Legislative & Regulatory Update   

 

New Jersey  

On Tuesday, June 7, 2011, Governor Christie released the State's Draft 2011 Energy Master Plan ("EMP"), which represents his administration's "commitment to changing the way we produce, distribute and use energy as part of a broader emphasis on renewable sources of energy and economic growth."  The EMP encompasses 5 broad goals intended to drive down the cost of energy, while promoting clean, environmentally safe renewable sources of energy:

       1. Promoting a diverse portfolio of new, clean, in-state generation, including "addressing the implications of lost nuclear capacity."

       2. Creating a realistic path to achieving a reduced renewable energy portfolio standard of 22.5% by 2021.

       3. Rewarding energy efficiency, energy conservation and cost-effective renewable resources.

       4. Capitalizing on emerging technologies for transportation and power reduction.

       5. Encouraging economic development and job growth.

As reported in previous editions of this newsletter, the Board of Public Utilities is scheduled to conduct Public Hearings on the newly released 2011 EMP draft on July 26, August 3 and August 11, 2011, at the New Jersey Institute of Technology, Newark; State House Annex, Trenton; and Richard Stockton College of New Jersey, Pomona, respectively.

Draft EMP Executive Summary

Draft EMP

 

Reported from Senate Environment and Energy Committee with Amendments, 2nd Reading; Referred to Senate Budget and Appropriations Committee, 6/20/11:

S-2888 (Identical Bill A-3893): Would establish uniform real property taxation for commercial renewable energy systems and eliminate municipal construction permit fees for non-commercial renewable energy systems. 

Under the bill, property that has been certified by a local enforcing agency as a commercial renewable energy system would be exempt from property taxation, and would instead be subject to a uniform tax rate. The assessed value for taxation purposes would equal the assessed valuation of the real property without the commercial renewable energy system included, with additional tax due for the commercial renewable energy system calculated at a uniform rate of $7,000 for each 1,000 kilowatts of direct current capacity, or its equivalent, for the first year of commercial operation of the system, increasing by one percent in each subsequent year of commercial operation and until decommissioning of the system.  The Senate Committee amendments would exclude "on-site generation facilities" from the purview of the Bill, meaning "generation facilit[ies], and equipment and services appurtenant to electric sales by such facility to the end use customer located on the property or on property contiguous to the property on which the end user is located."  N.J.S.A. 48:3-51.

Text of Bill 

Senate Environment and Energy Committee Statement 

  

Conditional Veto Received in the Senate, 6/23/11:

S-2006 (Substituted for identical Bill A-3125):  The Bill would prohibit municipalities from charging excessive fees for processing applications for the installation of solar facilities on residential properties, and also from adopting ordinances that regulate the installation of solar facilities on residential properties when certain dimensional and setback limitations as set forth within the Bill, are met.

The Conditional Veto was based upon Governor

Christie's  concern that the "bill imposes an excessive burden on municipalities and inappropriately restricts their ability to regulate the use of property within their boundaries."  The Governor's Conditional Veto recommends that the proposed legislation "strike a better balance between the two important interests of promoting renewable energy and preserving a municipality's zoning authority."

Text of Bill  

Conditional Veto Statement 

 

Pennsylvania

Introduced and Referred to Senate Environmental Resources and Energy Committee, 6/14/11:

Senate Bill 1146: An Act amending the Alternative Energy Portfolio Standards Act, further providing for definitions and alternative energy portfolio standards.  The bill, if adopted, would increase the required minimum percentage of electric energy sold to retail electric customers to be generated from alternative energy sources to 15% by 2014.

Text of Bill 

  

Introduced and Referred to Senate Environmental Resources and Energy Committee, 6/3/11:

Senate Bill 698:  An Act amending the Alternative Energy Investment Act, further providing for definitions. The bill, if adopted, would expand the definition of an alternative energy production project to include facilities that manufacture or develop products or materials used in solar, energy efficient lighting and displays or batteries, for purposes of obtaining Pennsylvania Energy Development Authority grant funding for those projects.  

Text of Bill 

 

Introduced and Referred to Senate Urban Affairs and Housing Committee, 6/8/11:

Senate Bill 1048: An Act entitled "The Right to Dry Clothes Act" that would prohibit prohibiting certain governing bodies from restricting persons who occupy dwelling units from using a solar clothes-drying device, defined as "a clothesline, drying rack or other equipment used for the drying of clothes directly by the sun." The Bill is in recognition of the energy savings provided by drying clothes in this manner since mechanical drying devices account for approximately 10% of the energy consumption in an average home. However, Ordinances could still be adopted prohibiting solar clothes-drying devices intended to (1) protect access to an adjacent building; (2) ensure the proper emergency evacuation of buildings; and (3) protect aesthetic values of the building and any surrounding dwelling units.  

Text of Bill
 

Delaware  

Signed by Governor Jack Markell, 6/22/11:

Senate Bill No. 40: An Act to amend Title 30 of the Delaware Code pertaining to business tax credits and deductions and clean energy technology device manufacturing. The legislation modernizes the scope of Delaware's primary economic development tax incentive program by including provisions specifically designed to attract manufacturers of advanced clean energy technology power generating devices and systems.

Bill Information Page 
Text of Bill