S2732 2R

An Act concerning deadlines for completion and commercial operation of certain solar electric power generation facilities under certain circumstances and supplementing P.L.1999, c.23 (C.48:3-49 et al.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Notwithstanding the provisions of P.L.1999, c.23 (C.48:3-49 et al.), P.L.2021, c.169 (C.48:3-114 et al.), or any other law, rule, regulation, or order to the contrary, a qualified solar electric power generation facility that, due to a delay attributable to a tolling event, fails, or is projected to fail, to achieve project completion or commercial operation by the deadline date established by law, rule, regulation, board order, incentive program registration acceptance letter, or other approval or authorization for that facility, shall receive an automatic extension of the project completion or commercial operation deadline date established for that facility.

The extension granted pursuant to this section shall be for a period ²[coextensive with the duration of the delay associated with the applicable tolling event. The delay shall be deemed to end at such time as the developer of the qualified solar electric power generation facility is authorized to commence construction using the dates and pursuant to an Interconnection Service Agreement executed between the project sponsor, PJM Interconnection, L.L.C., and the public electric utility.] that is two years beyond what otherwise would be the deadline for the qualified solar electric power generation facility to achieve commercial operation pursuant to the applicable board order granting conditional certification as connected to the distribution system, including any extensions previously authorized by law, rule, regulation, or applicable board order.² The automatic extension shall protect the qualified solar electric power generation facility from forfeiting the following:

(1) designation as “connected to the distribution system”;

(2) eligibility to continue to participate in the applicable solar incentive program for which application was made;

(3) eligibility to receive the financial incentives provided by the solar incentive program for which application was made; and

(4) any other benefit or incentive available to a qualified solar electric power generation facility conditionally approved to participate in the solar incentive program.

b. (1) To be eligible to receive the automatic extension provided by this section, the project sponsor of a qualified solar electric power generation facility shall certify in writing, and provide supporting documentation, to the board of the occurrence of the tolling event. The certification shall describe the tolling event, the date of application to PJM Interconnection, L.L.C., and the anticipated duration of the delay associated with the tolling.

(2) Within 45 days after receipt of a certification from a project sponsor of the occurrence of a tolling event pursuant to paragraph (1) of this subsection, the board shall issue an unconditional order approving an automatic extension of the project deadline date or commercial operation deadline date established for the facility, whether established by law, rule, regulation, board order, incentive program registration acceptance letter, or other approval or authorization for that facility.

The order shall be issued by the board on a non-discretionary basis, and no factual investigation or hearing by the board shall be conducted. The order shall acknowledge receipt of certification of the tolling event, extend the previously established project completion or commercial operation deadline date for the facility by an amount of time ²[coextensive with the duration of the tolling event] prescribed by this section², and provide such other and further relief as the board may deem appropriate. ²[The board order shall be effective as of the date of the certification of the tolling event.]²

c. A project sponsor shall have a continuing obligation to apprise the board, on at least a quarterly basis, regarding the nature and extent of the tolling event and its anticipated duration, which requirement may be satisfied by including such information in the quarterly milestone reporting form required to be submitted to the board for the qualified solar electric power generation facility.

d. ²[Upon conclusion of the tolling event, the project sponsor shall timely resume and complete development of those aspects of the facility that were delayed by the tolling event.]² The project sponsor shall complete the facility and commence commercial operation within the ²[timeframe permitted by the Interconnection Service Agreement executed between the project sponsor, PJM Interconnection, L.L.C., and the public electric utility] time period provided by the applicable board order and this section².

e. ²To receive the extension of time to achieve commercial operation provided by this section, the project sponsor shall, together with the certification of the tolling event for which an extension is required, deposit with the board a security escrow in the amount of $4,000 per megawatt for which the qualified solar electric power generation facility has applied to be certified as connected to the distribution system by the board. In the event the qualified solar electric power generation facility for which a security escrow has been deposited pursuant to this subsection does not achieve commercial operation by the date required by any applicable board order and this section, the security escrow shall be released to the board and forfeited by the project sponsor.

f. Notwithstanding any provision of this section or any other law, rule, or regulation to the contrary, in the event a qualified solar electric power generation facility receiving an extension pursuant to this section achieves commercial operation on or prior to December 31, 2026, that qualified solar electric power generation facility shall receive the full solar incentive pursuant to the solar incentive program for which application was made.

In the event a qualified solar electric power generation facility receiving an extension pursuant to this section achieves commercial operation on or after January 1, 2027, but prior to December 31, 2027, that qualified solar electric power generation facility shall receive the solar incentive pursuant to the solar incentive program for which application was made at a discount of five percent of the original incentive value.

In the event a qualified solar electric power generation facility receiving an extension pursuant to this section achieves commercial operation on or after January 1, 2028, but prior to December 31, 2028, that qualified solar electric power generation facility shall receive the solar incentive pursuant to the solar incentive program for which application was made at a discount of 10 percent of the original incentive value.

g.² As used in this section:

“Project sponsor” means a municipality, business entity, person, property owner, developer, redeveloper, or other interest that is the party pursuing the development and implementation of a qualified solar electric power generation facility under a solar incentive program administered by the board.

“Qualified solar electric power generation facility” or “facility” means a solar electric power generation facility for which a project sponsor has submitted ¹, on or before August 28, 2021,¹ an application for conditional approval to participate in a solar incentive program pursuant to subsection t. of section 38 of P.L.1999, c.23 (C.48:3-87), and includes a facility that has received conditional approval from the board to participate in the solar incentive program pursuant to subsection t. of section 38 of P.L.1999, c.23 (C.48:3-87) for which application was made.

¹[“Solar incentive program” means a program administered by the board which awards transition renewable energy certificates.]¹

“Tolling event” means any action or inaction of the PJM Interconnection, L.L.C., ²[or an applicable electric public utility,]² any moratorium in new applications declared by the PJM Interconnection, L.L.C., ²[or an applicable electric public utility,]² any deferral in processing of existing applications by the PJM Interconnection, L.L.C., ²[or an applicable electric public utility,]² any new application process, study, report, or analysis established by the PJM Interconnection, L.L.C., ²[or an applicable electric public utility,]² to approve and contract a project, ¹[or]¹ the deferral to negotiate, execute, and deliver any other engineering or other studies, agreements, or approvals required by the PJM Interconnection, L.L.C., ²[or an applicable electric public utility,]² as a prerequisite to project interconnection or commercial operation of a qualified solar electric power generation facility ²[, ¹[that] or any undue delay in the provision of a permit or approval required by a local government unit, including a local land use board, caused by the action or inaction of the local government unit, which¹ delays the timely completion or commercial operation of a qualified solar electric power generation facility]².

¹[“Transition renewable energy certificate” means a certificate issued by the Board of Public Utilities or its designee, under the solar energy transition incentive program, which is designed to transition between the solar renewable energy certificate program and a solar successor incentive program to be developed by the Board of Public Utilities pursuant to P.L.2018, c.17