Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 5264 (March 6, 2025)

Summary

Assembly Commerce, Economic Development and Agriculture Committee statement to the State of New Jersey Assembly on Assembly Bill No. 5264, dated March 6, 2025, reporting the bill favorably. The bill expedites review and approval of projects to install most types of residential solar energy systems by requiring the Commissioner of Community Affairs to establish the State Smart Solar Permitting Platform within one year of the bill's date of enactment. It requires the platform to be designed to process 75 percent of residential solar energy system permit applications submitted. It requires local enforcing agencies to use the State platform or an alternative platform within 18 months of the bill's effective date.

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                          STATEMENT TO

                     ASSEMBLY, No. 5264

       STATE OF NEW JERSEY
                           DATED: MARCH 6, 2025

           The Assembly Commerce, Economic Development and
      Agriculture Committee reports favorably Assembly Bill No. 5264.
           This bill expedites the review and approval of projects to install
      most types of residential solar energy systems. The bill proposes to
      accomplish this by requiring the Commissioner of Community Affairs
      (commissioner) to establish and administer the State Smart Solar
      Permitting Platform within one year of the bill’s date of enactment.
      Establishment of the State Smart Solar Permitting Platform will
      enhance the ability of a local enforcing agency: to review permit
      applications and permit revisions instantly for safety and code
      compliance, and to release permits and permit revisions instantly for
      residential solar energy systems, residential energy storage systems,
      main electric panel upgrades, and main electric panel derates.
           The State Smart Solar Permitting Platform is to automatically
      perform plan review of applications to construct a residential solar
      energy system, and instantly release permits or permit revisions to
      construct code-compliant residential solar energy systems. Under the
      bill, the term “application to construct a residential solar energy
      system” includes applications to construct a residential solar energy
      storage system submitted together with an application to perform a
      main electric panel upgrade, a main breaker derate, or both.
           The bill requires the State Smart Solar Permitting Platform to:
            perform robust code compliance checks to evaluate proposed
              residential solar energy systems to determine whether they
              comply with the requirements of the State Uniform
              Construction Code;
            produce construction documents to be used for inspection
              and recordkeeping purposes under the code;
            instantly release a permit or permit revision to construct a
              residential solar energy system that complies with the code;
            be designed to process 75 percent of residential solar energy
              system permit applications submitted;
            be available for applicants to use 24 hours a day, except
              when the platform is down for an upgrade or maintenance;
            be provided to the department at no-cost or low-cost if
              provided by a third party;
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       allow the use of electronic signatures on all applications and
        submitted materials necessary for issuance of a permit.
    The bill directs the commissioner to fully implement the State
Smart Solar Permitting Platform and provide for its use within one
year after the bill is enacted.
    The bill requires each local enforcing agency to either allow for the
submission of applications to construct a residential solar energy
system through the State Smart Solar Permitting Platform or through
an alternative automated solar permitting platform that satisfies the
requirements set forth in the bill for the State platform. If a local
enforcing agency opts to implement an alternative automated solar
permitting platform, the bill requires the local enforcing agency to
enable access to the alternative automated solar permitting platform
within 18 months of the bill’s effective date.
    The bill requires each local enforcing agency that chooses to
provide an alternative platform to the State Smart Solar Permitting
Platform to submit a compliance report to the Department of
Community Affairs (DCA) within 60 days of implementation of the
alternative platform. The bill requires a local compliance report to
include: the date of compliance, the software used for compliance, and
documentation showing that the alternative platform satisfies the
requirements set forth in the bill in an equivalent manner as the State
Smart Solar Permitting Platform.
    The bill provides that if the DCA determines that documentation
submitted with a local compliance report is insufficient to verify that
the alternative platform satisfies the bill’s requirements, the bill
requires the local enforcing agency to provide the DCA with access to
the alternative platform.
    The bill also requires a local enforcing agency that implements an
alternative platform to submit an annual report to the DCA that
complies with departmental guidelines and provides the following
statutorily required information:
     the number of permits released by the enforcing agency for
        residential solar energy systems through the alternative
        automated solar permitting platform and relevant
        characteristics of those systems;
     the number of permits released by the enforcing agency for
        residential solar energy systems through means other than
        the alternative automated solar permitting platform and
        relevant characteristics of those systems; and
     documentation showing that the alternative platform satisfies
        the other requirements set forth in the bill.
    If the DCA determines that documentation submitted by a local
enforcing agency is insufficient to verify that the alternative platform
meets the bill’s requirements, the bill requires the local enforcing
agency to provide the DCA access to the platform.
                                   3

    If the DCA determines that a local enforcing agency does not
allow for submission of applications to construct a residential solar
energy system through either the State Smart Solar Permitting
Platform or through an alternative platform, the bill directs the DCA to
impose a penalty upon, and collect penalty amounts from, the local
enforcing agency, which amounts are to be allocated to the Low
Income Home Energy Assistance Program.
    Additionally, the bill empowers the DCA to condition or deny
direct funding to a local unit from any program it administers if the
DCA determines that the local unit’s enforcing agency is not in
compliance with the bill’s requirements.
    The bill directs DCA to provide training opportunities concerning
the use of the State Smart Solar Permitting Platform for employees of
local enforcing agencies and authorizes the DCA to charge solar
permit surcharge fees. Monies collected by a local enforcing agency
through solar permit surcharge fees are to be remitted to the DCA to
defray the cost of developing and administering the State Smart Solar
Permitting Platform.


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