Bill Text: NJ S3467 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes "NJ Green Bank" in EDA; appropriates $50 million from societal benefits charge to initially fund program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-06-20 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S3467 Detail]
Download: New_Jersey-2024-S3467-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Establishes "NJ Green Bank" in EDA; appropriates $50 million from societal benefits charge to initially fund program.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the New Jersey Green Bank in the New Jersey Economic Development Authority, amending and supplementing P.L.1974, c.80, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 5 of P.L.1974, c.80 (C.34:1B-5) is amended to read as follows:
5. The authority shall have the following powers:
a. To adopt bylaws for the regulation of its affairs and the conduct of its business;
b. To adopt and have a seal and to alter the same at pleasure;
c. To sue and be sued;
d. To acquire in the name of the authority by purchase or otherwise, on such terms and conditions and such manner as it may deem proper, or by the exercise of the power of eminent domain in the manner provided by the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), any lands or interests therein or other property which it may determine is reasonably necessary for any project; provided, however, that the authority in connection with any project shall not take by exercise of the power of eminent domain any real property except upon consent thereto given by resolution of the governing body of the municipality in which such real property is located; and provided further that the authority shall be limited in its exercise of the power of eminent domain in connection with any project in qualifying municipalities as defined under the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.), or to municipalities which had a population, according to the latest federal decennial census, in excess of 10,000;
e. To enter into contracts with a person upon such terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation and maintenance of the project and to pay or compromise any claims arising therefrom;
f. To establish and maintain reserve and insurance funds with respect to the financing of the project or the school facilities project and any project financed pursuant to the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.);
g. To sell, convey or lease to any person all or any portion of a project for such consideration and upon such terms as the authority may determine to be reasonable;
h. To mortgage, pledge or assign or otherwise encumber all or any portion of a project, or revenues, whenever it shall find such action to be in furtherance of the purposes of this act, P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
i. To grant options to purchase or renew a lease for any of its projects on such terms as the authority may determine to be reasonable;
j. To contract for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the United States of America or any agency or instrumentality thereof, or from the State or any agency, instrumentality or political subdivision thereof, or from any other source and to comply, subject to the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.), with the terms and conditions thereof;
k. In connection with any action undertaken by the authority in the performance of its duties and any application for assistance or commitments therefor and modifications thereof, to require and collect such fees and charges as the authority shall determine to be reasonable, including but not limited to fees and charges for the authority's administrative, organizational, insurance, operating, legal, and other expenses;
l. To adopt, amend and repeal regulations to carry out the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);
m. To acquire, purchase, manage and operate, hold and dispose of real and personal property or interests therein, take assignments of rentals and leases and make and enter into all contracts, leases, agreements and arrangements necessary or incidental to the performance of its duties;
n. To purchase, acquire and take assignments of notes, mortgages and other forms of security and evidences of indebtedness;
o. To purchase, acquire, attach, seize, accept or take title to any project or school facilities project by conveyance or by foreclosure, and sell, lease, manage or operate any project or school facilities project for a use specified in this act, P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
p. To borrow money and to issue bonds of the authority and to provide for the rights of the holders thereof, as provided in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
q. To extend credit or make loans to any person for the planning, designing, acquiring, constructing, reconstructing, improving, equipping and furnishing of a project or school facilities project, which credits or loans may be secured by loan and security agreements, mortgages, leases and any other instruments, upon such terms and conditions as the authority shall deem reasonable, including provision for the establishment and maintenance of reserve and insurance funds, and to require the inclusion in any mortgage, lease, contract, loan and security agreement or other instrument, of such provisions for the construction, use, operation and maintenance and financing of a project or school facilities project as the authority may deem necessary or desirable;
r. To guarantee up to 90% of the amount of a loan to a person, if the proceeds of the loan are to be applied to the purchase and installation, in a building devoted to industrial or commercial purposes, or in an office building, of an energy improvement system;
s. To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and such other consultants and employees as may be required in the judgment of the redevelopment utility to carry out the purposes of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), and to fix and pay their compensation from funds available to the redevelopment utility therefor, all without regard to the provisions of Title 11A of the New Jersey Statutes;
