MID-ATLANTIC SOLAR ENERGY INDUSTRIES ASSOCIATION v. Christie
14 A.3d 760
N.J. Super. Ct. App. Div.2011Background
- The 2010 Supplemental Appropriations Act, L. 2010, c. 19, authorized transferring up to $158 million from the Clean Energy Fund to the General Fund.
- Clean Energy Fund revenue arises from the societal benefits charge under N.J.S.A. 48:3-60(a) and is administered by the BPU with funds deposited into the State Treasury.
- Legislation in prior years repeatedly authorized transfers from the Clean Energy Fund to the General Fund, creating a longstanding practice contrary to the Fund’s original purposes.
- Executive Order 14 directed the Director of the Division of Budget and Accounting to reserve $158 million to balance the state budget, effectively reducing Clean Energy Fund distributions.
- The BPU revised the 2010 Clean Energy Fund budget in April and June 2010 to reflect the reserved amount, culminating in challenged actions by Mid-Atlantic Solar Energy Association.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to transfer funds via appropriations act | Mid-Atlantic asserts no legislative power to move Clean Energy Funds to General Fund. | Governor/Legislature may supersede prior uses through appropriations acts. | Section six valid; Legislature may reallocate funds via appropriations. |
| Characterization of Clean Energy Fund money | Money is private; transfers improper. | Money is collected under state statute and subject to legislative control. | Fund money treated as within legislative control for appropriation purposes. |
| Mootness of related executive and budget revision challenges | Challenged EO 14 and budget revisions remain pertinent. | Valid transfer superseded EO 14 and budget revisions; issues moot. | Challenges moot; Section six upheld. |
| Consultation with DEP under N.J.S.A. 48:3-60(a)(3) | BPU failed to consult with DEP in revisions. | Consultation occurred; argument raised prematurely and improperly. | Issue not considered; argument deemed improper. |
Key Cases Cited
- City of Camden v. Byrne, 82 N.J. 133 (1980) (legislative intent supersedes earlier statutes in later appropriation acts)
- In re Boyan, 127 N.J. 266 (1992) (appropriations acts supersede prior enactments for duration)
- Karcher v. Kean, 97 N.J. 483 (1984) (appropriation power to ensure funding)
- County of Camden v. Waldman, 292 N.J. Super. 268 (App.Div. 1996) (suspension by later appropriation acts)
- State v. Cannon, 128 N.J. 546 (1992) (interpretation of legislative authority)