Directs EDA to establish New Jersey Energy Independence Bank.

S3400

SENATE, No. 3400

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 9, 2026

Sponsored by:

Senator� ANDREW ZWICKER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

SYNOPSIS

���� Directs EDA to establish New Jersey Energy
Independence Bank.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the financing of certain environmental
projects, supplementing Title 34 of the Revised Statutes, and amending
P.L.1974, c.80.

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

���� 1.� (New section) As used in
sections 1 through 4 of P.L. , c. (C. )
(pending before the Legislature as this bill):

���� �Authority� means the New
Jersey Economic Development Authority, established pursuant to section 4 of
P.L.1974, c.80 (C.34:1B-4).

���� �Eligible project� means an environmentally
beneficial energy project that is determined to be eligible to receive
financial assistance by the Energy Independence Bank pursuant to the standards
developed pursuant subsection d. of section 2 of P.L. , c. (C. )
(pending before the Legislature as this bill). An �eligible project� may
include, but shall not be limited to, the construction and operation of a
renewable energy generation facility or energy storage facility, an energy
efficiency project, or a project to deploy an electric vehicle or associated
infrastructure.

���� �Energy Independence Bank�
means the New Jersey Energy Independence Bank, established as an independent
subsidiary of the New Jersey Economic Development Authority pursuant to P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� 2.� (New section) a.� The
authority shall establish, as an independent, wholly-owned subsidiary of the
authority pursuant to section 16 of P.L.1997, c.150 (C.34:1B-159), a New Jersey
corporation known as the �New Jersey Energy Independence Bank.�� The purpose of
the Energy Independence Bank shall be to provide access to capital to support
the development and construction of eligible projects and to leverage public
funds to attract private investment.� For the purposes of establishing and
maintaining the independence of the Energy Independence Bank, the exposure of
the authority to any actions of the Energy Independence Bank shall be restricted
solely to the Energy Independence Bank.� The New Jersey Green Bank, established
by the authority in April 2024, shall be renamed as the �New Jersey Energy
Independence Bank,� and all the staff, equipment, funds, and other components
thereof shall be transferred to the Energy Independence Bank.

���� b.� The Energy Independence
Bank may develop separate programs to finance, act as a loan guarantor, or
otherwise support eligible projects for residential, municipal, small business,
and larger commercial projects, and such other programs and projects as the Energy
Independence Bank determines useful and appropriate.� However, the Energy
Independence Bank shall not engage in direct lending to residential customers
or financial transactions directly undertaken with residential counterparties.

���� c.� The Energy Independence
Bank shall form a board of directors, consisting of no fewer than seven
members, the majority of whom shall be independent of the authority. �The chairperson
of the Energy Independence Bank board shall be selected by, and from amongst,
the members of the Energy Independence Bank board.

���� d.� Before making equity
investments, providing credit enhancements, or offering loans or other forms of
financial assistance for an eligible project pursuant to P.L. ,
c.
(C. ) (pending
before the Legislature as this bill), the Energy Independence Bank board shall
develop and adopt standards to govern the administration of the Energy
Independence Bank through rules, policies, and procedures, including those that
specify investment or lending policies and procedures, and any other relevant
criteria, standards, or procedures associated with the operations of the Energy
Independence Bank.

���� e.� The Energy Independence
Bank board shall have the authority to take any action, as may be reasonably
necessary, in order to structurally establish, maintain, and assert the Energy
Independence Bank as an independent, wholly-owned subsidiary of the authority,
including, but not limited to:

���� (1)� the ability to effect any
corporate action such as a consolidation, dissolution, bankruptcy, or merger of
the Energy Independence Bank;

���� (2)� the maintenance of books,
records, and accounts separate from the authority and the avoidance of any
commingling of accounts with the authority;

���� (3)� the conduct of business
in the name of the Energy Independence Bank;

���� (4)� the payment of the Energy
Independence Bank�s liabilities by the Energy Independence Bank;

���� (5)� the limitation of
interagency transactions between the authority and the Energy Independence Bank
and the approval of at-arms-length transactions between the authority and the Energy
Independence Bank; and

���� (6)� the ability to establish
or amend any non-consolidation or separateness provisions or covenants of the Energy
Independence Bank.

