Bill Text: NJ S1406 | 2010-2011 | Regular Session | Introduced
Bill Title: Establishes "New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program."
Spectrum: Moderate Partisan Bill (Democrat 21-3)
Status: (Enrolled - Dead) 2011-12-15 - Passed Assembly (Passed Both Houses) (45-25-1) [S1406 Detail]
Download: New_Jersey-2010-S1406-Introduced.html
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
Senator CHRISTOPHER "KIP" BATEMAN
District 16 (Morris and Somerset)
SYNOPSIS
Establishes "New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program."
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the purchase of solar energy systems, supplementing Title 34 of the Revised Statutes and amending various sections of Title 40 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The New Jersey Economic Development Authority in consultation with the Board of Public Utilities, shall establish the "New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program" to provide financing for municipalities who wish to facilitate the purchase of solar energy systems by homeowners, or by groups of property owners acting jointly to share the costs and benefits of such improvements.
2. (New section) a. To implement the program, the New Jersey Economic Development Authority shall establish low-cost sources of financing, such as qualified energy conservation bonds and investment from private capital sources, to provide funding for the purchase of solar energy systems to interested municipalities.
b. In addition to the works enumerated in R.S.40:56-1, a municipality may choose to adopt an ordinance to establish a program to facilitate the purchase of solar energy systems by homeowners and apply to the New Jersey Economic Development Authority to receive funds for the purchase of solar energy systems. Funds for the purchase of solar energy systems shall be loaned to homeowners in exchange for a special assessment on the property pursuant to R.S.40:56-1 et seq., to be paid quarterly. Homeowners shall also receive a solar renewable energy credit though the Board of Public Utilities. Both the special assessment payments and the solar renewable energy credits shall be assigned by the municipality and the homeowner to the New Jersey Economic Development Authority, and the proceeds from the assessments and the sale of the solar renewable energy credits shall be used by New Jersey Economic Development Authority to pay bondholders and to provide financial incentives to municipalities to participate in the "Municipal Solar Energy Financing Program."
c. In consultation with the Board of Public Utilities, the New Jersey Economic Development Authority shall appoint an administrator for the "New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program," to manage all public bids for sales of solar energy systems; applications from municipalities to participate in the program; assignments of solar renewable energy credits to the authority from participating homeowners; assignments of special assessment payments to the New Jersey Economic Development Authority from municipalities; contracts between vendors, municipalities, and homeowners; promotion of the program through an Internet web site, local media outlets, and materials sent to municipal governing bodies; quality management at each step in the program, and establishment of best practices for municipalities who wish to participate; and any other responsibilities which the authority deems appropriate.
d. The New Jersey Economic Development Authority shall coordinate efforts with the Board of Public Utilities to ensure that the amount of financing made available for the program through the authority, and the allocation of those funds among participating municipalities, is in accordance with limits set from time to time by the Board of Public Utilities, and to otherwise ensure that the NJ PACE program furthers the goals of the Office of Clean Energy in the Board of Public Utilities.
3. (New section) The New Jersey Economic Development Authority shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), and in consultation with the Board of Public Utilities, any rules and regulations necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. R.S.40:56-1 is amended to read as follows:
40:56-1. A local improvement is one, the cost of which, or a portion thereof, may be assessed upon the lands in the vicinity thereof benefited thereby.
Any municipality may undertake any of the following works as a local improvement; and the governing body thereof may make, amend, repeal and enforce ordinances for carrying into effect all powers granted in this section:
a. The laying out, opening or establishing of a new street, alley, or other public highway, or portion thereof.
b. The widening, straightening, extension, alteration or changing in any manner of the location of a street, alley or other public highway, or portion thereof.
c. The grading or alteration of the grade of a street, alley or other public highway, or portion thereof.
d. The paving, repaving, or otherwise improving or reimproving a street, alley or other public highway, or portion thereof.
e. The curbing or recurbing, guttering or reguttering of a sidewalk in, upon, or along a street, alley or other public highway, or portion thereof.
f. The construction, reconstruction, improvement and reimprovement of bridges and viaducts.
g. The construction, reconstruction, improvement, reimprovement or relocation of a public walk or driveway on any beach, or along the ocean or any river or other waterway.
h. The improvement or reimprovement of any beach or water front, and the providing of suitable protection to prevent damage to lands or property by the ocean or other waters, including the filing in and grading necessary for the protection of such improvements.
