Authorizes construction, installation, and operation of solar energy generating facilities, structures, and equipment on preserved farmland, in certain cases, pursuant to lease agreement executed between landowner and solar developer.

A4635

ASSEMBLY, No. 4635

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Authorizes construction, installation, and operation
of solar energy generating facilities, structures, and equipment on preserved
farmland, in certain cases, pursuant to lease agreement executed between
landowner and solar developer.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the construction, installation, and
operation of solar energy generating facilities, structures, and equipment on
preserved farms, and amending P.L.2009, c.213.

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

���� 1.��� Section 1 of P.L.2009,
c.213 (C.4:1C-32.4) is amended to read as follows:

���� 1.��� a. �Notwithstanding any
law, rule
,
or regulation to the contrary, a person who owns preserved
farmland may construct, install, and operate biomass, solar, or wind energy
generation facilities, structures, and equipment on the farm, whether on the
preserved portion of the farm or on any portion excluded from preservation, for
the purpose of generating power or heat, and may make improvements to any
agricultural, horticultural, residential, or other building or structure on the
land for that purpose, provided that the biomass, solar, or wind energy
generation facilities, structures, and equipment:

���� (1)�� do not interfere
significantly with the use of the land for agricultural or horticultural
production, as determined by the committee;

���� (2)��
(a)
� are owned by
the landowner
[
,
or
]
;
(b)
will be owned by the landowner upon the conclusion of the term of an
agreement with the installer of the biomass, solar, or wind energy generation
facilities, structures, or equipment by which the landowner uses the income or
credits realized from the biomass, solar, or wind energy generation to purchase
the facilities, structures, or equipment
; or (c) in the case of solar energy
generation facilities, structures, or equipment, are owned by, and will remain
subject to the ownership of, the solar energy developer who installs or
constructs the facilities, structures, or equipment on the land, in accordance
with the terms of a valid lease agreement executed between the landowner and
solar developer, which agreement includes provisions clearly identifying the
boundaries and size of the land being leased for solar energy generation
purposes, the duration of the lease and the options for renewal and termination
thereof, the amount of rent to be paid under the lease, as well as the rent
payment schedule and any adjustments required to account for inflation, the
responsibilities of each party with respect to the ongoing maintenance of the
solar energy generating facilities, structures, or equipment constructed or
installed pursuant to the lease, the consequences of default on the lease, and
the means and methods that are required to be employed, and the performance and
land quality standards that are required to be satisfied, by each party, to
ensure the proper and full restoration of the land, and the return of the land
to its original state, following the termination of, or default on, the lease
;

���� (3)�� are used to provide
power or heat to the farm, either directly or indirectly, or to reduce, through
net metering or similar programs and systems, energy costs on the farm; and

���� (4)�� are limited (a) in
annual energy generation capacity to the previous calendar year's energy demand
plus 10 percent, in addition to what is allowed under subsection b. of this
section, or alternatively at the option of the landowner (b) to occupying no more
than one percent of the area of the entire farm including both the preserved
portion and any portion excluded from preservation.

���� The person who owns the farm
and the energy generation facilities, structures, and equipment may only sell
energy through net metering or as otherwise permitted under an agreement
allowed pursuant to paragraph (2) of this subsection.

���� b. �� The limit on the annual
energy generation capacity established pursuant to subparagraph (a) of
paragraph (4) of subsection a. of this section shall not include energy
generated from facilities, structures, or equipment existing on the roofs of
buildings or other structures on the farm as of the date of enactment of
P.L.2009, c.213 (C.4:1C-32.4 et al.).

���� c. �� A landowner shall seek
and obtain the approval of the committee before constructing, installing, and
operating biomass, solar, or wind energy generation facilities, structures, and
equipment on the farm as allowed pursuant to subsection a. of this section.�
The committee shall provide the holder of any development easement on the farm
with a copy of the application submitted for the purposes of subsection a. of
this section, and the holder of the development easement shall have 30 days
within which to provide comments to the committee on the application.� The
committee shall, within 90 days of receipt, approve, disapprove, or approve
with conditions an application submitted for the purposes of subsection a. of
this section.� The decision of the committee on the application shall be based
solely upon the criteria listed in subsection a. of this section and comments
received from the holder of the development easement.

