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 ' ------- 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. 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