United Stales
Environmental Protection
Agency
State Incentives for Achieving Clean and Renewable Energy
Development on Contaminated Lands
New
Jersey
The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable energy and
contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects. This
document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
^ Incentives for Clean and Renewable Energy
Funding (grants, loans, bonds, etc.)
Renewable Energy Project Grants and Financing
www.state.nj.us/njbusiness/financing/clean/financing_assistance.shtml
Provides grants and financing up to 20% of eligible project development costs
for large-scale renewable energy facilities larger than 1 MW. This incentive is
under review and proposals are not being accepted at this time.
Renewable Energy Development Initiative (REDI)
www.njcleanenergy.com/files/file/Honeywell_2008_NJCEP_Program_Plan
_120707_FINAL.pdf
Provides up to $50,000 for project design, feasibility studies, and permitting
processes. Eligible technologies include PV, wind energy, fuel cells, wave,
tidal, renewably generated hydrogen, and sustainably harvested biomass.
Tax Incentives (abatements, deductions, credits, etc.)
Solar and Wind Energy Systems Exemption
www.dsireusa.org/documents/lncentives/NJ01F1.htm
Provides a full exemption to all taxpayers from the state's 7% sales tax for
all solar and wind energy equipment.
Property Tax Exemption for Renewable Energy Systems
www.njleg.state.nj.us/2008/Bills/PL08/90_.PDF
Exempts renewable energy systems from local property taxes. Applicable
sectors include: commercial, industrial, and residential.
Renewable Energy Incentive Program
www.njcleanenergy.com/renewable-energy/programs/renewable-energy-
incentive-program
Provides incentives and support services needed for participants to build
onsite renewable energy projects using solar (up to $1.75 / watt), wind (up
to $3.20 /kWh) and biopower (up to $5.00 / watt) technologies. Upfront
incentives are provided for solar electric installation (up to 50kW DC),
Sustainable Biomass, Wind - Terrestrial, and Fuel Cell. Applicant must be
a ratepayer of a NJ Board of Public Utilities-regulated electric and or
natural gas utility. Incentives are calculated on a per-site basis and are
dictated by the type of applicant, type of equipment, and the size of the
system.
Technical Assistance and Other Incentives
Solar Renewable Energy Certificates (SRECs)
www.njcep.com/srec
Provides the opportunity for electric suppliers to buy SRECs to meet their
solar renewable portfolio standard (RPS). A generator can be
compensated up to $0.71 per kWh. In July 2008, the BPU issued an order
requiring electric distribution utilities to submit plans for purchasing SRECs
from solar facilities through long-term contracts.
CleanPower Choice Program
www.njcleanenergy.com/renewable-energy/programs/cleanpower-choice-
program/new-jersey-cleanpower-choice-program
Offers consumers the option to support renewable energy sources by
providing a choice in the type of power they can buy.
Net Metering
www.newrules.org/electricity/netmeternj.html
Provides credits to customers' next bills at retail rate and is purchased by
utility at an avoided-cost rate at the end of a 12-month billing cycle. New
Jersey's Board of Public Utilities is restructuring its solar energy programs
and incentives; associated net metering rules have not yet been finalized.
Quick Facts
Public Benefit Fund (PBF) Yes 0 No D
Renewable Portfolio Standard Yes 0 No D
22.5% by 2021:2.12% from solar; 17.88% from other Class I
renewables; 2.5% from Class II or additional Class I renewables
Net Metering Yes 0 No D
Interconnection Standards Yes 0 No D
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 0.5% Nuclear 53.7%
Natural Gas-Fired 25.8% Hydroelectric 0.1%
Coal-Fired 17.9% Other Renewables 1.5%
Points of Contact
Clean Energy Financing and Assistance Program
Renewable Energy Project Grants and Financing, REDI
www.njcleanenergy.com, info@njcep.com, (609) 777-3300
New Jersey Board of Public Utilities (BPU)
www.bpu.state.nj.us, (609) 777-3300
Solar and Wind Energy Systems Exemption, Net Metering
Benjamin Scott Hunter, benjamin.hunter@bpu.state.nj.us
Property Tax Exemption for Renewable Energy Systems
Department of the Treasury, www.state.nj.us/treas/treasmail.shtml
New Jersey Board of Public Utlities
Renewable Energy Incentive Program
Tammy Gray, tammv.arav@csgrp.com. (732) 218-3412
SRECs, njsrec@cleanpowermarkets.com, (201) 612-3221
CleanPower Choice Program
New Jersey CleanPower Choice Program, (866) NJSMART
Information current as of March 2009; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information.
New Jersey Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
Hazardous Discharge Site Remediation Fund (HDSRF)
www.state.nj. us/dep/srp/finance/hdsrf/factsheet.htm
Provides low-interest loans and grants of up to $1 million to private entities
for site assessment and remediation activities, including up to $250,000 to
implement an innovative cleanup.