���� d.��� No fee shall be charged
of the landowner for review of an application submitted to, or issuance of a
decision by, the committee pursuant to this section.

���� e.���� The committee may
suspend or revoke an approval issued pursuant to this section for a violation
of any term or condition of the approval or any provision of this section.

���� f.���� The committee, in
consultation with the Department of Environmental Protection and the Department
of Agriculture, shall adopt, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations
necessary for the implementation of this section, including provisions
prescribing standards concerning impervious cover which may be permitted in
connection with biomass, solar, or wind energy generation facilities,
structures, and equipment authorized to be constructed, installed, and operated
on lands pursuant to this section.

���� g.��� In the case of biomass
energy generation facilities, structures, or equipment, the landowner shall
also seek and obtain the approval of the Department of Agriculture as required
pursuant to section 5 of P.L.2009, c.213 (C.4:1C-32.5) if the land is valued,
assessed and taxed pursuant to the "Farmland Assessment Act of 1964,"
P.L.1964, c.48 (C.54:4-23.1 et seq.).

���� h.��� Notwithstanding any
provision of this section to the contrary, the construction, installation, or
operation of any biomass, solar, or wind energy generation facility, structure,
or equipment in the pinelands area, as defined and regulated by the "Pinelands
Protection Act," P.L.1979, c.111 (C.13:18A-1 et seq.), shall comply with
the standards of P.L.1979, c.111 and the comprehensive management plan for the
pinelands area adopted pursuant to P.L.1979, c.111.

���� i.���� For the purposes of
this section:

���� "Biomass" means an
agricultural crop, crop residue, or agricultural byproduct that is cultivated,
harvested, or produced on the farm and which can be used to generate energy in
a sustainable manner.

���� "Net metering" means
the same as that term is used for purposes of subsection e. of section 38 of
P.L.1999, c.23 (C.48:3-87).

���� "Preserved farmland"
means land on which a development easement was conveyed to, or retained by, the
committee, a board, or a qualifying tax exempt nonprofit organization pursuant
to the provisions of section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of
P.L.1988, c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1
of P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152
(C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland
preservation purposes.

(cf:� P.L.2009, c.213, s.1)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill would amend the law
that authorizes the construction, installation, and operation of solar,
biomass, and wind energy generating facilities, structures, and equipment on
preserved farmland in certain cases, in order to specify that solar energy generating
facilities, structures, and equipment may be installed or constructed, and used
for solar energy generating purposes, on preserved farmland, even if the solar
energy generating facilities, structures, or equipment are not owned by the
landowner. �When this law was first adopted, in 2009, the leasing of solar
panels was not a popular solution to facilitate the provision of solar power.�
However, as the solar industry has matured over the years, leasing has become a
viable option for landowners.� This bill would update the law to reflect, and
to ensure consistency with, current practices in this area.

���� Under the bill�s provisions,
the owner of a preserved farm would be authorized to construct, install, and
operate solar energy generating facilities, structures, or equipment on the
preserved farm, so long as those facilities, structures, and equipment: 1) are
owned by the landowner; 2) will be owned by the landowner upon the conclusion
of the term of an agreement with the installer of the biomass, solar, or wind
energy generation facilities, structures, or equipment by which the landowner
uses the income or credits realized from the biomass, solar, or wind energy
generation to purchase the facilities, structures, or equipment; or 3) are
owned by, and will remain subject to the ownership of, the solar energy
developer who installs or constructs the facilities, structures, or equipment
on the land, in accordance with the terms of a valid lease agreement executed
between the landowner and solar developer, which agreement includes provisions
clearly identifying the boundaries and size of the land being leased for solar
energy generation purposes, the duration of the lease and the options for
renewal and termination thereof, the amount of rent to be paid under the lease,
as well as the rent payment schedule and any adjustments required to account
for inflation, the responsibilities of each party with respect to the ongoing
maintenance of the solar energy generating facilities, structures, or equipment
constructed or installed pursuant to the lease, the consequences of default on
the lease, and the means and methods that are required to be employed, and the
performance and land quality standards that are required to be satisfied, by
each party, to ensure the proper and full restoration of the land, and the
return of the land to its original state, following the termination of, or
default on, the lease.