Read the full stored bill text
A5055
ASSEMBLY, No. 5055
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 14, 2026
Sponsored by:
Assemblyman� ROBERT J. KARABINCHAK
District 18 (Middlesex)
SYNOPSIS
���� Establishes solar energy grant program in BPU to
provide grants to public schools for solar energy projects; appropriates $15
million.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
establishing a solar energy grant program within
the Board of Public Utilities, supplementing Title 48 of the Revised Statutes,
and making an appropriation.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� As used in this
section:
���� "Board" means the
Board of Public Utilities.
���� �Department� means the
Department of Education.
���� "Educational services commission"
means the same as the term is defined in section 1 of P.L.1968, c.243
(C.18A:6-51).
���� �Eligible entity� or �eligible
applicant� means a New Jersey school district, public school, educational
services commission, jointure commission, career or technical school, or
community college.
���� �Eligible project costs� means
costs related to the purchase and installation of equipment, permit fees,
energy storage, utility interconnection, and any other costs directly related
to a solar energy project which are approved by the Board of Public Utilities
in consultation with the Office of the Secretary of Higher Education, the
Department of Community Affairs, and the Department of Education.�
���� �Eligible solar energy
project� means a system containing one or more solar panels and associated
equipment, approved by the Board of Public Utilities in consultation with the Office
of the Secretary of Higher Education, the Department of Community Affairs, and
the Department of Education.� "Eligible solar energy project" shall
not include a self-funded energy efficiency project that is an energy savings
improvement program undertaken pursuant to the provisions of P.L.2009, c.4
(C.18A:18A-4.6 et al.) or P.L.2012, c.55 (C.52:34-25.1 et al.).
���� �Inflation Reduction Act�
means the federal �Inflation Reduction Act of 2022,� Pub.L.117-169.
���� "Jointure
commission" means a commission set up by two or more boards of education
to carry out jointly by agreement the duties imposed upon them in regard to the
education and training of pupils with disabilities.
���� �Program� means the solar
energy project grant program established pursuant to this section.
���� �Solar panel� means an
elevated panel or plate, or a canopy or array thereof, that captures and
converts solar radiation to produce electric power.
���� b.� No later than 180 days
after the effective date of this act, the board, in consultation with the
department, shall establish a program to provide grants to eligible entities to
fund eligible solar energy projects.� The purpose of the program shall be to
assist eligible entities by reducing present and future energy costs, increase
resiliency of school energy systems, and take a step towards the State�s
climate action goals.
���� c.� In order to be eligible
for a grant, the applicant shall demonstrate to the board that it is an
eligible entity, as defined in subsection a. of this section.� The board shall
not require the applicant to provide any matching funds in order to be eligible
for a grant.
���� d.� Grant awards shall be used
by the applicant for eligible project costs related to an eligible solar energy
project.� The maximum grant amount shall be up to 50 percent of the eligible
project costs for the eligible solar energy project.
���� e.� In the event that an
eligible entity that received a grant pursuant to this section sells,
transfers, or conveys the school facility where the solar energy project is
located within 20 years after the date of the award of the grant, the eligible
entity that received the grant shall notify the board and the new owner of
record shall reimburse the board the amount of the grant related to the solar
energy project at the school facility as follows:
���� (1)� if the school facility
where the eligible solar energy project is located is sold, transferred, or
conveyed to a new owner of record within five years after the date of the award
of the grant, the new owner of record shall reimburse the board in an amount
equal to 80 percent of the amount of the grant;
���� (2)� if the school facility
where the eligible solar energy project is located is sold, transferred, or
conveyed to a new owner of record more than five years but less than 10 years
after the date of the award of the grant, the new owner of record shall reimburse
the board in an amount equal to 60 percent of the amount of the grant;
���� (3)� if the school facility
where the eligible solar energy project is located is sold, transferred, or
conveyed to a new owner of record more than 10 years but less than 15 years
after the date of the award of the grant, the new owner record shall reimburse
the board in an amount equal to 40 percent of the amount of the grant; and
���� (4)� if the school facility
where the eligible solar energy project is located is sold, transferred or
conveyed to a new owner of record more than 15 years but less than 20 years
after the date of the award of the grant, the new owner record shall reimburse
the board in an amount equal to 20 percent of the amount of the grant.
