SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 3939

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 28, 2026

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Senate Bill No. 3939 (1R).

      As amended, this bill permits dual-use solar energy projects to participate in the Community Solar Energy Program (program), which offers credits to program participants on their electric public utility bill equal to the amount of electricity generated that is attributed to their participation in a solar energy project under the program.  Under current law, the Board of Public Utilities (BPU) restricts qualified solar energy projects under the program to those located on rooftops, carports or canopies, contaminated sites or landfills, bodies of water such as water treatment reservoirs or dredge ponds, and mining sites.  In addition, the bill permits the BPU to establish different incentive levels within the program for different categories of solar energy projects based on project characteristics such as the project size and the pre-existing land use and land cover of the property on which the solar energy project is sited.

      Finally, the bill revises the "Dual-Use Solar Energy Pilot Program" to allow the financial incentives available for dual-use solar energy projects through the BPU’s solar energy programs to stack upon each other, with certain exceptions enumerated in the bill.  The bill also modifies the target capacity limits for projects in the "Dual-Use Solar Energy Pilot Program" or a successor permanent dual-use solar energy program.

COMMITTEE AMENDMENTS:

      The committee amendments to the bill:

      (1)  clarify that after the bill’s effective date, dual-use solar energy projects with a maximum capacity of five megawatts that are approved by the BPU as part of the dual-use solar energy pilot program or the successor dual-use solar energy permanent program can participate in the community solar energy program with certain exceptions to be determined by the BPU;

      (2)  require dual-use solar energy projects participating in the community solar program to comply with all applicable solar energy program requirements while participating in both programs;

      (3)  permit the BPU to establish different incentive levels within the community solar program based on certain characteristics;

      (4)  remove a provision allowing dual-use solar energy projects to participate in the market segment of the community solar program;

      (5)  modify how the dual-use solar energy pilot and permanent programs target capacity limits are set;

      (6)  direct the BPU to assess certain criteria when awarding financial incentives to solar energy projects in the dual-use solar energy pilot and permanent programs;

      (7)  revise the title; and

      (8)  make technical changes.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.