Removes certain construction and property interest rights for offshore wind projects and BPU authority to supersede certain local government powers related to offshore wind development.

A5002

ASSEMBLY, No. 5002

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� GREGORY E. MYHRE

District 9 (Ocean)

Assemblyman� BRIAN E. RUMPF

District 9 (Ocean)

Co-Sponsored by:

Assemblywoman Fantasia

SYNOPSIS

���� Removes certain construction and property interest
rights for offshore wind projects and BPU authority to supersede certain local
government powers related to offshore wind development.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning offshore wind projects and open access
offshore wind facilities and amending P.L.2010, c.57.

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

���� 1.��� Section 3 of P.L.2010,
c.57 (C.48:3-87.1) is amended to read as follows:

���� 3. a. An entity seeking to
construct an offshore wind project shall submit an application to the board for
approval by the board as a qualified offshore wind project, which shall
include, but need not be limited to, the following information:

���� (1)� a detailed description of
the project, including maps, surveys and other visual aides.� This description
shall include, but need not be limited to:� the type, size, and number of
proposed turbines and foundations; the history to-date of the same type, size
and manufacturer of installed turbines and foundations globally; a detailed
description of the transmission facilities and interconnection facilities to be
installed; and a detailed implementation plan that highlights key milestone
activities during the permitting, financing, design, equipment solicitation,
manufacturing, shipping, assembly, in-field installation, testing, equipment
commissioning, and service start-up;

���� (2)� a completed financial
analysis of the project including pro forma income statements, balance sheets,
and cash flow projections for a 20-year period, including the internal rate of
return, and a description and estimate of any State or federal tax benefits
that may be associated with the project;

���� (3)� the proposed method of
financing the project, including identification of equity investors, fixed
income investors, and any other sources of capital;

���� (4)� documentation that the
entity has applied for all eligible federal funds and programs available to
offset the cost of the project or provide tax advantages;

���� (5)� the projected electrical
output and anticipated market prices over the anticipated life of the project,
including a forecast of electricity revenues from the sale of energy derived
from the project and capacity, as well as revenues anticipated by the sale of
any ORECs, RECs, air emission credits or offsets, or any tradable environmental
attributes created by the project;

���� (6)� an operations and
maintenance plan for the initial 20-year operation of the project that: details
routine, intermittent, and emergency protocols; identifies the primary risks to
the built infrastructure and how the potential risks, including but not limited
to hurricanes, lightning, fog, rogue wave occurrences, and exposed cabling,
shall be mitigated; and identifies specific and concrete elements to ensure
both construction and operational cost controls.� This operations and
maintenance plan shall be integrated into the financial analysis of the
project, and shall identify the projected plan for the subsequent 20 years,
following conclusion of the initial 20-year operations, assuming any necessary
federal lease agreements are maintained and renewed;

���� (7)� the anticipated carbon
dioxide emissions impact of the project;

���� (8)� a decommissioning plan
for the project including provisions for financial assurance for
decommissioning as required by the applicable State and federal governmental
entities;

���� (9)� a list of all State and
federal regulatory agency approvals, permits, or other authorizations required
pursuant to State and federal law for the offshore wind project, and copies of
all submitted permit applications and any issued approvals and permits for the
offshore wind project;

���� (10) a cost-benefit analysis
for the project including at a minimum:

���� (a)�� a detailed input-output
analysis of the impact of the project on income, employment, wages, indirect
business taxes, and output in the State with particular emphasis on in-State
manufacturing employment;

���� (b)� an explanation of the
location, type, and salary of employment opportunities to be created by the
project with job totals expressed as full-time equivalent positions assuming
1,820 hours per year;

���� (c)�� an analysis of the
anticipated environmental benefits and environmental impacts of the project;
and

���� (d)� an analysis of the
potential impacts on residential and industrial ratepayers of electricity rates
over the life of the project that may be caused by incorporating any State
subsidy into rates;

���� (11) a proposed OREC pricing
method and schedule for the board to consider;

���� (12) a timeline for the
permitting, licensing, and construction of the proposed offshore wind project;

���� (13) a plan for
interconnection, including engineering specifications and costs; and

���� (14) any other information
deemed necessary by the board in order to conduct a thorough evaluation of the
proposal.� The board may hire consultants or other experts if the board
determines that obtaining such outside expertise would be beneficial to the
review of the proposal.

���� b. (1) In considering an
application for a qualified offshore wind project, submitted pursuant to
subsection a. of this section, the board shall determine that the application
satisfies the following conditions:

���� (a)�� the filing is consistent
with the New Jersey energy master plan, adopted pursuant to section 12 of
P.L.1977, c.146 (C.52:27F-14), in effect at the time the board is considering
the application;

���� (b)� the cost-benefit
analysis, submitted pursuant to paragraph (10) of subsection a. of this
section, demonstrates positive economic and environmental net benefits to the
State;

���� (c)�� the financing mechanism
is based upon the actual electrical output of the project, fairly balances the
risks and rewards of the project between ratepayers and shareholders, and
ensures that any costs of non-performance, in either the construction or operational
phase of the project, shall be borne by shareholders; and

���� (d)� the entity proposing the
project demonstrates financial integrity and sufficient access to capital to
allow for a reasonable expectation of completion of construction of the
project.