Brownfields Redevelopment Loan Program
www.locationnj.com/lncentives_Smart_Growth.asp
Provides loans of up to $750,000 from the Economic Development
Authority (EDA) to meet remediation costs. EDA also works with the
Department of Environmental Protection to provide loans of up to $1 million
for up to 10 years for site investigation and cleanup.
Urban Site Acquisition Program
www.njra.us/njra/cwp/view.asp?a=3&Q=453435&njraNav=\27894\
Provides project-specific loans for the acquisition, site preparation, and
redevelopment of urban redevelopment properties from a $20 million
revolving loan fund.
Pre-Development Loan Program
www.njra.us/njra/cwp/view.asp?a=3&Q=453470&njraNav=\27894\
Provides up to $250,000 per project for pre-development costs, including
feasibility studies, architectural costs, environmental and engineering
studies, and other related costs, from a $2.5 million revolving loan fund.
Redevelopment Authority's Environmental Equity Program
www.njra.us/njra/cwp/view.asp?a=3&Q=455913&njraNav=\27894\
Provides project-specific up-front capital to developers to assist with site
acquisition, remediation, and demolition costs for brownfields projects in
NJRA eligible municipalities, from a $9 million revolving loan fund.
Smart Growth Redevelopment Funding
www.state.nj. us/njbusiness/financing/enviromental/smart_growth.shtml
Provides short-term, low-interest financing up to $1 million to developers
for projects in NJ State Planning Areas 1 and 2. Eligible activities include
acquisition, demolition, and other pre-development costs.
Redevelopment Area Bond Financing
www.njeda.com/web/Aspx_pg/Templates/Pic_Text.aspx?Doc_ld=300&me
nuid=985&topid=718&levelid=6&midid= 735
Provides long-term, low-interest bonds to municipalities for infrastructure
improvements and other costs, including demolition and remediation.
Bonds are secured by a Payment in Lieu of Taxes Agreement.
Community Development Fund
www.njeda.com/web/Aspx_pg/Templates/Pic_Text.aspx?Doc_ld=320&me
nuid=986&topid= 718&levelid=6&midid= 735
Provides up to $50,000 to finance feasibility studies and other pre-
development costs.
Tax Incentives (abatements, deductions, credits, etc.)
Environmental Opportunity Zones
www.state.nj. us/treasury/taxation/pdf/other_forms/lpt/eoz1.pdf
Allows municipalities to offset cleanup costs through incrementally
increasing real property tax abatements, for up to 15 years as needed.
Brownfield Site Reimbursement Fund
www.state.nj.us/treasury/taxation/pdf/pubs/misc/bcs100.pdf
Provides reimbursement of up to 75% of authorized remediation costs
through a tax credit based on new taxes generated from the site.
Technical Assistance and Other Incentives
New Jersey Brownfields Redevelopment Resources Kit
www.state.nj. us/dca/osg/docs/brownfieldsresourcekit.pdf
Provides a list of grants, loans, tax incentives, and programs from multiple
agencies for brownfields redevelopment and site activities.
Limitations on Liability
New Jersey Department of Environmental Protection (NJDEP)
www.state.nj.us/dep/srp/brownfields/faq/ttliability
www.state.nj.us/dep/commissioner/policy/pdir2003-07.htm
Offers No Further Action (NFA) letters with Covenants Not to Sue (CNTS).
The state Spill Act also contains an innocent purchaser defense, which
includes third party liability protection. Prospective purchaser agreements
are also available. Under state Natural Resources Damages policy, claims
for damages or compensatory restoration shall not be asserted against
brownfields developers that meet the innocent purchaser defense
requirements under state law.
Quick Facts
Limitations on Liability Yes 0 No D
Number of State-Tracked Contaminated Properties: 23,000
Includes VCP sites
Number of EPA CERCLIS Sites: 579
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 63
Properties being funded or addressed under the EPA Brownfields Program
There may be some overlap among the categories listed and sites listed may not
represent all potentially contaminated sites in New Jersey.
Points of Contact
New Jersey Department of Environmental Protection (NJDEP)
Brownfields
www.state.nj.us/dep/srp/brownfields/
HDSRF, Brownfields Redevelopment Loan Program, Environmental
Opportunity Zones, NJDEP Limitations on Liability
Ken Kloo, Ken.Kloo@dep.state.nj.us, (609) 292-1251
New Jersey Redevelopment Authority, www.njra.us, (609) 292-3739
Urban Site Acquisition Program, Pre-Development Loan Program,
Redevelopment Authority's Environmental Equity Program
Antonio Henson, ahenson@njra.state.nj.us
New Jersey Economic Development Authority (EDA)
Smart Growth Redevelopment Funding, Redevelopment Area Bond
Financing, Community Development Fund
www.njeda.com, njeda@njeda.com, (609) 292-1800
New Jersey Division of Taxation
www. state, nj. us/treasury/taxation
Brownfield Site Reimbursement Fund
Curt Seifert, curt.seifert@treas.state.nj.us, (609) 984-5111
Information current as of March 2009; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
New Jersey Incentives for the Development of Contaminated Land - Page 2
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