# In the Matter of the New Jersey Solar Transition Pursuant to P.L. 2018, C. 17 – Application for Certification of Solar Facility, Etc.

> New Jersey Superior Court Appellate Division · December 29, 2025

URL: https://www.frixlaw.com/law-library/cases/11232546

## Case

- **Court:** New Jersey Superior Court Appellate Division
- **Decided:** December 29, 2025
- **Precedential status:** Unpublished
- **Opinion:** Opinion
- **Cited by:** 0 later opinions in the Frix Law Library

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## Opinion text

NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-0424-24

IN THE MATTER OF THE NEW
JERSEY SOLAR TRANSITION
PURSUANT TO P.L. 2018, C. 17 –
APPLICATION FOR
CERTIFICATION OF SOLAR
FACILITY AS ELIGIBLE FOR
TRECS PURSUANT TO
SUBSECTION (T) OF THE SOLAR
ACT OF 2012 – KOBER SOLAR
AUTO PARTS, INC.
______________________________

Argued October 29, 2025 – Decided December 29, 2025

Before Judges Gummer, Paganelli and Vanek.

On appeal from the New Jersey Board of Public
Utilities, Docket No. QO21081098.

Michael H. Freeman argued the cause for appellant
CEP Renewables, LLC (Genova Burns LLC, attorneys;
Kenneth J. Sheehan, of counsel and on the briefs).

Jordan K. Mitchell, Deputy Attorney General, argued
the cause for respondent New Jersey Board of Public
Utilities (Matthew J. Platkin, Attorney General,
attorney; Janet Greenberg Cohen, Assistant Attorney
General, of counsel; Jordan K. Mitchell, on the brief).
Andrew M. Kuntz, Assistant Deputy Rate Counsel,
argued the cause for respondent New Jersey Division of
Rate Counsel (Brian O. Lipman, Director, attorney;
Megan C. Lupo, on the brief).

PER CURIAM

CEP Renewables, LLC (CEP)1 appeals from a final agency decision of the

Board of Public Utilities (the BPU) denying its application for conditional

certification of a solar energy project seeking Transitional Renewable Energy

Certificates (TRECs) under the Transition Incentive (TI) program pursuant to

N.J.S.A. 48:3-87(t). We affirm.

I.

We glean the facts and procedural history from the record. On August 26,

2021, CEP applied under N.J.S.A. 48:3-87(t) (subsection (t)) of the Solar Act of

2012, N.J.S.A. 48:3-51 to -87 (the Solar Act) for conditional certification of the

Kober Solar Farm (Kober Site) as a subsection (t) solar facility project. CEP

requested a conditional certification for eligibility to receive TRECs for its

proposed solar electric generation facility at the Kober Site pursuant to the TI

program. In its application, CEP described the Kober Site as a former auto

1
Appellant is variously identified as Kober Solar Auto Parts, Inc., CEP
Renewables, LLC, and Kober Solar Farm, LLC in the record. We refer to the
appellant as CEP, consistent with the Notice of Appeal.

A-0424-24
2
junkyard and salvage yard operating as Kober's Auto Parts and Kober's Truck

Parts since the 1950s. Kober Auto Parts was registered as an auto recycler with

the New Jersey Department of Environmental Protection (DEP) Solid Waste

Program.

At the time of the application, CEP had entered into an agreement to

purchase the Kober Site from the Estate of William G. Kober. CEP

acknowledged the Kober Site had been tax assessed as farmland and that the

now-deceased prior owner, William G. Kober, had used portions of the property

as a "farm for animal feed." However, CEP claimed the assessment did not

reflect "the widespread industrial use of the junkyard auto recycling business"

and that the "remaining soils do not support a sustainable agricultural crop due

to the contamination and metal debris at the site."

On December 10, 2021, the BPU forwarded CEP's application to the DEP

to determine whether the Kober Site was a brownfield that was eligible to

receive TI solar incentives.2 After its review, the DEP issued an advisory

memorandum, concluding the site did not qualify as a brownfield because the

land "has been actively devoted to agricultural or horticultural use that is valued,

2
A "brownfield" is "any former or current commercial or industrial site that is
currently vacant or underutilized and on which there has been, or there is
suspected to have been, a discharge of a contaminant." N.J.S.A. 48:3-51.
A-0424-24
3
assessed, and taxed pursuant to the Farmland Assessment Act [(FAA), N.J.S.A.

54:4-23.1] . . . within the ten . . . year period prior to July 24, 2012" (the

Farmland Lookback). The DEP found:

Current and historical aerial imagery . . .
indicate[d] the location of the proposed . . . solar array,
[the Kober Site], is and has been devoted to agriculture
or horticulture, and hence taxed as such by the local tax
assessor. The [DEP]'s 2002 [i]nfrared [i]magery, the
2007 [c]olor [i]magery[,] and the 2012 [c]olor
[i]magery of the property show all, or portions of each,
parcel(s) for the proposed . . . solar array, as being
utilized for agriculture or horticulture use. . . .

