In the first of this series, we described the intent of the legislation and the assumptions behind it.

So what’s in the legislation itself? Let’s break it down into a few categories:

• • Definitions
  • Program Reporting Requirements
  • The Garden State C-PACE Program
  • Uniform Assessment Documents
  • Program Guidelines
  • Local C-PACE Programs
  • Fees
  • Special Assessments
  • Refinancing
  • Bonds and Direct Financing

Definitions

The definitions are pretty much what you would expect, except that there are some material statements built into a few of them. For example, an “Authorized Municipality,” is one of the top third of municipalities in the state by population, authorized to establish its own local program (provided it follows all of the state’s rules and the NJEDA guidelines) — as contrasted with all other municipalities that can sign on to the state program by simply passing the model ordinance.

The section defines a C-PACE project as one that includes:

the acquisition, construction, installation, modification, or, in the discretion of the authority and in accordance with guidelines adopted by the authority, entry into a capital lease of an energy efficiency improvement or renewable energy system including energy storage, microgrid, water conservation improvement, stormwater management system, electric vehicle charging infrastructure, flood resistant construction improvement, or hurricane resistant construction improvement.

In all cases, these improvements must be “affixed” to a property, whether as  retrofits or as new construction on a “previously unimproved property.” For the latter to qualify, a professional must attest that such new construction exceeds the minimum building codes for the jurisdiction.

Subject to the approval of the NJEDA (“the authority”), improvements can include microgrids or district heating and cooling systems, and even “power purchase agreements.”

Most of the other definitions are straightforward, though users will want to refer to the legal language in Section 34:1B-375 to resolve any ambiguities.

(Series continues…)

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*This is a layperson’s interpretation of the statute and should not be construed as legal advice or relied upon without consulting a qualified attorney.