New Jersey-2022-S3602-Introduced

An Act establishing a weatherization and energy efficiency pilot program, supplementing Title 40 and Title 52 of the Revised Statutes, and making an appropriation.

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

1. P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Urban Area Weatherization and Energy Efficiency Pilot Program Act."

2. The Legislature finds and declares that:

a. Open cockloft space exists at the top of many buildings in urban areas of the State;

b. These spaces create significant heating and cooling problems in both winter and summer by allowing air to travel among buildings without obstruction, leading to elevated utility costs;

c. When a fire breaks out, open cockloft spaces also facilitate the ability of the fire to spread; and

d. It is, therefore, appropriate for the Legislature to establish a pilot program in Union City, the City of Trenton, and the City of Camden, locations disproportionately affected by open cockloft spaces, to enhance the weatherization and energy efficiency of these spaces, and evaluate the ability of a weatherization and energy efficiency program to address the problems associated with these spaces.

3. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"Department" means the Department of Community Affairs.

"Enforcing agency" means the enforcing agency in a municipality designated to administer and enforce the "State Uniform Construction Code Act" pursuant to section 8 of P.L.1975, c.217 (C.52:27D-126).

"Fire-rated separation" means a separation added between buildings in an open cockloft space, consisting of Type X fire-resistant drywall, or other fire-resistant wallboard, noncombustible insulation, or other materials authorized by the regulatory guidance of the department, and compliant with the "State Uniform Construction Code Act," P.L. 1975, c. 217 (C. 52:27D-119 et seq.).

"Low-income household" means a household with a total current annual household income equal to 50 percent or less of the area median income for a household of the same size and composition.

"Moderate-income household" means a household with a total current gross annual household income in excess of 50 percent but less than 80 percent of the area median income for a household of the same size and composition.

"Open cockloft space" means a cockloft or attic space that is open or improperly sealed between two or more buildings, of which at least one is a residential building.

"Participating municipality" means Union City, the City of Trenton, or the City of Camden.

"Pilot program" means the Urban Area Weatherization and Energy Efficiency Pilot Program, established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Residential building" means a building that includes or consists of space used for residential purposes, including but not limited to a row house, townhouse, or other single family dwelling, a duplex, a multifamily dwelling, or a hotel or motel.

"Weatherization and energy efficiency measures" means the installation of one or more fire-rated separations, and other improvements to an open cockloft space, provided pursuant to subsection c. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. The Urban Area Weatherization and Energy Efficiency Pilot Program is established in Union City, the City of Trenton, and the City of Camden in order to identify open cockloft space, and provide weatherization protection, increased energy efficiency, and enhanced fire safety among connected residential buildings.

a. The enforcing agency of a participating municipality shall, within one year of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), in consultation with the department, conduct an inventory of the residential buildings within its municipal boundaries to determine the number of open cockloft spaces that would benefit from weatherization and energy efficiency measures.

b. If a property is identified in an inventory as containing an open cockloft space, then the participating municipality shall provide the property owner with an option to engage in weatherization and energy efficiency measures. Before committing to weatherization and energy efficiency measures, the participating municipality shall provide the owner with an opportunity to demonstrate if the owner is a low- or moderate-income household. If the owner is determined to be a low- or moderate-income household, the owner shall be eligible to be provided with weatherization and energy efficiency measures at no cost. If the owner is not low- or moderate-income, then the owner shall be provided the option to pay for weatherization and energy efficiency measures through a property tax special assessment pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. The weatherization and energy efficiency measures provided pursuant to this section shall consist of the installation of one or more fire-rated separations in open cockloft spaces between buildings. Fire alarms and carbon monoxide sensor devices shall also be provided in spaces where required by the "State Uniform Construction Code Act," P.L. 1975, c. 217 (C. 52:27D-119 et seq.) or the "Uniform Fire Safety Act," P.L.1983, c.383 (C.52:27D-192 et seq.), as applicable. At the option of the owner, weatherization and energy efficiency measures may include the addition of insulation, vapor barriers, or installing passive or active attic ventilation, when such improvements would be beneficial.

d. A participating municipality shall share information with the department as required by the regulatory guidance provided pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) , in order to enable the effectiveness of the pilot program to be assessed.

e. Subject to the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), a participating municipality may enter into agreements with one or more private parties to assist the enforcing agency in the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. In compliance with regulatory guidance provided by the Commissioner of Community Affairs pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), a municipality participating in the Urban Area Weatherization and Energy Efficiency Pilot Program, established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall permit a property owner to pay for the weatherization and energy efficiency measures provided by the program through a special assessment imposed on the property. This special assessment shall be payable in quarterly installments over a 10-year period.

