"Polluters Pay to Make New Jersey More Affordable Act"; imposes cost recovery payments on certain fossil fuel companies for funds needed for climate change adaptation; establishes program in DEP to collect and oversee distribution of funds.**

A3735 1R ACS

[First Reprint]

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3735

STATE OF NEW JERSEY

222nd LEGISLATURE

�
ADOPTED
JUNE 4, 2026

Sponsored by:

Assemblywoman� ALIXON COLLAZOS-GILL

District 27 (Essex and Passaic)

Assemblywoman� SHAMA A. HAIDER

District 37 (Bergen)

Assemblywoman� CAROL A. MURPHY

District 7 (Burlington)

Assemblyman� MICHAEL VENEZIA

District 34 (Essex)

Co-Sponsored by:

Assemblywoman Reynolds-Jackson, Assemblyman Calabrese,
Assemblywoman Park, Assemblyman Danielsen, Assemblywoman Tucker, Assemblymen
Kennedy, Karabinchak, Assemblywoman Peterpaul, Assemblyman Moen, Assemblywoman
Donlon, Assemblymen Abdelaziz, Spearman, Assemblywomen Morales, Bagolie, Swain,
Assemblymen Tully, Schaer, Stanley, Sampson, Assemblywoman Lopez, Assemblyman
Freiman, Assemblywoman Speight, Assemblymen Singh, G.Rodriguez, Schnall,
Assemblywoman McCoy, Assemblyman Verrelli, Assemblywomen Kane, Pintor Marin,
Brennan, Assemblymen E.Rodriguez, Stewart, Egan, Assemblywoman Quijano,
Assemblymen Onyema, Bhalla, Walker, Kearney, Assemblywoman Sweeney and
Assemblyman Wainstein

SYNOPSIS

���� "Polluters Pay to Make New Jersey More Affordable
Act"; imposes cost recovery payments on certain fossil fuel companies for
funds needed for climate change adaptation; establishes program in DEP to
collect and oversee distribution of funds.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Appropriations Committee
on June 23, 2026, with amendments.

An Act

concerning revenues to
support climate change adaptation projects and supplementing Title 26 of the
Revised Statutes.

����
Be It Enacted

by the Senate and General Assembly of the State of New Jersey:

���� 1.� This act shall be known
and may be cited as the �Polluters Pay to Make New Jersey More Affordable Act.�

���� 2.� a.� The Legislature finds
and declares that:

���� (1) �climate change, driven
chiefly by the combustion of fossil fuels, is an immediate and grave threat to
the State�s communities, environment, and economy. Its irreversible
consequences already confronting the State include rising sea levels,
increasing average temperatures, more frequent and severe extreme-weather
events, flooding, heat waves, toxic algal blooms, and other climate-related
hazards;

���� (2) �preserving the State�s
quality of life, particularly for today�s youth, who will bear the brunt of
climate impacts over their lifetimes, constitutes one of the State�s greatest
challenges for the next three decades and will require a shared sense of purpose,
substantial new or upgraded infrastructure, and dependable revenue sources;

���� (3) the New Jersey Spill
Compensation Fund already embodies the principle that entities responsible for
environmental harm must finance its remediation, yet no analogous mechanism
exists to address atmospheric pollution caused by the buildup of greenhouse
gases;

���� (4) �decades of peer-reviewed
research now make it possible to quantify, with high confidence, the proportion
of historic greenhouse-gas emissions attributable to the extraction of fossil
fuels by individual companies over the past 50 years and longer, enabling
assignment of proportional responsibility, with data regarding emissions
attributable to the extraction of fossil fuels being widely available and
administratively straightforward to use;

���� (5) �the Legislature therefore
intends to establish a Climate Adaptation, Resiliency, and Affordability
Program that will require companies with significant historic contributions to
greenhouse-gas emissions to bear a share of the cost of infrastructure investments
and other adaptation measures necessary to protect State residents, businesses,
and natural resources;

���� (6) �while the Legislature is
not making any findings of negligence or wrongdoing, or seeking to punish
covered companies, it is in the best judgment of the Legislature to establish
that the covered companies are strictly liable for monetary contributions to
address the harm that has been caused and to require covered companies to
contribute, because the emissions associated with the use of their products
contributed to climate change;

���� (7) �program payments will
support a range of resiliency projects that address the impacts of climate
change, such as: �coastal-wetland restoration; storm-water and drainage
upgrades; energy-efficient cooling systems in public and private buildings,
including schools and public housing; public-health initiatives targeting
climate-related hazards; and emergency responses to extreme-weather events;

���� (8) �based on credible
research from government agencies, universities, and respected research
organizations, New Jersey residents and businesses have been paying billions of
dollars to address the impact of climate change, from more severe flooding to
heat waves and wildfires.� The cited cost studies are a small fraction of the
costs New Jerseyans have already paid and will pay to adapt to climate change,
for example:� (a) according to a Rutgers University and Stevens Institute of
Technology report, climate change caused approximately 13 percent ($8.1
billion) of the $62.7 billion in losses incurred by New York, New Jersey, and
Connecticut from Superstorm Sandy; (b) from 2011 to 2024, New Jersey has the
fifth highest per capita spending on climate disasters in the nation with every
county experiencing at least five disasters; (c) according to peer-reviewed
research, the impact of severe heat alone cost over $108 billion in reduction
of New Jersey�s Gross Domestic Product (GDP) between 1991-2022; and (d) according
to a report by the Rhodium Group and co-authored by Rutgers University,
University of California, Berkeley, and the University of Chicago, the
estimated average annual loss to New Jersey from hurricane-related wind and
flood damage today is likely $670 million to $1.3 billion higher than it would
have been if sea levels and hurricane activity in the 1980s remained constant;

���� (9) �in its September 2025
report entitled �The Economic Risks of Climate Change in New Jersey,� the
Department of Environmental Protection (DEP) finds that climate change poses
systemic economic risks to the State, damaging infrastructure and housing
markets, threatening tourism and other key industries, and increasing costs
while eroding municipal tax bases;

���� (10) �a first-of-its-kind
report mandated by the Minnesota Legislature and released by the Minnesota
Pollution Control Agency in March 2026 found that the quantified impacts of
climate change in Minnesota, without further adaptation investment, would be
$17 to $22 billion per year by around 2050.� New Jersey has over 3.5 million
more people than Minnesota and the State�s economy is approximately 40 percent
larger;

���� (11) �State and federal
agencies have already identified tens of billions in climate adaptation
projects, for example:� (a) the DEP publicly identified over $15.3 billion in
new climate adaptation projects for just 11 of New Jersey�s 564 municipalities;
(b) the North Jersey Transportation Planning Authority has identified over $3
billion in prioritized climate resiliency projects; (c) a U.S. Army Corps of
Engineers (USACE) back-bay coastal resilience plan, for just a portion of the
New Jersey shore, proposed the elevation of approximately 6,400 homes and
flood-proofing of 279 critical facilities at an estimated cost of $7.6 billion;
and (d) a 2022 draft USACE report studied the metropolitan New York City, lower
New York, Long Island, and northern New Jersey shoreline and proposed a $52.7
billion plan to comprehensively address the region�s coastal storm risk,
including the construction of sea walls.� These projects represent a small
fraction of the costs of needed climate adaptation projects and primarily include
projects focused on flood prevention, but New Jersey will also need climate
adaptation projects that address severe heat, wildfires, drought, public health
risks, and many other climate impacts;

���� (12) �the State, universities,
and research organizations have identified hundreds of billions of dollars of
potential climate change impacts, including a 2025 Rutgers University report
documenting that over 699,000 properties, valued at $273.9 billion, are at risk
of flooding.� Homes make up the largest percentage of these properties, as well
as 31,907 commercial and industrial properties, 4,235 farms, 2,997 apartments,
2,374 church and charitable organization properties, and 942 school
properties.� By 2050, more than $435.9 billion in current property value
Statewide will be exposed to high flood risk, according to a 2025 analysis by
Rebuild by Design;

���� (13) �it is time for the
covered companies to pay their fair share of climate adaptation costs.� Just
three of the largest domestic oil and gas producers had combined 2023 profits
of $85.6 billion.� In 2023, during a downturn in crude oil prices, ExxonMobil,
Chevron, Shell, BP, and TotalEnergies still spent over $114 billion on stock
buybacks and dividends.� Scientific analyses attribute more than 70 percent of
post-1988 global greenhouse-gas emissions to the world�s 100 largest
fossil-fuel companies, underscoring their elevated responsibility;

���� (14) �based on anticipated
climate adaptation costs, the Legislature declares that responsible parties
shall be strictly liable to the State for a proportionate share of funds needed
for climate adaptation projects, in the total amount of $50 billion.� This assessment
represents only a fraction of the State�s anticipated adaptation costs while
remaining modest relative to industry capacity;

���� (15) �the program will cover
emissions associated with the responsible parties� fossil fuel extraction from
1995 through 2024, a period during which the science of climate change was well
established, including the role of �man-made� greenhouse gas emissions, and
robust data exist to allocate proportional responsibility;

���� (16) �the program will be
remedial in nature, seek compensation for harm arising from past pollution to
fund adaptation needs, is not regulatory or punitive, and is not intended to
intrude upon areas where federal law preempts State authority; and

���� (17) �the program would not
provide any State entity additional authority to regulate greenhouse gas
emissions or other pollutants, regulate energy production, or to raise other
revenue or create any new surcharges on energy consumers or small businesses,
beyond an assessment of covered companies.

