New Jersey § 48:3-87

§ 48:3-87.

a. An entity seeking to construct an offshore wind project shall submit an application

to the board for approval by the board as a qualified offshore wind project, which

shall include, but need not be limited to, the following information: (1) a detailed description of the project, including maps, surveys and other visual

aides. This description shall include, but need not be limited to: the type, size , and number of proposed turbines and foundations; the history to-date of the same

type, size and manufacturer of installed turbines and foundations globally; a detailed

description of the transmission facilities and interconnection facilities to be installed;

and a detailed implementation plan that highlights key milestone activities during

the permitting, financing, design, equipment solicitation, manufacturing, shipping,

assembly, in-field installation, testing, equipment commissioning , and service start-up; (2) a completed financial analysis of the project including pro forma income statements,

balance sheets, and cash flow projections for a 20-year period, including the internal

rate of return, and a description and estimate of any State or federal tax benefits

that may be associated with the project; (3) the proposed method of financing the project, including identification of equity

investors, fixed income investors, and any other sources of capital; (4) documentation that the entity has applied for all eligible federal funds and programs

available to offset the cost of the project or provide tax advantages; (5) the projected electrical output and anticipated market prices over the anticipated

life of the project, including a forecast of electricity revenues from the sale of

energy derived from the project and capacity, as well as revenues anticipated by the

sale of any ORECs, RECs, air emission credits or offsets, or any tradable environmental

attributes created by the project; (6) an operations and maintenance plan for the initial 20-year operation of the project

that: details routine, intermittent , and emergency protocols; identifies the primary risks to the built infrastructure

and how the potential risks, including but not limited to hurricanes, lightning, fog,

rogue wave occurrences, and exposed cabling, shall be mitigated; and identifies specific

and concrete elements to ensure both construction and operational cost controls. This operations and maintenance plan shall be integrated into the financial analysis

of the project, and shall identify the projected plan for the subsequent 20 years,

following conclusion of the initial 20-year operations, assuming any necessary federal

lease agreements are maintained and renewed; (7) the anticipated carbon dioxide emissions impact of the project; (8) a decommissioning plan for the project including provisions for financial assurance

for decommissioning as required by the applicable State and federal governmental entities; (9) a list of all State and federal regulatory agency approvals, permits, or other

authorizations required pursuant to State and federal law for the offshore wind project,

and copies of all submitted permit applications and any issued approvals and permits

for the offshore wind project; (10) a cost-benefit analysis for the project including at a minimum: (a) a detailed input-output analysis of the impact of the project on income, employment,

wages, indirect business taxes, and output in the State with particular emphasis on

in-State manufacturing employment; (b) an explanation of the location, type , and salary of employment opportunities to be created by the project with job totals

expressed as full-time equivalent positions assuming 1,820 hours per year; (c) an analysis of the anticipated environmental benefits and environmental impacts

of the project; and (d) an analysis of the potential impacts on residential and industrial ratepayers

of electricity rates over the life of the project that may be caused by incorporating

any State subsidy into rates; (11) a proposed OREC pricing method and schedule for the board to consider; (12) a timeline for the permitting, licensing , and construction of the proposed offshore wind project; (13) a plan for interconnection, including engineering specifications and costs;

and (14) any other information deemed necessary by the board in order to conduct a thorough

evaluation of the proposal. The board may hire consultants or other experts if the board determines that obtaining

such outside expertise would be beneficial to the review of the proposal. b. (1) In considering an application for a qualified offshore wind project, submitted

pursuant to subsection a. of this section, the board shall determine that the application

satisfies the following conditions: (a) the filing is consistent with the New Jersey energy master plan, adopted pursuant

to section 12 of P.L.1977, c. 146 ( C.52:27F-14 ), in effect at the time the board is considering the application; (b) the cost-benefit analysis, submitted pursuant to paragraph (10) of subsection

a. of this section, demonstrates positive economic and environmental net benefits

to the State; (c) the financing mechanism is based upon the actual electrical output of the project,

fairly balances the risks and rewards of the project between ratepayers and shareholders,

and ensures that any costs of non-performance, in either the construction or operational

phase of the project, shall be borne by shareholders; and (d) the entity proposing the project demonstrates financial integrity and sufficient

access to capital to allow for a reasonable expectation of completion of construction

of the project. (2) In considering an application for a qualified offshore wind project, submitted

pursuant to subsection a. of this section, the board shall also consider: (a) the total level of subsidies to be paid by ratepayers for qualified offshore wind

