(This page provides the text of the current NJ Statute and its precursors, along with proposed amendments. Links to original documents provided below. Last updated: June 29, 2021.)
2020-21 Legislative Session
A2374/S1953 Passed June 24, 2021. Now on the Governor’s desk.
Sen. 6/24/2021 – 3RDG FINAL PASSAGE – Yes {38} No {1} Not Voting {1} – Roll Call
Asm. 6/24/2021 – CONCUR IN SA – Yes {63} No {12} Not Voting {5} Abstains {0} – Roll Call
Reprint – ACS – 30 pages PDF Format HTML Format
Statement – 6/15/21 1R ACS – 6 pages PDF Format HTML Format
Statement – SBA 6/22/21 2R ACS – 5 pages PDF Format HTML Format
Fiscal Estimate – 6/24/21; 2R ACS – 6 pages PDF Format HTML Format
Reprint Of Substitute – – 30 pages PDF Format HTML Format
Fiscal Estimate – 6/29/21; 3R ACS – 6 pages PDF Format HTML Format
Earlier:
Passed the Assembly in July 2020, 68 to 6: A2374.
Corresponding Senate bill: S1953 (unamended)
Awaiting action in the Senate and approval by the Governor.
2018 PACE Bills and Statements:
S1611_I1: Reported out unanimously by the Senate Environment & Energy Committee, 5/21/2018
S1611_S1: Statement issued by the Senate Environment & Energy Committee, 5/21/2018
A1902_I1: Identical bill profiled for the 2018 Session.
To quote the first paragraph of the Statement:
This bill authorizes municipalities to provide for the financing of renewable energy systems, energy produced by such systems, energy efficiency improvements, energy storage, microgrids, district heating and cooling systems, water conservation, storm shelter construction, and flood and hurricane resistance projects through the use of voluntary special assessments on real property, thereby expanding the “clean energy special assessment,” established by P.L.2011, c.187 (C.40:56-1.4 et al.), and renaming it the “PACE special assessment,” using the acronym for the term “property assessed clean energy.” Under the bill, owners of industrial, agricultural, commercial, or residential property with five or more dwelling units, and property owned by a tax-exempt or nonprofit entity such as a school, hospital, institution of higher education, or religious institution may participate in the program.
The bill now proceeds to the Appropriations Committee, where some technical changes may be made to provide for some level of state guidance and/or direct involvement.
Older
2015 version of amending legislation (A2579/S1510) passed by the Senate (36-1-0) and passed by the Assembly (64-8-3) (Passed Both Houses, June 25, 2015), vetoed by Governor Christie:
- Approved text: http://www.njleg.state.nj.us/2014/Bills/A3000/2579_R3.PDF
- Statement: http://www.njleg.state.nj.us/2014/Bills/A3000/2579_S4.PDF
- Fiscal Estimate (June 20 version): http://www.njleg.state.nj.us/2014/Bills/A3000/2579_E2.PDF
Special Assessments Law (2002): 1958_I1
Current PACE Enabling Statute (full text):
L.2011, c.187
(UPDATED THROUGH P.L. 2012, ch. 24, excepting ch.17, and JR 10 of 2011)
TITLE 40 MUNICIPALITIES AND COUNTIES
40:56-1.4 Clean energy special assessment, financing by municipality.
1.Upon application to and approval by the Director of Local Government Services in the Department of Community Affairs, the governing body of a municipality may undertake the financing of the purchase and installation of renewable energy systems and energy efficiency improvements by property owners as a local improvement and may provide by ordinance for a “clean energy special assessment” to be imposed on a property within the municipality, if the owner of the property requests the assessment in order to install such systems or improvements. Each improvement on an individual property shall constitute a separate local improvement and shall be assessed separately to the property owner benefitted thereby. The clean energy special assessment shall be payable in quarterly installments. The terms of the clean energy special assessment shall be in accordance with the terms of the financing provided by the municipality pursuant to section 2 of P.L.2011, c.187 (C.40:56-13.1).
(UPDATED THROUGH P.L. 2012, ch. 24, excepting ch.17, and JR 10 of 2011)
TITLE 40 MUNICIPALITIES AND COUNTIES
40:56-13.1 Clean energy special assessment, financing through bonds.
