LEGISLATIVE FISCAL ESTIMATE

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 2006

STATE OF NEW JERSEY

214th LEGISLATURE

 

DATED: MAY 11, 2011

 

 

SUMMARY

 

Synopsis:

Prohibits municipal zoning ordinances from regulating solar panels under certain circumstances; limits fees for certain renewable energy installations.

Type of Impact:

Indeterminate municipal revenue loss.

Agencies Affected:

Municipalities

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

Local Revenue

Indeterminate Municipal Revenue Loss – See comments below

 

 

 

 

 

·        The Office of Legislative Services has determined that the enactment of the Senate Committee Substitute for Senate Bill No. 2006 would result in a decrease in municipal revenues for those municipalities that have adopted ordinances that permit the assessment of fees for the installation of photovoltaic solar energy systems or small wind energy systems.

·        If the fees charged by these municipalities generate revenues that are greater than the municipality’s processing costs for an application pertaining to the approval, installation or operation of a system, then they must reduced to a level that is sufficient to cover processing costs.

 

 

BILL DESCRIPTION

 

      The Senate Committee Substitute for Senate Bill No. 2006 of 2011 would supplement the “Municipal Land Use Law” to prohibit a municipality from adopting an ordinance which limits the right of a property owner to install solar panels on residential property under certain circumstances.  A municipal ordinance would not be authorized to regulate the installation of photovoltaic solar energy systems when: (1) in the case of a roof mounted system, the panels, and all accessory equipment, extend 12 inches or less beyond the edge or the roofline or above the highest point of the roof surface or structure;  or, (2) in the case of a surface level or ground mounted system, the system consists or 10 or less photovoltaic panels and is situated more than 50 feet from the nearest property boundary line.  The committee substitute would also provide that a municipal ordinance regulating the installation on residential property of photovoltaic solar energy systems or small wind systems shall not require payment of any fee that exceeds that municipality’s processing costs for an application pertaining to the approval, installation, or operation of a system.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The Office of Legislative Services has determined that the enactment of the Senate Committee Substitute for Senate Bill No. 2006 would result in a decrease in municipal revenues for those municipalities that have adopted ordinances that permit the assessment of fees for the installation of photovoltaic solar energy systems or small wind energy systems.  If the fees charged by these municipalities generate revenues that are greater than the municipality’s processing costs for an application pertaining to the approval, installation or operation of a system, then they must reduced to a level that is sufficient to cover processing costs only.  This legislation reconfirms the provisions of N.J.S.40:55D-8b which provides that fees associated with the review of a zoning application should be established only for the purpose of recouping the costs of the particular municipal operation.

 

 

Section:

Local Government

Analyst:

Scott Brodsky

Senior Fiscal Analyst

Approved:

David J. Rosen

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).