t. To do and perform any acts and things authorized by P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), under, through or by means of its own officers, agents and employees, or by contract with any person;
u. To procure insurance against any losses in connection with its property, operations or assets in such amounts and from such insurers as it deems desirable;
v. To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
w. To construct, reconstruct, rehabilitate, improve, alter, equip, maintain or repair or provide for the construction, reconstruction, improvement, alteration, equipping or maintenance or repair of any development property and lot, award and enter into construction contracts, purchase orders and other contracts with respect thereto, upon such terms and conditions as the authority shall determine to be reasonable, including, but not limited to, reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation and maintenance of any such development property and the settlement of any claims arising therefrom and the establishment and maintenance of reserve funds with respect to the financing of such development property;
x. When authorized by the governing body of a municipality exercising jurisdiction over an urban growth zone, to construct, cause to be constructed or to provide financial assistance to projects in an urban growth zone which shall be exempt from the terms and requirements of the land use ordinances and regulations, including, but not limited to, the master plan and zoning ordinances, of such municipality;
y. To enter into business employment incentive agreements as provided in the "Business Employment Incentive Program Act," P.L.1996, c.26 (C.34:1B-124 et al.);
z. To enter into agreements or contracts, execute instruments, and do and perform all acts or things necessary, convenient or desirable for the purposes of the redevelopment utility to carry out any power expressly provided pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.), including, but not limited to, entering into contracts with the State Treasurer, the Commissioner of Education, districts, the New Jersey Schools Development Authority, and any other entity which may be required in order to carry out the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);
aa. (Deleted by amendment, P.L.2007, c.137);
bb. To make and contract to make loans to local units to finance the cost of school facilities projects and to acquire and contract to acquire bonds, notes or other obligations issued or to be issued by local units to evidence the loans, all in accordance with the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);
cc. Subject to any agreement with holders of its bonds issued to finance a project or school facilities project, obtain as security or to provide liquidity for payment of all or any part of the principal of and interest and premium on the bonds of the authority or for the purchase upon tender or otherwise of the bonds, lines of credit, letters of credit, reimbursement agreements, interest rate exchange agreements, currency exchange agreements, interest rate floors or caps, options, puts or calls to hedge payment, currency, rate, spread or similar exposure or similar agreements, float agreements, forward agreements, insurance contract, surety bond, commitment to purchase or sell bonds, purchase or sale agreement, or commitments or other contracts or agreements, and other security agreements or instruments in any amounts and upon any terms as the authority may determine and pay any fees and expenses required in connection therewith;
dd. To charge to and collect from local units, the State and any other person, any fees and charges in connection with the authority's actions undertaken with respect to school facilities projects, including, but not limited to, fees and charges for the authority's administrative, organization, insurance, operating and other expenses incident to the financing of school facilities projects;
ee. To make loans to refinance solid waste facility bonds through the issuance of bonds or other obligations and the execution of any agreements with counties or public authorities to effect the refunding or rescheduling of solid waste facility bonds, or otherwise provide for the payment of all or a portion of any series of solid waste facility bonds. Any county or public authority refunding or rescheduling its solid waste facility bonds pursuant to this subsection shall provide for the payment of not less than fifty percent of the aggregate debt service for the refunded or rescheduled debt of the particular county or public authority for the duration of the loan; except that, whenever the solid waste facility bonds to be refinanced were issued by a public authority and the county solid waste facility was utilized as a regional county solid waste facility, as designated in the respective adopted district solid waste management plans of the participating counties as approved by the department prior to November 10, 1997, and the utilization of the facility was established pursuant to tonnage obligations set forth in their respective interdistrict agreements, the public authority refunding or rescheduling its solid waste facility bonds pursuant to this subsection shall provide for the payment of a percentage of the aggregate debt service for the refunded or rescheduled debt of the public authority not to exceed the percentage of the specified tonnage obligation of the host county for the duration of the loan. Whenever the solid waste facility bonds are the obligation of a public authority, the relevant county shall execute a deficiency agreement with the authority, which shall provide that the county pledges to cover any shortfall and to pay deficiencies in scheduled repayment obligations of the public authority. All costs associated with the issuance of bonds pursuant to this subsection may be paid by the authority from the proceeds of these bonds. Any county or public authority is hereby authorized to enter into any agreement with the authority necessary, desirable or convenient to effectuate the provisions of this subsection.
