Contact Information:

New Jersey
Bureau of New Source Review
P.O. Box 027
Trenton, NJ 08625-0027

(609) 633-2829

Or view the Department's
Website

 

Relevant State Sites:

New Jersey Board of Public Utilities

New Jersey Air Quality Regulations

 

Major Utilities:

Conectiv (Pepco)

Atlantic City Electric (Pepco)

JCP&L (FirstEnergy Corp)

PSEG

Rockland

 

Specific Issues:

EMISSIONS REGULATIONS

GUIDE TO FEDERAL REGULATIONS

SITING REGULATIONS

BUILDING, ZONING
AND FIRE CODES

INTERCONNECTION REQUIREMENTS

EXIT FEES

STANDBY RATES

REPORTING REQUIREMENTS

ECONOMIC INCENTIVES

 

 

WHAT'S NEW:

No recent state activity has been identified.

AIR EMISSIONS REGULATIONS:

Air Quality Status

The whole state is in the OTR, 21 counties are in moderate nonattainment for the 8-hr ozone standards, 1 county is in moderate nonattainment for SO2, and 13 areas are in nonattainment with PM 2.5 standards.
EPA's Nonattainment Areas

Major Source Threshold

100 tons of NOx or VOC or 250 tons of criteria pollutant in attainment areas. 25 tons of NOx or VOC in severe nonattainment areas, 100 tons of CO in moderate areas.

Minor Source Permitting Exemption

Engines smaller than 37 kW

Minor Source Treatment

State of the art (SOTA) controls, PM, sulfur and opacity limits

Emergency Generating Limits

General permit

DE MINIMIS EXEMPTIONS

Engines smaller than 37 kW are exempt from permitting.

MINOR SOURCE PERMITTING

Units with a potential to emit greater than 5 tons per year of any criteria pollutant must apply State-of-the-Art (SOTA) technology requirements. SOTA can also be triggered based on HAP emissions, but the amount is specific to each type of pollutant and the regulations should be consulted, see Title 7. Department of Environment, Chapter 27. Air Pollution Control, Subchapter 8. Permits and Certificates for Minor Sources, Appendix 1, B.. SOTA requirements are determined by either a top down analysis, similar to a state BACT analysis or by complying with requirements in the SOTA manual. The state publishes manuals for each type of technology. The two SOTA manuals most applicable to small DG are – Title 13, Internal Combustion Engines; and Title 14, Stationary Gas Turbines. A general overview of the state’s SOTA regulations can be found here, http://www.nj.gov/dep/aqpp/downloads/sota/sota0.pdf. Specific SOTA manuals can be found here, http://www.nj.gov/dep/aqpp/sota.html.

There is also a general permit for single boilers less than 10 MMBtu/hr and burning natural gas, No. 2 fuel oil, propane, diesel, kerosene or a combination of these fuels. Under this permit, requirements include sulfur limits depending on location and ranging from 0.1-0.3% and PM limits based on size and location. The relevant permit guidelines and application form can be found here, http://www.nj.gov/dep/aqpp/gp1list.htm.

In 2005, the New Jersey DEP amended its NOx RACT requirements, 7:27-19, extending coverage to smaller stationary reciprocating engines. Under previous rules, engines smaller than 500 brake horsepower (bhp) were not regulated under state RACT standards. Under the revised 2005 regulations, starting March 7, 2007 the following stationary reciprocating engines used for generating electricity are regulated –

  • Engines with a maximum rated power output of 148 kW or greater; or
  • 37 kW or greater, if the engine has either commenced operation at the facility or is modified on or after March 7, 2007.

NOx emission limits are based on the engine type (rich or lean burn), size, and the type of fuel used, but generally range between a NOx limit of 0.9 g/bhp-hr up to 2.3. Specific NOx limits can be found in Statute 7:27-19.8 - Stationary Reciprocating Engines.

New Jersey Air permitting contact information can be found here, http://www.nj.gov/dep/aqpp/contact.html.

MAJOR NSR/PSD PERMITTING

The state is located in the Ozone Transport Region, which means 100 tons of NOx or VOC triggers NSR. 250 tons of any other criteria pollutant triggers PSD in attainment areas. 100 tons of CO or 25 tons of NOx or VOC triggers NSR in nonattainment areas.

