S4100

An Act concerning the review and approval of residential solar energy systems and supplementing P.L.1975, c.217 (C.52:27D-119 et seq.).

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

1. The Legislature finds and declares that:

a. New Jersey has adopted a goal of 100 percent clean energy by 2035.

b. Simplifying and enhancing the ability of New Jersey residents to install and use solar energy systems and home batteries are an essential component of the State’s ability to attain this clean energy goal.

c. Residential energy bills in New Jersey are among the highest in the country, imposing significant financial burdens upon New Jersey residents, and thereby exacerbating the State’s housing affordability crisis.

d. Installation and use of rooftop solar energy systems is one way to enable New Jersey residents to significantly reduce residential electricity bills and thereby make housing more affordable.

e. Vestiges of outdated, overly bureaucratic permitting requirements for installation of solar energy systems within New Jersey cause residents to significantly delay installation efforts and significantly increase costs incurred in installing residential solar energy storage systems across the state.

f. New Jersey has the fifth slowest known solar permitting timelines of any state in the country.

g. The Solar Energy Industries Association has estimated that permitting and other bureaucratic barriers within New Jersey typically increase the cost of installing a residential solar energy system by $6,000 to $7,000.

h. The installation costs for a residential solar energy system in the United States is approximately double the installation costs in Europe, largely because Europe has virtually eliminated permitting and other bureaucratic barriers.

i. Approximately one-in-five residential solar energy installation projects are cancelled after submission of an application for a permit which, according to solar energy system installers, is largely a direct result of frustration experienced in attempting to maneuver through New Jersey’s permitting process.

j. It has been reported that contractors who are in the business of installing residential solar energy systems and home batteries within New Jersey avoid entering into contracts to install systems within municipalities that impose especially burdensome permitting requirements.

k. Hundreds of jurisdictions across the country, representing approximately 25 percent of the national market, have removed permitting barriers to the installation of residential solar energy systems and home energy battery storage by automating the permitting process.

l. Residential solar and home energy storage projects that receive automated permits pass inspections at similar rates to residential solar and home energy storage projects that receive traditional permits.

m. Automated permitting has the potential to reduce the costs of solar, reduce installation timelines, and reduce cancellations, all of which will enable more families to install solar on their roofs and batteries in their garages.

2. a. As used in this section:

"Department" means the Department of Community Affairs.

"Enforcing agency" means the municipal or county construction official and subcode officials provided for in section 8 of P.L.1975, c.217 (C.52:27D-126), or section 1 of P.L.2018, c.157 (C.52:27D-126.8) regarding a pilot county in the "County Code Enforcement Pilot Program," and assistants thereto.

"Form and format" means the arrangement, organization, configuration, structure, or style of, or method of delivery for, providing required information or providing the substantive equivalent of required information. "Form and format" does not mean altering the substance of information or the addition or omission of information.

"State Smart Solar Permitting Platform" means an Internet-based platform that, consistent with the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), automates plan review, produces a code-compliant approval, and instantly releases a permit or permit revision in response to the receipt of an acceptable application to construct a residential solar energy system.

b. (1) The Commissioner of Community Affairs shall establish, develop, implement, and administer the State Smart Solar Permitting Platform for the purpose of automatically performing plan review of applications to construct a residential solar energy system, and to instantly release a permit or permit revision to construct a code-compliant residential solar energy system. The commissioner shall fully implement the State Smart Solar Permitting Platform so that the platform is available for use by the department, enforcing agencies, and contractors prior to the first day of the 12th month next following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).

(2) An application to construct a residential solar energy system submitted pursuant to this section shall include an application to construct a residential solar energy storage system and to also perform a main electric panel upgrade, a main breaker derate, or both, as prescribed by the department.

(3) The State Smart Solar Permitting Platform shall:

(a) perform robust code compliance checks using algorithms to evaluate characteristics of the proposed residential solar energy system, as provided by a qualified contractor or subcontractor with an electrical contractor’s license, or the contractor’s or subcontractor’s representative, to determine whether the proposed system aligns with the requirements of the State Uniform Construction Code;

(b) produce construction documents to be used for the inspection of a residential solar energy system and for recordkeeping purposes consistent with the requirements of the State Uniform Construction Code;

(c) instantly release permits and permit revisions to construct a residential solar energy system consistent with the requirements of the State Uniform Construction Code;

(d) be designed to process permit applications for, at a minimum, approximately 75 percent of residential rooftop solar energy systems that: weigh less than or are equal to four pounds per square foot, and comply with State Uniform Construction Code requirements for installation on an existing residential structure;

(e) provide users with the ability to submit an application to construct a residential solar energy system 24 hours a day, except when the platform is down for an upgrade or maintenance;

(f) be provided to the department at no-cost or low-cost if a third party provides, or third parties provide, the State Smart Solar Permitting Platform to the department; and

(g) allow the use of electronic signatures on all applications and submitted materials necessary for issuance of a permit.

c. (1) The commissioner’s implementation of the State Smart Solar Permitting Platform shall provide access to the platform, and facilitate use of the platform, by the department, local enforcing agencies, private agencies that provide plan review and inspection services, and contractors engaged in the installation of residential solar energy systems.

