New Jersey
Introduction
Eligible technologies include
- Class I
- Solar
- PV
- Wind energy
- Fuel cells (powered by methanol, ethanol, landfill gas, digestor gas, biomass gas or other renewable fuel)
- Geothermal
- Wave or tidal
- Methane gas from landfills
- Biomass
- Bioenergy crop including wood produced at bioenergy plantation
- Wood from thinning/trimming forest, provided it's not old growth
- Gas from anaerobic digestion, excluding food waste and sewage
- Unadulterated wood including pallets and wood shavings/scraps from lumberyard or paper mill, excluding black liquor (Black Liquor: viscous liquid containing inorganic chemicals and organic material such as lignin and aliphatic acids, which is separated from wood during chemicals pulping.)
- Other biomass facilities may be eligible if they are approved by the NJDEP and the biomass is cultivated and harvested in a sustainable manner.
- Class II
- Resource recovery facilities located in NJ
- Hydropower facilities 30MW or smaller
- Facilities must be located where retail competition is permitted and the NJDEP has determined that the facility meets environmental requirements
Minimum Percentage of Renewable Energy Required
| Reporting Year | Solar RECs | Class I | Class II | Total |
|---|---|---|---|---|
| 2005 | 0.01% | .74% | 2.5% | 3.25% |
| 2006 | 0.017% | 0.983% | 2.5% | 3.5% |
| 2007 | 0.0393% | 2.037% | 2.5% | 4.5763% |
| 2008 | 0.0817% | 2.924% | 2.5% | 5.5057% |
| 2009 | 0.16% | 3.84% | 2.5% | 6.5% |
*Percentages for beyond 2009 will be determined at least two years prior to the reporting year.
Solar RECs can be used to meet any requirement, and direct solar electric generation may be used to meet Class I and Class II requirements; however, direct solar electric generation may not be used to meet solar requirements — only SRECs can be used. (You can generate solar electricity but you must be interconnected and Board of Public Utilities will issue SRECs according to your generation.)
No double-counting: RECs can't be used to satisfy more that one NJ requirement; or simultaneously REC requirements in other states.
The compliance schedule is different for supplier/providers who participated in the 2003 basic generation service (BGS) auction, and won the right to supply to one or more of 34 tranches. The portion of the portfolio that is supplied pursuant to the auction win is subject to the following requirements:
| Reporting Period | Class I | Class I or II | Total |
|---|---|---|---|
| 2005 | 0.75% | 2.5% | 3.25% |
| 2006 | 0.75% | 2.5% | 3.25% |
| After May 31, 2006 | 1.0% | 2.5% | 3.5% |
Reporting Year
This is from June 1st through to May 31st, and is numbered according to the calendar year in which it ends. The true-up period is first three months of following reporting year.
Supplier/provider must provide an annual report by September 1st.
Location
Renewable energy generated outside of the PJM region, but is delivered into the PJM region may be used to satisfy requirements only if the facility was constructed on or after January 1, 2003.
Retiring/Banking RECs
- RECs can't be banked; RECs being used for compliance can only be associated with energy that was generated during that reporting year.
- Once a REC has been submitted for compliance, the REC is permanently retired.
- Only a fraction of a MW can be carried over one or more reporting years to make one full MW; it can then be only used for the reporting year in which it becomes one full MW.
- A REC based on solar electricity generated during the three month true-up period is only eligible for the new reporting year compliance.
Alternative Compliance Payment (ACP) and Solar Alternative Compliance Payment (SACP)
An ACP advisory committee will review the price of ACPs and SACPs at least once per year. ACP and SACP will be higher than the estimated competitive market cost. In 2004, ACPs were $50 per MWh and SACPs were $300 per MWh.