i. The construction, reconstruction, enlargement or extension of a sewer or drain in, under or along a street, alley or public highway, or portion thereof, or in, under or along any public or private lands; the construction, reconstruction, enlargement or extension of a system of sewerage or drainage or both combined; the construction, reconstruction, enlargement or extension of a system of drainage of the marshes and wet lowlands within the municipality; the construction, reconstruction, enlargement or alteration of a system of works for the sanitary disposal of sewage or drainage.
j. The installation of service connections to a system of water, gas, light, heat or power works owned by a municipality or otherwise, including all such works as may be necessary for supplying water, gas, light, heat or power to real estate for whose benefit such services are provided; service connections including the laying, construction or placing of mains, conduits or cables in, under or along a street, alley or other public highway or portion thereof.
k. The construction, reconstruction, enlargement or extension of any water main or other works for the distribution of water supplied by the State or any of its political subdivisions, or any public agency of any of the same.
l. The installation of such lighting standards, appliances and appurtenances as may be required for the brilliant illumination of the streets in those parts of the municipality where the governing body of the municipality may deem it necessary or proper to establish what is commonly called a "white way."
m. The widening, deepening or improvement of any stream, creek, river or other waterway.
n. The removal of obstructions in, and the constructing, reconstructing, enlarging or extending of any waterway, of enclosing walls, or of a pipe or conduit or any brook or watercourse, or part of same.
o. The defining of the location and the establishment of widths, grades and elevations of any stream, creek, river or other waterway, and the preventing of encroachments upon the same.
p. The reclaiming, filling and improving and bulkheading and filling in lands lying under tidal or other water, in whole or in part, within the municipality; the reclaiming or filling or bulkheading and filling those lands or lands adjacent to such reclaimed or filled lands; to dredge channels or improve harbor approaches in the waters abounding the lands to be reclaimed, filled and improved, or bulkheaded and filled; provided, the approval of the Planning and Development Council of the Division of Planning and Development in the Department of Conservation and Economic Development of the State of New Jersey, and when necessary, the permission of the Federal authorities in charge of the district port in which the improvements are proposed to be made, to improve and dredge channels and construct and improve the harbor approaches to those lands, shall be first had and obtained.
q. The financing of, and contracting for, the installation on private property, or in the case of community renewable energy projects, on public or private property or a combination of both, of renewable energy systems and energy efficiency improvements approved by the Board of Public Utilities, provided that in the case of improvements on a private property, such improvements shall be undertaken solely at the request of the property owner, and that in the case of community renewable energy projects, such improvements shall be undertaken solely at the request or consent of all participating property owners.
The governing body may enter into agreements with the Federal Government for reimbursement to the municipality for all or a portion of the cost of dredging channels or improving harbor approaches in waters under the jurisdiction of the Federal Government.
If any portion of the amount assessed against the lands within the municipality for the improvement shall be reimbursed to the municipality by the Federal Government after the assessment has been made, then a credit shall be made on each assessment levied in proportion to the amount so received from the Federal Government; provided, the amount received by the municipality from the Federal Government shall be in excess of the amount fixed in the assessment to be borne by the municipality at large. If any portion of the land included within lands benefited or improved by any work done in connection with the reclaiming, filling or bulkheading and filling shall be riparian lands or lands under water, for which the riparian grant has not theretofore been made by the State, the municipal board or body authorized to make assessments for improvements in accordance with this subtitle may include in any such assessment a prospective assessment against the riparian lands or lands under water, and a copy of such prospective assessment shall be filed with the Planning and Development Council of the Division of Planning and Development in the Department of Conservation and Economic Development of the State of New Jersey and shall be a part of the records of that council. Upon the sale or grant by the State of the riparian rights to any such lands for which a prospective assessment has been filed with the council, the amount of such prospective assessment together with interest at the rate of five per centum (5%) per annum from the time of the confirmation of the assessment for the improvement shall be included by said Planning and Development Council in the purchase price fixed for such lands and made a part of the payment for the grant, and the amount of the assessment with interest, when paid, shall be turned over by said Planning and Development Council to the municipality making the assessment. Such prospective assessment shall also be included in the general assessment for and against any such riparian lands or lands under water for which an annual rental or fee is being charged or collected by said Planning and Development Council under any agreement by which the fee of any such riparian lands is passed, and when the fee does so pass by grant from the State the prospective assessment shall become immediately due and payable, together with interest thereon at the rate of five per centum (5%) per annum from the time of the confirmation of the assessment for the improvement and the assessment shall become a lien upon those lands until paid and shall be collectible as other liens for public improvements in the municipality. Should said Planning and Development Council lease for a term of years any such riparian lands or lands under water, included within lands benefited or improved by any work done in connection with the reclaiming, filling or bulkheading and filling, it shall include in the annual rental to be charged therefor one-tenth of the amount of the prospective assessment for each year of the term not exceeding ten years until the prospective assessment and the interest thereon at the rate of five per centum (5%) per annum from the time of confirmation of the assessment for the improvement, shall be paid. If the lease shall be for a period less than ten years, such provision shall be contained in any and all extensions and renewals thereof, or in any new leases until the full prospective assessment with such interest shall have been paid. Nothing contained in this subparagraph shall apply to lands owned by a company whose rates are subject to regulation by the Board of Public Utility Commissioners.