Additionally, consultation with the State
Agriculture Development Committee (SADC) staff
revealed that the portion of the [property], is a targeted
farm in Harmony's Farmland Preservation Plan adopted
in October 2021. . . .

The DEP concluded the Kober Site had been actively devoted to agricultural or

horticultural use and, therefore, did not constitute a brownfield and did not

qualify for TRECs under subsection (t).

On June 27, 2024, the BPU denied CEP's subsection (t) application, based

on its determination that N.J.S.A 48:3-87(s) (subsection (s)) imposes additional

restrictions "on land that has been actively devoted to agricultural or

horticultural use that is valued, assessed, and taxed pursuant to the [FAA]" at

any time within the Farmland Lookback. Specifically, the BPU found the

A-0424-24
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proposed site was qualified farmland during the Farmland Lookback, predicated

on prior certified annual farmland applications from 2014 to 2021 evidencing

agricultural use, photographic color aerial imagery that revealed the Kober Site

was actively farmed in 2002, 2007 and 2012, the Kober Site's location within

the Warren County Agricultural Development Area, and tax records from 2004

to 2021 which demonstrated the Kober Site was assessed as qualified farmland.

CEP sought reconsideration of the BPU's denial. Because the BPU did

"not grant[] or otherwise expressly act[] upon" the reconsideration motion, it

was deemed denied pursuant to N.J.A.C. 14:1-8.7(c).

II.

N.J.S.A. 48:2-46 vests the Appellate Division with jurisdiction to review

BPU orders. Because "the BPU's power to regulate utilities is broad," In re

Centex Homes, LLC, 411 N.J. Super. 244, 254 (App. Div. 2009), its "rulings are

entitled to presumptive validity." In re N.J. Am. Water Co., 169 N.J. 181, 188

(2001) (quoting In re Petition of Jersey Cent. Power & Light Co., 85 N.J. 520,

527 (1981)). We will not disturb a BPU determination unless it was "arbitrary,

capricious, unreasonable, or beyond the agency's delegated powers." N.J. Am.

Water Co., 169 N.J. at 188 (quoting In re Amend. of N.J.A.C. 8:31B-3.31, 119

N.J. 531, 544 (1990)).

A-0424-24
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Our review of a BPU decision, as with all administrative agency

determinations, is deferential and limited. Bd. of Educ. of Sparta v. M.N., 258

N.J. 333, 342 (2024). We focus on:

(1) whether the agency's action violates express or
implied legislative policies, that is, did the agency
follow the law;

(2) whether the record contains substantial evidence to
support the findings on which the agency based its
action; and

(3) whether in applying the legislative policies to the
facts, the agency clearly erred in reaching a conclusion
that could not reasonably have been made on a showing
of the relevant factors.

[Allstars Auto Grp. v. N.J. Motor Vehicle Comm'n, 234
N.J. 150, 157 (2018) (quoting In re Stallworth, 208 N.J.
182, 194 (2011)).]

Although we are not bound by an agency's statutory interpretation, "[w]e will

ordinarily defer to an agency's reasonable construction of statutes it is charged

with implementing." Platkin ex rel. Kopleton v. Kizito, 481 N.J. Super. 587,

594 (App. Div. 2025) (quoting In re the Competitive Solar Incentive Program,

478 N.J. Super. 341, 349 (App. Div. 2024)). The challenger of an administrative

action bears the burden of demonstrating that it was arbitrary, capricious, or

unreasonable. A.B. v. Div. of Med. Assistance & Health Servs., 407 N.J. Super.

330, 339 (App. Div. 2009).

A-0424-24
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We are bound to apply clearly defined statutory terms. State v. S.B., 230

N.J. 62, 68 (2017). "It is a cardinal rule of statutory construction that full effect

should be given . . . to every word of a statute. We cannot assume that the

Legislature used meaningless language." McCann v. Clerk of City of Jersey

City, 167 N.J. 311, 321 (2001) (quoting Gabin v. Skyline Cabana Club, 54 N.J.

550, 555 (1969)). "Because we do not assume that the Legislature used any

unnecessary or meaningless language . . . we read a statute in its entirety and

construe 'each part or section . . . in connection with every other part or section

to provide a harmonious whole.'" Patel v. N.J. Motor Vehicle Comm'n, 200 N.J.

413, 418-19 (2009) (quoting Bedford v. Riello, 195 N.J. 210, 224 (2008)).

III.

The central issue on appeal invokes principles of statutory construction—

requiring us to determine whether the BPU's denial of CEP's subsection (t)

application was arbitrary, capricious or unreasonable because, as CEP argues,

the BPU erred in applying subsection (s) to the Kober Site as farmland.

Unconvinced CEP has demonstrated the BPU acted arbitrarily, capriciously, or

unreasonably in denying the application, we affirm.

A-0424-24
7
A.