���� f.� The Energy Independence
Bank shall not have the power to guarantee any obligations of the State, the
authority, or any of the authority�s other affiliates or subsidiaries.

���� g.� The Energy Independence
Bank may employ attorneys, consulting engineers, architects, real estate
counselors, appraisers, and such� other� consultants� and employees as may be
required in the judgment of the Energy Independence Bank board for the purposes
of evaluating investment or lending opportunities or assessing the viability of
an eligible project, and to fix and pay their compensation from funds available
to the Energy Independence Bank.

���� h.� The Energy Independence
Bank shall make information regarding the terms and conditions for all of its
financing support transactions in connection with the New Jersey Energy
Independence Bank available to the public for inspection, including formal
annual reviews by a private auditor, and provide details thereon to the public
on the Internet; except that public disclosure shall be restricted or provided
in aggregated or anonymized form, at the discretion of the Energy Independence
Bank, for patentable ideas, trade secrets, and proprietary or confidential
commercial or financial information, the disclosure of which may cause
commercial harm to a nongovernmental recipient of financing support from the Energy
Independence Bank, and for other information exempt from public records
disclosure pursuant to law.

���� 3.� (New section) a.� Monies
held in bank accounts, investment accounts, or otherwise in� possession of the
Energy Independence Bank pursuant to section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill) may be used only to:

���� (1)� make equity investments
in an eligible project;

���� (2)� provide a loan, loan
guarantee, or other form of financial assistance for an eligible project;

���� (3)� pay for operating
expenses, including administrative expenses and capital costs incurred by the
Energy Independence Bank in connection with the operation of the Energy
Independence Bank;

���� (4)� pay all financing costs,
including costs associated with borrowing money or issuing bonds; or

���� (5)� provide grants, make
direct or equity investments, establish contracts, or take other actions that
support the research, development, manufacture, commercialization, deployment,
or installation of clean energy technologies, or actions that expand the
expertise of individuals, businesses, and private capital providers with regard
to clean energy technologies.

���� b.� The Energy Independence
Bank may enter into contracts with private sources to raise capital for the
purposes of the Energy Independence Bank.

���� c.� The Energy Independence
Bank shall have the power to borrow money and to issue bonds of the Energy
Independence Bank and to provide for the rights of the holders thereof, as�
provided in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401
(C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the �Municipal

Rehabilitation and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et
al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of
P.L.2009, c.90 (C.52:27D-489c et al.).

���� d.� The Energy Independence
Bank may provide financing support pursuant to P.L. ,
c.
(C. ) (pending
before the Legislature as this bill) if the Energy Independence Bank determines
that the amount to be financed by the Energy Independence Bank and other
non-equity financing sources does not exceed 90 percent of the costs of
financing for an eligible project.

���� e.� The Energy Independence
Bank may procure insurance against any losses in connection with its property,
operations or assets in such amounts and from such insurers as it deems
desirable.

���� f.� The Energy Independence
Bank may assess reasonable fees for its financing activities to cover its
reasonable costs and expenses, as determined by the Energy Independence Bank.

���� 4.� (New section)� a.� The Energy
Independence Bank may establish, administer, and maintain bank accounts,
investment accounts, or other types of financial accounts, separate and apart
from other authority funds.

���� b.� The Energy Independence
Bank�s financial accounts shall be credited with any funds made available to
the authority for the purposes of forming and continuing operations of the
Energy Independence Bank or the New Jersey Green Bank.

���� c.� The Energy Independence
Bank�s financial accounts shall also be credited with:

���� (1)� any monies that may be
appropriated by the authority or the Energy Independence Bank from the societal
benefits charge collected pursuant to section 12 of P.L.1999, c.23 (C.48:3-60),
notwithstanding the provisions of paragraph (3) of subsection a. of section 12
of P.L.1999, c.23 (C.48:3-60), or any rule, regulation, or order adopted
pursuant thereto to the contrary;

���� (2)� any federal funds that
may be used for the purposes specified in P.L. ,
c.
(C. ) (pending
before the Legislature as this bill);

���� (3)� any charitable gifts,
grants, contributions, or loans from individuals, corporations, university endowments,
or philanthropic foundations that are provided to the Energy Independence Bank;

���� (4)� any additional monies
made available by the authority for Energy Independence Bank purposes;

���� (5)� any additional monies
received by the authority from any public or private sources for Energy
Independence Bank purposes;

���� (6)� earnings and interest
derived from the activities and operations of the Energy Independence Bank; and

���� (7)� interest on monies
deposited in these financial accounts.