projects over the life of the project; and (b) any other elements the board deems appropriate in conjunction with the application. c. An order issued by the board to approve an application for a qualified offshore

wind project pursuant to this section shall, at a minimum, include conditions to ensure

the following: (1) no OREC shall be paid until electricity is produced by the qualified offshore

wind project; (2) ORECs shall be paid on the actual electrical output delivered into the transmission

system of the State; (3) ratepayers and the State shall be held harmless for any cost overruns associated

with the project; and (4) the applicant will reimburse the board and the State for all reasonable costs

incurred for regulatory review of the project, including but not limited to consulting

services, oversight, inspections, and audits. An order issued by the board pursuant to this subsection shall specify the value of

the OREC and the term of the order. An order issued by the board pursuant to this subsection shall not be modified by

subsequent board orders, unless the modifications are jointly agreed to by the parties. d. The board shall review and approve, conditionally approve, or deny an application

submitted pursuant to this section within 180 days after the date a complete application

is submitted to the board. e. Notwithstanding any provision of P.L.2010, c. 57 ( C.48:3-87.1 et al.) to the contrary, the board may conduct one or more competitive solicitations

for open access offshore wind transmission facilities designed to facilitate the collection

of offshore wind energy from qualified offshore wind projects or its delivery to the

electric transmission system in this State. f. Notwithstanding the provisions of any other State law, rule, or regulation to the

contrary, a qualified offshore wind project or an open access offshore wind transmission

facility approved by the board pursuant to this section shall, after consultation

with a municipality, county, or other political subdivision of the State, or any agency,

authority, or other entity thereof: (1) have authority to place, replace, construct, reconstruct, install, reinstall,

add to, extend, use, operate, inspect, and maintain wires, conduits, lines, and associated

infrastructure, whether within, under, or upon the public streets, thoroughfares,

or rights-of-way of any municipality, county, or other political subdivision of the

State, or any agency, authority, or other entity thereof, provided that the wires,

conduits, lines, and associated infrastructure are located underground, except to

the extent necessary as determined by the board. Notwithstanding the provisions of any other State law, rule, or regulation to the

contrary, no municipality, county, or other political subdivision of the State, or

any agency, authority, or other entity thereof, shall prohibit, or charge a fee for,

the use of public streets, thoroughfares, or rights-of way for the purposes set forth

in this subsection, other than a fee for a road opening permit, and the issuance of

a road opening permit shall not be withheld, except for bona fide public safety reasons; (2) be authorized to obtain easements, rights-of-way, or other real property interests

on, over, or through any real property other than public streets, thoroughfares, or

rights-of-way, owned by a municipality, county, or other political subdivision of

the State, or any agency, authority, or other entity thereof, that are reasonably

necessary for the construction or operation of a qualified offshore wind project or

an open access offshore wind transmission facility. If a qualified offshore wind project or an open access offshore wind transmission

facility is unable to obtain an easement, right-of-way, or other real property interest

from a municipality, county, or other political subdivision of the State, or any agency,

authority, or other entity thereof, after 90 days of a written request therefor to

the applicable entity, the qualified offshore wind project or open access offshore

wind transmission facility, as the case may be, may file a petition with the board

seeking authority to obtain the easement, right-of-way, or other real property interest. In considering a petition submitted pursuant to this paragraph, the board shall:

conduct, or cause to be conducted, a public hearing in order to provide an opportunity

for public input on the petition. Notice of the public hearing shall be given in a manner and form as determined by

the board in order to provide an opportunity for public input to be received on the

petition. At a minimum, notice of the public hearing shall be provided to the news media,

the owner of the real property subject to the petition, and the governing body and

municipal clerk of the municipality and the clerk of the county in which the lands

proposed to be conveyed are located. The notice of the public hearing shall provide the date, time, and location of the

public hearing, identification of the project and property that is the subject of

the petition, and any other information deemed appropriate by the board. Following the public hearing and receipt of public comment on the petition, the board

shall determine whether the requested easement, right-of-way, or other real property

interest are reasonably necessary for the construction or operation of the qualified

offshore wind project or open access offshore wind transmission facility. If the board determines that the requested easement, right-of-way, or other real property

interest are reasonably necessary for the construction or operation of the qualified

offshore wind project or open access offshore wind transmission facility, the board

shall issue an order approving the acquisition of the requested easement, right-of-way,

or other real property interest, and notwithstanding the provisions of any other State

law, rule, or regulation to the contrary, such order shall effectuate the qualified

offshore wind project's or the open access offshore wind transmission facility's property