���� b.� The Legislature therefore
determines that it is in the public interest to establish a cost-recovery
mechanism that shifts a fair share of adaptation expenses from State taxpayers
to the entities whose products have contributed to climate change.� The
Legislature also determines that the State is exercising its proprietary
interest as a market participant both in establishing the cost-recovery system
and in setting standards for the use of funds collected through the
cost-recovery mechanism.

���� 3.� As used in this act:

���� �Carbon dioxide equivalent�
means the amount of carbon dioxide by mass that would produce the same global
warming impact as a given mass of another greenhouse gas over an integrated
20-year time frame after emission.

���� �Climate change adaptation
project� means a project designed to respond to, avoid, moderate, repair, or
adapt to negative impacts caused by climate change and to assist human and
natural communities, households, and businesses to prepare for future climate-change-driven
disruptions, while maximizing environmental protections.� �Climate change
adaptation projects� include, but are not limited to:� (1) flood protection
projects; (2) home buyouts; (3) upgrades of stormwater drainage systems; (4)
defensive upgrades to roads, bridges, railroads, and transit systems; (5)
preparation for, and recovery from, extreme weather events; (6) preventive
health care programs and providing physical or mental care to treat illness or
injury caused by the effects of climate change; (7) relocation, elevation, or
retrofits of sewage treatment plants and other infrastructure vulnerable to
flooding; (8) outdoor tree planting; (9) upgrades and retrofits in public and
private buildings, such as schools and public, affordable, and workforce
housing, including, but not limited to, energy‑efficient cooling and
ventilation systems designed to address more frequent heat waves and wildfire
smoke; (10) distributed renewables and energy storage to improve resiliency;
1
(11)
1

improvements to energy and grid infrastructure that enhance
1
[
(11)
]
1

reliability and resilience or reduce system vulnerabilities and peak load; (12)
projects to respond to toxic algae blooms, loss of agricultural topsoil, crop
loss, food insecurity, and other climate-driven ecosystem threats to clean
water, safe and plentiful drinking water, wetlands, forests, farms, fisheries,
and food systems, including community food resilience and emergency food
distribution capacity; and (13) workforce development programs necessary to
implement other climate change adaptation projects, including apprenticeship,
pre-apprenticeship, and training programs.

���� �Coal� means bituminous coal,
anthracite coal, and lignite.

���� �Commissioner� means the
Commissioner of Environmental Protection.

���� �Controlled group� means two
or more entities treated as a single employer pursuant to:� (1) 26 U.S.C.
s.52(a) or (b), without regard to 26 U.S.C. s.1563(b)(2)(C); or (2) 26 U.S.C.
s.414(m) or (o).

���� �Cost recovery demand� means a
charge imposed upon a responsible party for cost recovery payments under the
Climate Adaptation, Resiliency, and Affordability Program established pursuant
to section 5 of this act for payment into the Climate Adaptation, Resiliency,
and Affordability Fund established pursuant to section
1
[
16
]

11
1
of this
act.

���� �Covered greenhouse gas
emissions� means, with respect to any entity, the total quantity of greenhouse
gas emissions, expressed in metric tons of carbon dioxide equivalent,
attributable to the total amount of fossil fuels extracted by that entity
during the covered period.� �Covered greenhouse gas emissions� includes those
emissions attributable to all fossil fuel extraction worldwide by an entity,
and are not limited to greenhouse gas emissions within the State.

���� �Covered period� means the
time period beginning on January 1, 1995 and ending on December 31, 2024.

���� �Crude oil� means oil or
petroleum of any kind and in any form, including bitumen, oil sands, heavy oil,
conventional and unconventional oil, shale oil, natural gas liquids,
condensates, and related fossil fuels.

���� �Department� means the
Department of Environmental Protection.

���� �Entity� means any individual,
trustee, agent, partnership, association, corporation, company, municipality,
political subdivision, or other legal organization, including a foreign nation,
that holds or held an ownership interest in a fossil fuel business during the
covered period.

���� �Fossil fuel� means coal,
crude oil, and fuel gases.

���� �Fossil fuel business� means a
business engaging in the extraction of fossil fuels.

���� �Fuel gas� means methane,
natural gas, and liquefied natural gas.

���� �Greenhouse gas� means the
same as the term is defined in section 3 of P.L.2007, c.112 (C.26:2C-39).

���� �Hazard mitigation plan� means
the same as the term is defined in section 1 of P.L.2023, c.313
(App.A:9-43.7a).

���� �Labor harmony agreement�
means an agreement between an employer who benefits from a grant provided under
the Climate Adaptation, Resiliency, and Affordability Program and has employees
at one or more facilities for which work was funded, in whole or in part, by
the grant, and one or more labor organizations that represent employees in the
economic sector of the facility.�
1
[
�
]
1
A

1
�
1
labor
harmony agreement
1
�
1
shall
require, for the duration of the agreement: (1) that any participating labor
organization and its members agree to refrain from picketing, work stoppages,
boycotts, or other economic interference against the business; and (2) that the
employer (a) agrees to maintain a neutral posture with respect to efforts of
any labor organization to represent employees at the facility or facilities,
(b) agrees to permit the labor organization to have access to the employees, and
(c) agrees to guarantee to the labor organization the right to obtain
recognition as the exclusive collective bargaining representatives of the
employees by demonstrating to the New Jersey State Board of Mediation, Division
of Private Employment Dispute Settlement, or a mutually agreed-upon, neutral,
third-party, that a majority of the employees have shown their preference for
the labor organization to be their representative by signing authorization
cards indicating that preference.� A labor organization included in a �labor
harmony agreement� shall be from a list of labor organizations which have
requested to be on the list and which the Commissioner of Labor and Workforce
Development has determined represent employees in the economic sector or sectors
of facilities receiving grants from the fund.

���� �Notice of cost recovery
demand� means the written communication from the department informing a
responsible party of the amount of the cost recovery demand payable into the
Climate Adaptation, Resiliency, and Affordability Fund established pursuant to
section
1
[
16
]

11
1
of this
act.

���� �Overburdened community� means
the same as the term is defined in section 2 of P.L.2020, c.92 (C.13:1D-158).

���� �Public entity� means the
State, a county, a municipality, a municipal or county authority, or any
commission or other political subdivision of the State.

���� �Qualifying expenditure� means
an authorized payment from one of the funds established pursuant to section
1
[
16
]

11
1
of this
act to pay for: (1) a climate change adaptation project, including its
operation, monitoring, and maintenance; or (2) reasonable administrative
expenses.

���� �Responsible party� means an
entity or a successor in interest to an entity that during any part of the
covered period was engaged in the
1
[
trade or
]
1

business of extracting fossil fuel and to which the department has determined
more than one billion metric tons of covered greenhouse gas emissions are
attributable, except that �responsible party� shall not include any entity that
lacks sufficient connection with the State to satisfy the nexus requirements of
the United States Constitution.�
1
An
entity shall not be considered a �responsible party� because it engages in the
refining, transportation, storage, distribution, retail sale, use for electricity
generation, or consumption of a fossil fuel.
1
�

���� �Trust� means the New Jersey
Climate Adaptation, Resiliency, and Affordability Trust established pursuant to
section 7 of this act.

���� 4.� a.� No later than six
months after the effective date of this act, the Commissioner of Environmental
Protection shall submit to the Senate Environment and Energy Committee and the
Assembly Environment and Solid Waste Committee, or their successor committees,
an assessment of the covered greenhouse gas emissions attributable to each
responsible party.

���� b.� Each responsible party
shall make payments to the State according to its proportional contribution to
the total covered greenhouse gas emissions attributable to responsible parties,
as determined by the commissioner pursuant to subsection a. of this section.� A
responsible party shall be strictly liable, without regard to fault, for a
share of the cost recovery amount, which shall be used for the costs of climate
change adaptation projects, including their operation and maintenance, in the
total amount of $50 billion.�

���� c.� Responsible parties that
are entities in a controlled group shall be treated as a single entity for
identification purposes, but shall be jointly and severally liable for the
payment of any cost recovery demand owed by any entity in the controlled group.

���� d.� If a responsible party
owns a minority interest of 10 percent or more in another entity, the
responsible party�s applicable share of covered greenhouse gas emissions shall
be increased by the applicable share of covered greenhouse gas emissions for the
entity in which the responsible party holds a minority interest multiplied by
the percentage of the minority interest held by the responsible party.

