Bill Text: NJ A5200 | 2024-2025 | Regular Session | Introduced
Bill Title: Authorizes construction, installation, and operation of solar energy generating facilities, structures, and equipment on preserved farmland, in certain cases, pursuant to lease agreement executed between landowner and solar developer.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-16 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A5200 Detail]
Download: New_Jersey-2024-A5200-Introduced.html
Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Authorizes construction, installation, and operation of solar energy generating facilities, structures, and equipment on preserved farmland, in certain cases, pursuant to lease agreement executed between landowner and solar developer.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the construction, installation, and operation of solar energy generating facilities, structures, and equipment on preserved farms, and amending P.L.2009, c.213.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.2009, c.213 (C.4:1C-32.4) is amended to read as follows:
1. a. Notwithstanding any law, rule, or regulation to the contrary, a person who owns preserved farmland may construct, install, and operate biomass, solar, or wind energy generation facilities, structures, and equipment on the farm, whether on the preserved portion of the farm or on any portion excluded from preservation, for the purpose of generating power or heat, and may make improvements to any agricultural, horticultural, residential, or other building or structure on the land for that purpose, provided that the biomass, solar, or wind energy generation facilities, structures, and equipment:
(1) do not interfere significantly with the use of the land for agricultural or horticultural production, as determined by the committee;
(2) (a) are owned by the landowner[, or]; (b) will be owned by the landowner upon the conclusion of the term of an agreement with the installer of the biomass, solar, or wind energy generation facilities, structures, or equipment by which the landowner uses the income or credits realized from the biomass, solar, or wind energy generation to purchase the facilities, structures, or equipment; or (c) in the case of solar energy generation facilities, structures, or equipment, are owned by, and will remain subject to the ownership of, the solar energy developer who installs or constructs the facilities, structures, or equipment on the land, in accordance with the terms of a valid lease agreement executed between the landowner and solar developer, which agreement includes provisions clearly identifying the boundaries and size of the land being leased for solar energy generation purposes, the duration of the lease and the options for renewal and termination thereof, the amount of rent to be paid under the lease, as well as the rent payment schedule and any adjustments required to account for inflation, the responsibilities of each party with respect to the ongoing maintenance of the solar energy generating facilities, structures, or equipment constructed or installed pursuant to the lease, the consequences of default on the lease, and the means and methods that are required to be employed, and the performance and land quality standards that are required to be satisfied, by each party, to ensure the proper and full restoration of the land, and the return of the land to its original state, following the termination of, or default on, the lease;
(3) are used to provide power or heat to the farm, either directly or indirectly, or to reduce, through net metering or similar programs and systems, energy costs on the farm; and
(4) are limited (a) in annual energy generation capacity to the previous calendar year's energy demand plus 10 percent, in addition to what is allowed under subsection b. of this section, or alternatively at the option of the landowner (b) to occupying no more than one percent of the area of the entire farm including both the preserved portion and any portion excluded from preservation.
The person who owns the farm and the energy generation facilities, structures, and equipment may only sell energy through net metering or as otherwise permitted under an agreement allowed pursuant to paragraph (2) of this subsection.
b. The limit on the annual energy generation capacity established pursuant to subparagraph (a) of paragraph (4) of subsection a. of this section shall not include energy generated from facilities, structures, or equipment existing on the roofs of buildings or other structures on the farm as of the date of enactment of P.L.2009, c.213 (C.4:1C-32.4 et al.).
c. A landowner shall seek and obtain the approval of the committee before constructing, installing, and operating biomass, solar, or wind energy generation facilities, structures, and equipment on the farm as allowed pursuant to subsection a. of this section. The committee shall provide the holder of any development easement on the farm with a copy of the application submitted for the purposes of subsection a. of this section, and the holder of the development easement shall have 30 days within which to provide comments to the committee on the application. The committee shall, within 90 days of receipt, approve, disapprove, or approve with conditions an application submitted for the purposes of subsection a. of this section. The decision of the committee on the application shall be based solely upon the criteria listed in subsection a. of this section and comments received from the holder of the development easement.
d. No fee shall be charged of the landowner for review of an application submitted to, or issuance of a decision by, the committee pursuant to this section.
e. The committee may suspend or revoke an approval issued pursuant to this section for a violation of any term or condition of the approval or any provision of this section.
f. The committee, in consultation with the Department of Environmental Protection and the Department of Agriculture, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary for the implementation of this section, including provisions prescribing standards concerning impervious cover which may be permitted in connection with biomass, solar, or wind energy generation facilities, structures, and equipment authorized to be constructed, installed, and operated on lands pursuant to this section.
g. In the case of biomass energy generation facilities, structures, or equipment, the landowner shall also seek and obtain the approval of the Department of Agriculture as required pursuant to section 5 of P.L.2009, c.213 (C.4:1C-32.5) if the land is valued, assessed and taxed pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).
h. Notwithstanding any provision of this section to the contrary, the construction, installation, or operation of any biomass, solar, or wind energy generation facility, structure, or equipment in the pinelands area, as defined and regulated by the "Pinelands Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), shall comply with the standards of P.L.1979, c.111 and the comprehensive management plan for the pinelands area adopted pursuant to P.L.1979, c.111.
i. For the purposes of this section:
"Biomass" means an agricultural crop, crop residue, or agricultural byproduct that is cultivated, harvested, or produced on the farm and which can be used to generate energy in a sustainable manner.
"Net metering" means the same as that term is used for purposes of subsection e. of section 38 of P.L.1999, c.23 (C.48:3-87).
"Preserved farmland" means land on which a development easement was conveyed to, or retained by, the committee, a board, or a qualifying tax exempt nonprofit organization pursuant to the provisions of section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland preservation purposes.
(cf: P.L.2009, c.213, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill would amend the law that authorizes the construction, installation, and operation of solar, biomass, and wind energy generating facilities, structures, and equipment on preserved farmland in certain cases, in order to specify that solar energy generating facilities, structures, and equipment may be installed or constructed, and used for solar energy generating purposes, on preserved farmland, even if the solar energy generating facilities, structures, or equipment are not owned by the landowner. When this law was first adopted, in 2009, the leasing of solar panels was not a popular solution to facilitate the provision of solar power. However, as the solar industry has matured over the years, leasing has become a viable option for landowners. This bill would update the law to reflect, and to ensure consistency with, current practices in this area.
Under the bill's provisions, the owner of a preserved farm would be authorized to construct, install, and operate solar energy generating facilities, structures, or equipment on the preserved farm, so long as those facilities, structures, and equipment: 1) are owned by the landowner; 2) will be owned by the landowner upon the conclusion of the term of an agreement with the installer of the biomass, solar, or wind energy generation facilities, structures, or equipment by which the landowner uses the income or credits realized from the biomass, solar, or wind energy generation to purchase the facilities, structures, or equipment; or 3) are owned by, and will remain subject to the ownership of, the solar energy developer who installs or constructs the facilities, structures, or equipment on the land, in accordance with the terms of a valid lease agreement executed between the landowner and solar developer, which agreement includes provisions clearly identifying the boundaries and size of the land being leased for solar energy generation purposes, the duration of the lease and the options for renewal and termination thereof, the amount of rent to be paid under the lease, as well as the rent payment schedule and any adjustments required to account for inflation, the responsibilities of each party with respect to the ongoing maintenance of the solar energy generating facilities, structures, or equipment constructed or installed pursuant to the lease, the consequences of default on the lease, and the means and methods that are required to be employed, and the performance and land quality standards that are required to be satisfied, by each party, to ensure the proper and full restoration of the land, and the return of the land to its original state, following the termination of, or default on, the lease.