���� d.� The Energy Independence
Bank shall have the authority to hold, manage, and, through the Division of
Investment in the Department of the Treasury, invest and reinvest monies held
in its custody and credit all income earned thereon to the Energy Independence
Bank in the same manner as provided by law for the investment of pension and
retirement funds administered by the State.

���� 5.��� Section 5 of P.L.1974,
c.80 (C.34:1B-5) is amended to read as follows:

���� 5.��� The authority shall have
the following powers:

���� a.���� To adopt bylaws for the
regulation of its affairs and the conduct of its business;

���� b.��� To adopt and have a seal
and to alter the same at pleasure;

���� c.���� To sue and be sued;

���� d.��� To acquire in the name
of the authority by purchase or otherwise, on such terms and conditions and
such manner as it may deem proper, or by the exercise of the power of eminent
domain in the manner provided by the �Eminent Domain Act of 1971,� P.L.1971, c.361
(C.20:3-1 et seq.), any lands or interests therein or other property which it
may determine is reasonably necessary for any project; provided, however, that
the authority in connection with any project shall not take by exercise of the
power of eminent domain any real property except upon consent thereto given by
resolution of the governing body of the municipality in which such real
property is located; and provided further that the authority shall be limited
in its exercise of the power of eminent domain in connection with any project
in qualifying municipalities as defined under the provisions of P.L.1978, c.14
(C.52:27D-178 et seq.), or to municipalities which had a population, according
to the latest federal decennial census, in excess of 10,000;

���� e.���� To enter into contracts
with a person upon such terms and conditions as the authority shall determine
to be reasonable, including, but not limited to, reimbursement for the
planning, designing, financing, construction, reconstruction, improvement,
equipping, furnishing, operation and maintenance of the project and to pay or
compromise any claims arising therefrom;

���� f.���� To establish and
maintain reserve and insurance funds with respect to the financing of the
project or the school facilities project and any project financed pursuant to
the �Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.);

���� g.��� To sell, convey or lease
to any person all or any portion of a project for such consideration and upon
such terms as the authority may determine to be reasonable;

���� h.��� To mortgage, pledge or
assign or otherwise encumber all or any portion of a project, or revenues,
whenever it shall find such action to be in furtherance of the purposes of
[
this act
]

P.L.1974,
c.80 (C.34:1B-1 et seq.)
, P.L.2000, c.72 (C.18A:7G-1 et al.), the

�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);

���� i.���� To grant options to
purchase or renew a lease for any of its projects on such terms as the
authority may determine to be reasonable;

���� j.���� To contract for and to
accept any gifts or grants or loans of funds or property or financial or other
aid in any form from the United States of America or any agency or
instrumentality thereof, or from the State or any agency, instrumentality or
political subdivision thereof, or from any other source and to comply, subject
to the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001,
c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the �Municipal
Rehabilitation and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et
al.), and P.L.2007, c.137 (C.52:18A-235 et al.), with the terms and conditions
thereof;

���� k.��� In connection with any
action undertaken by the authority in the performance of its duties and any
application for assistance or commitments therefor and modifications thereof,
to require and collect such fees and charges as the authority shall determine
to be reasonable, including, but not limited to, fees and charges for the
authority�s administrative, organizational, insurance, operating, legal, and
other expenses;

���� l.���� To adopt, amend and
repeal regulations to carry out the provisions of P.L.1974, c.80 (C.34:1B-1 et
seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1
et al.), the �Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);

���� m.�� To acquire, purchase,
manage and operate, hold and dispose of real and personal property or interests
therein, take assignments of rentals and leases and make and enter into all
contracts, leases, agreements and arrangements necessary or incidental to the
performance of its duties;

���� n.��� To purchase, acquire and
take assignments of notes, mortgages and other forms of security and evidences
of indebtedness;

