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NJBPU Announces Award of Additional Offshore Wind Projects

The New Jersey Board of Public Utilities (NJBPU)  awarded a combined 3,742 MW of offshore wind capacity to Invenergy and energyRE’s Leading Light Wind Project and Attentive Energy LLC’s Attentive Energy Two Project, advancing the State’s progress toward a 100% clean energy economy by 2035. “Today’s Third Solicitation awards are undeniable proof that the future of offshore wind in New Jersey is as strong as ever,” said Governor Phil Murphy. “This portfolio of projects collectively represents what offshore wind offers – clean energy that will yield environmental benefits for generations to come, economic benefits to boost New Jersey’s economy for decades, and thousands of good-paying, family-sustaining jobs,” said NJBPU President Christine Guhl-Sadovy.

The NJ DEP disclosed that both projects have committed to supporting the establishment of a tower manufacturer at the New Jersey Wind Port in addition to sourcing monopiles from, and investing in, the expansion of the EEW monopile facility at the Port of Paulsboro. Together, the projects are estimated to create more than 27,000 direct, indirect, and induced full-time equivalent job years.

The NJBPU announced that the total bill impact of the two projects for residential customers will be $6.84 per month, beginning only once these offshore wind facilities are operational and delivering clean electricity to the New Jersey grid.

New Jersey is developing the nation’s first purpose-built New Jersey Wind Port in Salem County, establishing a Wind Institute administered by New Jersey’s Economic Development Authority to coordinate workforce development and research and development in offshore wind, and making a $250 million investment in the Port of Paulsboro to establish a monopile manufacturing facility.

Governor Murphy directed the NJBPU to accelerate the State’s fourth offshore wind solicitation, with project awards anticipated in early 2025.

 

For more information about our legal representation related to New Jersey’s offshore wind program, please feel free to contact Alan P. Fox, Esq.

Ørsted Announces Halt to Development of Two Offshore Wind Projects for New Jersey

Ørsted Americas, a Danish wind developer and industry leader, recently announced that it is halting development of two major offshore wind projects, proposed to be developed off of the shores of New Jersey (known as Ocean Wind 1 and Ocean Wind 2).  A company statement blamed unfavorable changes in the economic conditions, including rising interest rates and supply chain issues. Industry commentators report other unfavorable conditions, including a strain on supplies like monopiles and other components, as well as long wait times for the ships needed to construct the wind turbines in the ocean.

Ørsted Americas CEO David Hardy issued a statement stating: “Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments.”

Ørsted’s decision will have an unwelcomed impact on New Jersey’s development of alternative energy to reduce carbon emission under the state’s Energy Master Plan. New Jersey Gov. Phil Murphy, a propone of offshore wind, was upset with Ørsted’s decision to abandon its commitments to New Jersey. Gov. Murphy said in a statement: “I have directed my Administration to review all legal rights and remedies and to take all necessary steps to ensure that Ørsted fully and immediately honors its obligations.”

Nationally, notwithstanding the Biden Administration’s support for offshore wind, the number of active turbines in U.S. waters remains in single digits, and the energy output is significantly behind solar and onshore wind. CNN reports there will be about 140 gigawatts of solar (including both utility scale and rooftop) installed in the US by the end of this year, while offshore wind will only generate 42 megawatts. Two commercial-scale offshore wind projects – Vineyard Wind off the coast of Massachusetts and South Fork Wind off the coast of New York – are currently under construction.

Earlier this week, the Biden administration announced it approved plans for Dominion Energy to build the largest offshore wind farm to-date in the United States off the coast of Virginia. The Dominion project, known as Coastal Virginia Offshore Wind, is planned to be a 2.6-gigawatt wind farm that could eventually generate enough electricity to power over 900,000 homes. Ocean Wind 1 would be the next largest project the administration had approved – expected to generate 1.1 gigawatts, enough to power over 380,000 homes.

NJ Adopts Final Regulations to Implement New Jersey’s Landmark Environmental Justice (EJ) Law

On April 17, 2023 (the first day of Earth Week), Governor Phil Murphy announced the final adoption of regulations to implement New Jersey’s landmark Environmental Justice (EJ) Law. The EJ Law and implementing rules are the first in the nation aimed at reducing pollution in historically overburdened communities and communities of color. Under the EJ Rules, when proposing to locate certain pollution-generating facilities in an overburdened community, an applicant must prepare an environmental justice impact statement and engage directly with members of their proposed host community by hosting a public hearing, collect all public comments and respond to them in writing, among other requirements.

