New Jersey-2012-A3565-Introduced

An Act concerning alternative power generation devices, supplementing Title 52 of the Revised Statutes, and amending P.L.1999, c.23.

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

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

"Alternative power generation device" means a device capable of providing electrical power during a power outage including, but not limited to, portable generators, standby generators, emergency generators, or other power generation devices.

"Board" means the Board of Public Utilities or any successor agency.

"Division" means the Division of Purchase and Property in the Department of the Treasury.

"Eligible business" means a federally qualified health center; nursing home; mental health care facility; private school; sectarian, denominational, or religious organization or association; nonprofit organization; and any other entity designated by the office as vital to the public interest following a disaster.

"Federally qualified health center" means a health center that has received funding pursuant to section 12 of P.L.1992, c.160 (C.26:2H-18.62).

"Low-interest loan" means a loan for a term not exceeding 10 years at a rate of interest not exceeding the greater of three percent or one-half of the prime interest rate as reported in a financial newspaper published and circulating in New York City.

"Matching grant" means money given to an eligible business representing a portion of the cost to the eligible business to pay for the purchase of an alternative power generation device based on the eligible business' ability to pay for an alternative power generation device.

"Mental health facility" means any facility approved by the Commissioner of Human Services for the purpose of providing mental health services.

"Nonprofit organization" means a private nonprofit corporation that has been determined by the Internal Revenue Service of the United States Department of the Treasury to be exempt from income taxation under 26 U.S.C.s.501(c)(3).

"Nursing home" means a long-term care facility licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.), as well as the distinct part of another health care facility or continuing care retirement community that is licensed to provide skilled nursing care services pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).

"Office" means the State Office of Emergency Management in the Division of State Police in the Department of Law and Public Safety.

"Power outage" means any failure in the supply of electricity causing a temporary cessation in the supply of power.

"Public entity" means any county, municipality, or public school district, and shall include any municipal utilities authority created by any county or municipality pursuant to P.L.1957, c.183 (C.40:14B-1 et seq.).

2. (New section) The office shall develop specifications concerning the installation, use, and safety of alternative power generation devices purchased by eligible businesses and public entities pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

3. (New section) The director shall award a contract for alternative power generation devices meeting specifications established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall include, in the contract on behalf of the State, a provision for the purchase, pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), of alternative power generation devices by eligible businesses and public entities. The eligible business or public entity, as applicable, shall have sole responsibility for any payment due to the vendor for the purchase of the alternative power generation device.

4. (New section) The board, after consultation with the division and office, shall establish and administer a program to provide low-interest loans or matching grants to an eligible business or public entity for the purchase and installation of an alternative power generation device through the division. Any matching grant offered to an eligible business or public entity shall be done only if the applicant can demonstrate an acute need for an alternative power generation device and can demonstrate financial hardship. The source of funding for the program shall be the societal benefits charge imposed pursuant to section 12 of P.L.1999, c.23 (C.48:3-60).

5. Section 12 of P.L.1999, c.23 (C.48:3-60) is amended to read as follows:

12. a. Simultaneously with the starting date for the implementation of retail choice as determined by the board pursuant to subsection a. of section 5 of [this act] P.L.1999, c.23 (C.48:3-53) and consistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall permit each electric public utility and gas public utility to recover some or all of the following costs through a societal benefits charge that shall be collected as a non-bypassable charge imposed on all electric public utility customers and gas public utility customers, as appropriate:

(1) The costs for the social programs for which rate recovery was approved by the board prior to April 30, 1997. For the purpose of establishing initial unbundled rates pursuant to section 4 of [this act] P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of social program costs as is being collected in the bundled rates of the electric public utility on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.). The board may subsequently order, pursuant to its rules and regulations, an increase or decrease in the societal benefits charge to reflect changes in the costs to the utility of administering existing social programs. Nothing in [this act] P.L.1999, c.23 (C.48:3-49 et al.) shall be construed to abolish or change any social program required by statute or board order or rule or regulation to be provided by an electric public utility. Any such social program shall continue to be provided by the utility until otherwise provided by law, unless the board determines that it is no longer appropriate for the electric public utility to provide the program, or the board chooses to modify the program;

(2) Nuclear plant decommissioning costs;