���� o.��� To purchase, acquire,
attach, seize, accept or take title to any project or school facilities project
by conveyance or by foreclosure, and sell, lease, manage or operate any project
or school facilities project for a use specified in
[
this act
]

P.L.1974,
c.80 (C.34:1B-1 et seq.)
, P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);

���� p.��� To borrow money and to
issue bonds of the authority and to provide for the rights of the holders
thereof, as provided in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of
P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);

���� q.��� To extend credit or make
loans to any person for the planning, designing, acquiring, constructing,
reconstructing, improving, equipping and furnishing of a project or school
facilities project, which credits or loans may be secured by loan and security
agreements, mortgages, leases and any other instruments, upon such terms and
conditions as the authority shall deem reasonable, including provision for the
establishment and maintenance of reserve and insurance funds, and to require
the inclusion in any mortgage, lease, contract, loan and security agreement or
other instrument, of such provisions for the construction, use, operation and
maintenance and financing of a project or school facilities project as the
authority may deem necessary or desirable;

���� r.���� To guarantee up to 90
[
%
]

percent

of the amount of a loan to a person, if the proceeds of the loan are to be
applied to the purchase and installation, in a building devoted to industrial
or commercial purposes, or in an office building, of an energy improvement
system;

���� s.���� To employ consulting
engineers, architects, attorneys, real estate counselors, appraisers, and such
other consultants and employees as may be required in the judgment of the
redevelopment utility to carry out the purposes of P.L.1974, c.80 (C.34:1B-1 et
seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1
et al.), the �Municipal Rehabilitation and Economic Recovery Act,� P.L.2002,
c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections
3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), and to fix and pay their
compensation from funds available to the redevelopment utility therefor, all
without regard to the provisions of Title 11A of the New Jersey Statutes;

���� t.���� To do and perform any
acts and things authorized by P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of
P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), under, through or by means
of its own officers, agents and employees, or by contract with any person;

���� u.��� To procure insurance
against any losses in connection with its property, operations or assets in
such amounts and from such insurers as it deems desirable;

���� v.��� To do any and all things
necessary or convenient to carry out its purposes and exercise the powers given
and granted in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401
(C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the �Municipal Rehabilitation
and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007,
c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90
(C.52:27D-489c et al.);

���� w.�� To construct,
reconstruct, rehabilitate, improve, alter, equip, maintain or repair or provide
for the construction, reconstruction, improvement, alteration, equipping or
maintenance or repair of any development property and lot, award and enter into
construction contracts, purchase orders and other contracts with respect
thereto, upon such terms and conditions as the authority shall determine to be
reasonable, including, but not limited to, reimbursement for the planning,
designing, financing, construction, reconstruction, improvement, equipping,
furnishing, operation and maintenance of any such development property and the
settlement of any claims arising therefrom and the establishment and
maintenance of reserve funds with respect to the financing of such development
property;

���� x.��� When authorized by the
governing body of a municipality exercising jurisdiction over an urban growth
zone, to construct, cause to be constructed or to provide financial assistance
to projects in an urban growth zone which shall be exempt from the terms and
requirements of the land use ordinances and regulations, including, but not
limited to, the master plan and zoning ordinances, of such municipality;

���� y.��� To enter into business
employment incentive agreements as provided in the �Business Employment
Incentive Program Act,� P.L.1996, c.26 (C.34:1B-124 et al.);

���� z.���� To enter into
agreements or contracts, execute instruments, and do and perform all acts or
things necessary, convenient or desirable for the purposes of the redevelopment
utility to carry out any power expressly provided pursuant to P.L.1974, c.80
(C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137
(C.52:18A-235 et al.), including, but not limited to, entering into contracts
with the State Treasurer, the Commissioner of Education, districts, the New
Jersey Schools Development Authority, and any other entity which may be
required in order to carry out the provisions of P.L.2000, c.72 (C.18A:7G-1 et
al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of
P.L.2009, c.90 (C.52:27D-489c et al.);

���� aa.�� (Deleted by amendment,
P.L.2007, c.137);