TREATMENT OF EMERGENCY ENGINES

There is a general permit available for emergency generators. The permit applies to either a single stationary reciprocating internal combustion engine emergency generator with a maximum rated heat input to the burning chamber of less than 80 MMBtu/hr or multiples of this category of engine with a combined heat input of less than 80 MMBtu/hr. Additionally, the application is only available to engines using the following fuels: number 2 fuel oil, diesel, kerosene, natural gas and propane. Emergency generators can operate only: 1) during normal testing and maintenance procedures; 2) when there is a power outage or the primary source of mechanical or thermal energy fails because of an emergency; 3) or when there is a voltage reduction issued by PJM and posted on the PJM website under the “emergency procedures” menu. The permit specifically states that it does not allow for “load shaving, peaking power production, or generation in an agreement with a utility assistance program.” For emergency generators manufactured after April 1, 2006 or modified or reconstructed after July 11, 2005 must use liquid fuel containing no more than 500 ppm sulfur beginning October 1, 2007; and 15 ppm (0.0015%) sulfur beginning October 1, 2010. More detailed information on the emergency generator general permit can be found here, http://www.nj.gov/dep/aqpp/gp1list.htm.

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

As a result of the deregulation of the state electric market, the New Jersey Board of Public Utilities does not have any jurisdiction over the siting of electric facilities. However, a DG developer must still seek compliance with local authorities and the approval of the New Jersey Department of Environmental Protection. General permit forms can be found here, http://www.state.nj.us/dep/aqpp/gp1list.htm.

BUILDING, ZONING AND FIRE CODES:

Building Codes: New Jersey enforces the Uniform Standard Code (USC). The USC Building Codes section references the 2006 IBC with state technical amendments.

Energy Codes: New Jersey enforces the Uniform Standard Code (USC). The USC Building Codes section references ASHRAE 90.1-2004 with state technical amendments for commercial building.

Fire Codes: New Jersey has adopted the 2006 IFC as its state fire code with some amendments. [1]

Zoning: Zoning and planning happens at the local level. Check with each jurisdiction regarding their zoning codes.

Resources (information may not be as current as provided above)

A general overview of each state’s enacted codes can be found HERE.

The International Code Council Adoption page gives state-by-state adoption status of specific ICC codes, as well as information about code adoption by some municipal governments within that state.

Information about energy codes can be found at the DOE’s Building Codes for Energy Efficiency page or at the Building Codes Assistance Project.

INTERCONNECTION REQUIREMENTS:

In October 2004, final rules were adopted to clarify and simplify interconnection for most residential and small commercial facilities (part of net metering legislation). These rules apply to all DG up to 2 MW and simplified rules exist for systems up to 10kW. In September 2007, an order issued in Docket No. EO06100744 directed the Office of Clean Energy (OCE) to develop modified rules. The OCE recommended that the renewable portfolio standard (RPS), net metering, and interconnection rules be amended to remove the 2 MW cap on eligibility. The Board of Public Utilities (BPU) directed the OCE to develop proposed modifications by May 1, 2008, with these modifications to be adopted by May 1, 2009. As of August 2008 the only proposals issued by the BPU deal with RPS.

The current rules have three different levels of review for applications.

  • Level 1 applies to inverter-based systems with a capacity rating of 10 kilowatts (kW) or less. There is no fee for Level 1 interconnection.
  • Level 2 applies to systems with a maximum capacity of 2 MW that are certified by a nationally-recognized testing and certification laboratory as meeting IEEE 1547 and UL 1741 compliance standards. Level 2 interconnection may include a fee of $50 plus $1 per kW of capacity (not to exceed $100).
  • Level 3 applies to systems with a maximum capacity of 2 MW that do not qualify for either the Level 1 or Level 2 interconnection review procedures.  Level 3 may include a fee of $100 plus $2 per kW of capacity, as well as charges for actual time spent on any impact and/or facilities studies required by the standard.  

Interconnection to networks is permitted for all levels. Interconnection applications, guidelines, and contacts for the New Jersey utilities are available from New Jersey’s Clean Energy Program.

For more information contact the BPU or your electricity generation and distribution utility.

