In the Matter of the Implementation of L. 2012, C. 24, the Solar Act of 2012

New Jersey Superior Court Appellate Division·Decided November 4, 2024·No. A-2871-22/A-3945-22/A-3947-22·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NOS. A-2871-22

A-3945-22

A-3947-22

IN THE MATTER OF THE IMPLEMENTATION OF L. 2012, C. 24, THE SOLAR ACT OF 2012

IN THE MATTER OF A NEW JERSEY SOLAR TRANSITION PURSUANT TO P.L. 2018, C.17

IN THE MATTER OF A NEW JERSEY SOLAR TRANSITION PURSUANT TO P.L. 2018, C. 17 - ORDER GRANTING AN UP TO 12-MONTH EXTENSION FOR PROJECTS SEEKING AN INCENTIVE PURSUANT TO SUBSECTION (T) IN THE SOLAR TRANSITION INCENTIVE PROGRAM – MOTION FOR RECONSIDERATION.

IN THE MATTER OF THE IMPLEMENTATION OF L. 2012, C. 24, THE SOLAR ACT OF 2012

IN THE MATTER OF THE SOLAR TRANSITION PURSUANT TO P.L.

2018, C. 17 – APPLICATION FOR CERTIFICATION OF SOLAR FACILITY AS ELIGIBLE FOR TRECS PURSUANT TO SUBSECTION (T) OF THE SOLAR ACT OF 2012

WINSLOW LF SOLAR FARM, LLC - SOLAR ACT SUBSECTION (T) - BLOCK 8802, LOT 1, BLOCK 9101, LOT 2, BLOCK 9102, LOT 1.

IN THE MATTER OF THE IMPLEMENTATION OF L. 2012, C. 24, THE SOLAR ACT OF 2012

IN THE MATTER OF A NEW JERSEY SOLAR TRANSITION PURSUANT TO P.L. 2018, C. 17 APPLICATION FOR CERTIFICATION OF SOLAR FACILITY AS ELIGIBLE FOR TRECS PURSUANT TO SUBSECTION (T) OF THE SOLAR ACT OF 2012

PASADENA PEMBERTON SOLAR FARM, LLC-APPLICATION FOR SOLAR ACT SUBSECTION (T), BLOCK 906, LOT 1.01.

Submitted October 22, 2024 – Decided November 4, 2024 Before Judges Susswein, Perez Friscia and Bergman.

On appeal from the New Jersey Board of Public Utilities, Docket Nos. EO12090832V, QO19010068 and QO22090551 in Docket No. A-2871-22; Docket

A-2871-22

Nos. EO12090832V, QO19010068, and QO21081079 in A-3945-22; Docket Nos. EO12090832V, QO19010068, and QO21050822 in A-3947-22.

Genova Burns, LLC, attorneys for appellant CEP Renewable, LLC (Keneth J. Sheehan, of counsel and on the briefs).

Brian O. Lipman, Director, attorney for respondent New Jersey Division of Rate Counsel (Sarah H.

Steindel, Assistant Deputy Rate Counsel, on the briefs).

Matthew J. Platkin, Attorney General, attorney for respondent New Jersey Board of Public Utilities (Sookie Bae, Assistant Attorney General, of counsel;

Brandon C. Simmons, Deputy Attorney General, on the brief in A-2871-22; Steven A. Chaplar, Deputy Attorney General, on the briefs in A-3945-22 and A-

3947-22).

PER CURIAM In these three back-to-back appeals we have consolidated for the purposes of issuing a single opinion, CEP Renewables, LLC (CEP) challenges a series of orders entered by the New Jersey Board of Public Utilities (BPU). The New Jersey Division of Rate Counsel urges we reject CEP's arguments and affirm the BPU's orders. Having reviewed the record, parties' arguments, and governing legal principles, we affirm.

Under A-2871-22, CEP appeals from the April 26, 2023 BPU order denying CEP's motion for reconsideration of the BPU's August 17, 2022 order,

A-2871-22

which permitted only two six-month extensions for solar projects filed pursuant to N.J.S.A. 48:3-87(t) (subsection (t)). The August order permitted the BPU to grant extensions to solar subsection (t) project registrants that had a conditional certification or had timely applied for conditional certification that were pending review under the Transition Incentive (TI) program. CEP contends the BPU's orders are arbitrary, capricious, and unreasonable because they did not provide greater extensions to solar project developers with subsection (t) projects under the TI program pending completion of the PJM Interconnection, LLC (PJM) process.

Under A-3945-22, CEP appeals from the July 12, 2023 BPU order denying CEP's subsection (t) application for a conditional certification for a solar facility at the Winslow site because it was not a properly closed sanitary landfill facility.

Under A-3947-22, CEP appeals from the July 26, 2023 BPU order denying CEP's subsection (t) application for a conditional certification for a solar facility at the Pemberton site because it was not a properly closed sanitary landfill facility.

A-2871-22

I.

To give context to the issues presented in these appeals, we summarize the facts and procedural history in view of the governing statutory and regulatory framework.

