Murphy announces actions on solar energy development

Expanded tax incentives, new tools aim to expand projects in New Jersey

Matthew Fazelpoor//September 5, 2024//

Gov. Phil Murphy held a press conference April 26, 2024, at the Eagles Solar I and II Project in Berkeley Township to announce five major investments he says will ultimately enable New Jersey to meet its goal of reducing emissions by 80% by 2050.

Gov. Phil Murphy held a press conference April 26, 2024, at the Eagles Solar I and II Project in Berkeley Township to announce five major investments he says will ultimately enable New Jersey to meet its goal of reducing emissions by 80% by 2050. - PROVIDED BY RICH HUNDLEY III/NJ GOVERNOR'S OFFICE

Gov. Phil Murphy held a press conference April 26, 2024, at the Eagles Solar I and II Project in Berkeley Township to announce five major investments he says will ultimately enable New Jersey to meet its goal of reducing emissions by 80% by 2050.

Gov. Phil Murphy held a press conference April 26, 2024, at the Eagles Solar I and II Project in Berkeley Township to announce five major investments he says will ultimately enable New Jersey to meet its goal of reducing emissions by 80% by 2050. - PROVIDED BY RICH HUNDLEY III/NJ GOVERNOR'S OFFICE

Murphy announces actions on solar energy development

Expanded tax incentives, new tools aim to expand projects in New Jersey

Matthew Fazelpoor//September 5, 2024//

Listen to this article

Gov. Phil Murphy took several steps Sept. 4 to support the development of energy projects here in the Garden State.

First, Murphy announced the launch of Landfill to Solar. The new website will serve as a one-stop shop to guide municipalities and solar developers as they plan, fund and complete solar-plus-landfill capping projects.

The Governor’s Office of Climate Action and the Green Economy created the website in collaboration with the New Jersey Board of Public Utilities (BPU), New Jersey Economic Development Authority (NJEDA) and Department of Environmental Protection (DEP). It provides project stakeholders with a step-by-step guide to initiate and complete solar projects.

“My administration has pursued innovative strategies to reduce our carbon footprint by shifting away from fossil fuels and uplifting renewable resources. These policies represent an investment into our residents and our communities by prioritizing public health, spurring economic development, and creating good-paying jobs,” said Murphy. “With the launch of the website, we are putting all our resources in one place so municipalities and developers can leverage otherwise unusable land into renewable energy sites.”

Key Landfill to Solar features include:

  • Highlights NJDEP’s Solar Siting Analysis Mapping Tool to help identify eligible landfill sites across the state
  • Provides streamlined instructions on how to apply for incentive programs available, such as NJEDA’s Redevelopment Incentive Program or NJBPU’s Community Solar Energy (CSEP) and Competitive Solar Incentive (CSI) programs

 

Christine Guhl-Sadovy, president of the New Jersey Board of Public Utilities
Guhl-Sadovy

“From our Competitive Solar Incentive program to our nation-leading Community Solar Energy Program, New Jersey’s thriving solar industry continues to serve as a national model,” said New Jersey Board of Public Utilities President Christine Guhl-Sadovy. “We look forward to continuing to provide municipalities and developers with the tools they need to bring projects to fruition while making affordable clean energy more accessible for all New Jersey residents.”

New Jersey Department of Environmental Protection Commissioner Shawn LaTourette
LaTourette

NJDEP Commissioner Shawn LaTourette said that information is critical to the state’s ongoing transition to a clean-energy economy.

“The DEP’s Solar Siting Analysis 3.0 provides detailed land use information to guide solar energy developers to the most appropriate places for solar arrays, such as landfills and rooftops,” said LaTourette. “This tool provides a great resource in the continued development of more renewable energy in New Jersey that will help the state meet its clean energy goals and do its part to mitigate the impacts of climate change.”