���� (2)� In considering an
application for a qualified offshore wind project, submitted pursuant to
subsection a. of this section, the board shall also consider:

���� (a)�� the total level of
subsidies to be paid by ratepayers for qualified offshore wind projects over
the life of the project; and

���� (b)� any other elements the
board deems appropriate in conjunction with the application.

���� c.��� An order issued by the
board to approve an application for a qualified offshore wind project pursuant
to this section shall, at a minimum, include conditions to ensure the
following:

���� (1)� no OREC shall be paid
until electricity is produced by the qualified offshore wind project;

���� (2)� ORECs shall be paid on
the actual electrical output delivered into the transmission system of the
State;

���� (3)� ratepayers and the State
shall be held harmless for any cost overruns associated with the project; and

���� (4)� the applicant will
reimburse the board and the State for all reasonable costs incurred for
regulatory review of the project, including but not limited to consulting
services, oversight, inspections, and audits.

���� An order issued by the board
pursuant to this subsection shall specify the value of the OREC and the term of
the order.

���� An order issued by the board
pursuant to this subsection shall not be modified by subsequent board orders,
unless the modifications are jointly agreed to by the parties.

���� d.��� The board shall review
and approve, conditionally approve, or deny an application submitted pursuant
to this section within 180 days after the date a complete application is
submitted to the board.

���� e.��� Notwithstanding any
provision of P.L.2010, c.57 (C.48:3-87.1 et al.) to the contrary, the board may
conduct one or more competitive solicitations for open access offshore wind
transmission facilities designed to facilitate the collection of offshore wind
energy from qualified offshore wind projects or its delivery to the electric
transmission system in this State.

���� f.
[
�� Notwithstanding the provisions
of any other State law, rule, or regulation to the contrary, a qualified
offshore wind project or an open access offshore wind transmission facility
approved by the board pursuant to this section shall, after consultation with a
municipality, county, or other political subdivision of the State, or any
agency, authority, or other entity thereof:

���� (1)� have authority to place,
replace, construct, reconstruct, install, reinstall, add to, extend, use,
operate, inspect, and maintain wires, conduits, lines, and associated
infrastructure, whether within, under, or upon the public streets,
thoroughfares, or rights-of-way of any municipality, county, or other political
subdivision of the State, or any agency, authority, or other entity thereof,
provided that the wires, conduits, lines, and associated infrastructure are
located underground, except to the extent necessary as determined by the board.

���� Notwithstanding the provisions
of any other State law, rule, or regulation to the contrary, no municipality,
county, or other political subdivision of the State, or any agency, authority,
or other entity thereof, shall prohibit, or charge a fee for, the use of public
streets, thoroughfares, or rights-of way for the purposes set forth in this
subsection, other than a fee for a road opening permit, and the issuance of a
road opening permit shall not be withheld, except for bona fide public safety
reasons;

���� (2)� be authorized to obtain
easements, rights-of-way, or other real property interests on, over, or through
any real property other than public streets, thoroughfares, or rights-of-way,
owned by a municipality, county, or other political subdivision of the State,
or any agency, authority, or other entity thereof, that are reasonably
necessary for the construction or operation of a qualified offshore wind
project or an open access offshore wind transmission facility.� If a qualified
offshore wind project or an open access offshore wind transmission facility is
unable to obtain an easement, right-of-way, or other real property interest
from a municipality, county, or other political subdivision of the State, or
any agency, authority, or other entity thereof, after 90 days of a written
request therefor to the applicable entity, the qualified offshore wind project
or open access offshore wind transmission facility, as the case may be, may
file a petition with the board seeking authority to obtain the easement, right-of-way,
or other real property interest.

���� In considering a petition
submitted pursuant to this paragraph, the board shall:� conduct, or cause to be
conducted, a public hearing in order to provide an opportunity for public input
on the petition.� Notice of the public hearing shall be given in a manner and
form as determined by the board in order to provide an opportunity for public
input to be received on the petition.� At a minimum, notice of the public
hearing shall be provided to the news media, the owner of the real property
subject to the petition, and the governing body and municipal clerk of the
municipality and the clerk of the county in which the lands proposed to be
conveyed are located.� The notice of the public hearing shall provide the date,
time, and location of the public hearing, identification of the project and
property that is the subject of the petition, and any other information deemed
appropriate by the board.