The authority shall not issue bonds or other obligations to effect the refunding or rescheduling of solid waste facility bonds after December 31, 2002. The authority may refund its own bonds issued for the purposes herein at any time;
ff. To pool loans for any local government units that are refunding bonds and do and perform any and all acts or things necessary, convenient or desirable for the purpose of the authority to achieve more favorable interest rates and terms for those local governmental units;
gg. To finance projects approved by the board, provide staff support to the board, oversee and monitor progress on the part of the board in carrying out the revitalization, economic development and restoration projects authorized pursuant to the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et al.) and otherwise fulfilling its responsibilities pursuant thereto;
hh. To offer financial assistance to qualified film production companies as provided in the "New Jersey Film Production Assistance Act," P.L.2003, c.182 (C.34:1B-178 et al.);
ii. To finance or develop private or public parking facilities or structures, which may include the use of solar photovoltaic equipment, in municipalities qualified to receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town center, and to provide appropriate assistance, including but not limited to, extensions of credit, loans, and guarantees, to municipalities qualified to receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town center, and their agencies and instrumentalities or to private entities whose projects are located in those municipalities, in order to facilitate the financing and development of parking facilities or structures in such municipalities. The authority may serve as the issuing agent of bonds to finance the undertaking of a project for the purposes of this subsection;
jj. To make grants for the planning, designing, acquiring, constructing, reconstructing, improving, equipping, and furnishing of a project, including, but not limited to, grants for working capital and meeting payroll requirements, upon such terms and conditions as the authority shall deem reasonable, during periods of emergency declared by the Governor and for the duration of economic disruptions due to the emergency;
kk. To purchase and lease real property at a nominal rate when it would result in a net economic benefit to the State, enhance access to employment and investment for underserved populations, or increase investment and employment in high-growth technology sectors; [and]
ll. To make investments of capital, not to exceed $10,000,000 per project, in New Jersey film-lease partner facilities, as that term is defined in section 1 of P.L.2018, c.56 (C.54:10A-5.39b) and subsection a. of section 2 of P.L.2018, c.56 (C.54A:4-12b), subject to commercially reasonable and customary terms and conditions as determined by the authority and the New Jersey film-lease partner facility; and
mm. To establish and maintain a "New Jersey Green Bank" and a "New Jersey Green Bank Fund," pursuant to sections 2 and 3 of P.L. c. (C. ) (pending before the Legislature as this bill), for the purpose of providing loans, loan guarantees, or other forms of financial assistance to New Jersey residents, local governments, nonprofit organizations, and businesses to fund environmentally beneficial energy projects.
(cf: P.L.2023, c.97, s.2)
2. (New section) a. As used in this section, "eligible project" means an environmentally beneficial energy project that is determined to be eligible to receive financial assistance by the New Jersey Economic Development Authority pursuant to the standards developed under subsection d. of this section. An "eligible project" may include, but shall not be limited to, the construction of a renewable energy generation facility or energy storage facility, an energy efficiency project, or a project to deploy an electric vehicle or associated infrastructure.
b. The authority, in consultation with the Board of Public Utilities, shall establish and maintain a program to be known as the "New Jersey Green Bank" for the purpose of providing low-cost, long-term financing support to eligible projects by leveraging public funds to attract private investment.
c. The authority shall develop separate programs for residential, municipal, small business, and larger commercial projects, and such other programs and projects as the authority may determine useful and appropriate, to finance, act as a loan guarantor, or otherwise support eligible projects.
d. Before making any loan, loan guarantee, or other form of financial assistance for an eligible project pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), the authority, in consultation with the Department of Banking and Insurance and the Board of Public Utilities, shall develop and adopt standards to govern the administration of the New Jersey Green Bank through rules, policies, and procedures that specify borrower eligibility, terms and conditions of support, and other relevant criteria, standards, or procedures.
e. Monies in the New Jersey Green Bank Fund established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) may be used to:
(a) provide a loan, loan guarantee, or other form of financial assistance for an eligible project;
(b) pay for operating expenses, including administrative expenses, and capital costs incurred by the authority in connection with operation of the fund; or
(c) provide grants, make direct or equity investments, establish contracts, or take other actions which support research, development, manufacture, commercialization, deployment, and installation of clean energy technologies, and actions which expand the expertise of individuals, businesses, and lending institutions with regard to clean energy technologies.
f. The authority may enter into contracts with private sources to raise capital for the purposes of the New Jersey Green Bank.
