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New Jersey Board of Public Utilities to Begin Accepting Subsection q. Notices of Intent at 4 pm on Wednesday, May 15, 2013

May 9, 2013

 In furtherance of the Solar Act of 2012 (the “Act”), via order dated May 9, 2013 (the “Order”), the New Jersey Board of Public Utilities (the “BPU”) adopted staff recommendations setting forth an application process for certifying grid supply solar generation projects as “connected to the distribution system” such that they are eligible to generate Solar Renewable Energy Certificates (“SRECs”). Simultaneously with the Order, the New Jersey Clean Energy Program released the form Notice of Intent and Subsection q. Application Form. 

Subsection q. of the Act provides that during energy years 2014, 2015 and 2016, a grid supply solar project (a solar project that is not (a) net metered, (b) an on-site generation facility, (c) qualified for net metering aggregation, or (d) certified as being located on a Brownfield, on an area of historic fill or on a properly closed sanitary landfill) shall not be eligible to generate SRECs unless approved by the BPU as being “connected to the distribution system.” The Act further provides that no more than 80 MW of grid supply projects shall be designated as “connected to the distribution system” in each of energy years 2014, 2015 and 2016.

The Order sets forth a two-part Subchapter q. application process. First, applicants will be required to submit via electronic mail a completed, signed and scanned one page Notice of Intent on the designated form. The Notice of Intent must identify the project and the energy year for which the applicant is seeking designation. Notices of Intent for energy years 2014, 2015 and 2016 will be accepted and reviewed based on the order they are received. The time stamp of the BPU’s server will control. No Notice of Intent will be accepted before 4 pm on Wednesday, May 15, 2013 or after Friday May 31, 2013. The Notice of Intent must set forth a PJM interconnection queue number for the project. Notices of Intent for each project must be separately submitted and only one notice per email transmission will be accepted. Duplicate notices, notices for more than one energy year, notices for projects greater than 10MW(dc) and notices proposing more than one project per PJM interconnection queue position will all be rejected.

A complete application on the designated form must be delivered to the BPU within five calendar days of the filing of the Notice of Intent or by May 31, 2013, whichever is earlier. The application must be accompanied by an executed escrow agreement with an “Accredited Financial Institution” on the designated form, setting up an escrow account containing the sum of $40,000 per MW to be constructed as part of the proposed project. The escrowed funds will be returned to the project developer if the project commences commercial operation within two years of the date of designation. The escrowed funds will be paid to the State if the project does not commence commercial operation within two years of the date of designation, in which event the project will not be eligible to generate SRECs. The two-year period will begin immediately upon designation for energy year 2014 projects. The two-year period for projects designated for energy years 2015 and 2016 will not begin until the beginning of the applicable energy year.

Notices of Intent and applications may be submitted by a project developer, contractor, installer, land speculator or any agent of the foregoing.

For more information, please contact:

Stephen A. Kisker
Chair, Renewable Energy and Sustainability Group | (973) 530-2074 | skisker@wolffsamson.com  
Robert H. Crespi
Member of the Firm | (973) 530-2060 | rcrespi@wolffsamson.com  
Michelle A. Schaap
Member of the Firm | (973) 530-2026 | mschaap@wolffsamson.com  
John G. Valeri Jr.
Member of the Firm | (973) 530-2030 | jvaleri@wolffsamson.com