N.J. Admin. Code § 14:8-2.4

Current through Register Vol. 56, No. 9, May 6, 2024

Section 14:8-2.4 - Energy that qualifies for an SREC; registration requirement; additional approval, designation, and certification processes for grid supply projects; termination of registration program

(a) To be eligible to form the basis for an SREC usable for compliance with this subchapter, electricity shall meet all requirements in this section, as well as all other applicable requirements in this chapter. The registration process required in this section for construction of new solar electric generation facilities is intended to provide advance notice to the public and the renewable energy markets when increases in solar electric generation capacity in New Jersey are planned. The registration process shall be administered by Board staff or the Board's designee.

(b) To be eligible for issuance of an SREC usable for compliance with this subchapter, electricity shall:

1. Meet the definition of solar electric generation at 14:8-1.2;

2. Be generated at a facility that has been issued a New Jersey State Certification Number by Board staff;

3. Be generated at a facility which, if the facility's construction commenced after July 23, 2012, and the facility has a capacity of one megawatt dc or greater, paid the workers on its construction in accordance with N.J.S.A. 48:2-29.47.

4. Be generated during the generating facility's qualification life, as defined at N.J.A.C. 14:8-2.2. Solar electric generation produced after the end of a facility's qualification life shall not be used as the basis for an SREC, but may be used as the basis for a class I REC under NJ.A.C. 14:8-2.5;

5. Be generated using equipment that meets either of the following criteria:

i. The equipment is new, that is, none of the equipment has been used prior to the installation of the solar electric generating facility; or

ii. The equipment was previously used in a solar facility with an unexpired qualification life and all of the following criteria are met:

(1) The previous solar facility was located in New Jersey;

(2) The previous solar facility was issued a New Jersey State Certification Number by Board staff;

(3) There are at least 12 full months left in the qualification life of the previous solar facility; and

(4) Any sale or other transfer of the equipment during the qualification life of the previous solar facility is recorded with the Board and with PJM-EIS through submittal of a PJM-EIS system change form; and

6. No new SREC registration program submittal shall be accepted following a determination by the Board that 5.1 percent of the kilowatt-hours sold in the State by each electric power supplier and each basic generation provider comes from solar electric power generators connected to the State's electric distribution system has been attained. The Board shall announce the State's attainment of the 5.1 percent milestone when the installed solar capacity reported through New Jersey's Clean Energy Program (NJCEP) is estimated to have produced 5.1 percent of the retail electricity sales estimated to have been sold over the previous 12 months. The Board shall report no later than the last business day of each month the estimated solar electricity generated over the previous 12 months. The trailing 12 months of solar electricity generated shall be estimated by multiplying the latest NJCEP-supplied figure on cumulative installed solar capacity for the previous 12 months by a corresponding solar output factor for each month. The solar output factor is an estimate of solar MWh output from one MWdc of capacity. Board staff shall produce, based upon stakeholder input, an estimate of solar electricity in MWh expected energy output from one MWdc of installed solar capacity representative of the fleet of New Jersey solar installations. An estimate of retail electricity sold in the previous 12 months shall be calculated from data supplied by PJM-EIS GATS for load served adjusted for distribution line losses through a factor based upon stakeholder input. The Board's monthly report on estimated solar electricity generated as a percent of estimated retail sales shall include the variables and methodology used for calculation, which will include:

i. An estimate of the trailing 12 months of solar electricity generated, based upon:

(1) The monthly cumulative installed solar capacity reported to the SREC Registration program; and

(2) The solar output factors for each of the previous 12 months and how they were derived;

ii. An estimate of retail electricity sold and how it was calculated from PJM-EIS GATS load served, including the distribution line loss factor and its derivation; and

iii. The resulting equation and the figure it produces.

