Directs BPU to adopt rules and regulations incentivizing solar energy generation in roadside rights-of-way.*

A2403 ACS FISCAL ESTIMATE

LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 2403

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JULY 6, 2026

SUMMARY

Synopsis:

Directs BPU to adopt rules and regulations incentivizing
solar energy generation in roadside rights-of-way.�

Type of Impact:

Time-limited increase in State expenditures; potential
State revenue increase.

Agencies Affected:

New Jersey Board of Public Utilities; Department of
Transportation; Department of Environmental Protection.�

Office of
Legislative Services Estimate

Time-Limited Fiscal Impact

State Expenditure Increase

Indeterminate

Potential State Revenue Increase

Indeterminate

�

The Office of Legislative Services (OLS) estimates that the bill
may result in an indeterminate increase in State expenditures to the New Jersey
Board of Public Utilities attributable to adopting rules and regulations within
180 days to incorporate roadside right-of-way solar energy projects into
existing solar incentive programs.� Although administrative in nature, the OLS
anticipates that the board will be able to absorb the additional
responsibilities using existing staff and resources.

�

Additional administrative State expenditure increases may be
experienced by the Department of Transportation and the Department of
Environmental Protection to the extent that those departments assist the board
in developing regulations or reviewing proposed projects.

�

The OLS notes that the bill permits the board to establish a fee
as part of the application process.� This provision may offset, to some extent,
the State administrative cost associated with developing regulations or
reviewing proposed projects.

BILL DESCRIPTION

����� This bill directs the Board of Public Utilities to
adopt rules and regulations within 180 days to incorporate roadside right-of-way
solar energy projects within the board�s solar incentive programs. �The board
is to incentivize the construction, installation, and operation of projects
that are connected to the distribution or transmission system owned or operated
by an electric public utility; and located on roadside rights-of-way owned by
State or local government units. �

����� The board is authorized to consult with the Department
of Transportation and the Department of Environmental Protection in adopting
rules and regulations under the bill. �To the extent possible, these rules and
regulations are to include, among other provisions outlined in the bill:
project capacity limits, annual capacity targets, certain siting restrictions
subject to waiver, emissions offset criteria, project criteria, project
evaluation standards, installation and decommissioning procedures, application
criteria, and standards to minimize traffic disruption, safety obstructions,
and other land use impacts. �Finally, the bill provides that a project
incentivized by the board is to be a permitted use within every municipality in
the State.

FISCAL ANALYSIS

EXECUTIVE BRANCH

����� None received.�

OFFICE OF LEGISLATIVE SERVICES

����� The OLS estimates that the bill may result in an
indeterminate increase in State expenditures to the Board of Public Utilities
attributable to adopting rules and regulations within 180 days to incorporate
roadside right-of-way solar energy projects into existing solar incentive
programs.� Although administrative in nature, the OLS anticipates that the
board will be able to absorb the additional responsibilities using existing
staff and resources.�

����� The OLS notes that the bill permits the board to
establish a fee as part of the application process.� This provision may offset,
to some extent, the State administrative cost associated with developing
regulations or reviewing proposed projects.

����� Additional administrative State expenditure increases
may be experienced by the Department of Transportation and the Department of
Environmental Protection to the extent that those departments assist the board
in developing regulations or reviewing proposed projects.� Department of
Transportation costs may potentially include review of traffic safety, roadway
access, future road expansion and right-of-way use.� Department of
Environmental Protection costs may potentially include environmental impacts, review
of stormwater runoff, and other related siting criteria.�

Section:

Authorities, Utilities, Transportation and
Communications

Analyst:

Michael D. Walker Jr.

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).