(3) The costs of demand side management programs that were approved by the board pursuant to its demand side management regulations prior to April 30, 1997. For the purpose of establishing initial unbundled rates pursuant to section 4 of [this act] P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of demand side management program costs as is being collected in the bundled rates of the electric public utility on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.). Within four months of the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.), and every four years thereafter, the board shall initiate a proceeding and cause to be undertaken a comprehensive resource analysis of energy programs, and within eight months of initiating such proceeding and after notice, provision of the opportunity for public comment, and public hearing, the board, in consultation with the Department of Environmental Protection, shall determine the appropriate level of funding for energy efficiency and Class I renewable energy programs that provide environmental benefits above and beyond those provided by standard offer or similar programs in effect as of the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.); provided that the funding for such programs be no less than [50%] 50 percent of the total Statewide amount being collected in public electric and gas utility rates for demand side management programs on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.) for an initial period of four years from the issuance of the first comprehensive resource analysis following the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.), and provided that [25%] 25 percent of this amount shall be used to provide funding for Class I renewable energy projects in the State. In each of the following fifth through eighth years, the Statewide funding for such programs shall be no less than 50 percent of the total Statewide amount being collected in public electric and gas utility rates for demand side management programs on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.), except that as additional funds are made available as a result of the expiration of past standard offer or similar commitments, the minimum amount of funding for such programs shall increase by an additional amount equal to 50 percent of the additional funds made available, until the minimum amount of funding dedicated to such programs reaches $140,000,000 total. After the eighth year, the board shall make a determination as to the appropriate level of funding for these programs. Such programs shall include a program to provide financial incentives for the installation of Class I renewable energy projects in the State, and the board, in consultation with the Department of Environmental Protection, shall determine the level and total amount of such incentives as well as the renewable technologies eligible for such incentives which shall include, at a minimum, photovoltaic, wind, and fuel cells. The board shall simultaneously determine, as a result of the comprehensive resource analysis, the programs to be funded by the societal benefits charge, the level of cost recovery and performance incentives for old and new programs and whether the recovery of demand side management programs' costs currently approved by the board may be reduced or extended over a longer period of time. The board shall make these determinations taking into consideration existing market barriers and environmental benefits, with the objective of transforming markets, capturing lost opportunities, making energy services more affordable for low income customers and eliminating subsidies for programs that can be delivered in the marketplace without electric public utility and gas public utility customer funding;

(4) Manufactured gas plant remediation costs, which shall be determined initially in a manner consistent with mechanisms in the remediation adjustment clauses for the electric public utility and gas public utility adopted by the board; [and]

(5) The cost, of consumer education, as determined by the board, which shall be in an amount that, together with the consumer education surcharge imposed on electric power supplier license fees pursuant to subsection h. of section 29 of [this act] P.L.1999, c.23 (C.48:3-78) and the consumer education surcharge imposed on gas supplier license fees pursuant to subsection g. of section 30 of [this act] P.L.1999, c.23 (C.48:3-79), shall be sufficient to fund the consumer education program established pursuant to section 36 of [this act] P.L.1999, c.23 (C.48:3-85); and

(6) The cost of offering financial assistance to eligible businesses and public entities for the purchase and installation of an alternative power generation device pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. There is established in the Board of Public Utilities a nonlapsing fund to be known as the "Universal Service Fund." The board shall determine: the level of funding and the appropriate administration of the fund; the purposes and programs to be funded with monies from the fund; which social programs shall be provided by an electric public utility as part of the provision of its regulated services which provide a public benefit; whether the funds appropriated to fund the "Lifeline Credit Program" established pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.), the "Tenants' Lifeline Assistance Program" established pursuant to P.L.1981, c.210 (C.48:2-29.31 et seq.), the funds received pursuant to the Low Income Home Energy Assistance Program established pursuant to 42 U.S.C. s.8621 et seq., and funds collected by electric and [natural] gas public utilities, as authorized by the board, to offset uncollectible electricity and natural gas bills should be deposited in the fund; and whether new charges should be imposed to fund new or expanded social programs.

(cf: P.L.1999, c.23, s.12)

6. This act shall take effect immediately, but shall remain inoperative for 60 days following the date of enactment.

STATEMENT

This bill requires the State Office of Emergency Management (OEM) to develop specifications concerning the installation, use, and safety of alternative power generation devices by eligible businesses and public entities. An alternative power generation device is defined as a device capable of providing electrical power during a power outage including, but not limited to, portable generators, standby generators, emergency generators, or other power generation devices. The bill provides for the Division of Purchase and Property (DPP) to contract for devices meeting those specifications developed by OEM and to include in the contract a provision permitting their purchase by eligible businesses and public entities. The eligible business or public entity is to be solely responsible for any payment due to the vendor for the purchase of the device.

The bill requires the Board of Public Utilities (BPU) to offer a financial assistance program in the form of matching grants and low-interest loans to certain eligible businesses and public entities for the purchase and installation of an alternative power generation device. Any matching grant offered to an eligible business or public entity shall be done only if the applicant can demonstrate an acute need for an alternative power generation device and can demonstrate financial hardship. The source of funding for the program shall be the societal benefits charge imposed pursuant to section 12 of P.L.1999, c.23 (C.48:3-60).

The bill defines an eligible business as a federally qualified health center; nursing home; mental health care facility; private school; sectarian, denominational or religious organization or association; nonprofit organization; and any other entity designated by the OEM as vital to the public interest following a disaster. A public entity is defined as any county, municipality, or public school district, and shall include any municipal utilities authority created by any county or municipality.