7. Following a report that 5.1 percent of retail sales were attained from solar electric generation or that attainment of 5.1 percent of retail sales from solar electric generation is imminent within the next month, the Board shall authorize:

i. Solar facilities registered in the SRP pipeline described in (p) below to be eligible for SRECs if:

(1) A solar facility commenced commercial operations prior to the 5.1 percent milestone attainment and had submitted a complete registration or application for designation or conditional certification on or before October 29, 2018. Such a facility shall be eligible for the 15-year SREC qualification life; or

(2) A solar facility commenced commercial operations prior to the 5.1 percent milestone attainment and had submitted a complete registration or application for designation or conditional certification after October 29, 2018. Such a facility shall be eligible for the 10-year SREC qualification life;

ii. Solar facilities registered in the SRP pipeline described in (p) below that have not commenced commercial operations prior to the 5.1 percent milestone attainment to have their eligibility determined as follows:

(1) Such a solar facility, if it submitted a complete registration or application for designation or conditional certification on or before October 29, 2018, may be eligible for a 15-year SREC qualification life subject to its maintaining all other eligibility requirements; or

(2) Such a solar facility, if it submitted a complete registration or application for designation or conditional certification after October 29, 2018, shall not be eligible for SRECs;

iii. The commencement of commercial operations shall be determined by the date on which the electric distribution company grants the facility permission to operate as referenced in N.J.A.C. 14:8-5 or the date the facility is granted permission to operate through PJM Interconnection LLC; and

iv. Termination of the SREC registration program shall occur no later than June 1, 2021.

(c) To comply with (b)2 above, a solar electric generating facility that was not issued a New Jersey State Certification Number prior to June 4, 2012, shall obtain a New Jersey State Certification Number through the registration process set forth in this section. The registration process includes three important deadlines:

1. The submittal of an initial registration package under (j)1 below shall occur:

i. No later than 14 business days after execution of the contract for purchase or installation of the photovoltaic panels to be used in the solar facility if the facility is net metered, provides on-site generation, or provides power for a qualified customer engaged in aggregated net metering or within 14 business days from the effective date of an order granting approval, conditional certification or designation for projects requiring Board approval, designation or certification;

ii. If a contract for purchase and/or installation of photovoltaic panels for the solar facility was executed prior to June 4, 2012, the deadline for submittal of an initial registration package shall be July 4, 2012; or

iii. In a case where a conditional registration or extension was previously issued but expired before construction of the solar facility was substantially completed, a new registration package shall be submitted prior to completion of construction;

2. Construction of the solar facility, if the facility is net metered, provides on-site generation, provides power for a qualified customer engaged in aggregated net metering, or has been conditionally certified by the Board as being located on a properly closed sanitary landfill facility, brownfield, or area of historic fill shall not begin until Board staff has issued a conditional registration for the facility under (h)5 below; and

3. Construction of the solar facility shall be completed and local code approval granted prior to the expiration of the conditional registration or any extension granted under (g) below.

(d) A solar electric generating facility, and all equipment included in or appurtenant to the solar facility, shall permanently retain the qualification life originally assigned to the solar facility, regardless of any interruption in the solar facility's operation, or any relocation, sale or transfer of the facility or of any of the equipment.

(e) If the applicable submittal deadline in (c)1 above is met, SRECs, based on electricity generated by the solar facility, shall be usable for compliance with this chapter immediately upon the issuance of a New Jersey State Certification Number for the facility, subject to any other applicable limits on use of SRECs. If the applicable deadline is not met, any SRECs based on electricity generated by the solar facility shall not be usable for compliance with this chapter until 12 months after the solar facility has received authorization to energize either in accordance with the Board's interconnection rules at N.J.A.C. 14:8-5 or in accordance with the process required by PJM or the EDC for projects not interconnected under the rules at N.J.A.C. 14:8-5.

(f) (Reserved)

(g) A proposed grid supply facility that is not located on a brownfield, properly closed sanitary landfill facility, or area of historic fill must satisfy the requirements of this subsection for the energy it generates to serve as the basis for creation of an SREC. Applications for grid supply facilities on farmland shall be rejected.

