"Affordable Power Purchase Agreements Extension Act"; concerns extension of certain public entity contracts related to energy conservation and renewable energy production.

Longer clean-energy deals for public agencies

Eligible New Jersey public entities can extend qualifying renewable-energy contracts for Class I energy; some contracts can also cover Class II energy. The work must produce energy at or next to the entity’s buildings or operations, and the full price must be tied to energy-cost savings. The first term is limited to 15 years, and extensions or renewals can bring the total to 30 years. State utility guidelines govern savings and generation-cost calculations. For fixed prices, extension prices cannot exceed the greater of the old price or 20% below the current retail rate; for prices that rise or fall, the cap uses the greater of the continued price change or that retail-rate benchmark. School boards and county colleges can extend certain renewable contracts without publicly advertising for bids.