interest and shall be recorded by the appropriate county recording officer at the

request of the qualified offshore wind project or open access offshore wind transmission

facility. Upon recording of an order pursuant to this paragraph that concerns land preserved

for recreation and conservation purposes, as defined in section 3 of P.L.1999, c. 152 ( C.13:8C-3 ), the entity constructing the qualified offshore wind project or the open access

offshore wind transmission facility, as the case may be, shall be: considered the

legal or record owner of the property interest; and subject to the rules and regulations

adopted by the Department of Environmental Protection concerning the conveyance, diversion,

or disposal of lands preserved for recreation and conservation purposes. The entity constructing the qualified offshore wind project or the open access offshore

wind transmission facility shall be responsible for the restoration and maintenance

of the area of land subject to an order pursuant to this paragraph. Payment of fair compensation for the easement, right-of-way, or other real property

interest shall be made to the appropriate entity pursuant to the procedures set forth

in the “Eminent Domain Act of 1971,” P.L.1971, c. 361 ( C.20:3-1 et seq. ). The acquisition of an easement, right-of-way, or other real property interest pursuant

to this paragraph shall not be subject to any public bidding requirements. If an order issued by the board pursuant to this paragraph concerns an easement, right-of-way,

or other real property interest located on, over, or through land preserved for recreation

and conservation purposes, as defined in section 3 of P.L.1999, c. 152 ( C.13:8C-3 ), the entity constructing the qualified offshore wind project or open access offshore

wind transmission facility shall: pay fair market value for the easement, right-of-way,

or other real property interest to the owner of the preserved land; and provide funds

to the Department of Environmental Protection's Office of Green Acres, established

pursuant to section 24 of P.L.1999, c. 152 ( C.13:8C-24 ), a local government unit, or a qualifying tax exempt nonprofit organization, as

defined in section 3 of P.L.1999, c. 152 ( C.13:8C-3 ), for the acquisition of three times the area of preserved land within the easement,

right-of-way, or other real property interest subject to the board's order in additional

land for recreation and conservation purposes within the same county within three

years after the board's order pursuant to this paragraph. Any compensation for preserved land received pursuant to this paragraph shall be

used for the acquisition of land for recreation and conservation purposes, as defined

in section 3 of P.L.1999, c. 152 ( C.13:8C-3 ), and may, in the discretion of the Commissioner of Environmental Protection and

the State House Commission, be found to satisfy the compensation requirements of the

rules and regulations adopted by the Department of Environmental Protection concerning

the conveyance, diversion, or disposal of lands preserved for recreation and conservation

purposes; and (3) be authorized to file a petition with the board seeking a determination that all

municipal or county approvals, consents, or affirmative filings with other public

entities required to construct or operate a qualified offshore wind project or an

open access offshore wind transmission facility are preempted and superseded, upon

a finding by the board that such municipal or county approvals, consents, or affirmative

filings are reasonably necessary for the construction or operation of the qualified

offshore wind project or the open access offshore wind transmission facility. If the board makes a determination pursuant to this paragraph preempting a municipal

or county action that is a condition of the issuance of a permit or other approval

of the Department of Environmental Protection or any other department or agency of

the State, then notwithstanding the provisions of any other State law, rule, or regulation

to the contrary, the department or agency, as applicable, may act without prior municipal

or county approval, consent, or affirmative filing. To the extent that a municipal or county approval, consent, or affirmative filing

involves the acquisition of an easement, right-of-way, or other real property interest,

the procedures set forth in paragraph (2) of this subsection shall apply. g. A qualified offshore wind project or an open access offshore wind transmission

facility approved by the board pursuant to this section shall be deemed to be an electric

power generator for the purposes of section 10 of the “Municipal Land Use Law,” P.L.1975,

c. 291 ( C.40:55D-19 ), and the qualified offshore wind project or open access offshore wind transmission

facility may proceed in accordance with the decision of the board, notwithstanding

any provision of the “Municipal Land Use Law,” P.L.1975, c. 291 ( C.40:55D-19 ), or any ordinance, rule, or regulation adopted pursuant thereto, to the contrary;

provided that the board determines: (1) that, for the purposes of the qualified offshore

wind project or the open access offshore wind transmission facility, the electric

power generator described in a petition filed with the board is necessary for the

service, convenience, or welfare of the public, or that the qualified offshore wind

project or the open access offshore wind transmission facility will provide a net

benefit to the environment of the State; and (2) that no alternative site is reasonably

available to achieve an equivalent public benefit.