1. A person seeking designation as connected to the distribution system in the State, so that electricity generated by the facility may serve as the basis for an SREC must file an application with the Board during the periods specified in (g)4 below. The application shall include, at a minimum, the following information and documentation:

i. The nameplate capacity of the facility;

ii. Estimated energy to be produced annually;

iii. Estimated number of SRECs to be produced and sold annually;

iv. Expected commissioning date and decommissioning date;

v. Total project acreage and location;

vi. Estimated annual rate impact on ratepayers;

vii. Point of interconnection;

viii. Type of solar technology to be used;

ix. Required State permits or approvals;

x. Required municipal permits, approvals, or waivers already received or anticipated to be required;

xi. Current zoning designation(s) for the proposed host site;

xii. Date of most recent change in zoning designation;

xiii. Zoning ordinance;

xiv. Maps and other documents showing the location and associated impacts, including identification of any farm parcels or lands preserved for agricultural, conservation, or recreational purposes, including, but not limited to, lands preserved pursuant to New Jersey's Green Acres Program, located within 0.5 miles of the host site. Maps and other documents submitted must also show the host site's location in proximity to an Agricultural Development Area or Farmland Preservation Program project area.

xv. Maps and other documents showing the location of other grid supply projects proposed, under construction, or existing within the nearest Agricultural Development Area, land preserved under the Green Acres Program, and land preserved under the Farmland Preservation Program. Maps and other documents must also show the location of all solar grid supply projects proposed, under construction, or existing within five miles of the host site;

xvi. Project decommissioning plans, prepared by an independent entity, for the end of the useful life of the facility. A decommissioning plan shall set out the process through which any lands disturbed by the construction and/or operation of the solar facility shall be restored to pre-existing condition and shall include, at a minimum:

(1) A plan for removal of all solar energy generation facilities and all electrical appurtenances;

(2) A plan for removal of foundations and any access roads not needed for future purposes by the owner of the site; and

(3) A plan to ensure that environmental impacts are minimized and mitigated during decommissioning activities, including a plan for replacement of surface materials; and

xvii. Any other information that the Board staff deems necessary to review an application filed under this subsection.

2. The application process shall proceed under the following timelines:

i. Between January 1 and April 1, expressions of interests must be filed by entities seeking designation in the coming energy year pursuant to this subsection. An expression of interest shall be submitted using the form posted on the New Jersey Clean Energy Program (NJCEP) webpage. Only applications for grid supply projects for which an expression of interest was timely submitted shall be considered by the Board for designation as "connected to the distribution system" in the next energy year.

ii. On an annual basis prior to the beginning of an energy year, Board staff will issue a request for public comment on the capacity that the Board makes available for designation as "connected to the distribution system" under this subsection in the upcoming energy year.

3. Following the close of the submittal period, but no later than 30 days prior to the start of the energy year, the Board will conditionally approve a specific number of megawatts dc as the upper limit for which designation as "connected to the distribution system" may be approved in the energy year. During the energy year, the Board may approve projects, so that the sum of all approved projects does not exceed the announced megawatt dc limit.

4. Applications to be designated as "connected to the distribution system" shall not be filed prior to the start of the energy year for which an expression of interest was filed. Applications may be filed beginning on and for 14 calendar days after the following dates: June 1, September 1, December 1, and March 1.

5. Upon filing of an application, Board staff will review the application for administrative completeness within 30 days.

i. If Board staff deems the application complete, Board staff will notify the applicant, and will provide an opportunity for public comment on the application by posting the application to the Board's website. The public comment period shall be no less than seven days.

ii. If Board staff deems the application incomplete, the application will not be deemed complete until Board staff has received information necessary to complete the application. Board staff will notify the applicant that with the additional information the application is now complete, and will follow the process described in (g)5i above.

iii. The Board will rule upon the application as follows:

(1) If Board staff has deemed the application complete, the Board will approve, conditionally approve, or disapprove designation of the grid supply facility as "connected to the distribution system" within 90 days of receipt of a completed application.

(2) If Board staff has deemed the application incomplete, the Board will approve, conditionally approve, or disapprove the grid supply facility as "connected to the distribution system" within 90 days of the date of the last filing that completes the application.

iv. Projects approved or conditionally approved for designation as "connected to the distribution system" under this subsection must commence commercial operations within two years of the effective date of the Order granting that approval.

