Establishes Office of Clean Energy Equity in BPU; directs establishment of certain clean energy, energy efficiency, and energy storage programs for overburdened communities; makes change to community solar program.

A4892

ASSEMBLY, No. 4892

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblywoman� VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Assemblywoman� TENNILLE R. MCCOY

District 14 (Mercer and Middlesex)

Co-Sponsored by:

Assemblywoman Murphy, Assemblymen Spearman, Karabinchak,
Calabrese, Assemblywoman Carter, Assemblyman Stanley, Assemblywomen Haider,
Tucker and Assemblyman Venezia

SYNOPSIS

���� Establishes Office of Clean Energy Equity in BPU;
directs establishment of certain clean energy, energy efficiency, and energy
storage programs for overburdened communities; makes change to community solar
program.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning clean energy
,
energy
efficiency, and energy

storage programs for overburdened communities, supplementing
and amending P.L.2018, c.17, and supplementing Title 34 of the Revised Statutes
and P.L.1975, c.217 (C.52:27D-119 et seq.).

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

���� 1.��� (New section)� a.� There
is established in the Board of Public Utilities an Office of Clean Energy
Equity.� The office shall promote, guide, and oversee the equitable deployment
of clean energy, energy efficiency, and energy storage programs and technologies
in overburdened communities, and the equitable provision of the tangible
benefits of clean energy, increased energy efficiency, and energy storage at
the household and community level, including clean energy asset ownership,
energy cost savings, and employment and economic opportunities, to overburdened
communities.

���� b.��� The board shall:

���� (1)�� establish onsite solar
or community solar programs, including, but not limited to, programs using
solar facilities installed, owned, and operated by independent, non-utility providers,
which benefit 250,000 low income households or 35 percent of the low income
households in the State, whichever is larger, by 2030, with the goal of reducing
these households� average energy burden to below six percent of household
income, as defined by the United States Department of Energy Low Income Energy
Affordability Data Tool.� The board may implement the programs required
pursuant to this paragraph in conjunction with existing renewable energy and
energy efficiency programs or services; and

���� (2)�� require the
establishment of a minimum of 1,600 megawatt

hours of energy storage in
overburdened communities, capable of

delivering 400 megawatts of power,
by 2030, which shall be sited in public facilities, as part of a microgrid
connected to a public facility serving as a community energy resiliency hub, be
directly sited in low income households, or be sited so as to otherwise increase
the resiliency and reduce the energy burden of overburdened communities.� In
establishing the energy storage required pursuant to this paragraph, the office
shall ensure that a community energy resilience hub is powered by clean energy,
is community-based and community-centric, is inclusive of community-based
organizations, and prioritizes the deployment of energy services to local
residents during natural disasters.

���� c.���� The board, in
cooperation with the Office of Clean Energy Equity, shall:

���� (1)�� integrate workforce
development training into all clean energy and energy storage programs
established by the board;

���� (2)�� provide outreach and
recruitment campaign grants to community-based organizations to increase
participation by residents of overburdened communities in clean energy and
energy efficiency programs by hiring residents to conduct outreach and public
education in those communities;

���� (3)�� develop, in coordination
with community-based organizations, outreach materials concerning the
provisions of this act in multiple languages that are easy to deliver through
multiple media;

���� (4)�� appoint a community
liaison and establish an advisory board consisting of representatives of
overburdened communities responsible for conducting an internal and external
review and evaluation of all clean energy and energy storage programs available
to overburdened communities and provide annual recommendations to the board on
unmet needs in overburdened communities and suggestions for improvements to
those programs; and

���� (5)�� coordinate with the
Department of Labor and Workforce Development concerning the requirements of
section 2 of P.L. , c. (C.����� )
(pending before the Legislature as this bill) and with the Department of
Community Affairs concerning the requirements of section 3 of P.L.��� , c.��
(C.����� ) (pending before the Legislature as this bill).

���� d.��� (1) The board shall
direct no less than 10 percent of the board�s annual total clean energy budget,
or at least $50 million annually, whichever is greater, to the Office of Clean
Energy Equity to implement the provisions of this section.� All programs,
incentives, and other financing shall be appropriately structured to address
the unique barriers faced by low income households and overburdened
communities.� Funding directed pursuant to this subsection shall be
supplemental to, and not replace, any funds allocated to energy efficiency
services for low income households managed or required by the board on the
effective date of
P.L. , c. (C.����� ) (pending
before the Legislature as this bill).� The board may allocate additional
funding, staff, and resources to the Office of Clean Energy Equity as the board
determines appropriate.