���� e.� In determining the amount
of covered greenhouse gas emissions attributable to any entity, the department
may:

���� (1) �require an entity to
provide information to the department related to past practices, production,
extraction, emissions, or other historical information about the entity
necessary or appropriate to enable the department to determine whether such
entity is a responsible party and, if so, the amount of such responsible party�s
covered greenhouse gas emissions;

���� (2) �apply consistent
emissions factors, consistent with the provisions of the �Global Warming
Response Act,� P.L.2007, c.112 (C.26:2C-37 et seq.), to convert extraction data
into greenhouse gas emissions; and

���� (3) �utilize any pertinent
financial information provided by the entity to the Department of the
Treasury.� Implementing the provisions of this section shall constitute the
performance of official duties for the purposes of R.S.54:50-8.

���� f.� Prior to the issuance of
any final cost recovery demand pursuant to this act, the department shall
publish on its Internet website a plain-language summary of the methodology,
emissions factors, and publicly available data sources used to determine proportional
responsibility under this section.� The publication of this information shall
be for transparency purposes only and shall not alter, expand, or otherwise
affect the authority of the department to make determinations pursuant to this
act.

���� 5.� a.� There is established
the Climate Adaptation, Resiliency, and Affordability Program in the Department
of Environmental Protection.� The purposes of the program shall be to:

���� (1)� secure payments from
responsible parties;

���� (2)� impose cost recovery
demands on responsible parties and issue

notices of cost recovery demands;

���� (3)� accept and collect
payment from responsible parties; and

���� (4)� oversee, in collaboration
with the New Jersey Climate Adaptation, Resiliency, and Affordability Trust,
the dispersal of funds to implement climate change adaptation projects pursuant
to section
1
[
16
]

11
1
of this
act.

���� b.� The department shall issue
the cost recovery demands required under this section no later than six months
following the adoption of the rules and regulations required under section
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[
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15
1
of this
act.

���� c.� (1)� Except as provided in
paragraph (2) of this subsection, a responsible party shall pay the cost
recovery demand amount in full no later than six months following the
department�s issuance of the cost recovery demand.

���� (2)� A responsible party may
elect to pay the cost recovery demand amount in 20 annual installments,
provided that:

���� (a)� the first installment
shall be paid no later than six months following the department�s issuance of
the cost recovery demand and shall be equal to five percent of the total cost
recovery demand amount;

���� (b)� each subsequent
installment shall be paid one year from the initial payment each subsequent
year and shall be equal to five percent of the total cost recovery demand
amount.� The commissioner shall adjust the amount of a subsequent installment
payment to reflect increases or decreases in the Consumer Price Index;

���� (c)� the unpaid balance of all
remaining installments shall become due immediately if the responsible party
fails to pay any installment in a timely manner, if there is a liquidation or
sale of all, or substantially all, the assets of the responsible party, or if
the responsible party ceases to do business; and

���� (d)� in the case of a sale of
all, or substantially all, the assets of a responsible party, the remaining
installments shall not become due immediately if the buyer enters into an
agreement with the department under which the buyer assumes liability for the
remaining installments due under this section in the same manner as if the
buyer were the responsible party.

���� d.� The department shall
deposit cost recovery payments into the Climate Adaptation, Resiliency, and
Affordability Fund established by section
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[
16
]

11
1
of this
act.

���� e.� A responsible party shall
not assign any part of its obligation to satisfy a cost recovery demand to a
non-responsible party, nor assert any claim for reimbursement or coverage for a
cost recovery demand against a non-responsible party.

���� f.� The department shall
publish all information, requests for proposals, application forms, procedures,
and guidelines related to the Climate Adaptation, Resiliency, and Affordability
Program on its Internet website and in a manner that is accessible to the
public and all potential recipients.

���� 6.� a. The department shall
establish a process by which a responsible party may file a request for
reconsideration of its cost recovery demand with the department within 60 days
following service of the notice of cost recovery demand if within the United
States, and within 90 days following such service outside the United States,
and in doing so shall exhaust administrative remedies.

���� b.� A request for
reconsideration shall state the grounds for the request and include supporting
documentation, which may include, but is not limited to, documentation of the
party�s covered greenhouse gas emissions and the party�s contacts with the
State.

���� c.� The department shall
consider each request for reconsideration received pursuant to this section,
and shall determine whether the requester establishes to the satisfaction of
the department that a portion of the requester�s cost recovery demand amount
was attributable to another responsible party, or an entity that is a successor
in interest to the responsible party, and whether the notices of cost recovery
demand should be updated.� If the department determines that the notices of
cost recovery demand should be updated, the department shall issue updated
notices of cost recovery demand, which shall include a statement of the grounds
of the department�s determination, within 60 days following the expiration of
all periods for submitting a request for reconsideration under this section.

���� d.� If a notice of cost
recovery demand issued pursuant to subsection c. of this section results in a
new responsible party receiving a notice of cost recovery demand that was not
issued a notice of cost recovery demand by the date required by subsection b.
of section 5 of this act, then, in the same manner as set forth in subsections
a. through c. of this section, the responsible party shall have 60 days from
service within the United States, and 90 days from service outside the United
States, to file a request for reconsideration, which filing shall exhaust the
responsible party�s administrative remedies, and the department shall consider
such request for reconsideration and issue updated notices of cost recovery
demand, if applicable, in the manner contemplated by subsection c. of this
section.

���� e.� If any updating of notices
of cost recovery demand pursuant to subsection c. of this section results in a
new responsible party that was not previously issued a cost recovery demand,
such new responsible party shall also be given the opportunity to file a
request for reconsideration in the same manner as set forth in subsection d. of
this section, and the process shall continue until no new responsible party
results from issuance of notices of cost recovery demand.

���� f.� If the processes in this
section result in issuances of notices of cost recovery demand after the
applicable payment date, then the applicable payment date shall be the date
which is 30 days after the final issuance of notices of cost recovery demand.

���� 7.� a.� There is established
in but not of the Department of the Treasury a public body corporate and
politic, with corporate succession, to be known as the New Jersey Climate
Adaptation, Resiliency, and Affordability Trust.� For the purpose of complying
with the provisions of Article V, Section IV, paragraph 1 of the New Jersey
Constitution, the trust is allocated within the Department of the Treasury, but
notwithstanding that allocation, the trust shall be independent of any
supervision or control by that department or by any board or officer thereof.�
The trust is constituted as an instrumentality of the State, exercising public
and essential governmental functions, no part of whose revenues shall accrue to
the benefit of any individual, and the exercise by the trust of the powers
conferred by this act shall be deemed and held to be an essential governmental
function of the State.

���� b.� The trust shall consist of
nine voting members as follows:� the Commissioner of Environmental Protection,
the Commissioner of Transportation, the President of the Board of Public
Utilities, and the State Treasurer, who shall be members ex officio; and five
public members, one of whom shall be appointed by the Governor, two of whom
shall be appointed by the President of the Senate and of those two so appointed
no more than one shall be from the same political party, and two of whom shall
be appointed by the Speaker of the General Assembly and of those two so
appointed no more than one shall be from the same political party.� The public
member appointed by the Governor shall serve a term of five years.� Each public
member appointed by the President of the Senate shall serve a term of five
years, except of those first appointed, one shall serve a term of three years
and the other a term of two years.� Each public member appointed by the Speaker
of the General Assembly shall serve a term of five years, except of those first
appointed, one shall serve a term of three years and the other a term of two
years.

���� c.� No person holding elective
public office shall be eligible to be a member of the trust.

���� d.� Each public member shall
hold office for the term of the member�s appointment and until the member�s
successor shall have been appointed and qualified.� A public member shall be
eligible for reappointment.� Any vacancy in a public membership occurring other
than by expiration of term shall be filled in the same manner as the original
appointment but for the unexpired term only.

���� e.� Any public member may be
removed from office by the appointing authority, for cause, after a public
hearing, and may be suspended by the appointing authority pending the
completion of the hearing.� All members before entering upon their duties shall
take and subscribe an oath to perform the duties of their office faithfully,
impartially, and justly to the best of their ability.� A record of each oath
shall be filed in the Office of the Secretary of State.

���� f.� The first chairperson of
the trust shall be the public member first appointed by the Governor.� At the
first meeting of the trust held in each subsequent year, the members shall
elect one of the public members to serve as chairperson of the trust in a
manner that ensures that the chair rotates annually among at least one of the
appointees of the President of the Senate, at least one of the appointees of
the Speaker of the General Assembly, and the appointee of the Governor.

���� g.� The trust shall not be
deemed to be constituted and shall not take action or adopt motions or
resolutions until all five authorized public members shall have been appointed
and qualified in the manner provided in this section.� The members shall annually
elect one of the public members as vice chairperson.� The members shall elect a
secretary and a treasurer, who need not be members, and the same person may be
elected to serve as both secretary and treasurer.� The powers of the trust
shall be vested in the members thereof in office from time to time and five
members of the trust shall constitute a quorum at any meeting thereof.� Action
may be taken and motions and resolutions adopted by the trust at any meeting
thereof by the affirmative vote of a majority of the full membership of the
trust.� No vacancy in the membership of the trust shall impair the right of a
quorum of the members to exercise all the powers and perform all the duties of
the trust.� The trust shall in all respects comply with the provisions of the
�Senator Byron M. Baer Open Public Meetings Act,� P.L.1975, c.231 (C.10:4-6 et
seq.).

