S 1815 — Establishes solar energy grant program in BPU to provide grants to public schools for solar energy projects; appropriates $15 million.

S1815 1R [First Reprint] SENATE, No.

  CURRENT VERSION OF TEXT      IntroducedAs Pendingreported Technicalby Reviewthe bySenate LegislativeEnvironment Counsel.and Energy Committee on March 16, 2026, with amendments.

   An Act establishing a solar energy grant program within the Board of Public Utilities and1[and] ,1 supplementing Title 48 of the Revised Statutes, and making an appropriation.

     1“Department” means the Department of Education.1      "Educational services commission" means the same as the term is defined in section 1 of P.L.1968, c.243 (C.18A:6-51).

     “Eligible entity” or “eligible applicant” means a New Jersey school district, 1public school,1 educational services commission, jointure commission, career or technical school, or community college.

     “Eligible project costs” means costs related to the purchase and installation of equipment, permit fees, energy storage, utility interconnection, and any other costs directly related to a solar energy project which are approved by the Board of Public Utilities in consultation with the New1[New JerseyJersey] Office of the Secretary of1 Higher Education Student1[Student Assistance Authority,Authority]1, the Department of Community Affairs, and the Department of Education.       “Eligible solar energy project” means a system containing one or more solar panels and associated equipment, approved by the Board of Public Utilities in consultation with the New1[New JerseyJersey] Office of the Secretary of1 Higher Education Student1[Student Assistance Authority,Authority]1, the Department of Community Affairs, and the Department of Education.  "Eligible solar energy project" shall not include a self-funded energy efficiency project that is an energy savings improvement program undertaken pursuant to the provisions of P.L.2009, c.4 (C.18A:18A-4.6 et al.) or P.L.2012, c.55 (C.52:34-25.1 et al.).

     “Inflation Reduction Act” means the federal “Inflation Reduction Act of 2022,” Pub.L.Pub.L.117-169.

117-169.

     b.  No later than 180 days after the effective date of this act, the board 1, in consultation with the department,1 shall establish a program to provide grants to eligible entities to fund eligible solar energy projects.  The purpose of the program shall be to assist eligible entities by reducing present and future energy costs, increase resiliency of school energy systems, and take a step towards the State’s climate action goals.

     e.  In the event that an eligible entity that received a grant pursuant to this act1[act] section1 sells, transfers, or conveys the school facility where the solar energy project is located within 20 years after the date of the award of the grant, the eligible entity that received the grant shall notify the board and the new owner of record shall reimburse the board the amount of the grant related to the solar energy project at the school facility as follows:

     (1)  if the school facility where the eligible solar energy project is located is sold, transferred, or conveyed to a new owner of record within five years after the date of the award of the grant, the new owner of record shall reimburse the board in an amount equal to 80 percent of the amount of the grant.grant1[.] ;1      (2)  if the school facility where the eligible solar energy project is located is sold, transferred, or conveyed to a new owner of record more than five years but less than 10 years after the date of the award of the grant, the new owner of record shall reimburse the board in an amount equal to 60 percent of the amount of the grant1[.] ;1      (3)  if the school facility where the eligible solar energy project is located is sold, transferred, or conveyed to a new owner of record more than 10 years but less than 15 years after the date of the award of the grant, the new owner record shall reimburse the board in an amount equal to 40 percent of the amount of the grant1[.] ;

and1      (2) (4)  if the school facility where the eligible solar energy project is located is sold, transferred,transferred or conveyed to a new owner of record more than five15 years but less than 1020 years after the date of the award of the grant, the new owner of record shall reimburse the board in an amount equal to 6020 percent of the amount of the grant.

     (3) f.  ifIn theestablishing school facility where the eligiblegrant solarprogram energypursuant project is located is sold, transferred, or conveyed to athis newsection, owner of record more than 10 years but less than 15 years after the date of the award of the grant, the new owner record shall reimburse the board 1, in anconsultation amountwith equal to 40 percent of the amountdepartment,1 ofshall: the grant.

     (4)  if the school facility where the eligible solar energy project is located is sold, transferred or conveyed to a new owner of record more than 15 years but less than 20 years after the date of the award of the grant, the new owner record shall reimburse the board in an amount equal to 20 percent of the amount of the grant.

     f.  In establishing the grant program pursuant to this section, the board shall:

1and1 operations and maintenance costs;

and      (7)(7)  submit a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature, during each year in which a grant is awarded, on the effectiveness of the grant program in accomplishing the purposes enumerated in subsection b.

     h.  The board 1, in consultation with the department,1 may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to establish and implement the grant program.

       3.  This act shall take effect immediately.immediately. 

    STATEMENT        This bill establishes a solar energy grant program, to begin no later than 180 days after the effective date of this act, within the Board of Public Utilities (BPU) to provide grants for school districts, jointure commissions, educational services commissions, career and technical schools, and community colleges in New Jersey.       The purpose of the program is to assist public schools with reducing present and future energy costs, increase resiliency of school energy systems, and to take a step towards the State’s climate action goals.  In order to be eligible for a grant, the applicant must be:

a school district, a jointure commission, educational services commission, a State career or technical school, or a community college.  The grant awarded by this bill would cover up to 50 percent of the eligible solar energy project’s eligible costs, which are to be determined by the BPU in consultation with the New Jersey Higher Education Student Assistance Authority, the Department of Community Affairs, and the Department of Education.

     The bill requires the BPU to develop guidelines and procedures for the submission of grant applications, and criteria for the evaluation of applications;

establish terms and conditions for the awarding of a grant and monitor grant recipients' compliance with the terms and conditions;

provide technical assistance and information related to funding opportunities through the federal Inflation Reduction Act;

develop educational materials about using, purchasing, financing, and maintaining eligible solar energy projects;

and develop a financial risk and savings report that all eligible solar energy projects shall utilize and update monthly.  The BPU may also require the grant recipient to report to the board information relating to its use of grant funds under the program.

The bill directs the BPU to submit a report to the Governor and the Legislature, during each year in which a grant is awarded, on the effectiveness of the grant program.  Within 90 days of the effective date of the bill, the BPU is required to publish the guidelines required by paragraph (1) of subsection f.

of section 1 of the bill on the board’s Internet website.  The bill would appropriate $15 million, from the General Fund, to effectuate the provisions of the bill.