2. a. Upon application to and approval by the Director of Local Government Services in the Department of Community Affairs, a municipality may adopt an ordinance to establish a program to finance the purchase and installation of renewable energy systems and energy efficiency improvements by property owners. The governing body may apply to a county improvement authority that issues bonds pursuant to paragraph (2) of subsection (j) of section 12 of P.L.1960, c.183 (C.40:37A-55), or may issue bonds to finance the program pursuant to section 3 of P.L.2011, c.187 (C.40:56-13.2). Funds for the purchase and installation of renewable energy systems and energy efficiency improvements shall be loaned to property owners in exchange for a clean energy special assessment on the property pursuant to section 1 of P.L.2011, c.187 (C.40:56-1.4), to be paid quarterly. In the case of financing provided by bonds issued by a county improvement authority, the clean energy special assessment shall be used to repay the bonds. In the case of financing provided by the municipality through the issuance of municipal bonds, the clean energy special assessment shall be used to repay the bonds. A property owner who purchases and installs a renewable energysystem under the program may also assign any solar renewable energy certificates or other renewable energy credits that accrue to the property owner from the operation of the system to the municipality or the county improvement authority to repay the loan for the system. The Director of Local Government Services in the Department of Community Affairs shall coordinate efforts with the Board of Public Utilities to ensure that the amount of financing made available by local programs authorized pursuant to this act is in accordance with limits set from time to time by the Board of Public Utilities in order to ensure that local programs further the goals of the Office of Clean Energy in the Board of Public Utilities.
b.As used in this section, “solar renewable energy certificate” shall have the same meaning as set forth in section 3 of P.L.1999, c.23 (C.48:3-51).
L.2011, c.187, s.2.
40:56-13.2 Amounts of money to be expended for improvements established.
3. a. Upon application to and approval by the Director of Local Government Services in the Department of Community Affairs, the governing body of a municipality may establish the amounts of money to be expended by the municipality for the improvements authorized in sections 1 and 2 of P.L.2011, c.187 (C.40:56-1.4 and C.40:56-13.1). Any amount so appropriated may be raised by the issuance of clean energy special assessment bonds by the municipality. In making the appropriation, the governing body may designate the particular projects to be financed to which the moneys shall be applied.
b.Clean energy special assessments and bonds issued to finance them shall be issued and shall be generally subject to R.S.40:56-21 et seq., as the director shall determine to be applicable.
c.The director is authorized and empowered to take such action as deemed necessary and consistent with the intent of this act to implement its provisions.
L.2011, c.187, s.3.
40:56-14. General appropriations; contents of ordinance or resolution
The governing body may make general appropriations for a particular class of work or for any combination of classes of work set out in this article and the money so appropriated may be expended for such work or classes of work by the board designated by law to carry on such work at such time and place as in their judgment shall seem proper. The resolution or ordinance making any such appropriation shall state that it is to apply to local improvements and that an assessment is thereafter to be levied on property in the vicinity thereof benefited or increased in value by reason thereof.
(UPDATED THROUGH P.L. 2012, ch. 24, excepting ch.17, and JR 10 of 2011)
TITLE 40 MUNICIPALITIES AND COUNTIES
40:56-13.2 Amounts of money to be expended for improvements established.
3. a. Upon application to and approval by the Director of Local Government Services in the Department of Community Affairs, the governing body of a municipality may establish the amounts of money to be expended by the municipality for the improvements authorized in sections 1 and 2 of P.L.2011, c.187 (C.40:56-1.4 and C.40:56-13.1). Any amount so appropriated may be raised by the issuance of clean energy special assessment bonds by the municipality. In making the appropriation, the governing body may designate the particular projects to be financed to which the moneys shall be applied.
b.Clean energy special assessments and bonds issued to finance them shall be issued and shall be generally subject to R.S.40:56-21 et seq., as the director shall determine to be applicable.
c.The director is authorized and empowered to take such action as deemed necessary and consistent with the intent of this act to implement its provisions.
L.2011, c.187, s.3.
PDF: PACE-187_
Precursors:
S1406_R1 (2010) The “New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program”, ADOPTED JUNE 3, 2010. Sponsored by Senator BOB SMITH District 17 (Middlesex and Somerset), and others.
A2500 (2010) The “Renewable Energy Financing District Act” INTRODUCED MARCH 11, 2010. Sponsored by: Assemblywoman DENISE M. COYLE District 16 (Morris and Somerset) Assemblyman JOHN F. MCKEON District 27 (Essex)