���� bb.� To make and contract to
make loans to local units to finance the cost of school facilities projects and
to acquire and contract to acquire bonds, notes or other obligations issued or
to be issued by local units to evidence the loans, all in accordance with the
provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137
(C.52:18A-235 et al.);

���� cc.�� Subject to any agreement
with holders of its bonds issued to finance a project or school facilities
project, obtain as security or to provide liquidity for payment of all or any
part of the principal of and interest and premium on the bonds of the authority
or for the purchase upon tender or otherwise of the bonds, lines of credit,
letters of credit, reimbursement agreements, interest rate exchange agreements,
currency exchange agreements, interest rate floors or caps, options, puts or
calls to hedge payment, currency, rate, spread or similar exposure or similar
agreements, float agreements, forward agreements, insurance contract, surety
bond, commitment to purchase or sell bonds, purchase or sale agreement, or
commitments or other contracts or agreements, and other security agreements or
instruments in any amounts and upon any terms as the authority may determine
and pay any fees and expenses required in connection therewith;

���� dd.� To charge to and collect
from local units, the State and any other person, any fees and charges in
connection with the authority�s actions undertaken with respect to school
facilities projects, including, but not limited to, fees and charges for the
authority�s administrative, organization, insurance, operating and other
expenses incident to the financing of school facilities projects;

���� ee.�� To make loans to
refinance solid waste facility bonds through the issuance of bonds or other
obligations and the execution of any agreements with counties or public
authorities to effect the refunding or rescheduling of solid waste facility
bonds, or otherwise provide for the payment of all or a portion of any series
of solid waste facility bonds.� Any county or public authority refunding or
rescheduling its solid waste facility bonds pursuant to this subsection shall
provide for the payment of not less than fifty percent of the aggregate debt
service for the refunded or rescheduled debt of the particular county or public
authority for the duration of the loan; except that, whenever the solid waste
facility bonds to be refinanced were issued by a public authority and the
county solid waste facility was utilized as a regional county solid waste
facility, as designated in the respective adopted district solid waste
management plans of the participating counties as approved by the department
prior to November 10, 1997, and the utilization of the facility was established
pursuant to tonnage obligations set forth in their respective interdistrict
agreements, the public authority refunding or rescheduling its solid waste
facility bonds pursuant to this subsection shall provide for the payment of a
percentage of the aggregate debt service for the refunded or rescheduled debt
of the public authority not to exceed the percentage of the specified tonnage
obligation of the host county for the duration of the loan.� Whenever the solid
waste facility bonds are the obligation of a public authority, the relevant
county shall execute a deficiency agreement with the authority, which shall
provide that the county pledges to cover any shortfall and to pay deficiencies
in scheduled repayment obligations of the public authority.� All costs
associated with the issuance of bonds pursuant to this subsection may be paid
by the authority from the proceeds of these bonds.� Any county or public
authority is hereby authorized to enter into any agreement with the authority
necessary, desirable or convenient to effectuate the provisions of this
subsection.

���� The authority shall not issue
bonds or other obligations to effect the refunding or rescheduling of solid
waste facility bonds after December 31, 2002.� The authority may refund its own
bonds issued for the purposes herein at any time;

���� ff.�� To pool loans for any
local government units that are refunding bonds and do and perform any and all
acts or things necessary, convenient or desirable for the purpose of the
authority to achieve more favorable interest rates and terms for those local
governmental units;

���� gg.� To finance projects
approved by the board, provide staff support to the board, oversee and monitor
progress on the part of the board in carrying out the revitalization, economic
development and restoration projects authorized pursuant to the �Municipal Rehabilitation
and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et al.) and otherwise
fulfilling its responsibilities pursuant thereto;

���� hh.� To offer financial
assistance to qualified film production companies as provided in the �New
Jersey Film Production Assistance Act,� P.L.2003, c.182 (C.34:1B-178 et al.);

���� ii.��� To finance or develop
private or public parking facilities or structures, which may include the use
of solar photovoltaic equipment, in municipalities qualified to receive State
aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities
that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.)
as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town
center, and to provide appropriate assistance, including, but not limited to,
extensions of credit, loans, and guarantees, to municipalities qualified to
receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et
seq.) and municipalities that contain areas designated pursuant to P.L.1985,
c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2
(Suburban), or a town center, and their agencies and instrumentalities or to
private entities whose projects are located in those municipalities, in order
to facilitate the financing and development of parking facilities or structures
in such municipalities.� The authority may serve as the issuing agent of bonds
to finance the undertaking of a project for the purposes of this subsection;

