Bill > S431

This bill directs the New Jersey Board of Public Utilities (BPU) to update interconnection standards for Class I renewable energy sources (such as solar, wind, and biomass) and develop a fixed fee structure for interconnection costs. The key provisions include: 1. Requiring the BPU to adopt rules and regulations establishing safety and power quality interconnection standards for Class I renewable energy sources, based on the model standards from the Interstate Renewable Energy Council, with some flexibility to modify provisions deemed impracticable. 2. Establishing "grid modernization fees" that owners of Class I renewable energy projects must pay to electric utilities to cover interconnection costs, with a cap of $50 per kilowatt for residential, net-metered projects under 10 kilowatts for the first three years. The BPU can adjust these fees every three years. 3. Allowing utilities to recover any interconnection costs that exceed the grid modernization fees from ratepayers, and to recover the costs of necessary infrastructure upgrades to enable additional distributed renewable energy interconnection. 4. Requiring the BPU to establish maximum interconnection costs per kilowatt for each grid modernization fee category, with projects exceeding those costs eligible for additional cost recovery. 5. Directing the BPU to include provisions in the interconnection standards to improve the enforceability of utility interconnection timelines, potentially including penalties or fee refunds. 6. Requiring the BPU to submit a report to the Governor and Legislature within 12 months on the implementation of the standards and fees, including an analysis of their economic impact and effect on the state's climate goals.

Agriculture and Natural Resources, Budget and Finance, Business and Industry

https://www.njleg.state.nj.us/bill-search/2022/S431