Rutgers Law

New Jersey Statutes, Title: 48, PUBLIC UTILITIES

    Chapter 3: Unjust or unreasonable discriminations or classifications of rates; "board" defined

      Section: 48:3-87.2d: Eligible qualified offshore wind project, retain, incremental federal tax benefits, file, compliance.

          4. a. Within 60 days of the date of enactment of P.L.2023, c.99 (C.48:3-87.2a et seq.), an eligible qualified offshore wind project that elects to retain incremental federal tax benefits pursuant to section 3 of P.L.2023, c.99 (C.48:3-87.2c) shall file with the board, in a form and manner as determined by the board, a compliance filing that includes the following information:

(1) an affidavit from a corporate officer with authority to legally bind the project company affirming that the project company shall complete the qualified offshore wind project and any investments in qualified wind energy facilities identified pursuant to paragraph (2) of this subsection;

(2) (a) a schedule by which the qualified offshore wind project shall make:

(i) all required outstanding investments in qualified wind energy facilities included within the project's awarded solicitation application; and

(ii) required additional investments in qualified wind energy facilities, including investments in one or more offshore wind component manufacturing facilities located in an enhanced area.

(b) The schedule shall include the dates by which the project company shall complete the necessary investments described in this subsection and the dollar amount of each investment. The schedule shall be approved by the board so long as it is consistent with the project's, and any affiliated New Jersey offshore wind project's, awarded solicitation application and will not result in the delayed completion of any qualified wind energy facility or any other qualified offshore wind project. Nothing in this paragraph shall be construed as preventing the board and the qualified offshore wind project from agreeing to a schedule that diverges from that set forth in the awarded solicitation applications. The schedule may be adjusted with the board's approval for good cause shown;

(3) in support of the investments enumerated in the schedule filed with the board pursuant to paragraph (2) of this subsection, no later than 90 days after the date of enactment of P.L.2023, c.99 (C.48:3-87.2a et seq.), the qualified offshore wind project shall deposit $200,000,000 into an escrow account, which shall be available to qualified wind energy facilities described in paragraph (2) of this subsection in accordance with milestones and commercial terms agreed to by the qualified offshore wind project and the qualified offshore wind energy facilities and the board; and

(4) (a) an obligation to post a performance security in the amount of $100,000,000 for the completion of the qualified offshore wind project in the form of a parent company guarantee or other financial security reasonably acceptable to the board. The performance security under this paragraph shall be forfeited if the board determines that the project failed to reach commercial operation within 12 months of the date approved by the board, including any extensions to the date specified in the initial order as may be approved by the board. The performance security shall be provided in a compliance filing made with the board within 90 days of enactment of P.L.2023, c.99 (C.48:3-87.2a et seq.). If the performance security is forfeited, the board may elect to return the funds to ratepayers or may utilize the forfeited funds to support infrastructure necessary to advance the offshore wind industry.

(b) The performance security under this paragraph shall not be forfeited if the board finds that the project did not achieve commercial operation within 12 months after the board-approved commercial operations date due solely to a change in federal law, policy, or procedures that affect the entire industry and result in material delays to the project through no faults of its own. A finding by the board that the performance security is not forfeited pursuant to this subparagraph shall not, in and of itself, constitute board approval of a change to the project's OREC Pricing Schedule.

b. The board shall consult with the New Jersey Economic Development Authority in its review of the compliance filings made pursuant to this section but shall not unreasonably delay or condition its acceptance of the compliance filings.

L.2023, c.99, s.4.

This section added to the Rutgers Database: 2023-10-20 18:09:12.

Older versions of 48:3-87.2d (if available):

Court decisions that cite this statute: CLICK HERE.