Bill Text: NJ A4217 | 2024-2025 | Regular Session | Introduced
Bill Title: Authorizes EDA to use moneys in "Global Warming Solutions Fund" to support projects to refurbish or upgrade existing electricity generation facilities.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-06-24 - Reported out of Assembly Committee, 2nd Reading [A4217 Detail]
Download: New_Jersey-2024-A4217-Introduced.html
Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Assemblyman JAMES J. KENNEDY
District 22 (Somerset and Union)
SYNOPSIS
Authorizes EDA to use moneys in "Global Warming Solutions Fund" to support projects to refurbish or upgrade existing electricity generation facilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the use of moneys in the "Global Warming Solutions Fund" and amending P.L.2007, c.340.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.2007, c.340 (C.26:2C-51) is amended to read as follows:
7. a. The agencies administering programs established pursuant to this section shall maximize coordination in the administration of the programs to avoid overlap between the uses of the fund prescribed in this section.
b. Moneys in the fund, after appropriation annually for payment of administrative costs authorized pursuant to subsection c. of this section, shall be annually appropriated and used for the following purposes:
(1) (a) Sixty percent shall be allocated to the New Jersey Economic Development Authority to provide grants and other forms of financial assistance to commercial, institutional, and industrial entities to support:
(i) end-use energy efficiency projects;
(ii) projects to refurbish or upgrade existing electricity generation facilities in order to modernize, expand, or lengthen the lifespan of the facility; [and]
(iii) the construction of new, efficient electric generation facilities that are state of the art, as determined by the department, including but not limited to energy efficiency and renewable energy applications [,] ;
(iv) projects to develop combined heat and power production and other high efficiency electric generation facilities [,] ;
(v) projects to stimulate or reward investment in the development of innovative carbon emissions abatement technologies with significant carbon emissions reduction or avoidance potential [, to develop] ;
(vi) the development of qualified offshore wind projects pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1) [,] ; and [to provide financial assistance to]
(vii) manufacturers of equipment associated with qualified offshore wind projects.
(b) The authority, in consultation with the board and the department, shall determine:
[(a)] (i) the appropriate level of grants or other forms of financial assistance to be awarded to individual commercial, institutional, and industrial sectors and to individual projects within each of these sectors;
[(b)] (ii) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance, which criteria shall include the ability of the project to result in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand, including through the use of fuel cells or carbon capture technology, provided, however, that neither the development of a new combined heat and power production facility, nor an increase in the electrical and thermal output of an existing combined heat and power production facility, shall be subject to the requirement to demonstrate such a measurable reduction; and
[(c)] (iii) the process by which grants or other forms of financial assistance can be applied for and awarded including, if applicable, the payment terms and conditions for authority investments in certain projects with commercial viability;
(2) Twenty percent shall be allocated to the board to support programs that are designed to reduce electricity demand or costs to electricity customers in the low-income and moderate-income residential sector with a focus on urban areas, including efforts to address heat island effect and reduce impacts on ratepayers attributable to the implementation of P.L.2007, c.340 (C.26:2C-45 et al.) or to support the light duty plug-in electric vehicle incentive program and the incentive program for in-home electric vehicle service equipment established pursuant to sections 4 and 6 of P.L.2019, c.362 (C.48:25-4 and C.48:25-6). For the purposes of this paragraph, the board, in consultation with the authority and the department, shall determine the types of programs to be supported and the mechanism by which to quantify benefits to ensure that the supported programs result in a measurable reduction in energy demand or accomplishment of the plug-in electric vehicle goals established pursuant to section 3 of P.L.2019, c.362 (C.48:25-3);
(3) Ten percent shall be allocated to the department to support programs designed to promote local government efforts to plan, develop and implement measures to reduce greenhouse gas emissions, including but not limited to technical assistance to local governments, and the awarding of grants and other forms of assistance to local governments to conduct and implement energy efficiency, renewable energy, and distributed energy programs and land use planning where the grant or assistance results in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand. For the purpose of conducting any program pursuant to this paragraph, the department, in consultation with the authority and the board, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to local governments; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance; (c) the process by which grants or other forms of financial assistance can be applied for and awarded; and (d) a mechanism by which to quantify benefits; and
(4) Ten percent shall be allocated to the department to support programs that enhance the stewardship and restoration of the State's forests and tidal marshes that provide important opportunities to sequester or reduce greenhouse gases.
c. (1) The department may use up to four percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the department in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).
(2) The board may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the board in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).
(3) The New Jersey Economic Development Authority may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the authority in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases.
d. The State Comptroller shall conduct or supervise independent audit and fiscal oversight functions of the fund and its uses.
(cf: P.L.2019, c.362, s.12)
2. This act shall take effect immediately.
STATEMENT
This bill would authorize the New Jersey Economic Development Authority (EDA) to use moneys in the "Global Warming Solutions Fund" to provide grants or other financial assistance to commercial, institutional, and industrial entities to support projects to refurbish or upgrade existing electric generation facilities in order to modernize, expand, or lengthen the lifespan of the facility. The bill would also clarify that projects may result in a measurable reduction of the emission of greenhouse gases (one of the conditions of receiving financial assistance from the "Global Warming Solutions Fund") through the use of fuel cells or carbon capture technology.
The "Global Warming Solutions Fund," established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50), serves as the repository for moneys received from electric power generation facilities pursuant to New Jersey's participation in the Regional Greenhouse Gas Initiative (RGGI).