Please contact me at afox@capehart.com if you are interested in more information or need legal assistance.

New Jersey BPU Releases Updated Version of a Proposal to Expand New Jersey Electric Vehicles Infrastructure System

Photo by CHUTTERSNAP on Unsplash

The NJBPU recently released an updated version of a proposal to expand the New Jersey Electric Vehicles Infrastructure system. This updated Proposal expands upon its June 2021 Proposal which sought to address larger light-duty fleet charging, as well as the charging of medium and heavy-duty (MHD) vehicles. The NJBPU recognizes that the State needs to create a comprehensive EV charging system with public access on travel corridors and at workplaces. The reasons and objectives underlying the NJBPU Proposal include:

    1. Transportation sector accounts for 40% of the CO2 emission in NJ today, which is the largest single section of CO2 emissions. MHD vehicles make up 33% of those emissions. Therefore, BPU has stated electrification of the transportation sector is essential to meet NJ’s clean energy goals by 2050.
    2. Vehicle electrification reduces the cost of meeting NJ’s climate change goal of reducing CO2 emissions by 80% below 2006 levels by 2050. The BPU projects that failing to electrify vehicle fleets increases the cost of decarbonization from 2035 to 2050 by average of $1.6 billion per year.
    3. One of the state’s strategies is for the State to “[i]dentify regulatory, funding and financing mechanisms to convert the MHD vehicles to electric, renewable biodiesel and hydrogen fuel sources.”

The following relevant definitions, among others, are included in the Proposal:

    • “Demand Charges” are an existing feature of many rates whereby large users of electric systems pay for their contribution to the fixed costs of operating the electric system. In most cases, the Demand Charges are set at a customer’s peak annual usage.
    • “EDC” refers to an electric distribution company that the BPU regulates.
    • “EVSE” or “Electric Vehicle Service Equipment” means the equipment designed and used for the purpose of transferring energy from the electric supply system to a plug- EV, which may be deliver either alternating current (“AC”) or direct current (“DC”) electricity. “EVSE” is synonymous with a “Charging Station Infrastructure.”
    • “Make Ready” means the pre-wiring of electrical infrastructure at a parking space or spaces, to facilitate easy and cost-effective further installations of EVSE, including a Level Two EVSE and DC Fast Chargers. “Make Ready” may include expenses related to service panels, junction boxes, conduit, wiring etc., to make a particular location able to accommodate EVSE on a plug and play basis. “Make Ready” is synonymous with “Charge Ready”.
    • “Overburdened Municipality” is a municipality that has over 50% of its population living in an Overburden Community Census Block as defined by the NJDEP pursuant to the NJ’s Environmental Justice Law, N.J.S.A. 13:1D-157; and the municipality has either (1) 35% of its population living under 200% of the poverty level according the U.S. 2019 Census data; or (ii) the municipality is categorized as “distressed” according to the NJ Department of Community Affairs. (Please contact me if you wish to obtain a list of eligible Overburdened Municipalities.)

The Proposal seeks to address the following components of an MHD Charging Program:

    1. Roles and Responsibilities of Utilities and Non-Utilities: EDCs would be responsible for the wiring and backbone infrastructure necessary to enable a robust number of MHD Make-Ready locations throughout the State, serving publicly-accessible MHD charging depots, publicly accessible and/or public-serving fleets and Private Fleet Charging Depots located in or primarily operating in Overburdened Municipalities.
    2. Electric Vehicle Service Equipment (“EVSE”) Infrastructure Companies, site owners, and industries using private capital would be primarily responsible for installing, owning and/or operating, and marketing MHD EVSE to customers.
    3. An EDC-Industry working group would be created to address concerns regarding appropriate time varying rates, demand charges, and other technical assistance to address complicated interconnection, local generation and storage, potential wholesale market participation, and other technical issues as related to the MHD EV Eco System.

The Proposal seeks to attract private capital into the EV infrastructure sector by Proposal including the following additions to the June 2021 Proposal:

    1. The Proposal adds private fleet charging depots located in or primarily operating in Overburdened Municipalities to those eligible for Make-Ready Incentives;
    2. The Proposal adds technical and planning support for private entities that establish public fast charging sites that exceed 500kW in order to plan ahead for the roll-out of National Electric Vehicle Infrastructure (“NEVI”) funds and larger charging banks.
    3. Private Fleet Charging Depots eligible for Make-Ready funding would be required to meet stringent standards to ensure that they either are located in, or primarily operate in, at least one Overburdened Municipality.

