Current through Register Vol. 56, No. 24, December 18, 2024
(a)
Each supplier/provider that sells electricity to retail customers in New Jersey
shall ensure that the electricity it sells each reporting year in New Jersey
includes at least the minimum percentage of offshore wind (OSW) energy required
for that energy year as set by the Board following the approval of a qualified
offshore wind project.
(b) The
total OSW energy requirement for an energy year shall reflect the projected
OREC production of qualified OSW projects, for the period covered by the
granted ORECs, from the commercial operation start date of the qualified OSW
projects.
(c) OREC obligations are
a component of Class I renewable energy requirements, and satisfaction of OREC
obligations shall be counted toward Class I renewable energy
requirements.
(d) A Statewide OREC
target will be determined by the Board based on projected OSW production. The
total will be allocated among all suppliers/providers in proportion to their
retail sales.
(e) A
supplier/provider shall meet the requirements for OSW energy generation
through:
1. Retirement of offshore wind
renewable energy certificates through a renewable energy trading program
approved by the Board; or
2.
Submittal of offshore wind alternative compliance payments.
(f) Any offshore wind alternative
compliance payments collected shall be refunded to the ratepayers.
(g) The offshore wind carve-out to the RPS
schedule is as follows:
1. The OSW carve-out
shall establish for each energy year:
i. The
total number of MWhs that the Board has authorized as eligible to receive
ORECs;
ii. Annual RPS requirement
or OSW purchase percentage set as a percentage of retail sales a supplier must
cover by purchasing ORECs; and
iii.
The OREC purchase price that each individual qualified OSW project has been
authorized to receive in OREC Orders in effect for the energy year.
2. The OSW carve-out shall:
i. Become effective in the first energy year
in which the first approved OSW project's commercial operations date falls, and
then be adjusted by the Board on an annual basis to reflect subsequent
projects;
ii. Continue for each
energy year during which any qualified OSW project is operational, up to and
including the energy year in which the last qualified OSW project reaches the
end of its term as established in its OREC order;
iii. Be published annually by the Board no
less than three months prior to the BGS auction;
iv. Be set and maintained by the Board in
order to ensure that sufficient revenues from suppliers, or designated payment
agent, are received by the qualified OSW projects for ORECs generated up to
each project's approved OREC allowance;
v. Account for any payments made in excess of
a project's approved OREC allowance and these payments shall be refunded to
ratepayers;
vi. Require the OREC
administrator to advise the Board on an annual basis to determine if the OREC
purchase percentage is set too high or too low and needs to be reset to meet
the annual OREC allowance;
vii.
Require the OREC administrator to advise the Board on an annual basis, the
amount of the surcharge to be collected by each EDC in order to meet the annual
OREC allowance for each qualified offshore wind facility; and
viii. Be evaluated annually, and adjusted if
necessary, by the Board to ensure sufficient OREC purchase percentage,
including adjustments needed to account for any new OREC orders issued in the
previous year and changes to the annual total projected load.
3. The OREC administrator shall
conduct a true up twice annually at six months and at 12 months and no later
than 120 days after the close of each energy year during each year of supplier
obligations, to ensure compliance and provide the Board recommendations for any
adjustments to the OSW purchase percentage and OSW carve-out.
4. Any adjustment to the OSW purchase
percentage and OSW carve-out schedule shall be made at least three years in
advance of the applicable energy year. Adjustments to the Class I requirements,
necessitated by a change in the OSW requirement percentage, shall be made in
tandem and three years in advance.
5. Suppliers shall:
i. Meet the OSW carve-out requirement by
obtaining ORECs from each qualified OSW project in sufficient amounts as
verified by the OREC administrator;
ii. Set up a PJM-EIS GATs account to receive
ORECs from qualified OSW projects on a quarterly basis through the OREC
administrator; and
iii. Retire
ORECs from qualified OSW projects on an annual basis in order to meet the OSW
carve-out obligation, in the same manner they would retire other types of RECs
to meet other RPS obligations.