ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4540

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly State and Local Government Committee reports favorably Assembly Bill No. 4540.

      This bill removes provisions in the current law that exclude financing under the Commercial Property Assessed Clean Energy (“C-PACE”) Program from being considered as authority financial assistance or financial assistance that would require payment of the prevailing wage.  The bill expressly provides that any direct financing provided by a capital provider for a C-PACE project is considered "authority financial assistance" as that term is defined in section 1 of P.L.1979, c.303 (C.34:1B-5.1) and that work on the project is subject to the prevailing wage requirements of that section.

      The C-PACE program provides financing for renewable energy, energy efficiency, water conservation, and certain types of resiliency-related improvements for New Jersey.

Pursuant to the bill, employers are required to ensure that not less than the prevailing wage rate is paid to workers involved in construction contracts connected to C-PACE program financing.  This includes projects undertaken to meet conditions for receiving assistance.  The prevailing wage rate, determined by the Commissioner of Labor and Workforce Development, applies to any authority financial assistance including loans, loan guarantees, grants, incentives, tax exemptions, or other financial assistance provided by the authority.