I intend to monitor several technical panels and stakeholder meetings scheduled by the NJBPU Staff shortly after publication of the June 2021 Proposal. I will update this article as more relevant information is released by the NJBPU Staff.

If you require guidance to participate in the New Jersey Electric Vehicles Infrastructure programs, please contact me at afox@capehart.com.

Environmental Issue: New Jersey Senate Environment and Energy Committee Is Requiring Sellers to Notify Buyers/Renters of Property Flooding Risk

On October 6, 2022, the New Jersey Senate Environment and Energy Committee advanced legislation sponsored by Senator Bob Smith and Senator Richard Codey that would require home sellers and landlords to notify prospective buyers and renters if a property is at risk of being affected by flooding. The bill (S-3110) would require the Department of Community Affairs (“DCA”) to create a form used by sellers and landlords to notify prospective buyers or renters of flooding risks to the property before they become obligated under any contract. The form would indicate if any of the property is located in a Federal Emergency Management Agency designated floodplain, a Special Flood Hazard Area or a Risk Flood Hazard Area and if the property has ever experienced any flood damage in the past. This bill appears to be a response to the devastating damage caused by Hurricane Ian, and since New Jersey is vulnerable to sea level rise, flooding events and saltwater intrusion.

All notification pursuant to this Bill would be required to be provided to a purchaser or tenant in writing before the purchaser or tenant becomes obligated under any contract for the purchase or lease of the property. The Bill requires the DCA to create a form containing questions and space for the landlord to answer concerning certain flooding risks to the property. For example, one question requires the seller or landlord to disclose “[h]as the property experienced any flood damage, water seepage, or pooled water due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation or river overflow”. If the answer is yes, the seller or landlord must disclose how many times such damage occurred. Seasonal renting of less than 120 days will be exempt from this required notification.

The Bill provides that if a landlord violates this notification requirement and a tenant suffers “substantial loss or damage to the tenant’s personal property” as a result of flooding, the tenant will have the right to terminate the lease and may pursue legal remedies against the landlord to recover damages due the landlord’s failure to “disclose critical information.” The term “substantial loss of or damage to personal property” is defined to mean “if the total cost of repairs to or replacement of the personal property is 50 percent or more of the personal property’s market value on the date the flooding occurred.” It is worth noting the Bill does not expressly provide a remedy against a realtor if the realtor (acting as the agent for landlord or seller) fails to comply with the proposed required notification.

Termination of the lease is defined to become effective after the tenant delivers written notice of termination no later than 30 days after the date the loss or damage occurs, and is effective when the tenant surrenders possession of the dwelling. The Landlord is required to refund the tenant all rents and other amounts paid in advance under the lease after the effective date of termination, but no later than 30 days after the effective date of termination.

The Bill was released from the committee by a vote of 5-0.

For more information about this new legislation, please contact Alan P. Fox, Esq.

New Jersey Offshore Wind News

On September 21, 2022, Governor Phil Murphy signed Executive Order No. 307, increasing New Jersey’s offshore wind goal by nearly 50 percent to 11,000 megawatts (MW) by 2040. The Executive Order increases the state’s current goal of 7,500 MW and also directs the New Jersey Board of Public Utilities to study the feasibility of increasing the target further.

In February 2021, Governor Murphy announced the creation of The New Jersey Council on the Green Economy. This Council was tasked with delivering a report defining the pathways for green job creations, development of workforce capacity and for innovation.

Governor Murphy also announced the release of the Green Jobs for a Sustainable Future report dated September 2022, created by the New Jersey Council on the Green Economy in partnership with the Governor’s Office of Climate Action and the Green Economy. The report outlines recommendations for growing an inclusive green workforce as New Jersey pursues its clean energy future.

This report finds that currently New Jersey’s green economy primarily consists of environmental infrastructure and energy efficiency jobs. Currently, total environmental infrastructure sector accounts for 35,700 jobs (ranked #14 nationally), which grew by about 5% from 2016 to 2019. The energy efficiency sector employs 32,900 jobs (rank #23 nationally), which grew by about 20% from 2016 to 2019. New Jersey ranks #15 nationally in renewable energy and fuel jobs, which accounts for about 15,000 jobs. This report forecasts adding 314,888 (net) new jobs over the next 10 years due to the green polices and New Jersey’s investments in clean energy. This report forecasts a net increase of 95,313 jobs in the Offshore Wind sector and 86,746 net increase in jobs for the Solar sector for the period between 2019 and 2031. New Jersey has the opportunity to make future green jobs growth a driving force for its economy.

Over the next twelve months, the New Jersey Office of Climate Action and the Green Economy will coordinate and direct a four-part initiative designed to launch, establish and respond to this Council’s recommendations. I will be monitoring this development.

