A2403

An Act concerning the use of roadside rights-of-way for solar energy generation and supplementing Title 48 of the Revised Statutes.

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

1. a. As used in this section:

“Board” means the Board of Public Utilities.

“Commissioner” means the Commissioner of Transportation.

“Electric public utility” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within this State.

“Owner” means the owner of a roadside right-of-way solar energy project or a representative duly authorized to act on the owner’s behalf.

“Pilot program” means the “Roadside Right-of-Way Solar Energy Pilot Program” established pursuant to subsection b. of this section.

“Roadside right-of-way” means land on either side of a roadway, including the shoulder and surrounding vegetation, reserved for road maintenance, future expansion, stormwater drainage, and vehicle safety. The roadside right-of-way shall be within a boundary between 30 and 100 feet from the road centerline, within the range of State control over land adjacent to the public road system, and within such an area that ensures that public safety, road maintenance, and future expansions are not impaired.

“Roadside right-of-way solar energy project” or “project” means energy generation facilities, structures, and equipment used to produce electric power from solar photovoltaic panels located on roadside rights-of-way that allow for the continued simultaneous use of the roads below and adjacent to the panels.

b. No later than 180 days after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the board, in consultation with the commissioner, shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a “Roadside Right-of-Way Solar Energy Pilot Program” to permit the construction, installation, and operation of roadside right-of-way solar energy projects that are connected to the distribution or transmission system owned or operated by an electric public utility and located on roadside rights-of-way owned by State or local government units.

c. The rules and regulations adopted by the board, in consultation with the commissioner, pursuant to subsection b. of this section, shall establish:

(1) a 10 megawatt, as measured in direct current, capacity limit for each individual project;

(2) annual capacity targets, such that the total capacity of all projects approved under the pilot program shall not exceed 200 megawatts, as measured in direct current, except as otherwise provided pursuant to subsection f. of this section;

(3) financial incentives available to projects approved pursuant to the pilot program;

(4) a prohibition on siting a project on private or federally-owned roadside rights-of-way, unless the board and commissioner grant a waiver based on unique factors that make the project consistent with the character of the specific parcel;

(5) a requirement that the project does not impair traffic patterns and does not prohibit access to the road beyond the interstate lanes themselves;

(6) a requirement that the location of the project does not obstruct travel safety or an ongoing maintenance operation on the highway and does not otherwise compromise the functional integrity of the highway or create a hazard to the public;

(7) a requirement that the project complies with all applicable federal, State, or local laws, rules, regulations, or ordinances;

(8) an application process for owners who wish to solicit bids for a project as part of the pilot program, including such fees or deposits as shall be determined by the board; and

(9) criteria, consistent with the provisions of paragraph (1) of subsection d. of this section, for evaluating and scoring proposed projects to determine which projects should be allowed to participate in the pilot program and be awarded incentives pursuant to paragraph (3) of this subsection.

d. (1) An owner proposing a roadside right-of-way solar energy project shall apply to the board before constructing, installing, or operating the project. The board shall consult with the commissioner in the review and approval of all projects under the pilot program. In reviewing and making decisions on projects, the board and the commissioner shall consider certain criteria , including, but not limited to:

(a) proposals for monitoring the traffic volume, accident count, and safety of the adjacent roadway;

(b) the incentive level sought by the applicant;

(d) interconnection planning;

(e) proposals for minimizing negative impacts to roadways;

(f) proposals to address decommissioning;

(g) proposals for addressing stormwater runoff, greenhouse gas emissions reduction, and other environmental issues;

(h) technical feasibility;

(i) technical innovation;

(j) the quality of any research committed to during the evaluation period; and

(k) any other criteria as may be deemed advisable by the board.

The review shall also consider whether the selected projects are of varying sizes. The board, in consultation with the commissioner, shall, within 180 days after receipt, approve, disapprove, or approve with conditions, an application submitted pursuant to this subsection.

(2) An owner who receives approval from the board pursuant to this subsection shall obtain all necessary permits and other approvals as may be required pursuant to federal, State, or local law, rule, regulation, or ordinance, prior to the construction of the project.

e. The commissioner may request that the board suspend or revoke an approval issued pursuant to this subsection for a violation of any term or condition of the approval or any provision of this section.

f. The pilot program shall continue for 36 months after the adoption of the rules and regulations required pursuant to subsection b. of this section . However, the board may extend the pilot program by no more than two additional 12-month periods if the board, in consultation with the commissioner, determines that such extensions are necessary to adequately evaluate the performance of the projects approved under the pilot program. If the board extends the pilot program, it may increase the total capacity limit of all projects under the pilot program by no more than 50 megawatts, as measured in direct current, per additional 12-month period.

g. Notwithstanding any law, ordinance, rule, or regulation to the contrary, a roadside right-of-way solar energy project approved pursuant to this section shall be a permitted use within every municipality.

h. No later than 36 months, or no later than 48 or 60 months if applicable due to extensions of the pilot program pursuant to subsection f. of this section, after adoption of the rules and regulations required pursuant to subsection b. of this section, the board, in consultation with the commissioner, shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to convert the pilot program to a permanent program as part of the successor to the solar incentive program established pursuant to P.L.2021, c.169 (C.48:3-114 et al.). The rules and regulations for the permanent program shall set forth standards for roadside right-of-way solar energy projects that take into account the results of the pilot program and any research studies on the efficacy of roadside right-of-way solar energy in New Jersey and shall include, but not be limited to:

(1) a capacity limit for individual roadside right-of-way solar energy projects;

(2) a total annual capacity limit;

(3) provisions to reduce or offset emissions from New Jersey’s road systems and provisions to protect driver safety;

(4) standards for: installation and decommissioning techniques that minimize negative impacts to traffic, which may include the posting of a performance bond for decommissioning; impervious coverage; emissions management; and stormwater management;

(5) siting criteria and restrictions, which may differ from those established pursuant to section 6 of P.L.2021, c.169 (C.48:3-119) to the extent necessary to accomplish the purposes of the pilot program; and

(6) an application process, including such fees, escrows, or deposits as shall be determined by the board.

2. This act shall take effect immediately.

STATEMENT

This bill requires the Board of Public Utilities (BPU) to adopt certain rules and regulations to establish a three-year pilot program, to be known as the “Roadside Right-of-Way Solar Energy Pilot Program” (pilot program), to permit the construction, installation, and operation of roadside right-of-way solar energy projects (projects). Under the bill, BPU is permitted to extend the pilot program for up to an additional two 12-month periods if BPU, in consultation with the Department of Transportation (DOT), determines that an extension is necessary to adequately evaluate the pilot program’s performance. The bill also outlines a procedure for the expansion of the pilot program into a permanent program and authorizes BPU to adopt certain rules and regulations to facilitate the expansion.

To participate in the pilot program, the owner of a project is required to apply to BPU and DOT and, once approved, obtain any other necessary approvals that may be required under federal, State, or local law for the construction of the project. BPU, in consultation with DOT, is required to review and, within 180 days after receipt, approve, disapprove, or approve with conditions an owner’s application under the pilot program. BPU and DOT are to review applications based on certain criteria outlined in the bill.