Expanding incentives

Murphy also signed to enhance the Historic Property Reinvestment Act as well as the aforementioned Brownfields Redevelopment Incentive Program Act. Assembly Bill 4619/Senate Bill 3479 support and further incentivize brownfield redevelopment into new solar energy facilities across the state.

“We are also expanding under the Economic Development Authority’s Historic Property Reinvestment Act and Brownfields Redevelopment Program Act so that we can preserve New Jersey’s communities while promoting environmental cleanup and green energy production,” said Murphy. “Today’s bill signing will ensure future generations can celebrate the rich history of our state while living in a greener, healthier environment.”

Key aspects of the legislation include:

  • Modifies provisions in the Brownfields Redevelopment Incentive Program Act to cover remediation activities, such as work needed to cap landfill sites. Projects located at a former landfills are eligible to receive tax credits in the amount of 100% of the cost of remediating and capping the landfill — up to a maximum of $8 million to $12 million, depending on the project location
  • Reforms the Historic Property Reinvestment Act by increasing the maximum tax credit award size available and expanding eligibility for certain façade rehabilitation projects
  • Credits awarded for the rehabilitation of properties located in qualified incentive tracts or government-restricted municipalities increased to 60% of the cost of rehabilitation, up to a maximum of $12 million.
  • Credits awarded for the rehabilitation of other qualified properties – other than a transformative project – increased to 50% of the rehabilitation cost, up to a maximum of $8 million

 

Revitalizing communities

“Preserving historic sites and transforming dormant properties serves as a key component of Gov. Murphy’s economic development strategy, which is helping attract investments that spur revitalization in New Jersey communities,” said NJEDA Chief Executive Officer Tim Sullivan. “The legislation signed into law today will allow the Historic Property Reinvestment and Brownfields Redevelopment Incentive Programs to continue supporting transformative projects that will create good-paying jobs, restore underutilized community assets, and unlock untapped economic potential across the state.”

CEP Renewables, CS Energy and NJR Clean Energy Ventures converted a former contaminated brownfield into a 17 megawatt (MW) solar project in Holland.
CEP Renewables, CS Energy and NJR Clean Energy Ventures converted a former contaminated brownfield into a 17 megawatt (MW) solar project in Holland. – PROVIDED BY CS ENERGY

“The high cost of environmental remediation and historic preservation can greatly discourage development in underserved communities, where these investments can have the biggest impact,” said Senate Majority Leader M. Teresa Ruiz, D-29th District, a prime bill sponsor. “Increasing tax incentives and fixing administrative hurdles for builders to take on projects that require historic preservation and environmental cleanup will create jobs, stimulate local economies, and revitalize our communities while preserving the unique character of our neighborhoods.”

Show of support

The legislation was supported by a number of business groups around the state.

Michael Egenton, executive vice president, Government Relations, New Jersey Chamber of Commerce
Egenton

“The New Jersey State Chamber of Commerce applauds that A4619/S3479 will turn underutilized and dormant sites into vibrant, productive properties that will have great economic development potential,” said Michael Egenton, executive vice president, Government Relations for the New Jersey Chamber of Commerce. “This legislation will also improve compliance and consistency with federal programs to encourage further investment in sites throughout the state”

NAIOP New Jersey CEO Dan Kennedy
Kennedy

“This competitive tax credit program encourages the clean-up of contaminated sites and reinvest in historic properties, completely in line with our members’ (commercial developers and owners) interest in redevelopment when and where feasible,” said NAIOP New Jersey CEO Dan Kennedy. “The program improvements included in A4619/S3479 make the existing program more attractive for commercial real estate developers looking to invest in areas of NJ that are ripe for redevelopment.”

Eric Miller, executive director of the Office of Climate Action and the Green Economy, noted New Jersey’s long-time national leadership when it comes to creating innovative solar programs.

“And this program is another example of our leadership,” said Miller. “With this new website and greater incentives, we can streamline the conversion of our landfill sites to clean solar facilities that lower the state’s greenhouse gas emissions while at the same time lowering the energy bills of the communities where they are located.”