The Offshore Wind Workforce and Skills Development Grant Challenge is a competitive grant program that will award grants to launch or expand workforce development and skills training programs focused on strengthening and diversifying the New Jersey offshore wind workforce. A total of $3.725 million will be available through this program. Individual awards can range from $100,000 to a maximum of $1,000,000. Priority for grants will be given to applicants that propose initiatives supporting training and job access for residents of Overburdened Communities. Grants are available for programs that will aid in launching or expanding innovative workforce training and skills programs focused on strengthening and diversifying New Jersey’s offshore wind workforce.

The Grant Challenge will be open to entities that can design and execute workforce and skills training programs. Such entities may include, but are not limited to, community-based organizations, workforce training organizations, labor unions, workforce placement intermediaries, technical high schools, community colleges, universities, non-profits, regional workforce development boards, and private companies.

Please contact Capehart Scatchard Renewable Energy Department Chair Alan P. Fox, Esq. if you are seeking assistance with an application for the Grant Challenge.

Biden Declares Climate Change an “Existential Threat”

On July 20 2022, President Joe Biden called climate change an “existential threat” and unveiled new policies to fight its effects in response to Senator Joe Manchin’s objection to the Biden Administration’s proposed Federal wind legislation, which would create thousands of union jobs and offer more than $12 billion in annual capital incentives for wind projects located on both coastlines of the United States.

Senator Manchin represents West Virginia, which is a state dependent on the coal and natural gas industries. The Senator has personally made his wealth from the coal industry.  Senator Manchin has stated his objection to Biden’s proposed federal legislation is based on a deep concern about recent U.S. inflation. Manchin has suggested he might be open to considering a legislation package that includes climate and tax measures in September 2022, after further reports on U.S. Inflation.

“Climate change is an existential threat,” Biden said at a former coal-fired power plant in Massachusetts that’s being re-purposed to support wind power generation. “Since Congress is not acting as it should — and these guys here are but we’re not getting many Republican votes — this is an emergency, an emergency, and I will look at it that way,” the President said. However, President Biden held back on declaring a formal climate emergency.

Biden’s climate change policies encourage offshore wind development in new areas along the US Coast and in the Gulf of Mexico. Biden is directing federal regulators to propose the first wind energy areas for development in the Gulf — a step toward auctioning leases to build the renewable projects.  Bloomberg Law reports, “Although Biden is directing Interior Secretary Deb Haaland to advance wind energy development in the southern Atlantic and along Florida’s Gulf Coast, he held off on reversing an order by former President Donald Trump that ruled out new offshore energy leases in those waters”, which could trigger unwelcomed opposition by Congress.

The Biden Administration climate change policy goals includes developing 30 gigawatts of offshore wind power by 2030, with auctions of territory near California expected later in 2022, and, ultimately, lease sales on almost every US coast.

The Bureau of Ocean Energy Management (BOEM) is moving forward with new offshore lease sales and plans to expedite review for operation plans. New ports and factories will need to be developed and constructed closer to the coast lines to service the wind industry.

For more information about New Jersey’s offshore wind programs, please contact Alan P. Fox, Esq.

The Proposed New Inflation Reduction Act Could Become the Biggest Climate Investment in US History

In addition to investments in clean energy, the bill called the Inflation Reduction Act of 2022 (H.R. 5376) includes tax and health care provisions designed to reduce the federal budget deficit and limit inflation. However, much of the media’s attention has been on the climate provisions. The current compromised bill reduces investments from the original $2 billion “Build Back Better” Act proposed by the Biden administration.

The proposed bill is designed to accelerate the buildout of renewable energy and electric vehicles as well as boost the deployment of nuclear energy and increase domestic clean energy related to manufacturing and advanced energy technologies (such as storage, carbon capture, and green hydrogen).

Below is a summary of just a few of the tax incentives in the proposed legislation as currently drafted:

    • The proposed legislation both extends the existing Internal Revenue Code §45 PTC (production tax credit) and existing Internal Revenue Code §48 ITC (investment tax credit) for projects that commence construction by December 31, 2024, then transitions both §45 and §48 into new replacement tax code sections (one to be designated as “The Clean Electricity Production Credit” under new Internal Revenue Code §45Y and the other to be designated as “The Clean Electricity Investment Credit” under new Internal Revenue Code §48D).
    • Tax-exempt payers will have the option to elect direct pay for the clean electricity PTC and ITC as they would under the proposed amendments to §45 and §48.
    • The proposed bill would increase the ITC to 30% for solar, fuel cells, and small wind facilities in service after 2021.
    • The new proposed bill also creates a new “stand-alone” storage ITC for certain biogas, linear generators, thermal storage, microgrid, and dynamic glass technology.
    • Taxpayers electing the § 48D ITC will receive a credit worth up to 30% of the investment in the year the facility is placed in service. The tax credit value is increased by an additional 10% if the facilities also meet domestic-content requirements.
    • The credit value is further increased by 10% for projects in energy communities, including certain brownfield sites under CERCLA ( or example, where a coal mine has closed, or where a coal-fired electric generating unit has been retired.)