The Clean Energy Act (CEA), P.L. 2018 c. 17, was enacted on May 23, 2018. N.J.S.A. 48:3-51 to -87. The CEA charged the BPU with closing the Solar Renewable Energy Certificate Registration Program (SRP), which was the solar incentive program at the time, launching an interim incentive program, and transitioning to the Successor Solar Incentive (SuSI) program. See N.J.S.A. 48:3-87(d)(3). On April 6, 2020, the BPU ordered the closure of the SRP effective April 30. In re Closure of the SREC Registration Program Pursuant to P.L. 2018, c. 17, No. QO18070698, 2020 N.J. PUC LEXIS 259, at *11 (Bd. of Pub. Utils. Apr. 6, 2020). N.J.S.A. 48:3-87(t)(1) required the BPU to "establish a financial incentive . . . designed to supplement the [Solar renewable energy certificates (SREC)] 1 generated by the facility in order to cover the additional

1 A "'[s]olar renewable energy certificate' or 'SREC' means a certificate issued by the [BPU] or its designee, representing one megawatt hour (MWh) of solar energy that is generated by a facility connected to the distribution system in this State and has value based upon, and driven by, the energy market." N.J.S.A. 48:3-51.

A-2871-22

cost of constructing and operating a solar electric power generation facility on a brownfield, on an area of historic fill[,] or on a properly closed sanitary landfill facility."

On December 6, 2019, the BPU launched the TI program. See N.J.A.C.

14:8-10.1 to - 10.7; see also 52 N.J.R. 1048(a) (May 18, 2020). The BPU's TI program was "designed to provide a bridge between the [SRP] and . . . [the SuSI program] under development." N.J.A.C. 14:8-10.1. Under the TI program, N.J.A.C. 14:8-10.4(f) permitted developers to "submit a complete registration package to the [BPU] prior to the [BPU]'s announcement of the opening of [the SuSI program]" to receive fixed solar energy incentives.2 The TI program provided Transition Renewable Energy Certificates (TRECs) for each MWh of electricity produced. N.J.A.C. 14:8-10.6(b). TRECs were permitted to be sold at values fixed by the BPU. N.J.A.C. 14:8-10.5. The BPU maintained oversight of the temporary TI program as an interim bridge program until the SuSI program opened to applicants. Each solar program

2 Developers filing a subsection (t) application under the TI program were required to follow "N.J.S.A. 48:3-87(t), the Solar Act of 2012, and the B[PU]'s [i]mplementing [o]rders." N.J.A.C. 14:8-10.4(i). Additionally, "[d]evelopers [had to] apply to the B[PU] for conditional certification of projects seeking eligibility for [Transition Renewable Energy Certificates] using the same process developed for SREC eligibility." Ibid.

A-2871-22

provided developers different incentive subsidy schemes, which were funded by retail electricity ratepaying customers, aimed at promoting solar development in New Jersey. The SuSI program was launched on August 28, 2021. N.J.A.C. 14:8-11-1 to -12.8; In re a New Jersey Solar Transition Pursuant to P.L. 2018, c. 17, No. QO19010068, 2021 N.J. PUC LEXIS 299 (Bd. of Pub. Utils. July 28, 2021). The BPU determined the SuSI program incentives, N.J.A.C. 14:8-11.1 to -11.10, based on a competitive solicitation process and launched the Competitive Solar Incentive (CSI) program, which offered incentives to grid supply solar generation facilities. See N.J.A.C. 14:8-11.10; N.J.S.A. 48:3-117.

Free access — add to your briefcase to read the full text and ask questions with AI

In the Matter of the Implementation of L. 2012, C. 24, the Solar Act of 2012, (N.J. Ct. App. 2024).

In the Matter of the Implementation of L. 2012, C. 24, the Solar Act of 2012 (In the Matter of the Implementation of L. 2012, C. 24, the Solar Act of 2012) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Ownership of Renewable Energy Certificates
913 A.2d 825 (New Jersey Superior Court App Division, 2007)
In Re Amendment of N.J.A.C. 8:31B-3.31
575 A.2d 481 (Supreme Court of New Jersey, 1990)
Elizabethtown Water Co. v. New Jersey Board of Public Utilities
527 A.2d 354 (Supreme Court of New Jersey, 1987)
In Re Centex Homes, LLC
985 A.2d 649 (New Jersey Superior Court App Division, 2009)
In Re Pub. Ser. Elec. & Gas Co.
771 A.2d 1163 (Supreme Court of New Jersey, 2001)
In Re Petition of Jersey Central Power & Light Co.
428 A.2d 498 (Supreme Court of New Jersey, 1981)
Nieder v. Royal Indemnity Insurance
300 A.2d 142 (Supreme Court of New Jersey, 2004)
D'Ambrosio v. Department of Health and Senior Services
958 A.2d 110 (New Jersey Superior Court App Division, 2008)
In Re Petition of Nj American Water Co.
777 A.2d 46 (Supreme Court of New Jersey, 2001)
Russo v. BD. OF TRUSTEES, POLICE.
17 A.3d 801 (Supreme Court of New Jersey, 2011)
In the Matter of the Implementation of L. 2012, C. 24
127 A.3d 711 (New Jersey Superior Court App Division, 2015)
In re Stallworth
26 A.3d 1059 (Supreme Court of New Jersey, 2011)
Allstars Auto Grp., Inc. v. N.J. Motor Vehicle Comm'n
189 A.3d 333 (Supreme Court of New Jersey, 2018)