���� h.� Each member of the trust
shall receive compensation in the amount of $250 per day for each day that the
public member attends a meeting of the trust, unless otherwise prohibited by
law.� Ex officio members of the trust shall serve without compensation.� All
members shall be reimbursed for actual expenses necessarily incurred in the
discharge of their duties.� Notwithstanding the provisions of any other law, no
member shall be deemed to have forfeited nor shall the member forfeit the
member�s office or employment or any benefits or emoluments thereof by reason
of the member�s acceptance of the office of ex officio member of the trust or
the member�s services therein.

���� i.� Each ex officio member may
designate an employee of the member's department or agency to represent the
member at meetings of the trust.� All designees may lawfully vote and otherwise
act on behalf of the member for whom they constitute the designee.� The
designation shall be in writing delivered to the trust and shall continue in
effect until revoked or amended in writing delivered to the trust.

���� j.� A true copy of the minutes
of every meeting of the trust shall be delivered forthwith by and under the
certification of the secretary thereof to the Governor.� No action taken at the
meeting by the trust shall have force or effect until 15 days after the copy of
the minutes shall have been so delivered, unless during this 15-day period the
Governor shall approve in writing the minutes or any part thereof, in which
case the action shall become effective upon approval.� If, within that 15-day
period, the Governor returns a copy of the minutes with the Governor�s veto of
any action taken by the trust or any member thereof at the meeting, the action
shall be null and void and of no effect.� Notwithstanding the foregoing, if the
last day of the 15-day period shall be a Saturday, Sunday, or legal holiday,
then the 15-day period shall be deemed extended to the next following business
day.�
1
[
The powers
conferred in this subsection upon the Governor shall be exercised with due
regard for the rights of the holders of bonds, notes, or other obligations of
the trust at any time outstanding, and nothing in, or done pursuant to, this
subsection shall in any way limit, restrict, or alter the obligation or powers
of the trust or any representative or officer of the trust to carry out and
perform in every detail each and every covenant, agreement, or contract at any
time made or entered into by or on behalf of the trust with respect to its
bonds, notes, or other obligations or for the benefit, protection, or security of
the holders thereof.
]
1

���� k.�
1
All
property of the trust is declared to be public property devoted to an essential
public and governmental function and purpose and shall be exempt from all taxes
and special assessments of the State or any political subdivision thereof.

����
l.
1
� The
trust shall continue in existence until dissolved by act of the Legislature.�
However, any dissolution of this trust shall be on condition that the trust has
no debts, contractual duties, or obligations outstanding, or that provision has
been made for the payment, discharge, or retirement of these debts, contractual
duties, or obligations.� Upon any dissolution of the trust, all property,
rights, funds. and assets thereof shall pass to and become vested in the State.

���� 8.� a.� It shall be the
purpose of the New Jersey Climate Adaptation, Resiliency, and Affordability
Trust, established pursuant to this act, to:

���� (1)� oversee the provision of
funding from the Department of Environmental Protection, Department of
Transportation, Board of Public Utilities, Department of Health, Department of
Education, Department of Agriculture, Department of Community Affairs, and
Department of Labor and Workforce Development for all, or a portion of, the
cost of climate change adaptation projects undertaken by grant recipients under
the Climate Adaptation, Resiliency, and Affordability Program and in accordance
with the purposes and procedures established pursuant to this act; and

���� (2)� perform such other duties
and responsibilities as authorized pursuant to this act or any other law.

���� b.� In addition to all other
powers granted to the trust in this act, the trust shall have power:

���� (1)� to sue and be sued;

���� (2)� to have an official seal
and alter it at the trust�s pleasure;

���� (3)� to make and alter bylaws
for its organization and internal management and rules and regulations for the
conduct of its affairs and business;

���� (4)� to maintain an office at
a place or places within the State as it may determine, and acquire, own, lease
as lessee or lessor, hold, use, sell, transfer, or dispose of real or personal
property for that purpose;

���� (5)� to acquire, hold, use and
dispose of its income, revenues, funds and moneys;

���� (6)�
1
[
to borrow
money and to issue its bonds, notes or other obligations and to secure them by
its revenues or other funds and otherwise to provide for and secure the payment
thereof and to provide for the rights of the holders thereof and to provide for
the refunding thereof, all as provided in this act;

���� (7)� to issue subordinated
indebtedness and to enter into any revolving credit agreement, agreement
establishing a line of credit or letter of credit, reimbursement agreement,
interest rate exchange agreement, insurance contract, surety bond, commitment to
purchase or sell bonds, notes, or other obligations, purchase or sale
agreement, or commitments or other contracts or agreements, and other security
agreements as approved by the trust in connection with the issuance of bonds,
notes, or other obligations;

���� (8)� subject to any agreement
with the holders of bonds, notes, or other obligations, to invest moneys of the
trust not required for immediate use, including proceeds from the sale of any
bonds, notes, or other obligations, in obligations, securities, and other
investments as the trust shall deem prudent;

���� (9)� subject to any agreement
with the holders of bonds, notes, or other obligations, to invest moneys of the
trust not required for immediate use, including proceeds from the sale of any
bonds, notes, or other obligations, in obligations, securities and other
investments as the trust shall deem prudent;

���� (10)
]
1
for its sole purpose
as established in this section, to appoint and employ an executive director and
such additional officers, who need not be members of the trust, and such other
personnel and staff as it may require, at an annual expense not to exceed
$250,000, all without regard to the provisions of Title 11A, Civil Service, of
the New Jersey Statutes;

����
1
[
(11)
]

(7)
1
� to do
and perform any acts and things authorized by this act under, through, or by
means of its officers, agents, or employees or by contract with any person,
firm, or corporation or any public body;

����
1
[
(12)
]

(8)
1
� to
procure insurance against any losses in connection with its property,
operations, assets, or obligations in amounts and from insurers as it deems
desirable;

����
1
[
(13)
]

(9)
1
� to
adopt, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.) such rules and regulations as it deems necessary to
effectuate the purposes of the trust;

����
1
[
(14)
]

(10)
1
� to
make and enter into any and all contracts and agreements which the trust
determines are necessary, incidental, convenient or desirable to the
performance of its duties and the execution of its powers under this act;

����
1
[
(15)
]

(11)
1
� to
accept and use any funds appropriated and paid by the State to the trust,
including, without limitation, appropriations and payments from the Climate
Adaptation, Resiliency, and Affordability Fund established pursuant to section
1
[
16
]

11
1
of this
act, for the purposes for which the appropriations and payments are made;

����
1
[
(16)
]

(12)
1
� to
apply for, and receive and accept, appropriations or grants of property, money,
services, or reimbursements for money previously spent and other assistance
offered or made available to it by or from any person, government agency,
public authority, or any public or private entity whatever for any lawful
corporate purpose of the trust, including, without limitation, grants,
appropriations, or reimbursements from the federal government, and to apply and
negotiate for these upon such terms and conditions as may be required by any
person, government agency, authority, or entity as the trust may determine to
be necessary, convenient, or desirable, provided that all such moneys, grants,
appropriations, and reimbursements so received and accepted shall be subject to
appropriation by law pursuant to the procedures established by this act; and

����
1
[
(17)
]

(13)
1
� to do
any and all things necessary, incidental, convenient, or desirable to carry out
its purposes and exercise the powers given and granted in this act.

����
1
[
9.� a.� The
trust shall have the power and is hereby authorized to issue its bonds, notes,
or other obligations in principal amounts as determined by the trust to be
necessary to provide for any of its corporate purposes, including the payment,
funding, or refunding of the principal of, or interest on, or redemption
premiums, if any, on bonds, notes, or other obligations issued by it, whether
the bonds, notes, obligations or interest to be funded or refunded have or have
not become due; and to provide for the security thereof and for the
establishment or increase of reserves to secure or to pay the bonds, notes, or
other obligations or interest thereon and all other reserves and all costs or
expenses of the trust incident to and necessary or convenient to carry out its
corporate purposes and powers.� In addition to its bonds, notes, and other
obligations, the trust shall have the power to issue subordinated indebtedness,
which shall be subordinate in lien to the lien of any or all of its bonds,
notes, or other obligations as the trust may determine.� No resolution or other
action of the trust providing for the issuance of bonds, refunding bonds,
notes, or other obligations shall be adopted or otherwise made effective by the
trust without the prior approval in writing of the Governor and the State
Treasurer.