���� Of the funds annually directed
by the board to the Office of Clean Energy Equity pursuant to this paragraph,
an amount not to exceed five percent may be used each year for costs associated
with program administration, including costs incurred related to marketing,
outreach, reporting, and evaluation activities to implement the provisions of
this section.� The Office of Clean Energy Equity may contract with a third
party administrator with experience deploying solar energy and energy storage
in overburdened communities to implement the provisions of this section.

���� (2)�� The board shall consult
with other State departments and agencies to identify additional sources of
funding and leveraged financing that may be available to meet the requirements
of P.L. , c. (C. ) (pending before the Legislature as this bill).

���� (3)�� No later than January 15
of each year, the board shall provide public notice on its Internet website and
in the New Jersey Register of the proposed budget for the Office of Clean
Energy Equity for the forthcoming fiscal year and provide an opportunity for
interested stakeholders to provide oral and written comments on the proposed
budget.

���� e.���� No later than September
1 of each year, the board shall prepare and submit to the Governor and,
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature a
written report of the activities of the Office of Clean Energy Equity.� The
report shall describe, at a minimum, the activities of the office during the
immediately preceding fiscal year, the amounts budgeted and expended for each
program activity, the amount of funding remaining unexpended at the end of the
fiscal year, a summary of the collaborations with other State departments and
agencies and the activities that are planned or were carried out by those
entities pursuant to P.L.��� , c.�� (C.������ ) (pending before the Legislature
as this bill), and a summary of the progress towards achieving the requirements
of subsection b. of this section.

���� f.���� As used in this
section:

���� �Clean energy� means energy
that is produced through means that does not release into the atmosphere any
criteria pollutant, toxic substance, hazardous air pollutant, or other air
pollutant and does not create undue environmental burden, and includes Class I
renewable energy and energy saved through energy efficiency measures.

���� �Community energy resiliency
hub� means a community-serving facility enhanced to support residents, enhance
community connectivity, and coordinate energy resource distribution and
services before, during, or after a natural hazard event.

���� �Community solar program�
means the program established by the board pursuant to section 5 of P.L.2018,
c.17 (C.48:3-87.11).

���� �Energy burden� means the
percentage of gross household income spent on energy costs.

���� �Energy storage� means
technologies used to store electricity that can provide grid and energy
resilience services.

���� �Limited English proficiency�
means that a household does not have an adult that speaks English �very well�
according to the United States Census Bureau.

���� �Low income household� means a
household that is at or below twice the poverty threshold as that threshold is
determined annually by the United States Census Bureau.

���� �Office� means the Office of
Clean Energy Equity established pursuant to subsection a. of this section.

���� �Overburdened community� means
any census block group, as determined in accordance with the most recent United
States Census, in which: (1) at least 35 percent of the households qualify as
low-income households; (2) at least 40 percent of the residents identify as
minority or as members of a State recognized tribal community; or (3) at least
40 percent of the households have limited English proficiency.

���� 2.� (New section) a.� (1)� The
Office of Clean Energy Equity established pursuant to section 1 of P.L.��� , c.��
�(C.��������� ) (pending before the Legislature as this bill) shall collaborate
with the Department of Labor and Workforce Development, the New Jersey Economic
Development Authority, the New Jersey Commission on Science, Innovation, and
Technology, the Office of the Secretary of Higher Education, and any other
staff or resources designated by the Board of Public Utilities, to develop
program guidelines for clean energy job training and workforce development
grants to be issued by the New Jersey Economic Development Authority,
Department of Education, and the Department of Labor and Workforce
Development.� The grants shall be provided to community-based,
diversity-focused nonprofit organizations, community colleges,
vocational-technical schools, and other qualified training partners including
union apprenticeship programs that demonstrate a commitment to focused work in
overburdened communities, demonstrate partnerships with employers located in
close proximity to overburdened communities who will employ program
participants, and will hire individuals from the communities where the work is
located.� The purpose of the grants shall be to develop energy efficiency or
clean energy paid workforce training programs that provide training to at least
2,500 individuals from overburdened communities by 2025.� The grant issuer
shall require, as a condition of a grant award, that the programs be updated
every two years to ensure that they prepare participants adequately for the
current job market in the energy efficiency or clean energy industry.�

���� (2)�� The Department of Labor
and Workforce Development shall develop, in coordination with community-based
organizations, programs to provide entrepreneurial training, mentoring,
apprenticeships, investment capital, loans, or other training, capacity
building, technical, and financial support to residents of overburdened
communities to help launch new clean energy enterprises or establish careers in
the clean energy workforce.