���� f.� In establishing the grant
program pursuant to this section, the board, in consultation with the
department, shall:
���� (1)� develop guidelines and
procedures for the submission of grant applications, and criteria for the
evaluation of such applications;
���� (2)� establish terms and
conditions for the awarding of a grant under this section, and monitor grant
recipients' compliance with the terms and conditions;
���� (3)� require the recipient of
a grant to report to the board information relating to its use of grant funds
under the program;
���� (4)� provide technical
assistance and information related to funding opportunities through the
Inflation Reduction Act;
���� (5)� develop educational
materials about using, purchasing, financing, and maintaining eligible solar
energy projects;
���� (6)� develop a financial risk
and savings report that all eligible solar energy projects shall utilize and
update monthly which shall include: the total cost of the eligible solar energy
project before any deductible amounts; the total cost of the eligible solar
energy project after any deductible amounts; an analysis of energy and cost
savings, including a calculation of the kilowatts produced by the eligible
solar energy project multiplied by the current cost of electricity per kilowatt
hour, subtracted from the total cost of electricity during the same billing
period from the previous year; solar renewable energy credit sales and savings;
and operations and maintenance costs; and
���� (7)� submit a report to the
Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the
Legislature, during each year in which a grant is awarded, on the effectiveness
of the grant program in accomplishing the purposes enumerated in subsection b.
of this section.
���� g.� No later than 90 days
after the effective date of this section, the board shall publish the
guidelines required by paragraph (1) of subsection f. of this section on the
board�s Internet website.
���� h.� The board, in consultation
with the department,
may, pursuant to the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary
to establish and implement the grant program.
���� 2.� There is appropriated from
the General Fund to the Board of Public Utilities the sum of $15,000,000 to
effectuate the provisions of this act.
���� 3.� This act shall take effect
immediately.�
STATEMENT
���� This bill would establish a
solar energy grant program (program), to begin no later than 180 days after the
bill�s effective date, within the Board of Public Utilities (BPU) to provide
grants for school districts, public schools, jointure commissions, educational
services commissions, career and technical schools, and community colleges in
New Jersey.�
���� The purpose of the program is
to assist public schools with reducing present and future energy costs,
increase resiliency of school energy systems, and to take a step towards the
State�s climate action goals.� In order to be eligible for a grant, the applicant
must be a: school district, public school, jointure commission, educational
services commission, State career or technical school, or community college.� A
grant awarded under the bill would cover up to 50 percent of the eligible solar
energy project�s eligible costs, which are to be determined by the BPU in
consultation with the Office of the Secretary of Higher Education, the
Department of Community Affairs, and the Department of Education (DOE).
���� The bill would require the BPU,
in consultation with the DOE, to: develop guidelines and procedures for the
submission of grant applications, and criteria for the evaluation of
applications; establish terms and conditions for the awarding of a grant and
monitor grant recipients' compliance with the terms and conditions; provide
technical assistance and information related to funding opportunities through
the federal Inflation Reduction Act; develop educational materials about using,
purchasing, financing, and maintaining eligible solar energy projects; and
develop a financial risk and savings report that all eligible solar energy
projects would utilize and update monthly.� The BPU would also require the
grant recipient to report to the BPU information relating to its use of grant
funds under the program. �The bill would direct the BPU to submit a report to
the Governor and the Legislature, during each year in which a grant is awarded,
on the effectiveness of the grant program.� Within 90 days of the effective
date of the bill, the BPU would be required to publish the guidelines required
by paragraph (1) of subsection f. of section 1 of the bill on the BPU�s
Internet website.� The bill would appropriate $15 million, from the General
Fund, to effectuate the provisions of the bill.