in multi-family housing are eligible to receive similar financial benefits from community solar participation as those customers residing in single-family residences, and make suggestions for legislative or regulatory action to ensure the equitable distribution of theP.L.2018, benefitsc.17 and(C.48:3-87.11) cost-savingsis ofamended community solar.  In conducting the study, the board shall solicit comments from utilities, public interest groups, and other interested parties.  The board shall report its findings to theread Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature no later than 270 days after the effective date of P.L.    , c.   (C.        ) (pending before the Legislature as thisfollows: bill).         6.    This act shall take effect immediately.

STATEMENT        This5. bill would establish the Office of Clean Energy Equity (“office”) in the Board of Public Utilities (BPU).  The office would be charged with promoting, guiding, and overseeing the equitable deployment of clean energy, energy efficiency, and energy storage programs and technologies in overburdened communities, and the equitable provision of the tangible benefits of clean energy, increased energy efficiency, and energy storage at the household and community level, including clean energy asset ownership, energy cost savings, and employment and economic opportunities, to overburdened communities.  The bill would require the BPU to:  (1) establish onsite solar or community solar programs, which benefit 250,000 low income households or 35 percent of the low income households in the State, whichever is larger, by 2030, with the goal of reducing these households’ average energy burden to below six percent of household income;

anda. (2) require the establishment of a minimum of 1,600 megawatt hours of energy storage to benefit overburdened communities by 2030.

    No Inlater addition,than 210 days after the BPU,date inof cooperationenactment withof P.L.2018, c.17 (C.48:3-87.8 et al.), the office,Board wouldof bePublic requiredUtilities to: shall integrateadopt, workforcepursuant developmentto trainingthe into“Administrative allProcedure cleanAct,” energyP.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a “Community Solar Energy Pilot Program” to permit customers of an electric public utility to participate in a solar energy storageproject programsthat establishedis byremotely located from their properties but is within their electric public utility service territory to allow for a credit to the BPU;customer's utility bill equal to the electricity generated that is attributed to the customer's participation in the solar energy project.

provide     outreachb.    andThe recruitmentrules campaignand grantsregulations todeveloped community-basedby organizationsthe toboard increaseshall participationestablish: in clean energy and energy efficiency programs;

develop,     in(1)   coordinationa withcapacity community-basedlimit organizations,for outreachindividual materialssolar inenergy multipleprojects languages;to a maximum of five megawatts per project;

appoint     a(2)   community liaison and establish an advisoryannual boardcapacity consistinglimit offor representativesall ofsolar overburdenedenergy communitiesprojects tounder review and evaluate the cleanpilot energyprogram; and energy storage programs available to overburdened communities;

and     coordinate(3)   withgeographic thelimitations Departmentfor ofsolar Laborenergy andprojects Workforce Development (DLWD) and theparticipating Departmentcustomers; of Community Affairs (DCA) concerning their responsibilities pursuant to sections and 3 of the bill.

     The(4)   billa wouldminimum requirenumber the BPU to direct no less than 10 percent of theparticipating BPU’scustomers annual total clean energy budget, or at least $50 million annually, whichever is greater, to the office for theeach purposes of the bill.  The BPU would be authorized to allocate additional funding, staff, and resources to the office as it determines appropriate.       In addition, the bill would require the office, in collaboration with the DLWD, New Jersey Economic Development Authority (EDA), New Jersey Commission on Science, Innovation, and Technology (CSIT), and the Office of the Secretary of Higher Education (OSHE) to establish program guidelines for clean energy job training and workforce development grants to be issued by the EDA, Department of Education (DOE), and the DLWD.  The grants would be issued to community-based, diversity-focused nonprofit organizations, community colleges, vocational-technical schools, and other organizations to develop energy efficiency or clean energy paid workforce training programs that provide training to at least 2,500 individuals from overburdened communities by 2025.  Under the bill, it would be a condition of a grant award that the programs be updated every two years to ensure that they prepare participants adequately for the current job market in the solar energy orproject; clean energy industry.

The     bill(5)   would also direct the DLWD,value in coordination with community-based organizations, to develop programs to provide entrepreneurial training, mentoring, apprenticeships, investment capital, loans, or other training, capacity building, technical, and financial support to residents of overburdenedthe communitiescredit toon helpeach launchparticipating newcustomer's cleanbill; energy enterprises or establish careers in the clean energy workforce.

     The(6)   billstandards would also direct the DCA, in consultation with the office, to requirelimit the allland newuse constructionimpact locatedof ina an overburdened community be solar ready,energy subjectproject to any specific exemptions that the DCA and the BPU deem reasonable and necessary and that the DCA adopts as rulesrequired and regulations.  The bill would also require the DCA to give preference to applications for onsite, community solar, energy storage, or other clean energy projects that are sited in overburdenedsubsection communitiesr. or include minority or women-owned businesses.

     Lastly, the bill would amend the law establishing the Community Solar Energy Pilot Program to require that the eventual permanent community solar program provide for access to solar energy projects for low and moderate income customers, in accordance with the requirements of thesection bill. 38 In addition, the bill would require that the permanent community solar program be consistent with any land use provisions of theP.L.1999, permanentc.23 successor(C.48:3-87); to the SREC program.