(2) (a) Within one year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the commissioner shall implement the State Smart Solar Permitting Platform and provide for its use by the department, enforcing agencies, and contractors.

(b) A local enforcing agency shall either allow for the submission of applications to construct a residential solar energy system through the State Smart Solar Permitting Platform or through an alternative automated solar permitting platform that satisfies the requirements set forth in subsection a. of this section in an equivalent manner as the State Smart Solar Permitting Platform implemented by the department. A local enforcing agency that implements an alternative automated solar permitting platform shall enable access to the alternative platform prior to the first day of the 18th month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill). A local enforcing agency that implements an alternative automated solar permitting platform shall not require an applicant to submit documentation that is not required through the State Smart Solar Permitting Platform.

d. (1) A local enforcing agency that does not allow for the submission of applications to construct a residential solar energy system through the State Smart Solar Permitting Platform shall submit a compliance report to the department within 60 days of the local enforcing agency’s implementation of an alternative automated solar permitting platform. The department may establish guidelines for submission of a local compliance report. A local compliance report shall include, but may not be limited to:

(a) the date of compliance;

(b) the software used for compliance;

(c) documentation demonstrating that the alternative automated solar permitting platform implemented by the local enforcing agency satisfies the requirements set forth in subsection a. of this section in an equivalent manner as the platform implemented by the department.

(2) If the department determines that documentation submitted with a local compliance report pursuant to subparagraph (c) of paragraph (1) of this subsection is insufficient to verify that the platform satisfies the requirements set forth in subsection a. of this section in an equivalent manner as the platform implemented by the department, the local enforcing agency shall provide the department, at the department’s request, access to the platform.

(3) The department shall provide public access to local compliance reports on the department’s Internet website.

e. (1) A local enforcing agency that implements an alternative automated solar permitting platform pursuant to this section shall, commencing with April 1, 2027, submit an annual report to the department. The department may establish guidelines for annual reports required under this paragraph. An annual report shall include, but shall not be limited to:

(a) the number of permits released by the enforcing agency for residential solar energy systems through the alternative automated solar permitting platform and relevant characteristics of those systems;

(b) the number of permits released by the enforcing agency for residential solar energy systems through means other than the alternative automated solar permitting platform and relevant characteristics of those systems;

(c) documentation demonstrating that the alternative automated solar permitting platform satisfies the requirements set forth in subsection a. of this section in an equivalent manner as the platform implemented by the department.

(2) If the department determines that documentation submitted pursuant to subparagraph (c) of paragraph (1) of this subsection is insufficient to verify that the alternative automated solar permitting platform meets the requirements set forth in subsection a. of this section in an equivalent manner as the platform implemented by the department, the local enforcing agency shall provide the department, at the department’s request, access to the platform.

(3) The department shall provide public access to annual reports on the department’s Internet website.

f. (1) If the department determines that a local enforcing agency has failed to allow for the submission of applications to construct a residential solar energy system through either the State Smart Solar Permitting Platform or through an alternative automated solar permitting platform as required pursuant to this section, the department shall impose a penalty upon, and collect penalty amounts from, the local enforcing agency. The department shall adopt a penalty schedule to set the penalty amounts and shall allocate all monies collected from penalties to the Low Income Home Energy Assistance Program as administered in the State and established pursuant to 42 U.S.C. s.8621 et seq.

(2) The department may, in its sole discretion, condition or deny direct funding to a local unit from any program it administers if the department determines that the local unit’s enforcing agency is not in compliance with this section.

g. The commissioner shall provide training opportunities on the use of the State Smart Solar Permitting Platform for employees of local enforcing agencies.

h. The commissioner shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations to govern the form and format of applications for permits, approval documents, specifications and other information exchanged through the State Smart Solar Permitting Platform.

i. The department may waive State Uniform Construction Code requirements in order to release a permit for a residential solar energy system through the State Smart Solar Permitting Platform.

j. The commissioner may adopt, amend, and repeal rules and regulations providing for the charging of, and setting the amount of, solar permit surcharge fees to be collected by an enforcing agency or private agency. A local enforcing agency shall remit to the department all monies collected by the agency through solar permit surcharge fees to defray the cost of developing and administering the State Smart Solar Permitting Platform.

k. A person exchanging information through either the State Smart Solar Permitting Platform or through an alternative automated solar permitting platform in a form and format acceptable to the department shall not be subject to a licensing sanction, civil penalty, fine, permit disapproval, revocation, or other sanction for failure to comply with a form or format requirement imposed by statute, ordinance, or rule that requires submission of the information in physical form, including but not limited to any requirement that the information be in a particular form or of a particular size, be submitted with multiple copies, be physically attached to another document, be an original document, or be signed, stamped, sealed, certified, or notarized.

l. Neither a public entity nor a public employee shall be held liable under N.J.S.59:2-5 or other applicable provision of law for injury caused by release of a permit through the State Smart Solar Permitting Platform.

