[Second Reprint]

 

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 2848

STATE OF NEW JERSEY

220th LEGISLATURE

  ADOPTED JUNE 27, 2022

 


 

Sponsored by:

Senator  BOB SMITH

District 17 (Middlesex and Somerset)

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

 

 

 

 

SYNOPSIS

     Revises criteria for remote net metering program established by BPU.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Oversight, Reform and Federal Relations Committee on June 22, 2023, with amendments.

  

 

 

 


An Act concerning remote net metering and amending P.L.2018, c.17 2and P.L.2021, c.1692.

 

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

 

      1.  Section 6 of P.L.2018, c.17 (C.48:3-87.12) is amended to read as follows:

      6.  a.  No later than 120 days after the date of enactment of [P.L.2018, c.17 (C.48:3-87.8 et al.)] P.L.    , c.    (C.       ) (pending before the Legislature as this bill), the board shall establish an application and approval process to certify public entities to act as a host customer for 2subsequently allocated2 remote net metering generating capacity.  [A public entity certified to act as a host customer may allocate credits to other public entities within the same electric public utility service territory. A copy of the agreement between the public entity certified to act as a host customer and other public entities designated to receive credits shall be provided to the electric public utility before remote net metering credits may be applied to a customer bill.]  2A solar energy project with a capacity of up to 10 megawatts, as measured in direct current, may allocate credits to any number of public entities within the same electric public utility service area, up to the total usage of each of the public entities' proposed customer accounts over the previous 12 months.  A copy of the board approved allocation agreement between the individual public entities designated to receive credits shall be provided to the electric public utility before remote net metering credits may be applied to a customer's bill.2 

      2[A public entity certified to act as a host customer may 1[individually, or collectively with one or more other public entities,]1 host a solar energy project with a capacity up to 10 megawatts, as measured in direct current, to accommodate the total [average] usage of the electric public utility accounts for the host public entity customer ; and the] In order to be eligible to participate in the remote net metering program pursuant to this section, a2 solar energy project shall:

      (1)  be located on land owned, licensed, or leased by any public entity or on any suitable private property within the electric 1[distribution company’s] public utility’s1 service territory, 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; 1[and]1 2and2 

      (2) 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 2[1; and

      (3) be metered separately1]2 .

      b.   The board shall establish a remote net metering application process to [approve as the primary account holder a certified public entity that is the host customer and the other public entities designated to receive credits] 2approve the public entities designated to receive credits and to2 certify public entities 2[to act as a host customer]2 for remote net metering generating capacity.  The process shall be modeled after the relevant rules and regulations adopted by the board for 1the1 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

      c.   [The board shall require the owner of a solar energy project to pay a certified public entity a pro-rated public sponsor fee of $10,000 per megawatt, up to a 10-megawatt allowance for each public entity.  The board shall require each participating customer to pay at least 50 percent of the societal benefits charge established pursuant to section 12 of P.L.1999, c.23 (C.48:3-60).] (Deleted by amendment, P.L.    , c.   ) (pending before the Legislature as this bill)

      d.  1(1)1  The electric 1[distribution company] public utility1 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.

      1(2)  Subject to review by the board, an electric public utility shall be entitled to full and timely cost recovery for all costs incurred in the implementation of and compliance with this section, including 2any lost margin revenues and2 the full value of all credits provided to participating customers, which review shall be consistent with the review conducted pursuant to subsection e. of section 5 of P.L.2018, c.17 (C.48:3-87.11).1

      2e.  The board shall establish the goal of the generation of an additional 75 megawatts of power each year from solar energy projects participating in the remote net metering program established pursuant to this section.  Subject to board review and approval, a solar energy project that participates in the remote net metering program shall receive the same financial incentive, issued under the small solar facilities incentive program established pursuant to section 3 of P.L.2021, c.169 (C.48:3-116), as a solar energy project that participates in the non-low-and-middle-income segment of the community solar energy program established pursuant to section 5 of P.L.2018, c.17 (C.48:3-87.11), including any additional incentives for public entities approved by the board.2

(cf:  P.L.2018, c.17, s.6)

      22.  Section 3 of P.L.2021, c.169 (C.48:3-116) is amended to read as follows:

      3. a. The board shall develop, as part of the SREC-II program, a small solar facilities incentive program to award SREC-IIs to the owners of community solar facilities , solar facilities up to 10 megawatts in size that participate in the remote net metering program established pursuant to section 6 of P.L.2018, c.17 (C.48:3-87.12), and net metered solar facilities less than five megawatts in size, as measured in direct current, or another size specified by the board.  The small solar facilities incentive program shall aim to provide SREC-IIs for the generation of at least 300 megawatts of net-metered solar facilities per year [and] , 150 megawatts of community solar facilities per year , and 75 megawatts of solar facilities in the remote net metering program, for each of the five years after the establishment of the SREC-II program.

      b.   The board shall establish eligibility criteria and an application process by which an owner of a solar electric power generation facility may apply to receive SREC-IIs pursuant to this section, until the program reaches the energy generation target established by subsection a. of this section, as determined by the board.  Only solar electric power generation facilities that receive permission to operate from the appropriate regional grid operator after the effective date of P.L.2021, c.169 (C.48:3-114 et al.), shall be eligible to receive SREC-IIs pursuant to this section, unless otherwise specified by the board.  A facility shall be eligible to receive SREC-IIs pursuant to this section for a duration established by the board if it is connected to the distribution or transmission system owned or operated by a New Jersey public utility or local government unit.

      c.   The small solar facilities incentive program shall include criteria by which to assign an SREC-II value per megawatt-hour to a solar electric power generation facility.  The criteria shall be designed by the board to incentivize the development of new solar power projects sufficiently so that the goals for solar power development in the State's Energy Master Plan are met, to further other State goals, and to incentivize projects that are especially in the public interest.  The SREC-II value per megawatt-hour may include the value of the environmental and other benefits to the State provided by the facility, as determined by the board.  The criteria may include, but is not limited to, consideration of the following factors:

      (1)  the size of the facility;

      (2)  the costs and revenues associated with representative facilities;

      (3)  for community solar facilities, the economic and demographic characteristics of the area served by the facility, including whether it is located in an overburdened community, as that term is defined in section 2 of P.L.2020, c.92 (C.13:1D-158);

      (4)  whether the facility is located on already developed land or the built environment;

      (5)  the facility's eligibility for net metering pursuant to subsection e. of section 38 of P.L.1999, c.23 (C.48:3-87) or participation in the community solar program established pursuant to subsection f. of section 5 of P.L.2018, c.17 (C.48:3-87.11); and

      (6)  the rate class of the facility, as determined by the appropriate New Jersey electric public utility or local government unit.2

(cf:  P.L.2021, c.169, s.3)

 

     2[2.] 3.2  This act shall take effect immediately.