Bill Text: NJ ACR202 | 2010-2011 | Regular Session | Introduced

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Bill Title: Proposes constitutional amendment requiring that money dedicated to advancing energy demand management and renewable energy is used only for those purposes.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2011-06-27 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [ACR202 Detail]

Download: New_Jersey-2010-ACR202-Introduced.html

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ASSEMBLY CONCURRENT RESOLUTION No. 202

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED JUNE 27, 2011

 

 

Sponsored by:

Assemblyman  UPENDRA J. CHIVUKULA

District 17 (Middlesex and Somerset)

Assemblyman  JOHN F. MCKEON

District 27 (Essex)

 

 

 

 

SYNOPSIS

     Proposes constitutional amendment requiring that money dedicated to advancing energy demand management and renewable energy is used only for those purposes.

 

CURRENT VERSION OF TEXT

     As introduced.

  

A Concurrent Resolution proposing to amend Article VIII, Section II of the Constitution of the State of New Jersey.

 

     Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is hereby agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section II by adding a new paragraph 9 to read as follows:

     9.    All money deposited into any account held by, established on behalf of, or directed by law to be established by, the State, its political subdivisions, any office, department, division, bureau, board, commission or public authority or public agency of the State or one of its political subdivisions that is statutorily or otherwise dedicated for the purposes of increasing the State's reliance on renewable sources for its energy supply and managing the demand for energy through increasing the efficiency of energy generation, transmission, and use and the implementation of energy conservation measures shall be expended solely to support programs that further such purposes.

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a.     In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b.    In every municipality the following question:

 

		CONSTITUTIONAL AMENDMENT TO REQUIRE THAT STATE FUNDS DEDICATED TO PROMOTING ENERGY CONSERVATION, ENERGY EFFICIENCY AND THE USE OF RENEWABLE ENERGY ARE SPENT ONLY FOR THOSE PURPOSES
	YES	Do you approve of amending the New Jersey Constitution to require that State funds dedicated to promoting energy efficiency, energy conservation and the use of renewable energy are spent only for those purposes?
		INTERPRETIVE STATEMENT
	NO	This constitutional amendment would require that money deposited into State accounts dedicated to promoting energy efficiency, energy conservation and the use of renewable energy is spent only for those purposes.  All electric and gas customers are charged a fee, a portion of which is dedicated to clean energy programs.  This amendment would prevent that money and other similarly dedicated funds from being used for any other purposes.

 

 

STATEMENT

 

     This concurrent resolution proposes a constitutional amendment that requires money deposited into accounts held by the State that are dedicated to supporting energy demand management and renewable energy are used only for those purposes.

     The "Electric Discount and Energy Competition Act of 1999," P.L.1999, c.23 (C.48:3-49 et al.) ("EDECA"), authorizes the Board of Public Utilities ("BPU") to impose a societal benefits charge ("SBC") on all electric and gas public utility customers.  EDECA sets forth the permissible uses for funds collected through the imposition of the SBC, which includes programs promoting clean energy.  The money collected through the SBC that is allocated by the BPU for clean energy programs is placed into the Clean Energy Fund.

     The annual appropriations act has repeatedly authorized distributions from the Clean Energy Fund for purposes that are not authorized under EDECA and are unrelated to clean energy.  In both the 2011 Annual Appropriations Act and in the Governor's Budget Recommendation for Fiscal Year 2012, $42.5 million dollars is diverted from the Clean Energy Fund to pay for utility costs in State facilities.  Similarly, the Fiscal Year 2010 supplemental appropriations act authorized the transfer of $158 million from the Clean Energy Fund to the General Fund.

     The diversion of money deposited in the Clean Energy Funds for purposes entirely unrelated to clean energy constitutes a hidden general tax on the people of New Jersey.  The Appellate Division of the Superior Court of New Jersey recently upheld the transfer of money in the Clean Energy Fund to the General Fund in Mid-Atlantic Solar Energy Industries Association v. Christie, 418 N.J. Super. 499 (App. Div. 2011).  Therefore, an amendment to the State constitution is necessary to prevent future diversions from the Clean Energy Fund.