3. This act shall take effect immediately.

STATEMENT

This bill expedites the review and approval of projects to install most types of residential solar energy systems. The bill proposes to accomplish this by requiring the Commissioner of Community Affairs (commissioner) to establish and administer the State Smart Solar Permitting Platform within one year of the bill’s date of enactment. Establishment of the State Smart Solar Permitting Platform will enhance the ability of a local enforcing agency: to review permit applications and permit revisions instantly for safety and code compliance, and to release permits and permit revisions instantly for residential solar energy systems, residential energy storage systems, main electric panel upgrades, and main electric panel derates.

The State Smart Solar Permitting Platform is to automatically perform plan review of applications to construct a residential solar energy system, and instantly release permits or permit revisions to construct code-compliant residential solar energy systems. Under the bill, the term “application to construct a residential solar energy system” includes applications to construct a residential solar energy storage system submitted together with an application to perform a main electric panel upgrade, a main breaker derate, or both.

The bill requires the State Smart Solar Permitting Platform to:

· perform robust code compliance checks to evaluate proposed residential solar energy systems to determine whether they comply with the requirements of the State Uniform Construction Code;

· produce construction documents to be used for inspection and recordkeeping purposes under the code;

· instantly release a permit or permit revision to construct a residential solar energy system that complies with the code;

· be designed to process 75 percent of residential solar energy system permit applications submitted;

· be available for applicants to use 24 hours a day, except when the platform is down for an upgrade or maintenance;

· be provided to the department at no-cost or low-cost if provided by a third party;

· allow the use of electronic signatures on all applications and submitted materials necessary for issuance of a permit.

The bill directs the commissioner to fully implement the State Smart Solar Permitting Platform and provide for its use within one year after the bill is enacted.

The bill requires each local enforcing agency to either allow for the submission of applications to construct a residential solar energy system through the State Smart Solar Permitting Platform or through an alternative automated solar permitting platform that satisfies the requirements set forth in the bill for the State platform. If a local enforcing agency opts to implement an alternative automated solar permitting platform, the bill requires the local enforcing agency to enable access to the alternative automated solar permitting platform within 18 months of the bill’s effective date.

The bill requires each local enforcing agency that chooses to provide an alternative platform to the State Smart Solar Permitting Platform to submit a compliance report to the Department of Community Affairs (DCA) within 60 days of implementation of the alternative platform. The bill requires a local compliance report to include: the date of compliance, the software used for compliance, and documentation showing that the alternative platform satisfies the requirements set forth in the bill in an equivalent manner as the State Smart Solar Permitting Platform.

The bill provides that if the DCA determines that documentation submitted with a local compliance report is insufficient to verify that the alternative platform satisfies the bill’s requirements, the bill requires the local enforcing agency to provide the DCA with access to the alternative platform.

The bill also requires a local enforcing agency that implements an alternative platform to submit an annual report to the DCA that complies with departmental guidelines and provides the following statutorily required information:

· the number of permits released by the enforcing agency for residential solar energy systems through the alternative automated solar permitting platform and relevant characteristics of those systems;

· the number of permits released by the enforcing agency for residential solar energy systems through means other than the alternative automated solar permitting platform and relevant characteristics of those systems; and

· documentation showing that the alternative platform satisfies the other requirements set forth in the bill.

If the DCA determines that documentation submitted by a local enforcing agency is insufficient to verify that the alternative platform meets the bill’s requirements, the bill requires the local enforcing agency to provide the DCA access to the platform.

If the DCA determines that a local enforcing agency does not allow for submission of applications to construct a residential solar energy system through either the State Smart Solar Permitting Platform or through an alternative platform, the bill directs the DCA to impose a penalty upon, and collect penalty amounts from, the local enforcing agency, which amounts are to be allocated to the Low Income Home Energy Assistance Program.

Additionally, the bill empowers the DCA to condition or deny direct funding to a local unit from any program it administers if the DCA determines that the local unit’s enforcing agency is not in compliance with the bill’s requirements.

The bill directs DCA to provide training opportunities concerning the use of the State Smart Solar Permitting Platform for employees of local enforcing agencies and authorizes the DCA to charge solar permit surcharge fees. Monies collected by a local enforcing agency through solar permit surcharge fees are to be remitted to the DCA to defray the cost of developing and administering the State Smart Solar Permitting Platform.