New Jersey S 4061: Allows value of SREC-IIs to be included in cost-benefit calculations under energy savings improvement programs.

Bill Text

S4061 

SENATE, No. 4061 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

INTRODUCED MARCH 23, 2026

Sponsored by:

Senator� BOB SMITH

District 17 (Middlesex and Somerset)

Senator� LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Allows value of SREC-IIs to be included in 
cost-benefit calculations under energy savings improvement programs. 

CURRENT VERSION OF TEXT 

���� As introduced.

�� 

An Act concerning energy savings improvement programs 
and amending P.L.2009, c.4.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� Section 1 of P.L.2009, c.4 (C.18A:18A-4.6) is amended to read as 
follows:

���� 1. a. (1) A board of 
education, as defined in N.J.S.18A:18A-2, may implement an energy savings 
improvement program in the manner provided by this section whenever it 
determines that the savings generated from reduced energy use from the program 
will be sufficient to cover the cost of the program's energy conservation 
measures as set forth in an energy savings plan.� Under such a program, a board 
of education may enter into an energy savings services contract with an energy 
services company to implement the program or the board may authorize separate 
contracts to implement the program.� The provisions of N.J.S.18A:18A-1 et seq. 
shall apply to any contracts awarded pursuant to this section to the extent 
that the provisions of such law are not inconsistent with any provision of this 
section.

���� (2)� A board of education 
facility alteration required to properly implement other energy efficiency or 
energy conservation measures, or both, may be included as part of an energy 
savings services contract, in which case, notwithstanding any other provision of 
law, rule, regulation, or order to the contrary, the facility alteration may be 
undertaken or supervised by the energy services company performing the energy 
savings services contract if:

���� (a)�� the total cost of the 
improvement does not exceed 15 percent of the total cost of the work to be 
performed under the energy savings services contract; and

���� (b) (i) the improvement is 
necessary to conform to a law, rule, or regulation, or order, or (ii) an 
analysis within an approved proposal, or the board of education, at the time of 
the award of the proposal, demonstrates that there is an economic advantage to 
the board of education implementing the improvement as part of the energy 
savings services contract, and the savings rationale for the improvement is 
documented and supported by reasonable justification.

���� b. (1) To be eligible to enter 
into an energy savings services contract, an energy services company shall be a 
commercial entity that is qualified to provide energy savings services in 
accordance with the provisions of this section. A board of education may 
determine to enter into an energy savings services contract either through 
public advertising for bids and the receipt of bids therefor or through 
competitive contracting in lieu of public bidding in the manner provided by 
sections 45 through 49 of P.L.1999, c.440 (C.18A:18A-4.1 et seq.).

���� (2) (a) Public works 
activities performed under an energy savings improvement program shall be 
subject to all requirements regarding public bidding, bid security, performance 
guarantees, insurance and other public contracting requirements that are applicable 
to public works contracts, to the extent not inconsistent with this section.� A 
general contractor, energy services company serving as general contractor, or 
any subcontractor hired for the furnishing of plumbing and gas fitting and all 
kindred work, and of steam and hot water heating and ventilating apparatus, 
steam power plants and kindred work, and electrical work, structural steel and 
ornamental iron work, shall be classified by the Division of Property 
Management and Construction in the Department of the Treasury in order to 
perform public works activities under an energy savings improvement program.

���� (b)� Individuals or 
organizations performing energy audits, acting as commissioning agents, or 
conducting verification of energy savings plans, implementation of energy 
conservation measures, or verifying guarantees shall be prequalified by the 
Division of Property Management and Construction in the Department of the 
Treasury to perform their work under an energy savings improvement program.

���� (3) (a) An energy services 
company may be designated as the general contractor for improvements to be made 
pursuant to an energy savings plan, provided that the hiring of subcontractors 
that are required to be classified pursuant to subparagraph (a) of paragraph 
(2) of this subsection shall be performed in accordance with the procedures and 
requirements set forth pursuant to the public bidding requirements of the board 
of education.� A contract with an energy savings company shall include, but not 
be limited to: preparation of an