Whenever convenient more than one of the works provided for in this section may be carried on as one improvement. Any municipality may undertake any or all of the works mentioned in this section as a general improvement to be paid for by general taxation, and any municipality may provide for the maintenance, repair and operation of any or all of said works by taxation whether the same are undertaken as local or general improvements.
(cf: P.L.1951, c.175, s.1)
5. R.S.40:56-3 is amended to read as follows:
40:56-3. The governing body of a municipality may undertake any improvement mentioned in this chapter at the request of a number of petitioners who shall agree to pay the cost of the improvement and all expenses incidental thereto, and any other charge imposed by the governing body. The petitioners shall file with the governing body a statement showing the improvement desired, the real estate owned by each of them, and the proportion of cost each is willing to pay. The statement shall be verified by each of the petitioners and, before any such work or improvement is commenced, the petitioners shall enter into bond with sufficient surety to the municipality in double the amount of the cost of the improvement as estimated by the engineer of the municipality conditioned for the prompt payment of the cost of the improvement and all expenses incidental thereto and charges imposed. The governing body may require further security for such payment as it may deem advisable, and when so secured may proceed to make the improvement. Upon the completion thereof the governing body shall determine the cost and expense thereof and cause the same to be collected from the petitioners. Notwithstanding the provisions of this section, in the case of community renewable energy projects pursuant to subsection q. of R.S.40:56-1, the amount of any bond or other security, if any, shall be as provided by regulation of the Board of Public Utilities.
Whenever an owner of land in this State is desirous of improving same by the installation of utilities, sidewalks, curbs, street paving and any other improvement and the municipality wherein the land is located desires assurance of completion of such improvement, such municipality is hereby authorized to accept a cash deposit from said owner, conditioned upon the completion of said improvement or improvements to the satisfaction of, and within the time set by the governing body of such municipality. Upon such completion, the municipality shall return said cash deposit to the owner of said land. Upon failure to complete to the satisfaction of the municipality, the municipality may complete said improvement or improvements, using the monies so deposited, or so much thereof as is necessary for such purpose, returning the balance of said deposit, if any, to the owner of such land so improved. Such cash deposit shall be used for no other purpose. The municipality is further authorized to enter into such contracts, stipulations or agreements with said owner as are necessary and proper to carry out the purpose of this act.
Nothing in this act contained shall prevent a municipality from accepting bonds or other surety under like circumstances, and nothing herein shall be construed to, in any way, limit the powers of a municipality as they now exist, it being intended that the authority herein granted is supplementary and in addition to rights and powers presently possessed by municipalities.
(cf: P.L.1941, c.242, s.1)
6. R.S.40:56-6 is amended to read as follows:
40:56-6. Whenever the governing body shall pass an ordinance for making any local improvement all further acts and proceedings necessary to carry out and complete the same and the work thereof and all orders relating thereto may be by resolution. To authorize local improvements pursuant to subsection q. of R.S.40:56-1, a governing body shall adopt a single ordinance authorizing the financing of, and contracting for, such improvements by the municipality. Subsequent specific authorizations of such improvements on individual properties or, in the case of community renewable energy projects, on or benefiting groups of properties, and all further acts and proceedings necessary to carry out and complete the same and the work thereof and all orders relating thereto may be by resolution. Each such improvement on an individual property, and each separate community renewable energy project, shall be deemed to constitute a separate local improvement, and shall be assessed separately to the property owner or, in the case of community renewable energy projects, jointly to the property owners benefited thereby.
(cf: R.S.40:56-6)
7. R.S.40:56-7 is amended to read as follows:
40:56-7. Any municipality may purchase, condemn, or otherwise acquire any real estate or right or interest therein, useful or necessary for the making of such improvement, located within or without the municipality, and any personal property, useful or necessary therefor, may hire and employ all such engineers, surveyors, officers and employees; construct or cause to be constructed any work or thing deemed necessary for the making of any such improvement; enter into any contract or agreement for the acquisition of any such property or the construction of any such work, and do all other acts necessary to carry on, complete, maintain and operate any such improvement. Nothing contained herein shall be interpreted to authorize any municipality to condemn or otherwise acquire by means of eminent domain any real estate or right or interest therein with respect to an improvement pursuant to subsection q. of R.S.40:56-1.