���� b.� Except as may be otherwise
expressly provided in this act or by the trust, every issue of bonds, notes, or
other obligations shall be general obligations payable out of any revenues or
funds of the trust, subject only to any agreements with the holders of
particular bonds, notes, or other obligations pledging any particular revenues
or funds.� The trust may provide the security and payment provisions for its
bonds, notes, or other obligations as it may determine, including, without
limiting the generality of the foregoing, bonds, notes, or other obligations as
to which the principal and interest are payable from and secured by all or any
portion of the revenues of and payments to the trust, and other moneys or funds
as the trust shall determine.� The trust may also enter into bank loan
agreements, lines of credit, and other security agreements as authorized
pursuant to paragraph (7) of subsection b. of section 8 of this act and obtain
for, or on its behalf, letters of credit in each case for the purpose of
securing its bonds, notes, or other obligations or to provide direct payment of
any costs which the trust is authorized to pay by this act and to secure
repayment of any borrowings under the loan agreement, line of credit, letter of
credit, or other security agreement by its bonds, notes, or other obligations
or the proceeds thereof or by any or all of the revenues of and payments to the
trust or by any appropriation, grant, or reimbursement to be received by the
trust and other moneys or funds as the trust shall determine.

���� c.� Whether or not the bonds
and notes are of the form and character as to be negotiable instruments under
the terms of Title 12A, Commercial Transactions, of the New Jersey Statutes,
the bonds and notes are hereby made negotiable instruments within the meaning
of, and for all the purposes of, Title 12A.

���� d.� Bonds or notes of the
trust shall be authorized by a resolution or resolutions of the trust and may
be issued in one or more series and shall bear the date, or dates, mature at
the time or times, bear interest at the rate or rates of interest per annum, be
in the denomination or denominations, be in the form, carry the conversion or
registration privileges, have the rank or priority, be executed in the manner,
be payable from the sources, in the medium of payment, at the place or places
within or outside of the State, and be subject to the terms of redemption, with
or without premium, as the resolution or resolutions may provide.� Bonds or
notes may be further secured by a trust indenture between the trust and a
corporate trustee within or outside of the State.� All other obligations of the
trust shall be authorized by resolution containing terms and conditions as the
trust shall determine.

���� e.� Bonds, notes, or other
obligations of the trust may be sold at public or private sale at a price or
prices and in a manner as the trust shall determine, either on a negotiated or
on a competitive basis.

���� f.� Bonds or notes may be
issued and other obligations incurred under the provisions of this section
without obtaining the consent of any department, division, commission, board,
bureau or agency of the State, other than the approval as required by subsection
a. of this section, and without any other proceedings or the happening of any
other conditions or other things than those proceedings, conditions or things
which are specifically required by this act.

���� g.� Bonds, notes, and other
obligations of the trust issued or incurred under the provisions of this act
shall not be in any way a debt or liability of the State or of any political
subdivision thereof and shall not create or constitute any indebtedness,
liability, or obligation of the State or of any political subdivision or be or
constitute a pledge of the faith and credit of the State or of any political
subdivision but all bonds, notes, and obligations, unless funded or refunded by
bonds, notes, or other obligations of the trust, shall be payable solely from
revenues or funds pledged or available for their payment as authorized in this
act.� Each bond, note, or other obligation shall contain on its face a
statement to the effect that the trust is obligated to pay the principal
thereof, redemption premium, if any, or the interest thereon only from revenues
or funds of the trust and that neither the State nor any political subdivision
thereof is obligated to pay the principal thereof, redemption premium, if any,
or interest thereon and that neither the faith and credit nor the taxing power
of the State or any political subdivision thereof is pledged to the payment of
the principal of, redemption premium, if any, or the interest on the bonds,
notes, or other obligations. For the purposes of this subsection, �political
subdivision� does not include the trust.

���� h.� All expenses incurred in
carrying out the provisions of this act shall be payable solely from the
revenues or funds provided or to be provided under or pursuant to the
provisions of this act and nothing in this act shall be construed to authorize
the trust to incur any indebtedness or liability on behalf of or payable by the
State or any political subdivision thereof.

���� i.� Prior to 10 years after
the effective date of this act, the aggregate principal amount of bonds, notes,
or other obligations, including subordinated indebtedness, of the trust shall
not exceed $50,000,000,000; except that this limitation shall not include any
bonds, notes or other obligations, including subordinated indebtedness, of the
trust issued for refunding purposes in accordance with the provisions of this
section, and any bonds, notes or other obligations of the trust issued to fund
the costs of issuance of its bonds, notes, or other obligations.� After 10
years after the effective date of this act, the trust may issue only refunding
bonds in any amount subject to subsections j. through n. of this section.� The
trust shall not issue bonds, notes, or other obligations in any State fiscal
year in excess of $16,000,000,000, except that if that permitted amount of
bonds, notes or other obligations, or any portion thereof, is not issued in a
State fiscal year it may be issued in a subsequent State fiscal year.� Any
increase in this limitation shall only occur if so provided for by law.� The
limitations specified in this subsection shall apply only to bonds, notes, or
other obligations of the trust that are payable from, or secured by, amounts on
deposit in the Climate Adaptation, Resiliency, and Affordability Fund
established pursuant to section 16 of this act.

���� j.� Upon the decision by the
trust to issue refunding bonds pursuant to this section, and prior to the sale
of those bonds, the trust shall transmit to the Joint Budget Oversight
Committee, or its successor, a report that a decision has been made, reciting
the basis on which the decision was made, including an estimate of the debt
service savings to be achieved and the calculations upon which the trust relied
when making the decision to issue refunding bonds.� The report shall also
disclose the intent of the trust to issue and sell the refunding bonds at
public or private sale and the reasons therefor.

���� k.� The Joint Budget Oversight
Committee, or its successor, shall have authority to approve or disapprove the
sale of refunding bonds as included in each report submitted in accordance with
subsection j. of this section. The Joint Budget Oversight Committee, or its
successor, shall approve or disapprove the sale of refunding bonds within 10
business days after physical receipt of the report.� The Joint Budget Oversight
Committee, or its successor, shall notify the trust in writing of the approval
or disapproval as expeditiously as possible.

���� l.� No refunding bonds shall
be issued unless the report has been submitted to and approved by the Joint
Budget Oversight Committee, or its successor, as set forth in subsection k. of
this section.

���� m.� Within 30 days after the
sale of the refunding bonds, the trust shall notify the Joint Budget Oversight
Committee, or its successor, of the result of that sale, including the prices,
terms, conditions, and regulations concerning the refunding bonds, and the
actual amount of debt service savings to be realized as a result of the sale of
refunding bonds.

���� n.� The Joint Budget Oversight
Committee, or its successor, shall, however, review all information and reports
submitted in accordance with this section and may, on its own initiative, make
observations and recommendations to the trust or to the Legislature, or both,
as it deems appropriate.
]
1

����
1
[
10.� a.� In
any resolution of the trust authorizing or relating to the issuance of any
bonds, notes, or other obligations or in any indenture securing the bonds,
notes, or other obligations, the trust, in order to secure the payment of the
bonds, notes, or other obligations and in addition to its other powers, shall
have the power by provisions therein, which shall constitute covenants by the
trust and contracts with the holders of the bonds, notes, or other obligations,
to:

���� (1) �pledge all or any part of
its revenues or receipts to which its right then exists or may thereafter come
into existence and other moneys or funds as the trust shall determine and the
moneys derived therefrom, and the proceeds of any bonds, notes, or other
obligations;

���� (2) �pledge any agreement,
including a grant, agreement or contract with the federal government, the
revenues or payments thereunder and the proceeds thereof;

���� (3) �covenant against pledging
all or any part of its revenues or receipts or its agreements and the revenues
derived thereunder or the proceeds thereof and other moneys or funds as the
trust shall determine and the moneys derived therefrom or against permitting or
suffering any lien on any of the foregoing;

���� (4) �covenant with respect to
limitations on any right to sell, lease, or otherwise dispose of any property
of any kind;

���� (5) �covenant as to any bonds,
notes, and other obligations to be issued, the limitations, terms, and
conditions thereof, and the custody, application, investment, and disposition
of the proceeds thereof;

���� (6) �covenant as to the
issuance of additional bonds, notes, or other obligations or as to limitations
on the issuance of additional bonds, notes, or other obligations and on the
incurring of other debts by it;

���� (7) �covenant as to the
payment of the principal of, or interest on, the bonds, notes, or other
obligations, as to the sources and methods of payment, as to the rank or
priority of any bonds, notes, or obligations with respect to any lien or
security, or as to the acceleration of the maturity of any bonds, notes, or
obligations;

���� (8) �provide for the
replacement of lost, stolen, destroyed, or mutilated bonds, notes, or other
obligations;

���� (9) �covenant against
extending the time for the payment of bonds, notes, or other obligations or
interest thereon;

���� (10) �covenant as to the
redemption of bonds, notes, or other obligations and privileges of exchange
thereof for other bonds, notes, or other obligations of the trust;