6. a. The Commissioner of Community Affairs shall promulgate, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate P.L. , c. (C. ) (pending before the Legislature as this bill), including but not limited to, rules and regulations to guide the sharing of information with the department pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), and guidance for the special assessment to be imposed pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. Notwithstanding the limitations established in section 1 of P.L. 2011, c.215 (C.52:14B-3a) on the use of regulatory guidance documents, the commissioner shall prepare and disseminate regulatory guidance documents as defined in subsection d. of section 1 of P.L. 2011, c.215 (C.52:14B-3a), in advance of the adoption of regulations as necessary for the administration of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. The department shall prepare and submit reports, on at least an annual basis, to the Governor and the Legislature to provide information on the progress and effectiveness of the pilot program. Within 6 months following the expenditure of all pilot program funding, the department shall submit a final report to the Governor and the Legislature. Reports submitted to the Legislature pursuant to this subsection shall comply with section 2 of P.L.1991, c.164 (C.52:14-19.1).

7. There is appropriated to the Department of Community Affairs $30,000,000 from the funds provided to the State by the United States government under the "American Rescue Plan Act of 2021," Pub.L.117-2. Of this sum, the Department of Community Affairs shall provide $10,000,000 to Union City, $10,000,000 to the City of Trenton, and $10,000,000 to the City of Camden. The sum provided to each municipality shall be maintained in an account separate from any other account, and shall be used exclusively for purposes authorized by P.L. , c. (C. ) (pending before the Legislature as this bill).

8. This act shall take effect immediately.

STATEMENT

This bill would establish the "Urban Area Weatherization and Energy Efficiency Pilot Program Act" to address the energy efficiency and safety problems created by cockloft and attic spaces that are open or improperly sealed between a residential building and another building. Open cockloft spaces, defined in the bill to include open attic spaces, exist at the top of many buildings in urban areas of the State, reducing energy efficiency and fire safety. The pilot program established by the bill would operate in Union City, the City of Trenton, and the City of Camden, the "participating municipalities," because these locations are disproportionately affected by open cockloft spaces.

The building code enforcing agency of a municipality participating in the pilot program would, within one year of the bill's effective date, conduct an inventory of the residential buildings to determine the number of open cockloft spaces that would benefit from weatherization and energy efficiency measures. If a property is identified in an inventory as containing an open cockloft space, then the municipality would provide the property owner with an option to engage in weatherization and energy efficiency measures. Before committing to these measures, however, the municipality would provide the owner with an opportunity to demonstrate if they qualify as low- or moderate-income. If the owner is low- or moderate-income, the owner would be eligible to obtain weatherization and energy efficiency measures at no cost. If the owner is not low- or moderate-income, the owner would be given the option to pay for weatherization and energy efficiency measures through a property tax special assessment, payable in quarterly installments over 10-years.

The weatherization and energy efficiency measures provided by the pilot program would consist of the installation of one or more fire-rated separations in open cockloft spaces between buildings. Fire alarms and carbon monoxide sensor devices would also be provided in spaces where required by the "State Uniform Construction Code Act," P.L. 1975, c. 217 (N.J.S.A.52:27D-119 et seq.) or the "Uniform Fire Safety Act," P.L.1983, c.383 (N.J.S.A.52:27D-192 et seq.). At the option of the owner, weatherization and energy efficiency measures may also include the addition of insulation, vapor barriers, or installing passive or active attic ventilation, when such improvements would be beneficial. Subject to the "Local Public Contracts Law," P.L.1971, c.198 (N.J.S.A.40A:11-1 et seq.), the bill permits a participating municipality to enter into agreements with one or more private parties to assist the municipal enforcing agency in pilot program implementation.

The bill directs the Commissioner of Community Affairs to promulgate rules and regulations necessary to effectuate the objectives of the bill. Notwithstanding the statutory limitations that ordinarily restrict the use of regulatory guidance documents, the bill permits the commissioner to prepare and disseminate regulatory guidance documents in advance of the adoption of regulations as necessary for the administration of the bill.

The bill requires pilot program municipalities to share information with the Department of Community Affairs ("DCA") in order to enable the effectiveness of the pilot program to be assessed. The bill would require DCA to prepare and submit reports, on at least an annual basis, to the Governor and the Legislature to provide information on the progress and effectiveness of the pilot program. Within 6 months following the expenditure of all pilot program funding, DCA would also submit a final report to the Governor and the Legislature.

The bill would appropriate $30,000,000 from the funds provided to the State under the federal "American Rescue Plan Act of 2021," Pub.L.117-2. Of this sum, $10,000,000 would be provided to each to the three participating municipalities. The bill would require the sum provided to each municipality to be maintained in an account separate from any other account, and to be used exclusively for purposes authorized by the bill.

The bill would take effect immediately. -