Bill > A1976

Introduced Session

This bill would authorize the New Jersey Infrastructure Bank (trust) to issue up to $20 million in bonds to finance cost-effective energy efficiency improvements in State, local, and school district buildings. Specifically, the bill would establish the "Energy Efficiency and Renewable Energy Financing Program" in the trust. The purpose of the program would be to provide loans and other forms of financial assistance to State entities, local units, and school districts to finance cost-effective energy efficiency improvements in buildings owned or operated by those entities. State entities, local units, and school districts that are interested in obtaining financial assistance under the program would be required to apply to the Department of Environmental Protection (DEP) in a form and manner determined by the DEP. As part of the application process, the DEP would perform, or require the applicant to perform, an energy efficiency assessment of the buildings owned or operated by the applicant. The assessment would identify the energy efficiency improvements that can be installed and operated in the buildings at a total cost that is less than the energy cost savings, in the form of lower energy bills, realized by the applicant over a 10-year period or a shorter time as determined by the DEP. The assessment would include a schedule for funding and installing the energy efficiency improvements that will realize the greatest cost savings to the applicant in the shortest time. Upon approval of an application, and subject to the availability of funds under the program, the trust would be authorized to make loans and other forms of financial assistance to the applicant to finance the cost of the energy efficiency improvements identified in the energy efficiency assessment. The loans and other forms of financial assistance would be made subject to terms and conditions determined by the trust. The installation or contract for the installation of the energy efficiency improvements would be required to address provisions concerning payment schedules, monitoring, inspection, measuring, and warranties as are necessary to ensure that the energy efficiency improvements installed and operated in the building are cost-effective. The trust would be authorized to issue up to $20 million in bonds for the purpose of providing financial assistance under the program. Beginning the first fiscal year in which a loan or other form of financial assistance is made under the program, the Board of Public Utilities (BPU) would be required to transfer, from available balances accumulated in accounts of the BPU from funds collected through the societal benefits charge established by the "Electric Discount and Energy Competition Act," such amounts as are necessary to secure the interest payments on any bonds issued by the trust under the program. The BPU and the trust would be authorized to enter into contracts to implement the payment arrangement provided for in the bill. The DEP and the trust would be required to submit an annual report to the Governor and the Legislature on the effectiveness of the program in promoting energy efficiency and energy cost savings for State entities, local units, and school districts.

AI Summary

Committee Categories

Daniel Benson (D)*,  Robert Karabinchak (D)*,  Sterley Stanley (D)*,  Eric Houghtaling (D),  Jim Kennedy (D),  Britnee Timberlake (D), 

Received in the Senate, Referred to Senate Budget and Appropriations Committee (on 04/26/2021)

Official Document