(h) Registration of a solar electric generating facility requires completion of the following process:

1. The registrant shall submit an initial registration package to the Board, completed in accordance with (j) below, within the applicable deadline at (c)1 or 2 above;

2. Upon receipt of an initial registration package, Board staff shall review the package for completeness. If the initial registration package is incomplete or deficient, Board staff shall notify the registrant in writing of the deficiencies;

3. Once the registration package is complete, Board staff shall review the package to determine whether the solar facility meets the SREC eligibility requirements of this subchapter. If the facility does not meet these requirements, Board staff shall notify the registrant. The registrant shall revise the package and resubmit it within one year of this notice. Failure to resubmit within this time will result in cancellation of the registration process, in which case a complete new registration process shall be required for the solar facility to obtain a New Jersey State Certification Number;

4. If the solar facility as described in the initial registration package meets SREC eligibility requirements, Board staff shall issue notice to the registrant of a conditional registration for the facility. The notice of the conditional registration shall:

i. State that, if the solar facility is constructed as described in the initial registration package, Board staff will issue a New Jersey State Certification Number for the solar facility upon construction completion and inspection subject to conditions referenced in (b)7 above; and

ii. Include an expiration date 12 months after the date of the notice for facilities that are net metered, provide on-site generation, or provide power for a qualified customer engaged in aggregated net metering. Subject to the date of the Board's determination on the State's attainment of the 5.1 percent milestone, facilities that are registered after August 7, 2019, may not be granted a full 12-month registration length and may not be eligible for an extension; and

iii. Include an expiration date 24 months after the effective date of Board approval, designation, or conditional certification for solar electric generation facilities where Board approval, designation, or conditional certification is required. Subject to the Board's determination on the State's attainment of the 5.1 percent milestone, projects that applied to the Board for approval, conditional approval, or conditional certification after October 29, 2018, may not be granted a full 24-month registration length and may not be offered an extension; and

5. After issuance of the notice of conditional registration, construction of the solar facility as described in the initial registration package may begin.

(i) Construction of the solar electric generating facility shall be subject to the qualifications at (b)7 above and shall be completed prior to expiration of the conditional registration. The registrant for facilities that are net metered, provide on-site generation, or provide power for a qualified customer engaged in aggregated net metering, and which received conditional registration before December 31, 2018, may request one extension prior to the expiration of the conditional registration, and shall include an updated schedule for completion. Except for registrations submitted for projects approved or conditionally approved for designation as "connected to the distribution system" under (g) above, Board staff may authorize one extension of the project's registration on a case-by-case basis, based on the likelihood of timely and successful completion of the solar facility. An extension shall provide a new expiration date, six months from the expiration of the original conditional registration. A project that is provided conditional registration after December 31, 2018, such that it has an expiration date falling after December 31, 2019, may not be granted the full six-month extension. The conditional registration of such a project may end when the Board has determined that the 5.1 percent milestone has been attained. If the conditional registration, or extension, expires before construction is complete, the registrant shall begin the entire registration process again by submitting an initial registration package. Board staff shall treat the new registration package as if it were a first-time submittal, with no reference to the previous registration process. Facilities that require approval or certification by the Board, other than those requiring approval of designation under (g) above, must seek extensions of the conditional registration expiration date directly by application to the Board, unless otherwise directed by the Board. Registrants who file after failure to complete during the initial 18 or 24 month registration period shall not be subject to the penalty set out at (e) above if the Board finds that the failure to complete within time was reasonable. If these projects were provided conditional certification after October 29, 2018, they may not be granted a full 24 month registration length to complete the project and may not be offered an extension.

(j) Each initial registration package shall be completed in accordance with the instructions found on the Board's New Jersey Clean Energy Program website at www.njcleanenergy.com. The registration instructions shall require the following basic types of information:

1. Information identifying and describing the owner, host location, builder/installer and operator of the solar electric generating facility;

2. Basic information describing the solar facility, including its capacity, manufacturer and expected output;

3. A technical worksheet, in a form provided on the Board's NJCEP website, detailing the technical specifications of the solar facility;

4. A construction schedule for completing the solar facility, including significant milestones;

5. A signed contract between the owner and installer of the solar facility, or other binding legal document that provides reasonable assurance that the solar facility will be constructed;

6. Basic information regarding the cost of equipment and installation, presented as a simple budget;

7. A site map of the land upon which the generating facility will be located, including all features that may affect the construction and/or performance of the solar facility; and

8. Any other data or information necessary for Board staff to determine whether the solar electric generation from the facility will meet the requirements for SRECs under this chapter.