���� (11) �covenant to create or
authorize the creation of special funds or moneys to be held in pledge or
otherwise for payment or redemption of bonds, notes, or other obligations,
reserves, or other purposes and as to the use, investment, and disposition of
the moneys held in the funds;

���� (12) �establish the procedure,
if any, by which the terms of any contract or covenant with, or for the benefit
of, the holders of bonds, notes, or other obligations may be amended or
abrogated, the amount of bonds, notes, or other obligations the holders of which
must consent thereto, and the manner in which the consent may be given;

���� (13) �provide for the release
of property, agreements, revenues, or receipts from any pledge;

���� (14) �reserve rights and
powers in, or the right to dispose of, property which is subject to a pledge;

���� (15) �provide for the rights,
liabilities, powers, and duties arising upon the breach of any covenant,
condition, or obligation;

���� (16) �prescribe the events of
default and the terms and conditions upon which any or all of the bonds, notes,
or other obligations of the trust shall become, or may be declared, due and
payable before maturity and the terms and conditions upon which any declaration
and its consequences may be waived;

���� (17) �vest in a trustee or
trustees within or outside of the State such property, rights, powers, and
duties in trust as the trust may determine, and to limit the rights, duties and
powers of that trustee or trustees;

���� (18) �execute all bills of
sale, conveyances, deeds of trust, and other instruments necessary or
convenient in the exercise of its powers or in the performance of its covenants
or duties;

���� (19) �pay the costs or
expenses incident to the enforcement of the bonds, notes, or other obligations
or of the provisions of the resolution or of any covenant or agreement of the
trust with the holders of its bonds, notes, or other obligations;

���� (20) �limit the rights of the
holders of any bonds, notes, or other obligations to enforce any pledge or
covenant securing the bonds, notes, or other obligations; and

���� (21) �make covenants, in
addition to the covenants expressly authorized in this subsection, of like or
different character, and to make covenants to do or refrain from doing acts and
things as may be necessary, convenient, or desirable, in order to better secure
bonds, notes, or other obligations or which in the absolute discretion of the
trust will tend to make bonds, notes, or other obligations more marketable,
notwithstanding that the covenants, acts, or things may not be enumerated
herein.

���� b.� Any pledge of revenues,
moneys, funds, or other property made by the trust shall be valid and binding
from the time when the pledge is made.� The revenues, moneys, funds. or other
property so pledged and thereafter received by the trust shall immediately be
subject to the lien of the pledge without any physical delivery thereof or
further act, and the lien of any pledge shall be valid and binding as against
all parties having claims of any kind in tort, contract, or otherwise against
the trust, irrespective of whether the parties have notice thereof.� Neither
the resolution nor any other instrument by which a pledge of revenues, moneys,
or funds is created need be filed or recorded, except in the records of the
trust.

���� c.� Neither the members of the
trust nor any person executing bonds, notes or other obligations issued
pursuant to this act shall be liable personally on the bonds, notes or other
obligations by reason of the issuance thereof.

���� d.� The trust may establish
reserves, funds or accounts as may be, in its discretion, necessary or
desirable to further the accomplishment of the purposes of the trust or to
comply with the provisions of any agreement made by, or any resolution of, the
trust.
]
1

����
1
[
11.� The State
does hereby pledge to and covenant and agree with the holders of any bonds,
notes, or other obligations issued or incurred pursuant to the authorization of
this act that the State will not limit or alter the rights or powers hereby
vested in the trust in any way that would jeopardize the interest of the
holders of the bonds, notes, or other obligations or inhibit or prevent
performance or fulfillment by the trust of the terms of any agreement made with
the holders of the bonds, notes, or other obligations, or prevent the trust
from obtaining sufficient revenues which, together with other available funds,
shall be sufficient to meet all expenses of the trust and fulfill the terms of
any agreement made with the holders of the bonds, notes, or other obligations,
together with interest thereon, with interest on any unpaid installments of
interest, and all costs and expenses in connection with any action or
proceedings by or on behalf of the holders, as provided in any agreement
provided for in this act, until the bonds, notes, or other obligations,
together with interest thereon, are fully met and discharged or provided for.�
The failure of the State to appropriate moneys for any purpose of this act
shall not be deemed or construed to be a violation of this section.
]
1

����
1
[
12.� The State
and all public officers, governmental units, and agencies thereof, all banks,
trust companies, savings banks, and institutions, building and loan
associations, savings and loan associations, investment companies, and other
persons carrying on a banking business, all insurance companies, insurance
associations, and other persons carrying on an insurance business, and all
executors, administrators, guardians, trustees, and other fiduciaries may
legally invest any sinking funds, moneys, or other funds belonging to them or
within their control in any bonds, notes, or other obligations issued pursuant
to this act, and the bonds, notes, or other obligations shall be authorized
security for any and all public deposits.
]
1

����
1
[
13.� All
property of the trust is declared to be public property devoted to an essential
public and governmental function and purpose and shall be exempt from all taxes
and special assessments of the State or any political subdivision thereof.� All
bonds, notes, or other obligations issued pursuant to this act are hereby
declared to be issued by a body corporate and politic of the State and for an
essential public and governmental purpose and the bonds, notes, and other
obligations, and the interest thereon and the income therefrom, and all funds,
revenues, income and other moneys received, or to be received, by the trust and
pledged or available to pay or secure the payment of the bonds, notes, and
other obligations, or interest thereon, shall at all times be exempt from
taxation, except for transfer inheritance and estate taxes.
]
1

����
1
[
14.
]

9.
1
� a.� On
or before the first day of September in each year, commencing with the calendar
year after the effective date of this act, the trust shall make an annual
report of its activities for the preceding State fiscal year to the Governor
and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the
Legislature, in addition to responding to other requests made by the
Legislature from time to time.� The report shall set forth a complete operating
and financial statement covering its operations during the year.

���� b.� (1) �On or before the
first day of September in every fifth year, commencing with the calendar year
after the effective date of this act, the trust shall, in consultation with the
Department of Environmental Protection, the Department of the Treasury, the Department
of Transportation, the Board of Public Utilities, the Department of Health, the
Department of Education, the Department of Agriculture, the Department of
Community Affairs, and the Department of Labor and Workforce Development,
develop and submit to the Governor and, pursuant to section 2 of P.L.1991,
c.164 (C.52:14-19.1), to the Legislature, a Climate Adaptation Master Plan,
which provides a strategy for the State to respond to the deleterious effects
of climate change on 20-year time horizon.

���� (2) �The Climate Adaptation
Master Plan shall be developed using public input and a stakeholder engagement
process, including, but not limited to, engagement with labor organizations,
trade organizations, local governments, environmental organizations, environmental
justice organizations, business organizations, transportation organizations,
health organizations, education organizations and agriculture organizations.

���� (3) �The trust shall hold at
least four public hearings during the process of formulating each Climate
Adaptation Master Plan, one of which shall be in the northern region of the
State, one of which shall be in the central region of the State, one of which
shall be in the southern region of the State, and one of which shall be in the
coastal region of the State.� As used in this paragraph:� �northern region�
means the counties of Bergen, Essex, Hudson, Morris, Passaic, Sussex, and
Warren; �central region� means the counties of Hunterdon, Mercer, Middlesex,
Somerset, and Union; �southern region� means the counties of Burlington,
Camden, Cumberland, Gloucester, and Salem; and �coastal region� means the
counties of Atlantic, Cape May, Monmouth, and Ocean.

���� (4) �The Climate Adaptation
Master Plan shall include a Statewide risk assessment, which informs local
governments and State agencies about the likely deleterious effects of climate
change on the 20-year time horizon.�

���� (5) �The Climate Adaptation
Master Plan shall be consistent with any State hazard mitigation plan and the
latest climate change projections developed by the Department of Environmental
Protection.

���� c.� The trust shall cause an
audit of its books and accounts to be made at least once in each year by
certified public accountants and the cost thereof shall be considered an
expense of the trust and a copy thereof shall be filed with the Director of the
Division of Budget and Accounting in the Department of the Treasury.�
Notwithstanding the provisions of any law to the contrary, the State Auditor,
or the State Auditor�s legally authorized representative, may examine the
accounts and books of the trust.

����
1
[
15.
]

10.
1
� All
officers, departments, boards, agencies, divisions, and commissions of the
State are hereby authorized and empowered to render any and all services to the
trust as may be within the area of their respective governmental functions as
fixed or established by law, and as may be requested by the trust.� Insofar as
possible, the cost and expense of any services shall be met and provided for by
those officers, departments, boards, agencies, divisions, and commissions.

����
1
[
16.
]

11.
1
� a.�
There is established in the Department of the Treasury a special, nonlapsing
fund to be known as the �Climate Adaptation, Resiliency, and Affordability
Fund.�� Moneys in the fund shall be held separately and be dedicated solely for
the purposes of this act.

