SENATE, No. 881

STATE OF NEW JERSEY

217th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION

 


 

Sponsored by:

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

Senator  CHRISTOPHER "KIP" BATEMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

 

 

 

 

SYNOPSIS

     Establishes microgrid pilot program.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning microgrids and supplementing Title 48 of the Revised Statutes.

 

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

 

     1.    a.  As used in this section:

     “Board” and “on-site generation facility” shall have the same meaning as prescribed for those terms in section 3 of P.L.1999, c.23 (C.48:3-51).

     “Microgrid” means a small-scale electric grid directly connected to the electric grid with definable and contiguous geographic boundaries which can operate independent of, or in conjunction with, the electric grid, utilizing an on-site generation facility.

     b.    (1)  The board shall establish a microgrid pilot program for municipalities.  The purpose of the microgrid pilot program shall be to equip public and private facilities deemed critical by the State Office of Emergency Management in the Division of State Police during a State or federally-declared disaster or state of emergency with microgrids in order to allow these facilities to continue to operate during a disaster or emergency.

     (2)   The board shall establish an application and approval process for municipalities to participate in the microgrid pilot program.  A municipality may apply to construct, own, and operate a microgrid within its borders.  The board shall approve no more than three microgrid pilot program applications. 

     c.     The board shall use any available funds, including unused funds from the societal benefits charge imposed pursuant to section 12 of P.L.1999, c.23 (C.48:3-60), to establish a grant program to fund the microgrid pilot program.  Electric power shall be delivered within an approved microgrid at a rate to be determined by the board.

     d.    Within two years of the effective date of P.L.   , c.   (C.       ) (pending before the Legislature as this bill), the board shall issue a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), containing an evaluation of the microgrid pilot program.  The report shall also provide the board’s opinion as to whether the microgrid pilot program should be continued and, if so, recommendations for further improvement and implementation.  The microgrid pilot program shall end after the third calendar year following the effective date of P.L.  , c.  (C.      ) (pending before the Legislature as this bill).

 

     2.    This act shall take effect on the 180th day following the date of enactment.

STATEMENT

 

     This bill provides that the Board of Public Utilities (board) is to establish a microgrid pilot program for municipalities.  The purpose of the microgrid pilot program is to equip public and private facilities deemed critical by the State Office of Emergency Management in the Division of State Police during a State or federally-declared disaster or state of emergency with microgrids in order to allow these facilities to continue to operate during a disaster or emergency.

      The board is to establish an application and approval process for the microgrid pilot program.  The bill allows any municipality to apply to establish a microgrid within its borders.  The board is to approve no more than three microgrid pilot program applications.  The board is to use any available funds, including unused funds from the societal benefits charge, to establish a grant program to fund the microgrid pilot program.  Electric power is to be delivered within an approved microgrid at a rate to be determined by the board.

      Under the bill, “microgrid” means a small-scale electric grid directly connected to the electric grid with definable and contiguous geographic boundaries which can operate independent of, or in conjunction with, the electric grid, utilizing an on-site generation facility.

      The bill requires the board, within two years of the bill’s effective date, to issue a report to the Governor and the Legislature containing an evaluation of the microgrid pilot program.  The microgrid pilot program is to end after the third calendar year following the bill’s effective date.