On August 11, 2022, with a tiebreaking vote from Vice President Harris, the 50-50 Senate passed the Inflation Reduction Act and sent the bill to the House of Representatives for a vote. The House is expected to approve this bill and send it to the White House for President Biden’s signature later this week. Solar industry advocacy group SEIA has already suggested that the tax credits under this Act could spur upwards of 30 GW of new solar panel manufacturing capacity in the United States and over 500,000 jobs.

For more information about the Inflation Reduction Act, please contact Alan P. Fox, Esq.

deleteThe Proposed New Inflation Reduction Act Could Become the Biggest Climate Investment in US History

In addition to investments in clean energy, the bill called the Inflation Reduction Act of 2022 (H.R. 5376) includes tax and health care provisions designed to reduce the federal budget deficit and limit inflation. However, much of the media’s attention has been on the climate provisions. The current compromised bill reduces investments from the original $2 billion “Build Back Better” Act proposed by the Biden administration.

The proposed bill is designed to accelerate the buildout of renewable energy and electric vehicles as well as boost the deployment of nuclear energy and increase domestic clean energy related to manufacturing and advanced energy technologies (such as storage, carbon capture, and green hydrogen).

Below is a summary of just a few of the tax incentives in the proposed legislation as currently drafted:

    • The proposed legislation both extends the existing Internal Revenue Code §45 PTC (production tax credit) and existing Internal Revenue Code §48 ITC (investment tax credit) for projects that commence construction by December 31, 2024, then transitions both §45 and §48 into new replacement tax code sections (one to be designated as “The Clean Electricity Production Credit” under new Internal Revenue Code §45Y and the other to be designated as “The Clean Electricity Investment Credit” under new Internal Revenue Code §48D).
    • Tax-exempt payers will have the option to elect direct pay for the clean electricity PTC and ITC as they would under the proposed amendments to §45 and §48.
    • The proposed bill would increase the ITC to 30% for solar, fuel cells, and small wind facilities in service after 2021.
    • The new proposed bill also creates a new “stand-alone” storage ITC for certain biogas, linear generators, thermal storage, microgrid, and dynamic glass technology.
    • Taxpayers electing the § 48D ITC will receive a credit worth up to 30% of the investment in the year the facility is placed in service. The tax credit value is increased by an additional 10% if the facilities also meet domestic-content requirements.
    • The credit value is further increased by 10% for projects in energy communities, including certain brownfield sites under CERCLA ( or example, where a coal mine has closed, or where a coal-fired electric generating unit has been retired.)

For more information about the Inflation Reduction Act, please contact Alan P. Fox, Esq.

Biden Administration Invokes Defense Production Act to Boost Domestic Manufacturing in Clean Energy Sectors

On June 6, 2022, the White House released a statement authorizing the use of the Defense Production Act (DPA) to build up domestic production of solar panels, electric transformers, heat pumps, insulation and hydrogen-related equipment.

The U.S. Department of Energy (DOE) could support those sectors through commitments to buy clean energy products from U.S. manufacturers; direct investments in facilities; and aid for clean energy installations in homes, military sites and businesses. Pending legislation (the Energy Security and Independence Act) would provide $100 billion in DPA funding for the clean energy sector.

The White House reports the expansion to domestic solar manufacturing capacity will grow the current capacity of 7.5 gigawatts by an additional 15 gigawatts, enabling 3.3 million homes to switch to clean solar energy. President Biden also urges Congress to pass tax cuts and additional investments that advance U.S. clean energy manufacturing and deployment.

Specifically, the White House is authorizing the DOE to rapidly expand U.S. manufacturing of the following five clean energy technologies:

    1. Solar panel parts including photovoltaic modules and module components;
    2. Building insulation;
    3. Heat pumps;
    4. Equipment for making and using clean energy-generated fuels, including electrolyzers, fuel cells, and related platinum group metals; and
    5. Power grid infrastructures such as transformers.

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