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S3183 3R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Third Reprint]
SENATE, No. 3183
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 6, 2026
SUMMARY
Synopsis:
Modifies various provisions of State�s renewable energy
incentive programs; requires electric public utilities to consider
interconnection applications for certain solar projects.
Type of Impact:
Annua State expenditure increase.
Indeterminate impact on local government finances.
Agencies Affected:
Board of Public Utilities, Department of Environmental
Protection, and municipalities.
Office
of Legislative Services Estimate
Fiscal Impact
Annual�
State Expenditure Increase
Indeterminate
State Revenue Increase
Indeterminate
Local Fiscal Impact
Indeterminate
�
The Office of Legislative Services (OLS) concludes that the bill
would result in an annual expenditure increase by the State and local
governments in the form of increased electricity rates.� To the extent that the
bill results in an increase in electricity rates, the State would collect
additional sales and use tax revenues.
�
The OLS does not have an informational basis on which to estimate
how many solar facilities will qualify for renewable energy incentives under
the bill, the value of those incentives, and the specific impact of those
incentives on utility rates.
�
To the extent that the bill makes it easier for contracting units
subject to the provisions of the Local Public Contracts Law to purchase certain
types of renewable energy credits, these entities may experience a reduction in
administrative costs associated with the public contracting process.� However,
these cost savings would be offset by the cost of purchasing the credits.
BILL DESCRIPTION
����� The bill modifies various provisions of the State�s
renewable energy incentive programs and requires electric public utilities to
interconnect certain solar projects.
����� The bill authorizes, upon petition to the Board of
Public Utilities, the co-location of solar facilities that are either
registered, or seeking registration, in the SREC-II program, including the
administratively determined incentive portion and the competitive solicitation
incentive portion, the community solar program, or any combination of those
programs.� Under the bill, �co-location� means the siting two or more SREC-II
eligible solar facilities on the same property or on contiguous properties.� The
bill also provides that certain solar facilities with a capacity of between
five and 20 megawatts that are located on commercial or industrial rooftops,
landfills, contaminated sites, or mining sites would be eligible for
registration in the community solar program until December 31, 2028, subject to
certain restrictions established in the bill.� The bill also authorizes the
board to establish differentiated incentive levels for co-located projects and
projects larger than five megawatts that participate in the community solar
program.
����� The bill provides that a project sited on a commercial
or industrial rooftop, landfill, brownfield, contaminated site, or mining site
that is participating in the community solar program or the remote net metering
program would have no less than 33 months from the date of registration in the
applicable program to achieve commercial operation.
����� The bill amends current law top provide that certain
renewable energy facilities that are parcels of land comprising 10 or more
acres are permitted uses in municipal industrial and commercial districts and
to include energy storage facilities within the definition of �renewable energy
facility� for that purpose.� The bill also amends current law to provide that
solar facilities sited on landfills, closed resource extraction operations,
rooftops, battery storage, and renewable energy facilities are permitted uses
within every municipality.
����� The bill exempts the purchase remote net metering
credits, similar renewable energy credits, or renewable energy production
credits pursuant to program established by the board from the public bidding
requirements of the Local Public Contracts Law.
����� Finally, the bill amends the statute governing the
State�s remote net metering program to modify the types of properties suitable
to host remote net metering solar facilities, to remove brownfields and add the
rooftops of industrial buildings, contaminated sites, landfills, and mining
sites, subject to certain environmental regulations adopted by the Department
of Environmental Protection.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS concludes that the bill will result in an
increase in State expenditure and revenues and have an indeterminate impact on
local finances.� Solar incentives are financed through electricity rates
charged to utility taxpayers.� To the extent that the bill allows additional
energy projects to qualify for renewable energy incentives, the State and local
government units will incur additional expenditures due to increased
electricity costs.� Charges for electricity services are subject to the sales
and use tax.� To the extent that the additional solar incentives result in an
increase in electricity rates, the State will collect additional revenues.� The
OLS does not have an informational basis on which to estimate how many solar
facilities will qualify for renewable energy incentives under the bill, the
value of those incentives, and specific impact of those incentives on utility
rates.
����� The OLS notes that the bill would likely lead to
marginal annual expenditure increases from the General Fund for administrative
costs incurred by the board and the Department of Environmental Protection, but
additional staff would likely not be required.
����� To the extent that the bill makes it easier for
contracting units subject to the provisions of the Local Public Contracts Law
to purchase remote net metering credits, similar renewable energy credits, or
other renewable energy production credits, these entities may experience a
reduction in administrative costs associated with the public contracting
process.� However, these cost savings would be offset by the cost of purchasing
these credits.� The OLS notes that current law does not require any of these contracting
units to purchase remote net metering credits, similar renewable energy
credits, or other renewable energy credits.
Section:
Revenue, Finance, and Appropriations
Analyst:
Scott A. Brodsky
Staff Fiscal and Budget Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).