A1558

An Act concerning solar energy systems and supplementing P.L.1977, c.419 (C.45:22A-21 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the Solar Energy Systems for Residential Developments Act."

2. The Legislature finds and declares that:

a. New Jersey citizens primarily rely on fossils fuels for their energy needs;

b. Fossil fuels are nonrenewable fuels since they are derived from finite resources that will inevitably dwindle over time, becoming too expensive or too environmentally damaging to extract;

c. Renewable energy sources, such as wind and solar energy, are constantly replenished and infinite;

d. Unlike fossil fuels, renewable energy sources have minimal environmental impact since, for example, energy produced from photovoltaic cells does not result in air or water pollution, deplete natural resources or endanger animal and human health;

e. The use of renewable energy equipment also reduces America's dependency on foreign sources of energy, which is an important strategy in the process of creating a secure and sustainable energy future;

f. The use of renewable energy technology would benefit New Jersey's economy since jobs evolve directly from the manufacturing, designing, installation, servicing, and marketing of renewable energy products; and

g. The State has adopted a renewable energy portfolio standard that requires twenty percent of the State’s electricity demand to be produced from renewable sources by the year 2020, and requires a specific percentage of these renewable energy sources to be from solar photovoltaic systems.

3. As used in this act:

"Advertising" means the same as the term is defined in section 3 of P.L.1977, c.419 (C.45:22A-23).

"Agency" means the Division of Housing in the Department of Community Affairs.

"Commissioner" means the Commissioner of Community Affairs.

"Developer" means any person who disposes or offers to dispose of any dwelling unit in a development.

"Development" means any development, as defined in section 3 of P.L.1977, c.419 (C.45:22A-23), required to be registered with the agency pursuant to section 6 of P.L.1977, c.419 (C.45:22A-26) and which consists of, or will consist of, at least 100 dwelling units.

"Dwelling unit" means a single-family residence constructed as part of a development, the roof of which is exclusive to that residence and not a common element or common area.

"Owner" means any person who acquires a legal or equitable interest in a dwelling unit.

"Prospective owner" means any person who contemplates acquiring a legal or equitable interest in a dwelling unit.

"Solar energy system" means any system which uses solar energy to provide all or a portion of the heating, cooling, or general energy needs of a dwelling unit through such means as nocturnal heat radiation, flat plate or focusing solar collectors, or photovoltaic solar cells.

4. a. A developer shall offer to install, or to provide for the installation of, a solar energy system into a dwelling unit when a prospective owner enters into negotiations with the developer to purchase a dwelling unit.

b. A developer shall disclose in any advertising, in a manner and form determined by the commissioner pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.):

(1) that a prospective owner may have a solar energy system installed in any dwelling unit; and

(2) the cost of installing a solar energy system into a dwelling unit that will be charged to the owner by the developer.

5. A developer shall install, or provide for the installation of, a solar energy system into a dwelling unit if the prospective owner accepts the developer's offer to install, or to provide for the installation of, a solar energy system into the dwelling unit and becomes the owner of that dwelling unit.

6. In a development in which a homeowner or other owner or membership association is responsible for the maintenance, repair or replacement of the roof of the dwelling unit or other area upon which a solar energy system is installed, if the association incurs any additional cost or expense resulting from the installation of a solar energy system, such as the additional cost to remove and reinstall the system in the course of maintenance, repair or replacement, the association shall have the right to:

a. impose and collect the additional cost or expense from the owner of the dwelling unit, which shall be collectible in the same manner as any other common expense or fee of the development;

b. access the dwelling unit as may be reasonably required to perform such maintenance, repair or replacement; and

c. record a declaration or similar instrument, in the same manner as a deed, with the county clerk for the purpose of advising current and prospective owners of the dwelling unit that they may be responsible for the additional costs and expenses described in this section.

7. The commissioner, in consultation with the Board of Public Utilities, shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), standards with respect to the technical sufficiency of solar energy systems to be installed pursuant to this act.

8. The commissioner shall enforce the provisions of this act in accordance with the authority granted under section 18 of P.L.1977, c.419 (C.45:22A-38).

9. This act shall take effect immediately and shall only apply to a development for which the application for development has been approved, pursuant to section 6 of P.L.1975, c.291 (C.40:55D-10), on or after January 1, 2009.

STATEMENT

This bill would require a developer of single family homes, when building a development of 100 or more units, to offer to install solar energy systems in all of the development's residences. In order to inform prospective buyers of this option, the developer would be required to disclose in any advertising for the development that a prospective owner may request to have a solar energy system installed and the cost of installing such a system. If a prospective owner requests to have a solar energy system installed, the developer would be required to install a solar energy system in that owner's dwelling unit.

The bill provides that the Commissioner of Community Affairs, in consultation with the Board of Public Utilities, would be required to adopt standards with respect to the technical sufficiency of the solar energy systems to be installed.