���� b.� The Climate Adaptation,
Resiliency, and Affordability Fund shall be credited with:

���� (1)� cost recovery payments
distributed to the fund pursuant to section 5 of this act;

���� (2)�
1
[
the proceeds
of any bond issuance carried out by the trust pursuant to sections 9 through 12
of this act;

���� (3)
]
1
� any other moneys
appropriated by the Legislature or otherwise made available to the fund for the
purposes of this act;

����
1
[
(4)
]

(3)
1
� other
gifts, donations, or other moneys received from any source, public or private,
dedicated for deposit into the fund and approved by the State Treasurer; and

����
1
[
(5)
]

(4)
1
� any
interest earnings or other investment income earned or received on the moneys
in the fund.

���� c.� (1)� There is established
in the Department of Transportation a special nonlapsing fund to be known as
the �Resilient Transportation and NJ Transit Fund.�� Each year, the State
Treasurer shall deposit 25 percent of the available moneys in the �Climate
Adaptation, Resiliency, and Affordability Fund� into the �Resilient
Transportation and NJ Transit Fund� established pursuant to this paragraph.�
The Department of Transportation shall submit to the trust, twice per year, a
list of recommended climate change adaptation projects to be funded using
moneys in the �Resilient Transportation and NJ Transit Fund.�� At least 50
percent of funds distributed each year pursuant to this paragraph shall be used
to support public transportation projects in collaboration with the New Jersey
Transit Corporation.

���� (2)� There is established in
the Board of Public Utilities a special nonlapsing fund to be known as the
�Resilient Electric Grid Improvement Fund.�� Each year, the State Treasurer
shall deposit 25 percent of the available moneys in the �Climate Adaptation,
Resiliency, and Affordability Fund� into the �Resilient Electric Grid
Improvement Fund� established pursuant to this paragraph.� The Board of Public
Utilities shall submit to the trust, twice per year, a list of recommended
climate change adaptation projects to be funded using moneys in the �Resilient
Electric Grid Improvement Fund.�

���� (3)� There is established in
the Department of Environmental Protection a special nonlapsing fund to be
known as the �Climate Adaptation Fund.�� Each year, the State Treasurer shall
deposit 25 percent of the available moneys in the �Climate Adaptation, Resiliency,
and Affordability Fund� into the �Climate Adaptation Fund� established pursuant
to this paragraph.� The Department of Environmental Protection shall submit to
the trust, twice per year, a list of recommended climate change adaptation
projects to be funded using moneys in the �Climate Adaptation Fund.�

���� (4)� There is established in
the Department of Health a special nonlapsing fund to be known as the �Climate
Health Fund.�� Each year, the State Treasurer shall deposit five percent of the
available moneys in the �Climate Adaptation, Resiliency, and Affordability
Fund� into the �Climate Health Fund� established pursuant to this paragraph.�
The Department of Health shall submit to the trust, twice per year, a list of
recommended climate change adaptation projects to be funded using moneys in the
�Climate Health Fund.�

���� (5)� There is established in
the Department of Education a special nonlapsing fund to be known as the
�Resilient School Fund.�� Each year, the State Treasurer shall deposit five
percent of the available moneys in the �Climate Adaptation, Resiliency, and Affordability
Fund� into the �Resilient School Fund� established pursuant to this paragraph.�
The Department of Education shall submit to the trust, twice per year, a list
of recommended climate change adaptation projects to be funded using moneys in
the �Resilient School Fund.�

���� (6)� There
1
[
are
]

is
1
established
in the Department of Agriculture
1
[
two
]

a
1
special
nonlapsing
1
[
funds,
]

fund
1
to be
known as the �Fund for a Resilient Garden
1
[
State,� for use in supporting
agricultural resiliency projects, and the �Climate and Food Security Fund,� for
use in supporting projects aimed at reducing food insecurity and promoting
resiliency in food distribution.
]

State.�
1
�
Each year, the State Treasurer shall deposit
1
[
2.5
]

five
1
percent
of the available moneys in the �Climate Adaptation, Resiliency, and
Affordability Fund� into the �Fund for a Resilient Garden State�
1
[
and 2.5
percent into the �Climate and Food Security Fund.�
]

established pursuant to this
paragraph.
1
�
The Department of Agriculture shall submit to the trust, twice per year, a list
of recommended climate change adaptation projects to be funded using moneys in
the
1
[
funds
established pursuant to this paragraph.
]
�

�Fund for a Resilient Garden State.�� At least 50 percent of funds
distributed each year pursuant to this paragraph shall be used to support
projects aimed at reducing food insecurity and promoting resiliency in food
distribution.
1

���� (7)�
1
There
is established in the Department of Community Affairs a special nonlapsing fund
to be known as the �Climate Housing Resilience Fund.�� Each year, the State
Treasurer shall deposit five percent of the available moneys in the �Climate
Adaptation, Resiliency, and Affordability Fund� into the �Climate Housing
Resilience Fund� established pursuant to this paragraph.� The Department of
Community Affairs shall submit to the trust, twice per year, a list of
recommended climate change adaptation projects to be funded using moneys in the
�Climate Housing Resilience Fund.�

����
(8)
1
� There
is established in the Department of Labor and Workforce Development a special
nonlapsing fund to be known as the �Climate Workforce Development Fund.�� Each
year, the State Treasurer shall deposit five percent of the available moneys in
the �Climate Adaptation, Resiliency, and Affordability Fund� into the �Climate
Workforce Development Fund� established pursuant to this paragraph.� The
Department of Labor and Workforce Development shall submit to the trust, twice
per year, a list of recommended climate change adaptation projects to be funded
using moneys in the �Climate Workforce Development Fund.�

����
1
[
(8)� There is
established in the Department of Community Affairs a special nonlapsing fund to
be known as the �Climate Housing Resilience Fund.�� Each year, the State
Treasurer shall deposit five percent of the available moneys in the �Climate
Adaptation, Resiliency, and Affordability Fund� into the �Climate Housing
Resilience Fund� established pursuant to this paragraph.� The Department of
Community Affairs shall submit to the trust, twice per year, a list of
recommended climate change adaptation projects to be funded using moneys in the
�Climate Housing Resilience Fund.�
]
1

���� d.� All moneys appropriated or
otherwise made available to a fund established pursuant to this section shall
be dedicated for the purposes of the fund.� Pending use, moneys in the fund may
be invested and reinvested in the same manner as other moneys of the department
in the manner provided by law.� All earnings received from the investment or
deposit of such moneys shall be paid into and become a part of the fund and be
available for use pursuant to this act.

���� e.� (1)� The trust shall for
each fiscal year develop a priority system for the ranking of climate change
adaptation projects submitted to it by State agencies pursuant to this section,
to be financed through the Climate Adaptation, Resiliency, and Affordability
Program.� The priority system shall evaluate projects based on their ability to
assess, reduce, and manage risks caused by climate change, including, but not
limited to, sea-level rise, flooding, and extreme heat.� The priority system
shall prioritize projects that include robust community engagement, a
cost-benefit analysis, or measures designed to protect vulnerable populations.�

���� (2)� At least 51 percent of
grant funds issued under the Climate Adaptation, Resiliency, and Affordability
Program shall be awarded to projects that provide environmental or other
benefits to overburdened communities.�

���� (3)� At least five percent of
grant funds under the Climate Adaptation, Resiliency, and Affordability Program
shall be awarded to local government entities.

����
1
(4)
Any private entity that applies for a grant under the Climate Adaptation,
Resiliency, and Affordability Program shall include, in its application to the
applicable department, a cost-benefit analysis that demonstrates that the
project will result in a net benefit to the residents of the municipality in
which the project is carried out.
1

���� f.� (1)� The trust, in
consultation with the Department of Environmental Protection, shall set forth a
Climate Adaptation, Resiliency, and Affordability Program Project Priority List
for funding for each fiscal year and shall include: �(a) the aggregate amount
of funds to be authorized for these purposes; (b) a description of each climate
change adaptation project; and (c) an explanation of the manner in which
projects are ranked.� A draft project priority list for the ensuing fiscal year
shall be submitted to the Legislature pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1) on or before January 15 of each year.� The Legislature shall
hold a public hearing on the draft project priority list on or before February
15 of each year.� The trust shall submit, to the Legislature pursuant to
section 2 of P.L.1991, c.164 (C.52:14-19.1), a final project priority list for
the ensuing fiscal year on or before March 1 of each year.� The trust shall
include a statement with the final priority list, which explains how the list
is consistent with the Climate Adaptation Master Plan and the provisions of
this act.� The Senate Secretary and the Clerk of the General Assembly shall
cause the date of submission to be entered upon the Senate Journal and the
Minutes of the General Assembly, respectively.

���� (2)� Any climate change
adaptation project not identified by
1
[
project
]
1

sponsor, municipality, and county in the project priority list pursuant to
paragraph (1) of this subsection shall not be eligible for a grant from any
fund established pursuant to
1
this
1
section

1
[
16 of this act
]
1
.�
The trust may revise or supplement the project priority list no more than four
times during the fiscal year and shall submit the revised list to the
Legislature when the revisions are made.� No funds may be disbursed pursuant to
this subsection for climate change adaptation project activities prior to
certification in writing, from the State agency that recommended the project,
to the State Treasurer, that the project activities satisfy the provisions of
this act.

