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A 887

Prohibits EDA from issuing subsidies for wind energy projects.

2026-2027 Regular Session Introduced by Dawn Fantasia and 5 co-sponsors

Prohibits the EDA from providing any financial assistance or incentives for wind energy projects, reorienting funds to energy efficiency and emissions-reduction programs.

Introduced, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 887

Summary of Bill A 887 (NJ, 222nd Session)

proc: Prohibits EDA subsidies for wind energy projects; makes related amendments to energy and tax-related programs.

1) Purpose and Intent

  • The bill primarily prohibits the New Jersey Economic Development Authority (EDA) from providing any form of financial assistance to wind energy projects. This includes grants, loans, loan guarantees, tax credits, or other subsidies (Section 1).
  • The measure supplements and revises existing statutes, and repeals a specific section of prior law (P.L.2010, c.57, Section 6) as it relates to offshore wind subsidies.

2) Key Provisions and Changes

A. Wind Energy Subsidy Prohibition

  • Beginning on the bill’s effective date, the EDA may not issue any financial assistance for wind energy projects in any form (grants, loans, guarantees, tax credits, subsidies) (Section 1).

B. Revisions to Energy Funding Allocation (Fund for Energy Efficiency and Emissions Reductions)

  • The bill revises Section 7 of P.L.2007, c.340 (C.26:2C-51) to specify fund allocation and program purposes, including:

    • 60% to the New Jersey Economic Development Authority for end-use energy efficiency, efficient electric generation, CHP, and emissions-reducing technologies, with authority to determine grant levels and criteria; it also references offshore wind project qualification in prior language, which would be removed by this bill.
    • 20% to the board for low- and moderate-income residential demand/cost reductions, urban heat island mitigation, and plug-in vehicle incentives.
    • 10% to the department for local government greenhouse gas reduction and energy programs.
    • 10% to the department for forest and marsh restoration and greenhouse gas sequestration.
    • Administrative cost caps (4% DEPT, 2% BOARD, 2% EDA) and Comptroller oversight (Section 2).
    • Crucially, the section clarifies: “Nothing in this section shall be construed to authorize the use of moneys in the fund for any grant, financial incentive, or program in support of a wind energy project.” This reinforces the wind subsidy prohibition (Section 2e).

C. Tax Credit Provisions (NJ Economic Recovery/Other Tax Credits)

  • Several amendments touch on tax credit parameters across multiple programs:
    • Section 75 of P.L.2020, c.156: Sets base and bonus amounts for job creation, with detailed tiered caps by location (government-restricted municipalities, enhanced areas, distressed municipalities, Opportunity Zones, etc.) and various eligibility bonuses (Section 3).
    • Caps on annual and total values per program; beneficiary caps; methodologies for salary-based reductions; and prohibitions on wind-energy related tax credits (Section 3).
    • The bill contains detailed multipliers and caps for different geographic areas and eligible activities, plus prohibitions on wind energy-related tax credits (to align with the wind subsidy prohibition).

D. Garden State C-PACE and Related Definitions

  • Expands and clarifies C-PACE program definitions and mechanics (Garden State C-PACE), including:
    • Definitions for energy efficiency, renewable energy systems (notably excluding wind energy in some definitions), microgrids, projects, and financing structures.
    • Local vs. Garden State program guidelines, and the roles of participating municipalities.
    • These provisions appear to standardize and broaden C-PACE while ensuring wind energy remains outside eligible project costs (Section 5).

E. Offshore Wind and Qualified Projects

  • The bill references offshore wind project definitions and qualifiers. It restricts the authority from approving incentives for wind energy, thereby limiting wind-related tax credits and subsidies (Section 6).

3) Who/What Would Be Affected

  • State agencies: New Jersey Economic Development Authority (EDA), the Board of Public Utilities, and the Department of Environmental Protection (implied through coordinated programs).
  • Wind energy developers and offshore wind projects: would no longer receive state-financed subsidies or tax incentives from these programs.
  • Local governments and communities: impact from redirected funding toward energy efficiency, low-income programs, forestry/marsh restoration, and other climate initiatives.
  • Businesses and job creation programs: New Jersey Aspire, Emerge, and related tax-credit programs would continue but with wind-related incentives removed; still subject to existing caps and bonus structures.
  • Tax credit market participants: studios, film/arts incentives, and other credits would continue under adjusted caps; however, wind-related credits would be excluded.

4) Procedural and Timeline Aspects

  • Effective date tied to the bill’s passage and enactment (beginning on the effective date of P.L. TBD; pending legislative action).
  • Financial oversight remains with the State Comptroller for the fund.
  • Administrative and board-level rules continue under the Administrative Procedure Act, with the bill maintaining annual budget process approvals for administrative costs (4%/2%/2% caps).
  • The wind-energy prohibition is prospective; existing wind-related subsidies would sunset or be halted as new allocations are limited by the statute.

Note: The bill contains numerous interconnected changes across multiple programs. Its primary thrust is to remove wind energy subsidies from state economic development and tax-incentive programs while preserving or repurposing funding for energy efficiency, emissions reductions, and other climate-related initiatives.

Compiled from official sources — confirm details with the bill’s official record.

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