New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 8 - RENEWABLE ENERGY AND ENERGY EFFICIENCY › Subchapter 6 - QUALIFIED OFFSHORE WIND PROJECTS › Section 14:8-6.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise. Additional definitions that apply to this subchapter can be found at
				  N.J.A.C.
				  14:3-1.1 and
				  14:4-1.2.
"All project revenues" shall mean all revenues generated by a
				  qualified offshore wind facility, during the 20-year term of the Board Order,
				  resulting from the sale of energy, capacity, or any ancillary service in PJM,
				  or any other revenue that is generated by a qualified offshore wind
				  facility.
"Annual OREC allowance" means the Board-approved maximum
				  number of ORECs for which a qualified OSW project can be paid during each year
				  of its qualification life.
"Annual OREC allowance schedule" means the schedule included
				  in each qualified OSW project's OREC Order, representing the scheduled amount
				  of ORECs that the project may submit to the OREC payment agent for payment for
				  each month of the year, with the monthly amounts totaling to equal the annual
				  OREC allowance. A project may exceed its monthly allocation due to higher
				  production or output, as long as it does not exceed the annual OREC
				  allowance.
"Annual total projected load" means the State's total load in
				  the energy year immediately proceeding the year during which suppliers must
				  meet their OREC obligation and is used in calculating the OREC purchase
				  percentage.
"Commercial operations date (COD)" means the date upon which
				  a qualified OSW project, or a phase of a qualified OSW facility, which is
				  interconnected to the transmission system in New Jersey, begins to generate
				  power for which it is eligible to receive ORECs.
"Controlling interest" means the possession, directly or
				  indirectly, of the power to direct or cause the direction of the management and
				  policies of the company, whether through the ownership of voting securities, by
				  contract, proxy, or otherwise.
"Energy year (EY)" means the 12-month period from June 1st
				  through May 31st and shall be numbered according to the calendar year in which
				  it ends (for example, EY 2019 runs from June 1, 2018 through May 31,
				  2019).
"Generation attribute tracking system (GATS)" means the
				  environmental and emissions attribute tracking system for electric generation
				  that is administered by PJM Environmental Information Services (EIS).
"Key employee" means any individual employed by the applicant
				  in a supervisory capacity or empowered to make discretionary decisions with
				  respect to the project.
"Offshore wind administrative cost" means the reasonable
				  costs incurred by the EDCs in serving as payment agent and for contracting the
				  OREC administrator, which shall be recoverable by the EDCs.
"Offshore wind alternative compliance payment (OACP)" means a
				  payment made on behalf of a supplier during annual true up due to insufficient
				  OREC supply that shall be equal to the price of an OREC.
"Offshore wind energy" means electric energy produced by a
				  qualified offshore wind project.
"Offshore wind facility qualification life" means, for any
				  qualified offshore wind generation facility, or project phase of a qualified
				  OSW facility, the period beginning on the commercial operation date (COD) when
				  the facility or project phase of a qualified OSW facility, is authorized to
				  operate under this subchapter and ending on the conclusion of the energy year
				  that is 20 years after the date of authorization to operate. An offshore wind
				  facility's qualification life applies to the facility itself, or project phase
				  of a qualified OSW facility, and to each piece of equipment included in the
				  facility, regardless of any interruption in the offshore wind facility's
				  operation; or of any disassembly, relocation, sale, or transfer of any piece of
				  equipment included in the facility.
"Offshore wind renewable energy certificate" or "OREC" means
				  a certificate issued by the Board or its designee, representing the
				  environmental attributes of one megawatt hour of electric generation from a
				  qualified offshore wind project.
"OREC administrator" means the independent entity jointly
				  contracted by EDCs to oversee and verify all OREC transactions, the refund of
				  all revenues to ratepayers, and annual compliance with the OSW Renewable
				  Portfolio Standard (RPS) obligation.
"OREC payment agent" means the electric distribution company
				  that shall facilitate the transfer of funds pursuant to this subchapter.
"OREC purchase percentage" means the percentage of load for
				  which all suppliers must purchase and retire ORECs, or receive an OACP credit,
				  per this program, as set forth in the OSW carve-out.
"OREC purchase price" means the amount that must be paid for
				  an OREC through this program as established by the Board for each project for
				  each energy year.
"OREC qualification life" means the eligibility period of an
				  OREC. ORECs are eligible to be applied toward the OSW RPS carve-out during the
				  energy year in which they are produced, and the following two energy years,
				  pursuant to the Offshore Wind Economic Development Act, N.J.S.A. 48:3-87.1 et
				  seq.
"OREC surcharge" means a non-bypassable surcharge on
				  ratepayers, to be set annually by the Board, and collected by the EDCs to cover
				  the OREC costs for all qualified offshore wind facilities in operation that
				  year.
"OREC Transaction Management Agreement" means a uniform
				  agreement entered into between each qualified OSW project and the OREC
				  administrator. This OREC Transaction Management Agreement shall serve as the
				  detailed management plan or "operating manual" describing how the OREC
				  administrator will oversee and report out on all OREC transactions and shall
				  require Board approval before going into effect.
"OWEDA" means the Offshore Wind Economic Development Act,
				  N.J.S.A. 48:3-87.1 et seq.
"Qualified offshore wind project" means a wind turbine
				  electric generation facility in the Atlantic Ocean and connected to the
				  electrical transmission system in this State, and includes the associated
				  transmission-related interconnection facilities and equipment, and approved by
				  the Board pursuant to
				  section
				  3 of
				  P.L.
				  1999, c. 23 (48:3-51
				  ).
"Ratepayer surcharge" means "OREC surcharge" as defined in
				  this section.
"Supplier" means basic generation service (BGS) suppliers and
				  third-party suppliers.
"Term" means the period after the COD, during which ORECs may
				  be generated, priced, and sold by a qualified OSW project.