(cf: R.S.40:56-7)
8. R.S.40:56-8 is amended to read as follows:
Any municipality may acquire by purchase or condemnation any property or works mentioned in this article and in sections 1 through 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) which at the time of such purchase or condemnation is privately owned or operated, and assessments for benefits accruing therefrom may be made and levied upon the lands benefited thereby.
(cf: R.S.40:56-8)
9. R.S.40:56-11 is amended to read as follows:
R.S.40:56-11. All work or any portion thereof in connection with any local or general improvement, including any work done pursuant to sections 1 through 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and subsection q. of R.S.40:56-1, may be done either by the municipality or by contract awarded to the lowest responsible bidder. Advertisements for bids for the doing of any such work shall be published and the bids shall be received and the contract awarded in each municipality in accordance with the provisions of chapter 50 of this title (s. 40:50-1 et seq.). Notwithstanding any section of law to the contrary, awards of contracts for improvements described in sections 1 through 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and subsection q. of R.S.40:56-1 shall be made in accordance with such bidding or other requisition process as shall be established by regulation of the Board of Public Utilities.
(cf: R.S.40:56-11)
10. R.S.40:56-21 is amended to read as follows:
R.S.40:56-21. All assessments for benefits for local improvements under this chapter shall be made by the officer or board charged with the duty of making general assessments of taxes in the municipality, except where there is provided by law a board for the making of all such assessments, in which case all assessments shall be made by such board.
The governing body of every municipality in which no board is provided by law for the making of all assessments for benefits accruing from local improvements may by ordinance create a general board for that purpose, which board shall thereafter make all such assessments. Notwithstanding this provision, all assessments for benefits accruing from local improvements pursuant to subsection q. of R.S.40:56-1 shall be made by the governing body, or by such other board as the governing body shall designate in the ordinance authorizing such improvements.
(cf: R.S.40:56-21)
11. R.S.40:56-30 is amended to read as follows:
R.S.40:56-30. Except as provided in article 4 of this chapter (s. 40:56-58 et seq.) as to cities of the first class, assessments for benefits for local improvement together with any accompanying awards for incidental damages and all awards of damages for real estate or interests therein taken for any improvement, shall, except as provided in sections 40:56-42 to 40:56-51 of this title, be certified by the officer, board or commissioners making the same to the governing body of the municipality by a report in writing signed by the officer, or a majority of the board or commissioners making the said assessment or award for damages or incidental damages. The report shall be accompanied by a map showing the real estate taken, damaged or benefited by the improvement and for which damages or benefits have been assessed; provided that no map shall be required with respect to improvements to individual properties pursuant to subsection q. of R.S.40:56-1.
The report may be considered by the governing body at any meeting thereof, of which at least two weeks' previous notice shall have been given by the municipal clerk, or by an officer designated as aforesaid by the governing body, posted in five public places in the municipality, or published in a newspaper circulating therein, once in each week for two weeks prior to the meeting, as the governing body may direct, and also by mailing a copy of the notice to the owner or owners named in the report, directed to his or their last known post-office addresses, and the affidavit of said clerk or other designated official shall be conclusive as to such mailing. Notwithstanding this provision, notice with respect to improvements pursuant to subsection q. of R.S.40:56-1 shall be made at least 10 days before the meeting by posting notice of the meeting on the section of the municipality's official website that concerns improvements pursuant to subsection q. of R.S.40:56-1, and by mailing the notice by first-class mail to the post office address specified by the property owner for the receipt of notices and other communications relating to the improvement. The notice shall briefly state the object of the meeting with reference to the assessment. At that or any subsequent meeting the governing body after considering the report and map may adopt and confirm the same with or without alterations, as to them may seem proper, and may refer the matter to any committee of its own body, or to the officer or board making such assessment, for revision or correction before taking final action upon it.
When the report shall be adopted and confirmed with or without alterations it shall be final and conclusive and appeals may be taken as hereinafter provided in article 3 of this chapter (s. 40:56-54 et seq.).
Failure to mail the notice in this section required shall not invalidate the proceedings.