���� b.��� As used in this section:

���� �Clean energy� means the same
as the term is defined in section 1 of P.L.��� , c.�� (C.������ ) (pending
before the Legislature as this bill).

���� �Overburdened community� means
the same as the term is defined in section 1 of P.L.��� , c.�� (C.������ )
(pending before the Legislature as this bill).

���� 3.��� (New section)� a.� The
Department of Community Affairs, in consultation with the Office of Clean
Energy Equity established pursuant to section 1 of P.L.��� , c.�� (C.������ )
(pending before the Legislature as this bill) and any other staff or resources
designated by the Board of Public Utilities, shall require all new construction
located in an overburdened community to be solar ready, subject to any specific
exemptions that the department and the board deem reasonable and necessary and
that the department adopts pursuant to the �Administrative Procedure Act,�
P.L.1968, c.410 (C.52:14B-1 et seq.). The department shall give preference to
applications for onsite, community solar, energy storage, or other clean energy
projects that are sited in overburdened communities or include minority or
women-owned businesses.

���� b.��� The commissioner shall adopt
rules and regulations, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), in order to effectuate the
purposes of this section. The commissioner shall, pursuant to the
�Administrative Procedure Act,� make any necessary changes to the Residential
Site Improvement Standards adopted pursuant to P.L.1993, c.32 (C.40:55D-40.1 et
seq.), the State Uniform Construction Code adopted pursuant to P.L.1975, c.217
(C.52:27D-119 et seq.), any building subcode, or any other existing rule and
regulation to effectuate the purposes of this section.

���� c.���� As used in this
section:

���� �Clean energy� means the same
as the term is defined in section 1 of P.L.��� , c.�� (C.������ ) (pending
before the Legislature as this bill).

���� �Energy storage� means the
same as the term is defined in section 1 of P.L.��� , c.�� (C.������ ) (pending
before the Legislature as this bill).

���� �Overburdened community� means
the same as the term is defined in section 1 of P.L.��� , c.�� (C.������ )
(pending before the Legislature as this bill).

���� �Solar panel� means an
elevated panel or plate, or a canopy or array thereof, that captures and
converts solar radiation to produce power, and includes flat plate, focusing
solar collectors, or photovoltaic solar cells and includes the base or
foundation of the panel, plate, canopy, or array.

���� �Solar ready� means the
incorporation of design or structural

elements in a structure or building that allow for the
installation of rooftop solar panels and, if the structure or building is
intended to use hot water, a solar water heating system.

���� �Solar water heating system�
means a system which uses solar energy as the primary means of heating water.

���� 4.��� Section 5 of P.L.2018,
c.17 (C.48:3-87.11) is amended to read as follows:

���� 5.��� a.� No later than 210
days after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the
Board of Public Utilities shall adopt, pursuant to the �Administrative
Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations
establishing a �Community Solar Energy Pilot Program� to permit customers of an
electric public utility to participate in a solar energy project that is
remotely located from their properties but is within their electric public
utility service territory to allow for a credit to the customer's utility bill
equal to the electricity generated that is attributed to the customer's
participation in the solar energy project.

���� b.��� The rules and
regulations developed by the board shall establish:

���� (1)�� a capacity limit for
individual solar energy projects to a maximum of five megawatts per project;

���� (2)�� an annual capacity limit
for all solar energy projects under the pilot program;

���� (3)�� geographic limitations
for solar energy projects and participating customers;

���� (4)�� a minimum number of
participating customers for each solar energy project;

���� (5)�� the value of the credit
on each participating customer's bill;

���� (6)�� standards to limit the
land use impact of a solar energy project as required in subsection r. of
section 38 of P.L.1999, c.23 (C.48:3-87);

���� (7)�� the provision of access
to solar energy projects for low and moderate income customers;

���� (8)�� standards to ensure the
ability of residential and commercial customers to participate in solar energy
projects, including residential customers in multifamily housing;

���� (9)�� standards for connection
to the distribution system of an electric public utility; and

���� (10) provisions to minimize
impacts to the distribution system of an electric public utility.

���� c.���� The board shall make
available on its Internet website information on solar energy projects whose
owners are seeking participants.

