Gibbons Law Alert
A bill that would add the Port District of the Port Authority of New York and New Jersey to the definition of “wind energy zones” in the newly adopted Offshore Wind Economic Development Act, was reported out of the Senate Budge and Appropriations Committee on September 13, 2010. The amendment would allow tax credits for qualified wind energy facilities in the Port District.
On September 2, 2010, Americans for Prosperity staged a rally in front of the Atlantic County Utilities Authority windmills to protest against offshore wind turbines as a waste of taxpayer money. Ironically, according to the ACUA, its five wind turbines save it $600,000 a year in electricity bills. The protest comes less than one month after Governor Christie signed the Offshore Wind Economic Development Act into law. The Offshore Wind Economic Development Act establishes an offshore wind renewable energy certificate program that will require a percentage of electricity sold in NJ to come from offshore wind energy. New Jersey hopes that the new law will spur economic development and job growth in the state.
The compliance deadline for EPA’s 2008 lead paint rule, requiring contractors engaged in renovations of pre-1978 residences, schools and childcare facilities to be certified by April 22, 2010 was extended in June of this year in response to industry and congressional outcry. The reprieve was not sufficient for everyone. On July 8, the National Association of Home Builders, joined by other industry groups, filed suit against EPA seeking review of the final rule. In particular, they challenged EPA’s removal of the opt-out provision from the final rule.
On August 19, 2010, just over two months after identical bills were introduced in the NJ Assembly and Senate, Governor Chris Christie signed the Offshore Wind Economic Development Act into law. By creating offshore wind renewable energy credits and financial assistance to qualified projects, it is hoped that the new law will spur economic development and job growth in the state.
The Senate Committee Substitute for S-1, which abolishes the Council on Affordable Housing (COAH) and restructures responsibility for affordable housing policy, was approved by the N.J. Senate on June 3 and sent to the Assembly, where it has come to a stop for the summer. Newsroom NewJersey reports that the COAH bill is among 34 property tax reform-related bills that Assembly Democrats held over the summer in order to analyze them.
On June 9, 2010, USEPA announced that data centers will be eligible to earn the Energy Star label. The data center must be in the top 25% of its peers in energy efficiency as measured by EPA’s energy performance scale, the Power Usage Effectiveness metric. Unlike the Energy Star program for consumer appliances which relies on self-reporting, the Energy Star program for data centers requires a licensed professional to independently verify the energy performance of the building and sign and seal the application document that is sent to EPA for review and approval. Such data centers, which account for approximately 1.5% of electricity consumption, will be able to save money and energy and fight climate change. Moreover, with the increase in demand for “green” vendors by federal, state and local governmental agencies and corporations, a data center with an Energy Star label would have a competitive advantage in seeking such customers.
In less than a month, the New Jersey legislature introduced and passed S-2036, the “Offshore Wind Economic Development Act.” Both the NJ Senate and the Assembly passed the Senate version on June 28, 2010. This swift action quickly followed NJ’s joining a 10-state Atlantic OffShore Wind Consortium. The bill establishes an offshore wind renewable energy certificate program that will require a percentage of electricity sold in NJ to be from offshore wind energy. The New Jersey Board of Public Utilities will be authorized to accept and approve applications for qualified offshore wind projects. The New Jersey Economic Development Authority will have the authority to provide financial assistance to qualified offshore wind projects and associated equipment manufacturers and assembly facilities in the state.
On June 8, 2010, Governor Chris Christie joined nine East Coast state governors in signing a Memorandum of Understanding with the U.S. Department of the Interior, which creates the Atlantic Offshore Wind Energy Consortium. The consortium is intended to foster federal-state cooperation for commercial wind development on the Outer Continental Shelf off the Atlantic coast.
Senate Bill S-1, which revises and reforms many of the statutes relating to affordable housing in New Jersey, was voted out of the Senate Economic Growth Committee on June 3rd with amendments. S-1 would abolish the Council on Affordable Housing (COAH) and would allow municipalities to administer their own affordable housing obligations. S-1 would eliminate State imposed calculations of affordable housing need and would permit local governments to take charge of planning for affordable housing.
In an announcement made on May 13, 2010, Governor Chris Christie outlined a plan for affordable housing that will abolish the 25 year old Council on Affordable Housing and transfer control for housing plans to local authorities, with review by the Department of Community Affairs (“DCA”). According to Acting DCA Commissioner Lori Grifa, “Unfortunately, the Council on Affordable Housing has often times been more burden than benefit to the point that New Jersey as a whole has fallen far short of its affordable housing goals … The Governor’s new affordable housing plan is a fresh approach that gives more control and flexibility to local governments while limiting state involvement. Ultimately, this plan will result in more affordable housing units being built in communities across the state.”