(k) When construction of the solar electric generating facility is complete and the facility has commenced commercial operations consistent with the determination made pursuant to (b)7iii above, the facility owner shall submit, no later than 90 days following the commencement of commercial operations, a post-construction certification package that meets the requirements of (l) below, and shall request an inspection of the facility by Board staff, or an inspection waiver, through the Board's New Jersey Clean Energy Program (NJCEP) website at www.njcleanenergy.com.

(l) A post-construction certification package shall include all of the following:

1. A copy of the conditional registration notice issued by the Board under this section;

2. A final "as built" technical worksheet, detailing the technical specifications of the completed solar electric generating facility, including any changes from the technical worksheet submitted as part of the initial registration package;

3. Digital photographs of the site and the completed solar facility;

4. A shading analysis, detailing any shade that will affect the facility;

5. An estimate of the electricity production of the solar facility;

6. Where applicable, documentation of compliance with all applicable Federal, State and local law, including eligibility for any tax incentives or other government benefits;

7. A copy of the EDC's initial application to interconnect the facility to the corresponding EDC's distribution system, as well as the EDC or PJM approval to interconnect and energize the facility; and

8. A statement that an inspection of the solar facility, or an inspection waiver, has been requested through the Board's NJCEP website, and the date of the request.

(m) After receiving the inspection request and complete final documentation required after (l) above, Board staff shall conduct an inspection or shall notify the registrant that no inspection is required.

(n) If no inspection is required, or if the inspection indicates that the solar electric generating facility has been constructed in accordance with the conditional registration, and/or any Board-authorized changes made under (o) below, Board staff shall assign a New Jersey State Certification Number to the solar facility for use in obtaining SRECs from PJM-EIS GATS.

(o) If, after submittal of an initial registration package, an increase or decrease of more than 10 percent in the solar electric generating facility's generating capacity is planned, the registrant shall notify Board staff by e-mail to oce@bpu.state.nj.us. The e-mail shall be sent within 10 business days after the execution of the change order for the increase or decrease, or the contract for purchase, installation or removal of the photovoltaic panels included in the capacity increase or decrease.

(p) Board staff shall publish the registrations on the Board's Clean Energy Program website at: http://www.njcleanenergy.com/renewable-energy/program-activity-reports/program-status-reports/srec-registration-program-status-reports.

(q) A registrant may elect to file a request for confidentiality for any information submitted under this chapter, by using the procedures set forth in the Board's Open Public Records Act (OPRA) rules at N.J.A.C. 14:1-12.

(r) The Board shall approve, conditionally approve, or disapprove any application for designation as connected to the distribution system of a solar electric power generation facility filed with the Board after May 23, 2018, the date of enactment of P.L. 2018, c. 17 (N.J.S.A. 48:3-87.8et seq.), no more than 90 days after receipt by the Board of a completed application. For any such application for a project greater than 25 kilowatts, the Board shall require the applicant to post a notice escrow with the Board in an amount of $ 40.00 per kilowatt of DC nameplate capacity of the facility, not to exceed $ 40,000. The notice escrow amount shall be reimbursed to the applicant in full upon either denial of the application by the Board or upon commencement of commercial operation of the solar electric power generation facility. The escrow amount shall be forfeited to the State if the facility is designated as connected to the distribution system pursuant to this subsection but does not commence commercial operation within two years following the date of the designation by the Board. This escrow requirement only applies to the class of grid supply projects required to file an application for designation.

(s) The qualification life shall be 10 years for all solar generation projects for which the Board receives a complete registration or application for designation as connected to the distribution system or conditional certification after October 29, 2018, which achieves commercial operation prior to attainment of the 5.1 percent milestone, and which is otherwise eligible for conditional registration.

N.J. Admin. Code § 14:8-2.4

Amended by 49 N.J.R. 809(a), effective 4/17/2017

Administrative Change, 50 N.J.R. 1820(b).

Amended by 51 N.J.R. 138(e), effective 1/22/2019

Amended by 51 N.J.R. 1058(a), effective 6/17/2019

Amended by 52 N.J.R. 146(b), effective 2/3/2020

Amended by 52 N.J.R. 1850(a), effective 10/5/2020