Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
SYNOPSIS
Revises “Local Bond Law” provisions to exempt certain energy projects from appropriation requirement for five percent down payment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning bond ordinances for local energy projects and amending N.J.S.40A:2-11.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.40A:2-11 is amended to read as follows:
40A:2-11. a. No bond ordinance shall be finally adopted unless it appropriates to the purpose, or ratably to the respective purposes to be financed, in addition to the obligations thereby authorized, a sum as a down payment which is not less than 5% of the amount of the obligations authorized.
b. Said sum so appropriated as a down payment must have been made available prior to final adoption of the bond ordinance from any one or more of the following:
1. by provision in a previously adopted budget or budgets of the local unit for down payment or for capital improvement purposes;
2. from moneys then actually held by the local unit and previously contributed for such purpose other than by the local unit; or
3. by emergency appropriation.
c. The provisions of this section shall not apply to a bond ordinance which authorizes obligations solely for any purpose referred to in paragraphs a., b., c., d., e., and h. of N.J.S.40A:2-7 [or for], for financing any municipal or county solar, wind, or geothermal energy projects, or for financing capital repairs deemed necessary after the completion of an energy audit by the Board of Public Utilities. The provisions of this section also shall not apply to those bond ordinances which involve projects funded by State grants such as Green Acres, Transportation Trust Fund, and other similar programs, or for those bond ordinances which involve environmental infrastructure projects or transportation projects, as defined in section 3 of P.L.1985, c.334 (C.58:11B-3), funded by loans from the "New Jersey Infrastructure Bank," created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4), or the State, acting by and through the Department of Environmental Protection.
(cf: P.L.2021, c.80, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill provides that a bond
ordinance which authorizes
obligations for financing any municipal or county solar, wind, or geothermal
energy projects, or for financing capital repairs deemed necessary after the
completion of an energy audit funded by the Board of Public Utilities, shall be
exempt from the mandatory appropriation of a down payment which is not less
than 5% of the amount of the obligations authorized, pursuant to N.J.S.40A:2-11.