New Jersey § 34:1b-375

§ 34:1b-375.

As used in sections 1 through 9 of P.L.2021, c. 201 ( C.34:1B-374 through C.34:1B-382 ): “ Assignment agreement ” means an agreement in which a participating municipality assigns a C-PACE assessment

to a capital provider, its designee, successor or assign. “ Authority ” means the New Jersey Economic Development Authority. “ Authorized municipality ” means a municipality with a population that, as of the launch date, is in the top

third of municipalities in the State in terms of population, according to the most

recent American Community Survey published by the United States Census Bureau. “ Capital provider ” means: a. an accredited investor or qualified institutional buyer as defined respectively

in Regulation D, Rule 501 ( 17 C.F.R.230.501 through 230.508 ) or Rule 144A ( 17 C.F.R.230.144A ) of the federal “Securities Act of 1933” ( 15 U.S.C. s.77a et seq. ), as amended; b. the trustee or custodian of a trust or custody arrangement which provides that

each beneficial owner of interests shall be an accredited investor or qualified institutional

buyer; c. a public entity; d. a special purpose securitization vehicle for the sale and transfer of securities,

which is restricted to those persons described in subsection a. or b. of this definition;

or e. a commercial lending institution chartered by a state or the federal government,

including, without limitation, a savings and loan association, a credit union, or

a commercial bank. “ C-PACE ” means commercial property assessed clean energy. “ C-PACE assessment ” means a local improvement assessment, in accordance with chapter 56 of Title 40

of the Revised Statutes, imposed by a participating municipality on a property, with

the consent of the owner of the property, and determined based upon either the existing

use of a property or the contemplated use of unimproved property upon completion of

new construction, as a means of securing financing provided pursuant to section 9

of P.L.2021, c. 201 ( C.34:1B-382 ) to finance a C-PACE project at the property, payments in respect of which assessment

are collected by the participating municipality and remitted to the entity that provided

the financing or its designee. “ C-PACE assessment agreement ” means an agreement between a participating municipality and a property owner in

which the property owner agrees to the imposition of a C-PACE assessment on the property

benefited by a C-PACE project within the municipality, and in which the participating

municipality agrees to levy, bill, collect, remit, and, to the extent necessary, enforce

the C-PACE assessment. “ C-PACE project ” means: a. the acquisition, construction, installation, modification, or, in the discretion

of the authority and in accordance with guidelines adopted by the authority, entry

into a capital lease of an energy efficiency improvement or renewable energy system

including energy storage, microgrid, water conservation improvement, stormwater management

system, electric vehicle charging infrastructure, flood resistant construction improvement,

or hurricane resistant construction improvement, in each case affixed to a property,

including new construction upon previously unimproved real property, within a participating

municipality, provided that, on the basis of supplemental program guidelines to be

published by the authority within 90 days following the launch date, a qualified professional

attests that such new construction exceeds the minimum standards of the local and

State building codes otherwise applicable to the property; b. at the discretion of, and in accordance with guidelines adopted by, the authority,

a microgrid or district heating and cooling system in which a property owner within

the municipality participates for the duration of the C-PACE assessment; or c. at the discretion of, and in accordance with guidelines adopted by, the authority,

a power purchase agreement with respect to a renewable energy system affixed to a

property. “ Direct financing ” means financing for a C-PACE project pursuant to a financing agreement entered into

between a capital provider and a property owner. “ Electric vehicle charging infrastructure ” means equipment designed to deliver electric energy to a battery electric vehicle

or a plug-in hybrid vehicle. “ Energy efficiency improvement ” means an improvement to reduce energy consumption through conservation or a more

efficient use of electricity, natural gas, propane, or other forms of energy, including,

but not limited to: air sealing; installation of insulation; installation of energy-efficient

electrical, heating, cooling, or ventilation systems; building modifications to increase

the use of daylight; energy efficient windows, doors, and glass; installation of

energy or water controls or energy recovery systems; and installation of efficient

lighting equipment. “ Finance ” or “ financing ” means the investing of capital in accordance with section 9 of P.L.2021, c. 201 ( C.34:1B-382 ), including, on the basis of supplemental program guidelines to be published by the

authority within 90 days following the launch date, the refinancing of an investment

in an existing C-PACE project. “ Flood resistant construction improvement ” means an improvement that mitigates the likelihood of flood damage, including, but

not limited to, the installation of break-away walls and building elevation alterations. “ Garden State C-PACE program ” means the program established by the authority pursuant to sections 4 and 5 of P.L.2021, c. 201 ( C.34:1B-377 and C.34:1B-378 ). “ Garden State program agreement ” means an agreement between the authority and a participating municipality defining: a. the obligations of a municipality to participate in the Garden State C-PACE program,

including the requirement that the participating municipality levy, bill, collect,

remit, and enforce a C-PACE assessment; and b. the obligations, if any, that the authority may undertake (1) with respect to the

remittance of C-PACE assessments to capital providers if the remittance is authorized

by regulations adopted by the Local Finance Board pursuant to section 38 of P.L.2000, c. 126 ( C.52:27D-20.1 ) and requested by the participating municipality, and (2) to review and approve the

participation of individual capital providers or financings in the Garden State C-PACE

program. Neither the execution by the authority of a Garden State program agreement with

a municipality nor its exercise of its rights or performance of its duties thereunder

shall be considered “authority financial assistance” as that term is defined in section

1 of P.L.1979, c. 303 ( C.34:1B-5.1 ). “ Hurricane resistant construction improvement ” means an improvement that enables a component of a structure to be in compliance

with the standards for a “wind-borne debris region” adopted pursuant to the “State

