New Jersey-2024-S1612-Introduced

An Act concerning the study and promotion of wave and tidal energy, and supplementing Title 48 of the Revised Statutes.

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

1. The Legislature finds and declares the following:

a. Ocean energy represents the third largest source of renewable energy and the largest source of underutilized renewable energy. Ocean energy primarily comes in two forms: (1) wave energy, harnessed by waves; and (2) tidal energy, harnessed by tides.

b. The State, through Executive Order No. 28 of 2018 and the 2019 Energy Master Plan, prepared pursuant to Executive Order No. 28 of 2018 and section 12 of P.L.1977, c.146 (C.52:27F-14), has established an ambitious goal of providing 100 percent clean energy in the State by 2050, with at least 50 percent of the State's electricity supply to be derived from renewable energy by 2030.

c. Executive Order No. 28 of 2018 and the 2019 Energy Master Plan each highlight and promote the need for the State to increase its development and use of renewable energy technologies, facilities, and resources, with efforts and goals directed towards solar and wind energy. To expand and enhance both Executive Order No. 28 of 2018 and the 2019 Energy Master Plan, provisions specifically highlighting and promoting the need for, and benefits of, developing and using untapped ocean energy, including wave energy, tidal energy, or both, in the State, as a means to achieve the State's clean energy goals, should also be included.

d. In order to achieve the State's clean energy goals with the least cost and greatest benefit to consumers, it is critical that the State not only promote and facilitate investments in wind and solar energy technologies, infrastructure, and facilities, but also promote and facilitate concurrent investments in new wave and tidal energy technologies, infrastructure, and facilities, so that the State can begin to make full use of the ocean's inexhaustible and untapped sources of clean energy and, thereby, bolster and expand its renewable energy portfolio.

e. The generation of energy from ocean forces is a new and emerging field, and, going forward, the availability of effective and efficient technology and technological innovations will be essential to ensuring that ocean energy can be generated at the lowest cost to consumers and in sufficient amounts to meet the State's energy needs. By promoting and facilitating growth in the emerging wave and tidal energy sectors and incorporating ambitious, but achievable, wave and tidal energy generation goals into the State's Energy Master Plan, New Jersey can position itself as a nationwide leader in ocean energy, while facilitating the development of high quality jobs and technological advancements in this burgeoning industry.

f. Based on the foregoing, it is both reasonable and necessary, and in the public interest, for the State to enact legislation requiring: (1) a comprehensive study of the potential associated with the adoption and use of wave and tidal energy in New Jersey; (2) the amendment of the State's Energy Master Plan to incorporate the use of wave and tidal energy as an integral component of the State's clean energy planning and goals; and (3) the taking of additional steps, as may be necessary to position New Jersey as a leader in these emerging clean ocean energy sectors.

2. a. Within 30 days after the effective date of this act, the Board of Public Utilities and the Department of Environmental Protection shall commence a comprehensive, collaborative study to evaluate the feasibility and benefits of using wave and tidal energy as forms of clean energy in the State. The study shall include an evaluation of:

(1) the actual and potential impacts associated with the increased use of wave and tidal energy in the State, including, but not limited to, the impacts to labor markets, energy prices, air quality and greenhouse gas emissions, ocean ecosystems and water quality, grid transmission, PJM grid operation, grid reliability, and grid security;

(2) the feasibility and desirability of establishing a renewable energy credit program, like the solar renewable energy credit (SREC) program established pursuant to section 38 of P.L.1999, c.23 (C.48:3-87), the SREC-II program established pursuant to P.L.2021, c.169 (C.48:3-114 et seq.), and the offshore wind renewable energy certificate (OREC) program established pursuant to section 38 of P.L.1999, c.23 (C.48:3-87), by which Wave Renewable Energy Credits (WRECs) can be used to encourage the development and successful deployment of wave or tidal energy technologies, infrastructure, and facilities in the State;

(3) the feasibility and desirability of using alternative means and methods, other than renewable energy credits, such as public-private partnerships, financial investments, or university involvement, to encourage and incentivize the development of wave and tidal energy technologies, infrastructure, and facilities, as well as the creation of private sector wave and tidal energy jobs, in the State and otherwise facilitate the establishment of New Jersey a national leader in the growing wave and tidal energy sectors; and

