Bill Text: NJ AJR80 | 2010-2011 | Regular Session | Introduced
Bill Title: Urges passage of amendment to State Constitution that requires money placed into Clean Energy Fund to be used solely for clean energy programs.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2011-06-16 - Reported out of Assembly Committee, 2nd Reading [AJR80 Detail]
Download: New_Jersey-2010-AJR80-Introduced.html
Sponsored by:
Assemblyman UPENDRA J. CHIVUKULA
District 17 (Middlesex and Somerset)
SYNOPSIS
Urges passage of amendment to State Constitution that requires money placed into Clean Energy Fund to be used solely for clean energy programs.
CURRENT VERSION OF TEXT
As introduced.
A Joint Resolution urging the passage of an amendment to the State Constitution that requires money placed into the Clean Energy Fund to be used solely for clean energy programs.
Whereas, The "Electric Discount and Energy Competition Act of 1999," P.L.1999, c.23 (C.48:3-49 et al.), ("EDECA") authorized the Board of Public Utilities ("BPU") to impose a societal benefits charge ("SBC") on all electric and gas public utility customers; and
Whereas, EDECA sets forth the permissible uses for money collected through the SBC, which are: (1) social programs, (2) nuclear plant decommissioning, (3) demand side management programs, meaning programs involving energy efficiency, energy conservation and renewable energy, (4) manufactured gas plant remediation, (5) consumer education, and (6) the Universal Service Fund; and
Whereas, The money collected through the SBC allocated toward demand side management programs was initially expended directly by the utilities, but in 2003 the BPU established an independent fund, which came to be known as the Clean Energy Fund, where the money is currently deposited; and
Whereas, The annual appropriations act has repeatedly authorized distributions from the Clean Energy Fund for purposes that are not provided for in EDECA or related to clean energy; and
Whereas, 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; and
Whereas, The Fiscal Year 2010 supplemental appropriations act authorized the transfer of $158 million from the Clean Energy Fund to the General Fund; and
Whereas, The diversion of Clean Energy Funds for purposes not contemplated within EDECA and entirely unrelated to energy efficiency, energy conservation and renewable energy constitutes a hidden general tax on the people of New Jersey; and
Whereas, Only an amendment to the State Constitution can prevent future diversions from the Clean Energy Fund, as demonstrated by the court's decision in Mid-Atlantic Solar Energy Industries Association v. Chris Christie, 418 N.J. Super. 499 (App. Div. 2011), in which it was found that the diversion of $158 million from the Clean Energy Fund to the General Fund in the Fiscal Year 2010 supplemental appropriations act was valid; now, therefore,
Be It Resolved by the Senate and General Assembly of the State of New Jersey:
1. The Legislature is urged to pass a concurrent resolution that proposes an amendment to the State Constitution which requires that money placed into the Clean Energy Fund to be used solely for clean energy programs.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested by the Clerk thereof and signed by the President of the Senate and attested by the Secretary thereof, shall be transmitted to every member of the General Assembly and every member of the Senate.
3. This joint resolution shall take effect immediately.
STATEMENT
This joint resolution urges the passage of an amendment to the State Constitution that requires money placed into the Clean Energy Fund to be used solely for clean energy programs.
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 are: (1) social programs, (2) nuclear plant decommissioning, (3) demand side management programs, meaning programs involving energy efficiency, energy conservation and renewable energy, (4) manufactured gas plant remediation, (5) consumer education, and (6) the Universal Service Fund. The money collected through the SBC allocated toward demand side management programs was initially expended directly by the utilities, but in 2003 the BPU established an independent fund, which came to be known as the Clean Energy Fund, where the money is currently deposited.
The annual appropriations act has repeatedly authorized distributions from the Clean Energy Fund for purposes that are not provided for in 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 Clean Energy Funds for purposes not contemplated within EDECA and entirely unrelated to energy efficiency, energy conservation and renewable energy constitutes a hidden general tax on the people of New Jersey. Therefore, an amendment to the State constitution is necessary to prevent future diversions from the Clean Energy Fund.