���� jj.��� To make grants for the
planning, designing, acquiring, constructing, reconstructing, improving,
equipping, and furnishing of a project, including, but not limited to, grants
for working capital and meeting payroll requirements, upon such terms and
conditions as the authority shall deem reasonable, during periods of emergency
declared by the Governor and for the duration of economic disruptions due to
the emergency;

���� kk.� To purchase and lease
real property at a nominal rate when it would result in a net economic benefit
to the State, enhance access to employment and investment for underserved
populations, or increase investment and employment in high-growth technology sectors;

[
and
]

���� ll.��� To make investments of
capital, not to exceed $10,000,000 per project, in New Jersey film-lease
partner facilities, as that term is defined in section 1 of P.L.2018, c.56
(C.54:10A-5.39b) and subsection a. of section 2 of P.L.2018, c.56
(C.54A:4-12b), subject to commercially reasonable and customary terms and
conditions as determined by the authority and the New Jersey film-lease partner
facility
; and

����
mm.� To establish and
maintain a �New Jersey Energy Independence Bank� pursuant to sections 1 through
4 of P.L. , c. (C. )
(pending before the Legislature as this bill), for the purposes of making
equity investments, providing credit enhancements, and offering loans or other
forms of financial assistance to New Jersey residents, local governments,
academic institutions, nonprofit organizations, and commercial for-profit
businesses, to attract private capital to accelerate the adoption of clean
energy, advance New Jersey�s energy goals, and reduce the cost of energy for
all utility ratepayers in New Jersey.� The New Jersey Green Bank, established
by the authority in April 2024, shall be renamed as the �New Jersey Energy
Independence Bank,� and all the staff, equipment, funds, and other components
thereof shall be transferred to the Energy Independence Bank
.

(cf:� P.L.2023, c.97, s.2)

���� 6.� This act shall take effect
on the 60th day after the date of enactment, except that the authority and the Energy
Independence Bank may take such anticipatory administrative action in advance
thereof as may be necessary for the implementation of this act.

STATEMENT

���� This bill would direct the New
Jersey Economic Development Authority (EDA) to establish a New Jersey Energy
Independence Bank (NJEIB).�

���� In April 2024, the EDA board
approved the creation of the �New Jersey Green Bank,� as part of its attempt to
implement the 2019 Energy Master Plan and Governor Murphy�s Executive Order No.
316, which directed the EDA to implement programs supporting building
electrification.� This bill would codify the Green Bank in statutory law, with
certain changes, including changing the name of the bank to the �New Jersey
Energy Independence Bank.�

���� Under the bill, the NJEIB
would be established as an independent, wholly-owned subsidiary of the EDA.�
The purpose of the NJEIB would be to provide access to capital to support the
development and construction of certain environmental projects and to leverage
public funds to attract private investment.� Projects that would be funded by
the NJEIB would include, but not be limited to, the construction and operation
of a renewable energy generation facility or energy storage facility, an energy
efficiency project, or a project to deploy an electric vehicle or associated
infrastructure.

���� The bill would require the
NJEIB to have a board of directors, consisting of no fewer than seven members,
the majority of whom would be independent of the EDA.� The chairperson of the NJEIB
board would be selected by, and from amongst, the members of the NJEIB board.�
The bill would give the NJEIB certain specified authorities, including the
ability to effect any corporate action such as a consolidation, dissolution,
bankruptcy, or merger of the NJEIB, as well as the general authority to take
any action, as may be reasonably necessary, in order to structurally establish,
maintain, and assert the NJEIB as an independent, wholly-owned subsidiary of
the EDA.

���� The bill would give the NJEIB
the authority to establish, administer, and maintain bank accounts, investment
accounts, or other types of financial accounts, separate and apart from other EDA
funds.� The bill would also give the NJEIB the authority to enter into
contracts with private sources to raise capital and to borrow money and issue
bonds.