Benjamin Scott Hunter
New Jersey Board of Public Utilities
Renewable Energy Program Administrator, Office of Clean Energy
44 South Clinton Avenue
P.O. Box 350
Trenton, NJ 08625-0350
Phone: (609) 777-3300
Fax: (609) 777-3330
E-Mail:benjamin.hunter@bpu.state.nj.us

EXIT FEES:

DG operators may be assessed an exit fee under certain conditions, discussed below. Under the New Jersey restructuring legislation, adopted January 7, 1999, the "Electric Discount and Energy Competition Act," A 10/S 5, determines that on-site generators that sell only to on-site loads are exempt from paying exit fees. However, the legislation goes on to state that on-site generation will be subject to all exit fees if "the amount of generation from on-site generators has reduced the kilowatt hours distributed by an electric public utility to a level equal to 92.5 percent of the 1999 kilowatt hours distributed."

Legislation A 10/S 5 (February 1999), Section C. 48:3-77

b. None of the following charges shall be imposed on the electricity sold solely to the on-site customer of an on-site generating facility, except pursuant to subsection c. of this section:

1) The societal benefits charge or its equivalent, imposed pursuant to section 12 of this act;
2) The market transition charge or its equivalent, imposed pursuant to section 13 of this act; and
3) The transition bond charge or its equivalent, imposed pursuant to section 18 of this act.


c. Upon finding that generation from on-site generation facilities installed subsequent to the starting date of retail competition as provided in subsection a. section 5 of this act has, in the aggregate, displaced customer purchases from an electric public utility by an amount such that the kilowatt hours distributed by the electric public utility have been reduced to an amount equal to 92.5 percent of the 1999 kilowatt hours distributed by the electric public utility, the board shall impose, except as provided in subsection d. of this section, the charges listed in subsection a., b., and c. of this section on the on-site customer. Such charges shall not be levied on any power consumption that is displaced by an on-site generation facility that is installed before the date of such finding:

d. Notwithstanding the provisions of subsection c. of this section, a charge shall not be imposed on power consumption by the on-site customer that is derived from an on-site generation facility:

1) That the on-site customer or its agent installed on or before the effective date of this act, including any expansion of such a facility for the continued provision of on-site power consumption by the same on-site customer that occurs after the effective date of this act; or 2) For which the on-site customer or its agent has made, on or before the effective date of this act, substantial financial and contractual commitments in planning and development, including having applied for any appropriate air permit from the Department of Environmental Protection, including any expansion of such a facility for the continued provision of on-site power consumption by the same on-site customer that occurs after the effective date of this act.

UTILITY STANDBY RATES:

New Jersey does not have a statewide policy on standby rates. Relevant provisions for New Jersey utilities are listed below:  

Jersey Central Power and Light

STB Standby Service

Load Size

Generator must be online for > 50% of the month

Basic Charge

n/a

Metering Service

n/a

Back-up/
Standby/Emergency

Demand charge is calculated
Standby Energy Rates
$3.19/kW (GS and GST)
$2.39/kW (GP)
$1.21/kW (GT)

Supplementary/Auxillary

Demand charge is calculated
Standby Energy Rates
$3.19/kW (GS and GST)
$2.39/kW (GP)
$1.21/kW (GT)

Maintenance

Demand charge is calculated
Standby Energy Rates
$3.19/kW (GS and GST)
$2.39/kW (GP)
$1.21/kW (GT)

Net-Metering

n/a

Company Power Purchase

n/a

 

QFS Cogeneration and Small Power Production Service

Load Size

<= 10 kW

> 100 kW

> 1000 kW

Basic Charge

$30.00

$30.00

$30.00

Metering Service

n/a

n/a

n/a

Back-up/
Standby/Emergency

n/a

n/a

n/a

Supplementary/Auxillary

n/a

n/a

n/a

Maintenance

n/a

n/a

n/a

Net-Metering

<= 10 kW of generation capacity, the load is net metered and excess power produced is compensated for annually using the average energy rates

<= 10 kW of generation capacity, the load is net metered and excess power produced is compensated for annually using the average energy rates

<= 10 kW of generation capacity, the load is net metered and excess power produced is compensated for annually using the average energy rates

Company Power Purchase

Energy purchase rate = PJM transaction rate paid out monthly

Special contract must be negotiated

Energy purchase rate = PJM transaction rate paid out monthly

Special contract must be negotiated

Energy purchase rate = PJM transaction rate paid out monthly

Special contract must be negotiated

 

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