Uniform Construction Code Act,” P.L.1975, c. 217 ( C.52:27D-119 et seq. ), or into compliance with a successor standard under that code. “ Launch date ” means the date upon which the authority has taken all of the actions specified in

subsection c. of section 5 of P.L.2021, c. 201 ( C.34:1B-378 ), other than any actions that are expressly required by P.L.2021, c. 201 ( C.34:1B-374 et al.) to be taken within 90 days following the launch date. “ Local C-PACE program ” means a program established by an authorized municipality or a county pursuant to

section 6 of P.L.2021, c. 201 ( C.34:1B-379 ). “ Local C-PACE program ordinance ” means an ordinance adopted by an authorized municipality or a county, and approved

by the authority pursuant to section 7 of P.L.2021, c. 201 ( C.34:1B-380 ), to establish a program within its jurisdiction pursuant to subsection b. of section

5 and subsection a. of section 6 of P.L.2021, c. 201 ( C.34:1B-378 and C.34:1B-379 ). “ Microgrid ” means a group of interconnected loads and distributed energy resources within clearly

defined electrical boundaries that acts as a single controllable entity with respect

to the electric distribution system and that connects and disconnects from the electric

distribution system to enable it to operate when both connected to, or independent

of, the electric distribution system. “ Notice of assessment ” means the document filed with the county recording officer in the county in which

a property is located, which notifies prospective holders of an interest in the property

that a C-PACE assessment lien has been placed on the property. “ Opt-in ordinance ” means an ordinance adopted by a municipality by which it authorizes its participation

in the Garden State C-PACE program and authorizes the municipality to enter into a

Garden State program agreement with the authority. “ Participating municipality ” means: a. a municipality that adopts an opt-in ordinance and executes a Garden State program

agreement; or b. an authorized municipality that adopts an opt-in ordinance, executes a Garden State

program agreement, and adopts a local C-PACE program ordinance and local C-PACE program

guidelines approved by the authority. “ Private entity ” means a corporation, limited liability company, partnership, trust, or any other

form of private organization, including but not limited to a “related competitive

business segment of a public utility holding company,” or a “related competitive business

segment of an electric public utility or gas public utility,” as those terms are defined

in section 3 of P.L.1999, c. 23 ( C.48:3-51 ), so long as the organization is not subject to the jurisdiction of the Board of

Public Utilities. “ Program guidelines ” means: a. any program-related rules or documents, or both, prepared and published by the

authority that apply to the Garden State C-PACE program; or b. any program-related rules or documents, or both, prepared and published by an authorized

municipality or a county, and approved by the authority, that apply to local C-PACE

programs pursuant to paragraph (3) of subsection b. of section 6 of P.L.2021, c. 201 ( C.34:1B-379 ). “ Project costs ” means costs associated with a C-PACE project and shall include: direct costs, including

but not limited to, equipment, materials, and labor related to the purchasing, constructing,

installing, modifying, or acquiring a C-PACE project; indirect costs, including,

but not limited to, expenses and fees of engineers, architects, and other professionals,

inspection fees and permits, warranties and pre-paid maintenance contracts; program

fees; and financing costs of a capital provider, including, but not limited to, origination

fees, prepaid interest and payment reserves, closing costs, counsel fees, trustee

or custodian fees, recording fees, and other financing charges, except that the authority

may implement an alternative definition of “ project costs ” in its program guidelines in connection with the financing of new construction. “ Property ” means industrial, agricultural, or commercial property; residential property containing

five or more dwelling units; common areas of condominiums and other planned real

estate developments as defined in section 3 of P.L.1977, c. 419 ( C.45:22A-23 ); and property owned by a tax-exempt or nonprofit entity, including, but not limited

to, schools, hospitals, institutions of higher education, or religious institutions,

within a participating municipality upon which a C-PACE assessment is imposed at the

request of a property owner in connection with a C-PACE project. “ Property owner ” means an owner of a property within a participating municipality who consents to

a C-PACE assessment being imposed on the property. “ Renewable energy system ” means an improvement by which electrical, mechanical, or thermal energy is produced

from a method that uses one or more of the following fuels or energy sources: hydrogen,

solar energy, geothermal energy, biomass, or wind energy, together with the other

fuels and energy sources that the authority, after consultation with the Board of

Public Utilities, may determine pursuant to program guidelines prepared and published

pursuant to subsection c. of section 5 of P.L.2021, c. 201 ( C.34:1B-378 ). “ Solar renewable energy certificate ” means the same as defined in section 3 of P.L.1999, c. 23 ( C.48:3-51 ). “ Stormwater management system ” means the same as defined in section 3 of P.L.2019, c. 42 ( C.40A:26B-3 ). “ Transition renewable energy certificate ” means a certificate issued by the Board of Public Utilities or its designee, under

the solar energy transition incentive program, which is designed to transition between

the solar renewable energy certificate program and a solar successor incentive program

to be developed by the Board of Public Utilities pursuant to P.L.2018, c. 17 ( C.48:3-87.8 et al.). “ Uniform assessment documents ” means a uniform C-PACE assessment agreement, assignment agreement, and notice of

assessment, a model lender consent to a C-PACE assessment pursuant to section 5 of P.L.2021, c. 201 ( C.34:1B-378 ), and any other uniform or model documents prepared by the authority and used in

the Garden State C-PACE program and local C-PACE programs, except that the authority

shall not mandate a uniform financing agreement, which shall be supplied by the capital

provider for direct financing. “ Water conservation improvement ” means an improvement that reduces water consumption, increases the efficiency of

water use, or reduces water loss.