(4) the factors that should be considered, and determinations that should be made, by the board, when soliciting and approving proposals for wave and tidal energy projects in the State, including, at a minimum, the evaluation of existing wave and tidal projects around the globe that produce technical data, and the determination that each proposed project in the State will result in a positive net economic and environmental benefit to the State.

b. The board and department shall authorize individuals and entities to engage in pilot wave and tidal energy projects in the State, as provided by subsection a. of section 3 of this act, with associated data to be included in the study conducted pursuant to subsection a. of this section and in the report produced pursuant to subsection d. of this section.

c. In conducting the wave and tidal energy study pursuant to subsection a. of this section, the board and department shall cooperatively engage in a robust stakeholder engagement process, which process shall include consultation with, and the solicitation of testimony and information from: professionals, businesses, organizations, and agencies having particular experience or expertise in the wave and tidal energy sectors; marine biologists, oceanographers, environmental scientists, and other members of appropriate scientific fields; representatives of the commercial and recreational fishing industries; members of the public; and other relevant and interested parties.

d. Not more than three months after the effective date of this act, the President of the Board of Public Utilities and the Commissioner of Environmental Protection shall cooperatively prepare and submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.2), to the Legislature, identifying the findings from the study conducted pursuant to subsection a. of this section, including any findings and relevant data associated with pilot projects undertaken pursuant to subsection b. of this section, and providing recommendations for legislative, executive, and other actions that can be taken to facilitate, encourage, and promote the development and increased use of wave and tidal energy technologies, infrastructure, and facilities in the State. At a minimum, the report shall:

(1) include a strategic plan for the deployment of wave and tidal energy technologies, infrastructure, and facilities in the State, which shall identify, at a minimum, specific wave energy generation goals, tidal energy generation goals, or both, in megawatts (MW), that the State should endeavor to meet by 2030, 2040, and 2050, in order to ensure the timely and effective deployment of wave and tidal energy technologies and the sufficient incorporation of wave and tidal energy into the State's energy portfolio;

(2) identify the procedures and standards that will be used by the board in soliciting and approving proposals for wave and tidal energy projects in the State; and

(3) describe the renewable energy financial incentives, if any, and any other alternative means and methods, that should or will be used by the board and the department to: (a) facilitate the development of wave and tidal energy technologies, infrastructure, and facilities in the State; (b) promote technological innovation in the wave and tidal energy sectors; (c) ensure the achievement of the goals established pursuant to paragraph (1) of this subsection; and (d) otherwise establish New Jersey as a nationwide leader in the wave and tidal energy sectors.

e. The Energy Master Plan Committee, in its adoption of the first update of the Energy Master Plan, pursuant to section 12 of P.L.1977, c.146 (C.52:27F-14), following the effective date of this act, shall incorporate, into the Energy Master Plan, information regarding the wave and tidal energy strategic plan that has been developed pursuant to paragraph (1) of subsection d. of this section, and, to the extent practicable, the wave and tidal energy generation goals recommended by the strategic plan.

3. a. Pilot project data shall be included in the wave and tidal energy study completed, and in the wave and tidal energy report produced, pursuant to section 2 of this act. The Board of Public Utilities shall solicit and approve applications for, and take other appropriate action to facilitate, the implementation of pilot wave and tidal energy projects, in the State, for these purposes.

b. Acting in accordance with the recommendations set forth in the report produced pursuant to section 2 of this act, the Board of Public Utilities shall:

(1) solicit and approve applications for, and take appropriate action to facilitate, through the use of renewable energy credits or other financial or non-financial incentives, the continuation of pilot projects commenced under this act, and the initiation of new wave and tidal energy projects that will result in a positive net economic and environmental benefit to the State;

(2) promote, and take appropriate action to facilitate, the creation of private sector jobs in the wave and tidal energy sectors;

(3) promote, and take appropriate action to facilitate, the stabilization of energy costs, the enhancement of grid security and reliability, and the enhancement of environmental quality, through the increased use of wave and tidal energy;

