Bill Text: NJ A3734 | 2018-2019 | Regular Session | Introduced
Bill Title: Dedicates first $300 million from State's participation in Regional Greenhouse Gas Initiative for electric vehicle programs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-03-26 - Introduced, Referred to Assembly Environment and Solid Waste Committee [A3734 Detail]
Download: New_Jersey-2018-A3734-Introduced.html
Sponsored by:
Assemblywoman NANCY J. PINKIN
District 18 (Middlesex)
SYNOPSIS
Dedicates first $300 million from State's participation in Regional Greenhouse Gas Initiative for electric vehicle programs.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the use of proceeds from the greenhouse gas emissions allowance trading program, and amending and supplementing P.L.2007, c.340 (C.26:2C-46 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. Notwithstanding the provisions of sections 7 through 9 of P.L.2007, c.340 (C.26:2C-51 through 53), or any rule or regulation adopted pursuant thereto, to the contrary, the first $300 million in the "Global Warming Solutions Fund" received after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) as a result of any sale, exchange, or other conveyance of allowances through a greenhouse gas emissions allowance trading program shall be dedicated to fund programs related to electric vehicles and electric vehicle infrastructure. Programs to be funded by this dedicated amount shall include: rebates to purchasers of electric vehicles; funding, including loans or grants, for electric vehicle infrastructure; funding to assist local government units with costs incurred to revise municipal or county master plans to include public electric vehicle infrastructure; and other initiatives specifically designed to stimulate the purchase and use of electric vehicles in the State.
b. (1) Within one year after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Environmental Protection, in consultation with the board, the Department of Community Affairs, the Department of Transportation, and the New Jersey Economic Development Authority, shall adopt, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), guidelines and a priority ranking system to be used to assist in annually allocating funds to eligible projects or programs specifically designed to stimulate the purchase and use of electric vehicles and strengthen the electric vehicle charging infrastructure in the State. The guidelines and priority ranking system developed pursuant to this subsection shall take into account the criteria set forth in subsection b. of section 7 of P.L.2007, c.340 (C.26:2C-51).
(2) Within one year after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Environmental Protection shall adopt, in accordance with the "Administrative Procedure Act," rules and regulations setting forth the specific programs to be funded with the proceeds dedicated pursuant to subsection a. of this section, and any application criteria or guidelines therefor.
c. By March 1 of each year, the Commissioner of Environmental Protection shall provide a written report to the Legislature, as provided pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), summarizing the programs and specific projects funded with the proceeds dedicated pursuant to subsection a. of this section, and providing any recommendations for possible legislative action deemed necessary or desirable to further stimulate the purchase and use of electric vehicles and strengthen the electric vehicle charging infrastructure in the State.
2. Section 7 of P.L.2007, c.340 (C.26:2C-51) is amended to read as follows:
7. a. The agencies administering programs established pursuant to this section shall maximize coordination in the administration of the programs to avoid overlap between the uses of the fund prescribed in this section.
b. [Moneys] Except as otherwise provided pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), monies in the fund, after appropriation annually for payment of administrative costs authorized pursuant to subsection c. of this section, shall be annually appropriated and used for the following purposes:
(1) Sixty percent shall be allocated to the New Jersey Economic Development Authority to provide grants and other forms of financial assistance to commercial, institutional, and industrial entities to support end-use energy efficiency projects and new, efficient electric generation facilities that are state of the art, as determined by the department, including but not limited to energy efficiency and renewable energy applications, to develop combined heat and power production and other high efficiency electric generation facilities, to stimulate or reward investment in the development of innovative carbon emissions abatement technologies with significant carbon emissions reduction or avoidance potential, to develop qualified offshore wind projects pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1), and to provide financial assistance to manufacturers of equipment associated with qualified offshore wind projects. The authority, in consultation with the board and the department, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to individual commercial, institutional, and industrial sectors and to individual projects within each of these sectors; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance, which criteria shall include the ability of the project to result in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand, provided, however, that neither the development of a new combined heat and power production facility, nor an increase in the electrical and thermal output of an existing combined heat and power production facility, shall be subject to the requirement to demonstrate such a measurable reduction; and (c) the process by which grants or other forms of financial assistance can be applied for and awarded including, if applicable, the payment terms and conditions for authority investments in certain projects with commercial viability;
(2) Twenty percent shall be allocated to the board to support programs that are designed to reduce electricity demand or costs to electricity customers in the low-income and moderate-income residential sector with a focus on urban areas, including efforts to address heat island effect and reduce impacts on ratepayers attributable to the implementation of P.L.2007, c.340 (C.26:2C-45 et al.). For the purposes of this paragraph, the board, in consultation with the authority and the department, shall determine the types of programs to be supported and the mechanism by which to quantify benefits to ensure that the supported programs result in a measurable reduction in energy demand;
(3) Ten percent shall be allocated to the department to support programs designed to promote local government efforts to plan, develop and implement measures to reduce greenhouse gas emissions, including but not limited to technical assistance to local governments, and the awarding of grants and other forms of assistance to local governments to conduct and implement energy efficiency, renewable energy, and distributed energy programs and land use planning where the grant or assistance results in a measurable reduction of the emission of greenhouse gases or a measurable reduction in energy demand. For the purpose of conducting any program pursuant to this paragraph, the department, in consultation with the authority and the board, shall determine: (a) the appropriate level of grants or other forms of financial assistance to be awarded to local governments; (b) the evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance; (c) the process by which grants or other forms of financial assistance can be applied for and awarded; and (d) a mechanism by which to quantify benefits; and
(4) Ten percent shall be allocated to the department to support programs that enhance the stewardship and restoration of the State's forests and tidal marshes that provide important opportunities to sequester or reduce greenhouse gases.
c. (1) The department may use up to four percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the department in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).