���� Following the public hearing
and receipt of public comment on the petition, the board shall determine
whether the requested easement, right-of-way, or other real property interest
are reasonably necessary for the construction or operation of the qualified
offshore wind project or open access offshore wind transmission facility.�

���� If the board determines that
the requested easement, right-of-way, or other real property interest are
reasonably necessary for the construction or operation of the qualified
offshore wind project or open access offshore wind transmission facility, the board
shall issue an order approving the acquisition of the requested easement,
right-of-way, or other real property interest, and notwithstanding the
provisions of any other State law, rule, or regulation to the contrary, such
order shall effectuate the qualified offshore wind project's or the open access
offshore wind transmission facility's property interest and shall be recorded
by the appropriate county recording officer at the request of the qualified
offshore wind project or open access offshore wind transmission facility.� Upon
recording of an order pursuant to this paragraph that concerns land preserved
for recreation and conservation purposes, as defined in section 3 of P.L.1999,
c.152 (C.13:8C-3), the entity constructing the qualified offshore wind project
or the open access offshore wind transmission facility, as the case may be,
shall be:� considered the legal or record owner of the property interest; and
subject to the rules and regulations adopted by the Department of Environmental
Protection concerning the conveyance, diversion, or disposal of lands preserved
for recreation and conservation purposes.� The entity constructing the
qualified offshore wind project or the open access offshore wind transmission
facility shall be responsible for the restoration and maintenance of the area
of land subject to an order pursuant to this paragraph.� Payment of fair
compensation for the easement, right-of-way, or other real property interest
shall be made to the appropriate entity pursuant to the procedures set forth in
the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et
seq.).� The acquisition of an easement, right-of-way, or other real property
interest pursuant to this paragraph shall not be subject to any public bidding
requirements.�

���� If an order issued by the
board pursuant to this paragraph concerns an easement, right-of-way, or other
real property interest located on, over, or through land preserved for
recreation and conservation purposes, as defined in section 3 of P.L.1999, c.152
(C.13:8C-3), the entity constructing the qualified offshore wind project or
open access offshore wind transmission facility shall:� pay fair market value
for the easement, right-of-way, or other real property interest to the owner of
the preserved land; and provide funds to the Department of Environmental
Protection's Office of Green Acres, established pursuant to section 24 of
P.L.1999, c.152 (C.13:8C-24), a local government unit, or a qualifying tax
exempt nonprofit organization, as defined in section 3 of P.L.1999, c.152
(C.13:8C-3), for the acquisition of three times the area of preserved land
within the easement, right-of-way, or other real property interest subject to
the board's order in additional land for recreation and conservation purposes
within the same county within three years after the board's order pursuant to
this paragraph.� Any compensation for preserved land received pursuant to this
paragraph shall be used for the acquisition of land for recreation and
conservation purposes, as defined in section 3 of P.L.1999, c.152
(C.13:8C-3),and may, in the discretion of the Commissioner of Environmental
Protection and the State House Commission, be found to satisfy the compensation
requirements of the rules and regulations adopted by the Department of
Environmental Protection concerning the conveyance, diversion, or disposal of
lands preserved for recreation and conservation purposes; and

���� (3)� be authorized to file a
petition with the board seeking a determination that all municipal or county
approvals, consents, or affirmative filings with other public entities required
to construct or operate a qualified offshore wind project or an open access
offshore wind transmission facility are preempted and superseded, upon a
finding by the board that such municipal or county approvals, consents, or
affirmative filings are reasonably necessary for the construction or operation
of the qualified offshore wind project or the open access offshore wind
transmission facility.� If the board makes a determination pursuant to this
paragraph preempting a municipal or county action that is a condition of the
issuance of a permit or other approval of the Department of Environmental
Protection or any other department or agency of the State, then notwithstanding
the provisions of any other State law, rule, or regulation to the contrary, the
department or agency, as applicable, may act without prior municipal or county
approval, consent, or affirmative filing.� To the extent that a municipal or
county approval, consent, or affirmative filing involves the acquisition of an
easement, right-of-way, or other real property interest, the procedures set
forth in paragraph (2) of this subsection shall apply.
]
(Deleted
by amendment, P.L.�� c.�� ) (pending before the Legislature as this bill)

���� g.���
[
A qualified
offshore wind project or an open access offshore wind transmission facility
approved by the board pursuant to this section shall be deemed to be an
electric power generator for the purposes of section 10 of the "Municipal
Land Use Law," P.L.1975, c.291 (C.40:55D-19), and the qualified offshore
wind project or open access offshore wind transmission facility may proceed in
accordance with the decision of the board, notwithstanding any provision of the
"Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-19), or any
ordinance, rule, or regulation adopted pursuant thereto, to the contrary;
provided that the board determines:� (1) that, for the purposes of the
qualified offshore wind project or the open access offshore wind transmission
facility, the electric power generator described in a petition filed with the
board is necessary for the service, convenience, or welfare of the public, or
that the qualified offshore wind project or the open access offshore wind
transmission facility will provide a net benefit to the environment of the
State; and (2) that no alternative site is reasonably available to achieve an
equivalent public benefit.
]

(Deleted by amendment, P.L.�� c.�� ) (pending before
the Legislature as this bill)

(cf: P.L.2021, c.178, s.1)

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

STATEMENT

���� This bill removes from the law
all of the provisions of P.L.2021, c.178, which relates to offshore wind
development.� The law authorized certain offshore wind projects to construct
power lines and obtain real property interests and granted the Board of Public
Utilities the authority to supersede certain local government powers under
certain circumstances.