���� d.��� The board shall
establish standards and an application process for owners of solar energy
projects who wish to be included in the Community Solar Energy Pilot Program.
The standards for the Community Solar Energy Pilot Program shall include, but
need not be limited to, a verification process to ensure that the solar energy
projects are producing an amount of energy that is greater than or equal to the
amount of energy that is being credited to its participating customer's
electric utility bills pursuant to subsection b. of this section, and consumer
protection measures.� Projects approved by the board shall have at least two
participating customers.

���� The board may restrict
qualified solar energy projects to those located on brownfields, landfills,
areas designated in need of redevelopment, in underserved communities, or on
commercial rooftops.

���� e.���� Subject to review by
the board, an electric public utility shall be entitled to full and timely cost
recovery for all costs incurred in implementation and compliance with this
section.

���� f.���� No later than 36 months
after adoption of the rules and regulations required pursuant to subsection b.
of this section, the board shall adopt rules and regulations, pursuant to the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), to convert
the Community Solar Energy Pilot Program to a permanent program.� The board
shall adopt rules and regulations for the permanent program that set forth
standards for projects owned by special purpose entities and nonprofit
entities.� The rules and regulations shall also:

���� (1)�� limit the capacity of
each solar energy project to a maximum of five megawatts;

���� (2) (a) establish a goal for
the conditional registration of 225 megawatts of solar energy projects prior to
June 1, 2024, with an additional 275 megawatts prior to June 1, 2024 if
qualified applications exceed 225 megawatts, and an additional 250 megawatts
prior to June 1, 2025 if qualified applications exceed 500 megawatts; and

���� (b)�� stipulate that the board
shall open registration, by October 1, 2025, for 3,000 megawatts of solar
energy projects in addition to the conditional registration goals already
established pursuant to this paragraph.� The board shall accept and approve
registrations pursuant to this subparagraph until the earlier of December 31,
2029 or such time as the 3,000 megawatts of solar energy projects are
completely registered.� The board shall set SREC-II levels and guaranteed bill
credit discount levels as appropriate to enable the complete registration of
3,000 megawatts of solar energy projects by December 31, 2029;

���� (3)�� set geographic
limitations for solar energy projects and participating customers;

���� (4)�� provide for a minimum
number of participating customers for each solar energy project;

���� (5)�� require the provision of
access to solar energy projects for low and moderate income customers
in
accordance with the requirements of section 1 of P.L.��� , c.�� (C.������ )
(pending before the Legislature as this bill)
;

���� (6)�� establish standards to
ensure the ability of residential and commercial customers to participate in
solar energy projects, including residential customers in multifamily housing;

���� (7)�� establish a method for
determining the value of the credit on each participating customer's bill;

���� (8)�� establish timeframes for
the credit available to the customer;

���� (9)�� establish standards and
methods to verify solar electric energy generation on a monthly basis for a
solar energy project;

���� (10) establish standards
consistent with the land use provisions for solar energy projects as provided
in subsections r., s., and t. of section 38 of P.L.1999, c.23 (C.48:3-87)
and
any land use provisions of the permanent successor to the SREC program
established by the board pursuant to P.L.2021, c.169 (C.48:3-114 et al.)
;

���� (11) establish standards,
fees, and uniform procedures for solar energy projects to be connected to the
distribution system of an electric public utility;

���� (12) minimize impacts to the
distribution system of an electric public utility;

���� (13) require monthly reporting
requirements for the operators of solar energy projects to the electric public
utility, project customers, and the board;

���� (14) require reporting by the
electric public utility to the operator of a solar energy project on the value
of credits to the participating customer's bills;

���� (15) require transferability,
portability, and buy-out provisions for customers who participate in community
solar energy projects;

���� (16) establish requirements
and standards that provide for the auditing and enforcement of a solar energy
project's compliance with the provisions of this section and the rules and
regulations adopted pursuant thereto, including the project's compliance with
commitments related to providing access to solar energy projects to low- and
moderate-income customers and bill crediting; and

���� (17) allow, in a form and
manner to be determined by the board, low- and moderate-income residential
customers to self-attest to the customer's income as an acceptable income
verification method for participation in a solar energy project.

���� g.��� As used in this section:

���� �Solar energy project� means a
system containing one or more solar panels and associated equipment.

���� �Solar panel� means an
elevated panel or plate, or a canopy or array thereof, that captures and
converts solar radiation to produce electric power, and is approved by the
board to be included in the Community Solar Energy Pilot Program.

���� �Solar power� includes flat
plate, focusing solar collectors, or photovoltaic solar cells and excludes the
base or foundation of the panel, plate, canopy, or array.