(2) The board may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the board in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases including any obligations that may arise under subsection a. of section 11 of P.L.2007, c.340 (C.26:2C-55).
(3) The New Jersey Economic Development Authority may use up to two percent of the total amount in the fund each year to pay for administrative costs justifiable and approved in the annual budget process, incurred by the authority in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce the emissions of greenhouse gases.
d. The State Comptroller shall conduct or supervise independent audit and fiscal oversight functions of the fund and its uses.
(cf: P.L.2010, c.57, s.5)
3. Section 9 of P.L.2007, c.340 (C.26:2C-53) is amended to read as follows:
9. a. [The] Except as otherwise provided pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the annual appropriations act for each State fiscal year shall, without other conditions, limitations or restrictions, appropriate the moneys in the Global Warming Solutions Fund for the purposes set forth in subsections b. and c. of section 7 of P.L.2007, c.340 (C.26:2C-51).
b. If the provisions of subsection a. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if an amendment or supplement to an annual appropriations act for the State fiscal year should violate the requirements of subsection a. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates any of the requirements of subsection a. of this section, certify to the Commissioner of Environmental Protection that the requirements of subsection a. of this section have not been met.
c. Sections 1 through 8 of P.L.2007, c.340 (C.26:2C-45 through C.26:2C-52) and section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be without effect on and after the 10th day following a certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection b. of this section.
(cf: P.L.2007, c.340, s.9)
4. This act shall take
effect immediately and apply to any proceeds received by the State after the
date of enactment of this act.
STATEMENT
This bill revises the current law concerning the use of proceeds received by the State from participation in the Regional Greenhouse Gas Initiative (RGGI). Specifically, this bill would dedicate the first $300 million in proceeds received by the State to fund programs related to electric vehicles and electric vehicle infrastructure.
Programs to be funded would include: rebates to purchasers of electric vehicles; funding, including loans or grants, for electric vehicle infrastructure; funding to assist local government units with costs incurred to revise municipal or county master plans to include public electric vehicle infrastructure; and other initiatives specifically designed to stimulate the purchase and use of electric vehicles in the State. The bill directs the Department of Environmental Protection (DEP), in consultation with the Board of Public Utilities, the Department of Community Affairs, the Department of Transportation, and the New Jersey Economic Development Authority, to adopt guidelines and a priority ranking system to be used to assist in annually allocating funds to eligible projects or programs specifically designed to stimulate the purchase and use of electric vehicles and strengthen the electric vehicle charging infrastructure in the State. The DEP is also charged with adopting rules for the specific programs to be funded with these RGGI proceeds.
Any proceeds received by the State beyond the first $300 million would be dedicated to the various energy and greenhouse gas reduction programs specified in current law, e.g., to fund programs, as enumerated in P.L.2007, c.340 (C.26:2C-45 et seq.), to promote renewable energy, energy efficiency, energy demand reduction, greenhouse gas reduction, and forest stewardship.
P.L.2007, c.340, commonly referred to as the "RGGI" implementing law, was enacted to further the purposes of the "Global Warming Response Act" (GWRA), P.L.2007, c.112 (C.26:2C-37 et al.). The RGGI implementing law partially implements the policies of the GWRA by creating an emissions auction and trading mechanism to reduce the level of greenhouse gas emissions, especially carbon dioxide. P.L.2007, c.340 recognizes the State's participation in RGGI by setting forth the parameters to be followed for allowance auctions, creating the "Global Warming Solutions Fund," and statutorily dedicating all the proceeds received from the sale, exchange, or other conveyance of allowances through a greenhouse gas emissions allowance trading program to the fund.
The New Jersey's Energy Master Plan encourages the greater use of electric vehicles by improving and expanding the electric vehicle charging infrastructure needed throughout New Jersey. A report of the New Jersey Energy Master Plan Alternative Fuels Work Group identified the development, installation, and maintenance of electric vehicle charging infrastructure, both at home and at strategically selected public places, as one of the most significant opportunities for, and barriers to, advancing the deployment and use of electric vehicles in New Jersey. The development of an electric vehicle charging infrastructure is a critical step in creating jobs, fostering economic growth, reducing greenhouse gas emissions, reducing our reliance on foreign fuels, and reducing pollution attributable to the operation of petroleum-based vehicles. Limited driving distance between battery charges is a fundamental disadvantage and obstacle to broad consumer adoption of vehicles powered by electricity. In order to eliminate this fundamental disadvantage and dramatically increase consumer acceptance and usage of electric vehicles, it is essential that a network of convenient electric vehicle charging opportunities be developed.
In addition, according to the Rutgers Climate Institute's 2012 Update to the New Jersey's Statewide Greenhouse Gas Emissions Inventory for 2009, the transportation industry sector is the largest source of air pollution in New Jersey, accounting for 46.3 percent of the State's greenhouse gas emissions. Accelerating the adoption of electric vehicles and electric vehicle charging stations will help reduce greenhouse gases, address the impact of combustion engine vehicular travel on health, and create jobs in the State, and depending on the source of electricity, the use of electric vehicles can also promote the generation of renewable energy in the State.
