TRENTON, NJ – Legislators in Trenton are preparing for more bad news in the renewable energy sector. A bill being discussed will allow for the state to give extensions to solar projects that are on the brink of failure or delay.
A legislative proposal aims to provide automatic deadline extensions for solar electric power generation projects when delays occur due to factors beyond the control of the project sponsor.
The bill proposes that deadlines for project completion or commercial operation can be automatically extended if a facility is unable to meet its original timeline due to a “tolling event,” as defined by the legislation. To benefit from this extension, project sponsors must submit a written certification to the Board of Public Utilities (Board) detailing the tolling event and the anticipated duration of the associated delay. Within 45 days of receiving this certification, the Board is mandated to issue an order granting an automatic extension.
The order by the Board is non-discretionary, meaning it would be issued without any factual investigation or hearing. The extension would be equal to the duration of the tolling event, with the possibility of further relief as deemed appropriate by the Board.
Project sponsors have an ongoing responsibility to update the Board at least quarterly on the status and expected duration of the tolling event. Once the tolling event concludes, sponsors have either six months or the remaining time under the original approval—whichever is longer—to complete the facility and begin commercial operation.
The legislation defines a tolling event as actions, inactions, or occurrences that delay a project and are not within the reasonable control of the project sponsor. This is limited to issues such as failure of an electric public utility or PJM Interconnection, L.L.C. (PJM) to approve applications for interconnection or to provide other necessary studies, agreements, or approvals within a reasonable time frame.
The proposal comes as the state is experiencing an increase in delays related to the interconnection of solar electric power generation facilities. The delays pose a risk to the state’s clean energy goals and may result in the loss of financial incentives for projects, thereby making them less attractive to investors and lenders.
The bill aims to preserve the viability of solar power projects by providing sponsors with the flexibility to cope with unforeseeable delays. It ensures that sponsors will not be penalized for delays caused by third parties or circumstances beyond their control.