(cf: R.S.40:56-30)
12. R.S.40:56-35 is amended to read as follows:
40:56-35. The governing body may by resolution provide that the owner of any real estate upon which any assessments for any improvement shall have been made may pay such assessments in such equal yearly or quarterly installments, not exceeding ten years in duration, except as hereinafter provided, with legal interest thereon, and at such time in each year as the governing body shall determine, but any person assessed may pay the whole of any assessment, or any balance of installments, with accrued interest thereon, at one time. If any such installment shall remain unpaid for 30 days after the time when the same shall have become due, either:
a. the whole assessment or balance due thereon shall become and be immediately due, shall draw interest at the rate imposed upon the arrearage of taxes in such municipality and be collected in the same manner as is provided by this subtitle for other past due assessments; or
b. the governing body may, by resolution, permit any person who is delinquent in the payment of such an installment to pay only the amount of the delinquent payment and any interest on the delinquent payment that has accrued from the date that the installment was due and payable until the date that payment of the delinquent installment is made. After the delinquent installment is satisfied, the person assessed shall be reinstated on a regular installment payment schedule.
Whenever any owner shall be given the privilege of paying any assessment in installments such assessment shall remain a lien upon the land described therein until the same with all installments and accrued interest thereon shall be paid, and no proceedings to collect or enforce the same need be taken until default shall be made in the payment of any installment as hereinbefore in this subtitle provided.
In any municipality which is constructing a local improvement with funds secured from the Federal Government, through the public works administration, under the terms of the national recovery act, the governing body may provide that the assessments may be payable in yearly or quarterly installments, with legal interest thereon, over a period of years up to but in no event exceeding the term of years for which the funds therefor are borrowed from the Federal Government, and at such time in each year as the governing body shall determine. The governing body may fix the yearly installments in such amounts as in its opinion are equitable and just.
In any municipality in which the local improvement is being financed by the sale of bonds, the governing body may provide that the assessments may be payable in yearly or quarterly installments, with legal interest thereon, over a period of years up to but in no event exceeding the period of years for which the bonds were issued, or for 20 years, whichever shall be less, and at such time in each year as the governing body shall determine. The governing body may fix the yearly installments in such amounts as in its opinion are equitable and just.
Notwithstanding this provision, in the case of improvements made pursuant to subsection q. of R.S.40:56-1, the assessment shall be payable in quarterly installments. The term of the assessment and the interest to be charged thereon shall be in accordance with the terms of the financing provided to the municipality by the New Jersey Economic Development Authority or as otherwise may be provided by regulation of the Board of Public Utilities.
(cf: P.L.1997, c.5, s.1)
13. This act shall take effect immediately.
STATEMENT
This bill establishes the "New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program" in the New Jersey Economic Development Authority (NJEDA) and the New Jersey Board of Public Utilities (BPU). This program is intended to provide financing for municipalities that wish to facilitate the purchase of renewable energy systems or energy efficiency improvements by individual property owners or by groups of property owners who wish to participate jointly in a community renewable energy project.
To implement the program, the New Jersey Economic Development Authority would establish low-cost sources of financing, such as qualified energy conservation bonds and investment from public utilities and private capital sources, to finance the purchase of renewable energy systems and energy efficiency improvements by property owners in participating municipalities.
Municipalities that choose to establish a program to utilize the special-assessment financing mechanism afforded by R.S.40:56-1 et seq. to facilitate the purchase of renewable energy systems and energy efficiency improvements by its property owners would apply to the BPU to participate in the program. Participating municipalities would be eligible to borrow funds from the NJEDA for use in financing the purchase and installation, by its property owners, of renewable energy systems and energy efficiency improvements. The loan for the purchase of the renewable energy systems and energy efficiency improvements energy systems would be secured by a special assessment on the improved property in the case of an individual project. In the case of community renewable energy projects, the loaned funds would be secured by a special assessment on all properties benefited by the improvement, in proportion to the benefit they receive. Payment on the loaned funds would be collected quarterly by the municipality, with interest at a rate determined by the BPU and the NJEDA. In the case of improvements that include solar energy systems, property owners would also receive a solar renewable energy credit through the BPU. Those solar renewable energy credits would be assigned by the property owner to the municipality in repayment of a portion of the funds borrowed from the municipality. The municipality, in turn, would assign the solar renewable energy credits and the proceeds from the payments of the special assessments to the NJEDA. Proceeds from the sale of the solar renewable energy credits and the special assessment payments received from the municipalities would be used by NJEDA to pay bondholders and other utility or private investors, and may be used to provide financial incentives to municipalities to participate in the "New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program."
Finally, the bill requires the BPU to appoint a manager to manage all of the logistics of the "NJ PACE Municipal Financing Program." The NJEDA and BPU would coordinate to promulgate any rules and regulations necessary to effectuate the purposes of the program.