(4) engage in an ongoing public education and awareness campaign, and take other appropriate action, both in order to highlight the importance of wave and tidal energy as new components of the State's clean energy plans and in order to promote the increased harnessing and use of ocean energy, the advancement of wave and tidal energy technologies, and the increased construction and development of new wave and tidal energy infrastructure and facilities in the State, as a means to enhance energy grid reliability and security, meet the State's clean energy goals, enhance environmental quality, and develop a high quality, next-generation job market in wave and tidal energy; and

(5) take other appropriate actions, as may be necessary to establish New Jersey as a nationwide leader in the emerging wave and tidal energy sectors.

c. In implementing the provisions of this section, the board shall coordinate with the Bureau of Ocean Energy Management in the United States Department of the Interior to facilitate the leasing or permitting of offshore areas, under federal jurisdiction, for wave or tidal energy projects, and shall coordinate with the Department of Environmental Protection to facilitate the leasing or permitting of coastal or onshore areas, under State jurisdiction, for such purposes.

4. This act shall take effect immediately.

STATEMENT

This bill would require a study of the ocean's energy potential in the State, and it would further provide for the State's clean energy plans and goals to be updated to incorporate new goals related to the generation of wave and tidal energy, which are both forms of clean energy that are derived from untapped and inexhaustible ocean resources.

Specifically, the bill would require the Board of Public Utilities (BPU) and the Department of Environmental Protection (DEP), within 30 days after the bill's effective date, to commence a comprehensive, collaborative study to evaluate the feasibility and benefits of using wave and tidal energy as forms of clean energy in the State. The BPU and DEP would be required, in conducting the study, to: (1) evaluate various factors related to the increased use of wave and tidal energy in the State; and (2) authorize individuals and entities to engage in pilot wave and tidal energy projects in the State.

Not more than three months after the bill's effective date, the President of the BPU and the DEP Commissioner would be required to cooperatively prepare and submit a written report, to the Governor and the Legislature, identifying the findings from the wave and tidal energy study, and providing recommendations for legislative, executive, and other actions that can be taken to facilitate, encourage, and promote the development and increased use of wave and tidal energy technologies, infrastructure, and facilities in the State. Among other things, the report would be required to include a strategic plan for the deployment of wave and tidal energy technologies, infrastructure, and facilities in the State, which strategic plan is to identify, at a minimum, specific wave energy generation goals, tidal energy generation goals, or both, in megawatts (MW), that the State should endeavor to meet by 2030, 2040, and 2050, in order to ensure the timely and effective deployment of wave and tidal energy technologies and the sufficient incorporation of wave and tidal energy into the State's energy portfolio.

The bill would require the Energy Master Plan Committee, in its adoption of the first update of the State's Energy Master Plan following the bill's effective date, to incorporate, into the Energy Master Plan, information regarding the wave and tidal energy strategic plan developed under the bill, and, to the extent practicable, the wave and tidal energy generation goals recommended by the strategic plan.

The bill would require the BPU to solicit and approve applications for, and to take appropriate action to facilitate, the initiation of pilot wave and tidal energy projects in the State as part of the wave and tidal energy study conducted under the bill, with data from the pilot projects to be included in the study, as well as in the report that is prepared pursuant to the bill. The bill would further require the BPU, acting in accordance with the recommendations set forth in the report, to solicit and approve applications for, and to take other appropriate action to facilitate, through the use of renewable energy credits or other financial or non-financial incentives, the continuation of pilot projects commenced under the study, as well as the initiation of new wave and tidal energy projects that will result in a positive net economic and environmental benefit to the State. The BPU would further be required to take certain other affirmative agency actions to facilitate the development of the wave and tidal energy sectors in this State.

The BPU would be required to coordinate with the Bureau of Ocean Energy Management in the U.S. Department of the Interior to facilitate the leasing or permitting of offshore areas, under federal jurisdiction, for wave or tidal energy projects, and it would be required to coordinate with the DEP to facilitate the leasing or permitting of coastal or onshore areas, under State jurisdiction, for such purposes.