S2767

An Act establishing a loan program for energy conservation, supplementing Title 48 of the Revised Statutes, and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds that conservation of petroleum and petroleum-derived energy has long been of national importance because of the need to conserve our natural resources, but this conservation has become an issue of national security because profits from imported petroleum may be paid into the hands of terrorists who literally attack our nation; that conservation of petroleum and petroleum-derived energy can easily begin at home with the residential use of oil and gas heat and the maintenance of homes to use this heat efficiently; and that, given the means by which to acquire technology and materials to improve heating efficiency and weatherization of homes, property owners in the State can easily take the necessary steps to improve the energy efficiency of apartments, condominiums, and houses and thereby improve the security of America.

The Legislature therefore determines it is in the best interest of the State to establish a low interest or no-interest loan program to provide property owners with the financial means to weatherize and make other energy efficiency improvements to residential properties in order to conserve on the consumption of petroleum; and that a fund should be established to ensure the maximum amount of conservation through the maximum involvement of property owners throughout the State.

2. a. The Department of Community Affairs, in consultation with the Board of Public Utilities, shall establish the “Conserve for America Loan Program.” The program shall provide financial incentives in the form of low or no-interest loans for residential property owners to conserve the use of petroleum and petroleum-derived energy through eligible energy improvements that effectively reduce energy consumption in the home.

b. The Department of Community Affairs, in consultation with the Board of Public Utilities, shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c. 410 (C.52:14B-1 et seq.), rules and regulations implementing the program and establishing eligible energy improvements under the program, that shall include, but need not be limited to, installation of solar power, efficient hot water heaters, efficient oil furnaces, and weatherization.

3. a. There is established in the Department of Community Affairs a special, nonlapsing fund to be known as the “Conserve for America Revolving Loan Fund,” referred to hereinafter as “the fund.” The fund shall be administered by the Department of Community Affairs and shall be credited with moneys transferred into the fund pursuant to section 4 of this act, moneys that may be appropriated by the Legislature, moneys repaid to the fund by persons awarded loans from the fund, and any return on investment of moneys deposited in the fund.

b. Moneys in the fund shall be used by the Department of Community Affairs solely for awarding low or no-interest loans to property owners for eligible energy improvements under the “Conserve for America Loan Program,” established under section 2 of this act. Any owner of residential property in the State is eligible for a loan from the fund for eligible energy improvements to residential properties in the State.

c. The department shall establish terms for providing loans from the fund, including below market interest rates, deferred payment schedules, and other provisions that will enable these moneys to be used effectively for the conservation of petroleum and petroleum-derived energy.

d. The department may adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), any rules and regulations determined to be necessary for the implementation of this section.

4. a. Notwithstanding the provisions of section 12 of P.L.1999, c.23 (C.48:3-60) to the contrary, a sum in the amount of $5,000,000 of the societal benefits charge collected as a non-bypassable charge pursuant to that section shall be allocated by the Board of Public Utilities for the Conserve for America Revolving Loan Fund established pursuant to section 3 of this act, and shall be transferred to that fund administered by the Department of Community Affairs for the purposes of awarding eligible loans under the Conserve for America Loan Program established pursuant to section 2 of this act.

b. There is appropriated from the General Fund to the Department of Community Affairs a sum in the amount of $200,000 for administrative expenses associated with the establishment of the program.

5. This act shall take effect immediately.

STATEMENT

This bill establishes a Department of Community Affairs (DCA) low interest or no-interest loan program, the “Conserve for America Loan Program,” to provide property owners with the financial means to weatherize and make other energy efficiency improvements to residential properties in order to conserve on the consumption of petroleum and petroleum-derived energy. The bill also establishes a nonlapsing revolving fund, the “Conserve for America Revolving Loan Fund,” for the purposes of these loans, and makes a $5 million allocation to the fund from the Board of Public Utilities (BPU) societal benefits charge collected under the “Electric Discount and Energy Competition Act,” P.L.1999, c.23 (C.48:3-49 et al.). Finally, the bill directs the DCA to administer the fund and to adopt rules and regulations to implement the program and administer the fund, and appropriates $200,000 from the General Fund to the DCA for administrative expenses.