(cf: P.L.2025, c.135, s.1)

���� 5.��� (New section)� The board
shall conduct a study to examine utility rate schedules applied to customers
living in multi-family housing served by a single meter, and the community
solar bill credits and effective savings available to those customers.� The study
shall assess whether customers living in multi-family housing are eligible to
receive similar financial benefits from community solar participation as those
customers residing in single-family residences, and make suggestions for
legislative or regulatory action to ensure the equitable distribution of the
benefits and cost-savings of community solar.� In conducting the study, the
board shall solicit comments from utilities, public interest groups, and other
interested parties.� The board shall report its findings to the Governor and,
pursuant to section 2 of P.L.1991,

c.164 (C.52:14-19.1), the Legislature no later than 270 days after the
effective date of P.L.��� , c.�� (C.������� ) (pending before the Legislature
as this bill).�

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

STATEMENT

����� This bill would establish the Office of Clean Energy
Equity (�office�) in the Board of Public Utilities (BPU).� The office would be
charged with promoting, guiding, and overseeing the equitable deployment of
clean energy, energy efficiency, and energy storage programs and technologies
in overburdened communities, and the equitable provision of the tangible
benefits of clean energy, increased energy efficiency, and energy storage at
the household and community level, including clean energy asset ownership, energy
cost savings, and employment and economic opportunities, to overburdened
communities.� The bill would require the BPU to:� (1) establish onsite solar or
community solar programs, which benefit 250,000 low income households or 35
percent of the low income households in the State, whichever is larger, by
2030, with the goal of reducing these households� average energy burden to
below six percent of household income; and (2) require the establishment of a
minimum of 1,600 megawatt hours of energy storage to benefit overburdened
communities by 2030.

����� In addition, the BPU, in cooperation with the office,
would be required to:� integrate workforce development training into all clean
energy and energy storage programs established by the BPU; provide outreach and
recruitment campaign grants to community-based organizations to increase
participation in clean energy and energy efficiency programs; develop, in
coordination with community-based organizations, outreach materials in multiple
languages; appoint a community liaison and establish an advisory board consisting
of representatives of overburdened communities to review and evaluate the clean
energy and energy storage programs available to overburdened communities; and
coordinate with the Department of Labor and Workforce Development (DLWD) and
the Department of Community Affairs (DCA) concerning their responsibilities
pursuant to sections 2 and 3 of the bill.

����� The bill would require the BPU to direct no less than
10 percent of the BPU�s annual total clean energy budget, or at least $50
million annually, whichever is greater, to the office for the purposes of the
bill.� The BPU would be authorized to allocate additional funding, staff, and
resources to the office as it determines appropriate.�

����� In addition, the bill would require the office, in
collaboration with the DLWD, New Jersey Economic Development Authority (EDA),
New Jersey Commission on Science, Innovation, and Technology (CSIT), and the
Office of the Secretary of Higher Education (OSHE) to establish program
guidelines for clean energy job training and workforce development grants to be
issued by the EDA, Department of Education (DOE), and the DLWD.� The grants
would be issued to community-based, diversity-focused nonprofit organizations,
community colleges, vocational-technical schools, and other organizations to
develop energy efficiency or clean energy paid workforce training programs that
provide training to at least 2,500 individuals from overburdened communities by
2025.� Under the bill, it would be a condition of a grant award that the
programs be updated every two years to ensure that they prepare participants
adequately for the current job market in the solar energy or clean energy
industry. The bill would also direct the DLWD, in coordination with
community-based organizations, to develop programs to provide entrepreneurial
training, mentoring, apprenticeships, investment capital, loans, or other
training, capacity building, technical, and financial support to residents of
overburdened communities to help launch new clean energy enterprises or
establish careers in the clean energy workforce.

����� The bill would also direct the DCA, in consultation
with the office, to require the all new construction located in an overburdened
community be solar ready, subject to any specific exemptions that the DCA and
the BPU deem reasonable and necessary and that the DCA adopts as rules and
regulations.� The bill would also require the DCA to give preference to
applications for onsite, community solar, energy storage, or other clean energy
projects that are sited in overburdened communities or include minority or
women-owned businesses.

����� Lastly, the bill would amend the law establishing the
Community Solar Energy Pilot Program to require that the eventual permanent
community solar program provide for access to solar energy projects for low and
moderate income customers, in accordance with the requirements of the bill.� In
addition, the bill would require that the permanent community solar program be
consistent with any land use provisions of the permanent successor to the SREC
program.