     (7)   the provision of access to solar energy projects for low and moderate income customers;

     (8)   standards to ensure the ability of residential and commercial customers to participate in solar energy projects, including residential customers in multifamily housing;

     (9)   standards for connection to the distribution system of an electric public utility;

and      (10) provisions to minimize impacts to the distribution system of an electric public utility.

     c.     The board shall make available on its Internet website information on solar energy projects whose owners are seeking participants.

     d.    The board shall establish standards and an application process for owners of solar energy projects who wish to be included in the Community Solar Energy Pilot Program.

The standards for the Community Solar Energy Pilot Program shall include, but need not be limited to, a verification process to ensure that the solar energy projects are producing an amount of energy that is greater than or equal to the amount of energy that is being credited to its participating customer's electric utility bills pursuant to subsection b.

of this section, and consumer protection measures.  Projects approved by the board shall have at least two participating customers.

     The board may restrict, qualified solar energy projects to those located on brownfields, landfills, areas designated in need of redevelopment, in underserved communities, or on commercial rooftops.

     e.     Subject to review by the board, an electric public utility shall be entitled to full and timely cost recovery for all costs incurred in implementation and compliance with this section.

     f.     No later than 36 months after adoption of the rules and regulations required pursuant to subsection b.

of this section, the board shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to convert the Community Solar Energy Pilot Program to a permanent program.  The board shall adopt rules and regulations for the permanent program that set forth standards for projects owned by special purpose entities and nonprofit entities.  The rules and regulations shall also:

     (1)   limit the capacity of each solar energy project to a maximum of five megawatts;

     (2) (a) establish a goal for the conditional registration of 225 megawatts of solar energy projects prior to June 1, 2024, with an additional 275 megawatts prior to June 1, 2024 if qualified applications exceed 225 megawatts, and an additional 250 megawatts prior to June 1, 2025 if qualified applications exceed 500 megawatts;

and      (b)   stipulate that the board shall open registration, by October 1, 2025, for 3,000 megawatts of solar energy projects in addition to the conditional registration goals already established pursuant to this paragraph.  The board shall accept and approve registrations pursuant to this subparagraph until the earlier of December 31, or such time as the 3,000 megawatts of solar energy projects are completely registered.  The board shall set SREC-II levels and guaranteed bill credit discount levels as appropriate to enable the complete registration of 3,000 megawatts of solar energy projects by December 31, 2029;

     (3)   set geographic limitations for solar energy projects and participating customers;

     (4)   provide for a minimum number of participating customers for each solar energy project;

     (5)   require the provision of access to solar energy projects for low and moderate income customers in accordance with the requirements of section 1 of P.L.    , c.    (C.          ) (pending before the Legislature as this bill);

     (6)   establish standards to ensure the ability of residential and commercial customers to participate in solar energy projects, including residential customers in multifamily housing;

     (7)   establish a method for determining the value of the credit on each participating customer's bill;

     (8)   establish timeframes for the credit available to the customer;

     (9)   establish standards and methods to verify solar electric energy generation on a monthly basis for a solar energy project;

     (10)  establish standards consistent with the land use provisions for solar energy projects as provided in subsections r., s., and t.

of section 38 of P.L.1999, c.23 (C.48:3-87) and any land use provisions of the SREC-II program established pursuant to P.L.2021, c.169 (C.48:3-114 et al.);

     (11)  establish standards, fees, and uniform procedures for solar energy projects to be connected to the distribution system of an electric public utility;

     (12)  minimize impacts to the distribution system of an electric public utility;

     (13)  require monthly reporting requirements for the operators of solar energy projects to the electric public utility, project customers, and the board;

     (14)  require reporting by the electric public utility to the operator of a solar energy project on the value of credits to the participating customer's bills;

     (15)  require transferability, portability, and buy-out provisions for customers who participate in community solar energy projects;

     (16)  establish requirements and standards that provide for the auditing and enforcement of a solar energy project's compliance with the provisions of this section and the rules and regulations adopted pursuant thereto, including the project's compliance with commitments related to providing access to solar energy projects to low- and moderate-income customers and bill crediting;

[and]      (17)  allow, in a form and manner to be determined by the board, low- and moderate-income residential customers to self-attest to the customer's income as an acceptable income verification method for participation in a solar energy project ;

and      (18)  require that each community solar project serving low- and moderate-income subscribers provide a guaranteed minimum bill credit discount, as determined by the board, sufficient to produce meaningful and measurable energy cost savings for participating households.

     g.    As used in this section:

     “Solar energy project” means a system containing one or more solar panels and associated equipment.

     “Solar panel” means an elevated panel or plate, or a canopy or array thereof, that captures and converts solar radiation to produce electric power, and is approved by the board to be included in the Community Solar Energy Pilot Program.

     “Solar power” includes flat plate, focusing solar collectors, or photovoltaic solar cells and excludes the base or foundation of the panel, plate, canopy, or array.1 (cf:

P.L.2025, c.135, s.1)        5.    (New section)  The board shall conduct a study to examine utility rate schedules applied to customers living in multi-family housing served by a single meter, and the community solar bill credits and effective savings available to those customers.  The study shall assess whether customers living in multi-family housing are eligible to receive similar financial benefits from community solar participation as those customers residing in single-family residences, and make suggestions for legislative or regulatory action to ensure the equitable distribution of the benefits and cost-savings of community solar.  In conducting the study, the board shall solicit comments from utilities, public interest groups, and other interested parties.  The board shall report its findings to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature no later than 270 days after the effective date of P.L.    , c.   (C.        ) (pending before the Legislature as this bill).          6.    This act shall take effect immediately.