g. The authority may provide financing support pursuant to this section if the authority determines that the amount to be financed by the authority and other non-equity financing sources does not exceed 80 percent of the costs of a project to install a new renewable energy generation facility, or up to 100 percent of the cost of financing any other type of eligible project.
h. The authority may assess reasonable fees for its financing activities to cover its reasonable costs and expenses, as determined by the authority.
i. The authority shall make information regarding the rates, terms, and conditions for all of its financing support transactions in connection with the New Jersey Green Bank available to the public for inspection, including formal annual reviews by a private auditor, and provide details thereon to the public on the Internet; provided that public disclosure shall be restricted for patentable ideas, trade secrets, and proprietary or confidential commercial or financial information, the disclosure of which may cause commercial harm to a nongovernmental recipient of financing support from the New Jersey Green Bank, and for other information exempt from public records disclosure pursuant to law.
3. (New section) a. To implement the New Jersey Green Bank, the authority shall establish, administer, and maintain a "New Jersey Green Bank Fund" in a trust account, separate and apart from other funds.
b. The fund shall be credited with the amount appropriated pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), and any other funds made available to the authority for the purposes of the New Jersey Green Bank.
c. The fund shall also be credited with:
(1) any monies that may be appropriated to the fund from the societal benefits charge collected pursuant to section 12 of P.L.1999, c.23 (C.48:3-60), notwithstanding the provisions of paragraph (3) of subsection a. of section 12 of P.L.1999, c.23 (C.48:3-60), or any rule, regulation, or order adopted pursuant thereto to the contrary;
(2) any federal funds that may be used for the purposes specified in P.L. , c. (C. ) (pending before the Legislature as this bill);
(3) charitable gifts, grants, and contributions, as well as loans, from individuals, corporations, university endowments, and philanthropic foundations;
(4) any additional monies made available by the authority for the purposes of the fund;
(5) any additional monies received by the authority from any public or private sources for the purposes of the fund;
(6) earnings and interest derived from financing eligible projects; and
(7) interest on monies deposited in the fund.
d. The authority shall hold, manage, and, through the Division of Investment in the Department of the Treasury, invest and reinvest monies in the fund and credit all income earned thereon to the fund in the same manner as provided by law for the investment of pension and retirement funds administered by the State.
4. Notwithstanding the provisions of paragraph (3) of subsection a. of section 12 of P.L.1999, c.23 (C.48:3-60), or any rule, regulation, or order adopted pursuant thereto, to the contrary, there is appropriated the sum of $50,000,000 from the societal benefits charge collected pursuant to section 12 of P.L.1999, c.23 (C.48:3-60) to the New Jersey Economic Development Authority to be credited into the "New Jersey Green Bank Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), to be used for the purposes set forth in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. This act shall take effect on the 60th day after the date of enactment, but the New Jersey Economic Development Authority may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill directs the New Jersey Economic Development Authority (EDA), in consultation with the Board of Public Utilities (BPU), to establish and maintain a program to be known as the "New Jersey Green Bank." The purpose of the bank would be to provide loans, loan guarantees, or other forms of financial assistance to New Jersey residents, local governments, nonprofit organizations, and businesses to fund environmentally beneficial energy projects. These projects may include, but are not limited to, the construction of a renewable energy generation facility or energy storage facility, an energy efficiency project, or a project to deploy an electric vehicle or associated infrastructure.
The bill directs the EDA to develop separate programs for residential, municipal, small business, and larger commercial projects, and such other programs and projects as the EDA may determine useful and appropriate, to finance and otherwise support projects. The bill would require the EDA to develop and adopt standards to govern the administration of the New Jersey Green Bank through rules, policies, and procedures that specify borrower eligibility, terms and conditions of support, and other relevant criteria, standards, or procedures.
The bill provides that the EDA may provide financing support if it determines that the amount to be financed by the EDA and other non-equity financing sources would not exceed 80 percent of the costs of a project to install a new renewable energy generation facility, or up to 100 percent of the costs of financing any other eligible project.
The bill directs the EDA to establish a New Jersey Green Bank Fund. The bill appropriates $50 million from the societal benefits charge (a surcharge on energy bills) to the fund. The bill also provides that the EDA may enter into contracts with private sources to raise capital for the purposes of the New Jersey Green Bank.