���� g.� On or before May 15 of
each year, the Legislature shall introduce in each House, in the form of
legislative appropriations bills, the final Climate Adaptation, Resiliency, and
Affordability Program Project Priority List, which shall be referred to the
Senate Environment and Energy Committee and the Assembly Environment and Solid
Waste Committee, or their successors, for their respective consideration.� The
Senate Environment and Energy Committee and the Assembly Environment and Solid
Waste Committee shall, either individually or jointly, consider the legislation
containing the Climate Adaptation, Resiliency, and Affordability Program
Project Priority List, and shall report the legislation, together with any
modifications, out of committee for consideration by each House of the
Legislature.� On or before July 1 of each year, the Legislature and Governor
shall approve an appropriations act containing the Climate Adaptation,
Resiliency, and Affordability Program Project Priority List, which act shall include
the authorization of an aggregate amount of funds to be expended for grants for
climate change adaptation projects, including the individual amounts therefor,
on the list.� The appropriations act may include administrative expenses, to
cover the costs of any State agency involved in the implementation of the
Climate Adaptation, Resiliency, and Affordability Program, so long as the
administrative expenses do not exceed five percent of the total appropriation.

���� h.� A State agency shall not
expend any funds during a fiscal year for any climate change adaptation project
unless the expenditure is authorized pursuant to an appropriations act of the
current or three immediate preceding fiscal years as provided in the provisions
of this section, or as otherwise set forth in an appropriations act.� Any funds
appropriated but not expended three years after the date of the first
appropriation shall be returned to the �Climate Adaptation, Resiliency, and
Affordability Fund� and the project to which they were appropriated shall be
ineligible to apply to the Climate Adaptation, Resiliency, and Affordability
Program for a period of one year.

����
1
[
17.
]

12.
1
� a.�
Any State agency, when determining which projects to provide to the trust for
consideration pursuant to section
1
[
16
]

11
1
of this
act, and any public entity, when considering and issuing permits, licenses,
regulations, contracts, or other administrative approvals and decisions
necessary for the implementation of projects funded in whole, or in part,
through the Climate Adaptation, Resiliency, and Affordability Program, shall
apply the following standards:

���� (1)� for any construction
work, all employees of any contractors or subcontractors shall be paid the
prevailing wage, as determined by the Commissioner of Labor and Workforce
Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.) and, for any building
service and maintenance work shall be paid the prevailing wage, as determined
by the Commissioner of Labor and Workforce Development pursuant to P.L.2005,
c.379 (C.34:11-56.58 et seq.).� Whenever a recipient of moneys from the Climate
Adaptation, Resiliency, and Affordability Fund contracts building service work
or operations and maintenance work to a building service contractor, the
contractor shall be held to the same obligations with respect to prevailing
wages as the recipient.� The recipient shall include terms establishing this
obligation within any contract signed with a contractor;

���� (2)� any climate change
adaptation project that receives at least $5 million through the Climate
Adaptation, Resiliency, and Affordability Program may be developed and
constructed pursuant to a project labor agreement, in the manner provided by
P.L.2002, c.44 (C.52:38-1 et seq.), and any employer who benefits from a grant
from the
1
[
fund
]

Climate
Adaptation, Resiliency, and Affordability Fund
1
and has
employees at one or more facilities for which work was funded, in whole or in
part, by the grant, shall enter into a labor harmony agreement with one or more
labor organizations which represent employees in the economic sector of the
facility and the agreement shall remain in effect as long as the fund has a
proprietary interest in the project, except not longer than three years;

���� (3)� to the extent
practicable, contractors and subcontractors shall participate in apprenticeship
programs, workforce training programs, and programs that provide for the
recruitment of local or disadvantaged workers; and

���� (4)� all manufactured products
or materials used in construction, renovation or maintenance shall be produced
or made in whole, or in substantial part, in the United States.

���� b.� The Department of Labor
and Workforce Development shall
1
[
establish
labor
]

review applications for grants from the fund for conformity with the
requirements of this section, prior to final approval by the trust.� If the
department finds that an application is not in conformity with the requirements
of this section, the department shall notify the trust, and the trust shall not
approve the grant application, unless the applicant resubmits an application
that conforms to the requirements of this section, within a timeframe to be
determined by the trust.� If a grant is approved, the department shall be
responsible for ongoing monitoring of project
1

compliance
1
[
standards
applicable to projects funded under this act.� The department may audit
projects and enforce compliance with the standards, including the suspension of
funding for violations
]

with the requirements of this section
1
.

���� c.� The State shall apply the
standards enumerated in subsections a. and b. of this section to any project
that is fully or partially funded by grants under the Climate Adaptation,
Resiliency, and Affordability Program to further the State�s proprietary interest
as a market participant in the project.

���� d.� Notwithstanding any
provision of this section to the contrary, all rights or benefits, including
terms and conditions of employment, and protection of civil service and
collective bargaining status of all existing public employees shall be
preserved and protected.� Nothing in this section shall result in the:

���� (1)� displacement of any
currently employed worker or loss of position, including partial displacement
such as a reduction in the hours of non-overtime work, wages, or employment
benefits;

���� (2)� impairment of existing
collective bargaining agreements;

���� (3)� transfer of existing
duties and functions related to maintenance and operations currently performed
by existing employees of authorized entities to a contracting entity; or

���� (4)� transfer of future duties
and functions ordinarily performed by employees of authorized entities to a
contracting entity.

����
1
[
18.
]

13.
1
� a.�
Nothing in this act shall be construed to supersede or diminish in any way
existing remedies available to a person or the State at common law or under
statute.

���� b.� Nothing in this act shall
be construed to preempt, displace, restrict, or limit in any way any other
claim or remedy available to a person.

���� c.� Nothing in this act shall
be construed to provide the Department of Environmental Protection or any other
State agency any additional authority to regulate greenhouse gas emissions or
other pollutants, regulate energy production, or to collect any additional
surcharges or fees from residents or businesses, other than the cost recovery
payments authorized pursuant to subsection b. of section 4 of this act.

���� d.� Nothing in this act shall
be construed to authorize a responsible party to impose a surcharge, fee, or
other direct charge on residential consumers or small businesses for the
purpose of recovering any cost recovery payment made pursuant to this act.

����
1
[
19.
]

14.
1
� a.� On
or before January 1st of the second calendar year following the date of
enactment of this act, and
1
[
annually
]

semiannually
1

thereafter on or before
1
March
30th and
1

September 30th, the department
1
,
in conjunction with the Office of the Attorney General and the trust,
1
shall
publish an evaluation of the Climate Adaptation, Resiliency, and Affordability
Program.� The purpose of the evaluation shall be to determine the effectiveness
of the program in achieving the purposes enumerated in subsection a. of section
5 of this act.� Each evaluation shall be published and maintained on the
department�s Internet website and reported to the Governor and the Legislature
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).�

���� b.� The evaluation shall
include, but not be limited to:

���� (1)� a list of all responsible
parties and their respective cost recovery demands, as well as any changes to
an entity�s status as a responsible party during the preceding program year;

���� (2)� an accounting of all cost
recovery demands made to responsible parties, actual moneys collected, and
penalties or other collection measures taken during the preceding program year;

���� (3)� an accounting of all
expenditures from the Climate Adaptation, Resiliency, and Affordability Fund,
including, at a minimum, a separate accounting of:

���� (a)� expenditures that benefit
overburdened communities
1
,
including a brief description of each
1

;

���� (b)� expenditures used for
grant programs for municipalities, community organizations, or other nonprofit
organizations
1
,
including a brief description of each
1

;
1
[
and
]
1

���� (c)� expenditures for
administrative costs;
1
and

����
(d) the total or estimated
number of direct jobs created and total wages paid to date;
1

���� (4)� a review of the status of
climate change adaptation projects funded through the program, including the
number of projects that have been completed, and a description of any projects
that have been identified but not yet funded;

���� (5)� a summary of the
geographic distribution of climate change adaptation projects;
1
[
and
]
1

���� (6)� an identification of
future spending needs
1
;
and

����
(7) the status of any
active or pending litigation associated with this act, and, if applicable, the
law firms that have been retained by the State to defend this act, each firm�s
hourly billing rate, the total legal fees defending this act to date, and, if
the State has entered into a contingency agreement, how much of any settlement
will be paid for legal representation
1

.

����
1
[
20.
]

15.
1
� No
later than one year after the effective date of this act, the Department of
Environmental Protection, the Department of the Treasury, the Department of
Transportation, the Board of Public Utilities, the Department of Health, the
Department of Education, the Department of Agriculture, the Department of
Community Affairs, and the Department of Labor and Workforce Development shall,
in accordance with the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the
provisions of this act.

����
1
[
21.
]

16.
1
� This
act shall take effect immediately.