To provide context, we briefly reference the governing statutory and

regulatory framework. The Clean Energy Act (CEA), P.L. 2018 c. 17, was

enacted on May 23, 2018, as an amendment to the Solar Act. The CEA charged

the BPU with closing the Solar Renewable Energy Certificate Registration

Program (SRP), which was the solar incentive program in place at that time;

launching an interim incentive program; and transitioning to the Successor Solar

Incentive (SuSI) program. See N.J.S.A. 48:3-87(d)(3).

On December 6, 2019, the BPU launched the TI program, which was

"designed to provide a bridge between the [SRP] and . . . [the SuSI program]

under development." N.J.A.C. 14:8-10.1. Under the TI program, the BPU

permitted developers to submit a complete registration package prior to the

opening of the SuSI program to receive fixed solar energy incentives. N.J.A.C.

14:8-10.4(f).

Subsections (s) and (t) impose different criteria to distinct types of

property for which solar developers seek TRECs. Solar developers can apply

under subsection (t) to be deemed a grid-supply solar project and to receive

TRECs for "solar electric power generation facilit[ies] . . . on a brownfield, on

an area of historic fill[,] or on a properly closed sanitary landfill facility."

A-0424-24
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N.J.S.A. 48:3-87(t)(1). However, under subsection (s), "land that has been

actively devoted to agricultural or horticultural use that is valued, assessed, and

taxed pursuant to the [FAA, N.J.S.A. 54:4-23.1 to -23.23,] at any time within

the [ten]-year period prior to the effective date of [the Solar Act]" must meet

additional requirements to be deemed "connected to the distribution system" and

eligible for TRECs. N.J.S.A. 48:3-87(s); see also N.J.A.C. 14:8-1.2 (defining

"connected to the distribution system").

The applicability of subsection (s) is predicated on a determination that

property was farmland, as defined by the FAA, during the Farmland Lookback.

The FAA defines farmland as real property devoted to statutorily defined plant

and animal production, N.J.S.A. 54:4-23.3, and that meets specified financial

requirements tied to agricultural or horticultural product sales, N.J.S.A. 54:4 -

23.5.

B.

Guided by well-established principles of statutory construction and our

decision in In re Implementation of L. 2012, c. 24 (Millenium), 443 N.J. Super.

73 (App. Div. 2015), we address whether the BPU erred in interpreting N.J.S.A.

48:3-87 to conclude subsection (s) applied and, therefore, CEP's subsection (t)

application had to be denied. CEP posits the site is currently a brownfield,

A-0424-24
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which makes it eligible for TRECs under subsection (t), regardless of whether

the Kober Site was deemed farmland under subsection (s) during the Farmland

Lookback.

We considered the applicability of subsections (s) and (t) in Millenium.

We affirmed the BPU's denial of a subsection (t) application in part because the

property at issue was farmland under subsection (s). Millenium, 443 N.J. Super.

at 78-79. There, the applicant sought financial incentives for a proposed solar

power project under subsection (t) by claiming that qualified farmland was a

brownfield due to soil contamination. Id. at 76. We concluded Millenium's

application could not be considered under subsection (t) and, instead, was

subject to subsection (s) because it concerned a proposed solar project on

property subject to the Farmland Lookback. Id. at 79. We determined:

By its unambiguous terms, the Solar Act requires
farmland-based applications to be submitted under
subsection (s), unless they are "net metered or an on-
site generation facility," N.J.S.A. 48:3-87(s),
exceptions which Millenium does not claim apply here.
Projects to which subsection (s) applies must satisfy a
more stringent set of criteria than applications which
are subject to subsection (t).

[Id. at 78-79.]
In affirming, we concluded the BPU's decision was consistent with both

the statutory language and legislative intent of the Solar Act and state energy

A-0424-24
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policies, which were designed to encourage solar projects on contaminated or

underutilized non-farmland sites, while "specifically discourag[ing] the use of

agricultural land for solar projects." Id. at 79.

Our holding in Millenium is controlling and directly on point. Here, there

was ample evidence before the BPU that established the Kober Site was actively

used for agriculture during the Farmland Lookback as defined in subsection (s).

CEP does not dispute this factual determination. We are unpersuaded by CEP's

attempt to distinguish Millenium by asserting the Kober Site currently qualifies

as a brownfield under subsection (t) and, in Millenium, no such proofs were

adduced. Our determination in Millenium that the BPU properly considered

subsection (s) in denying the subsection (t) application was independent of our

secondary determination that the record did not contain evidence the property

was a brownfield under subsection (t). See id. at 78-80.

CEP does not cite to any statutory language or decisional law to support

its argument that the Solar Act contains an inherent conflict because subsection

(s) evaluates property use retroactively and subsection (t) does not. CEP posits

the Legislature did not intend for property presently identifiable as a brownfield

to be ineligible under subsection (t) only because it was farmland as defined in

A-0424-24
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subsection (s). The plain statutory language and principles of statutory

construction do not support CEP's argument.

CEP requests that we ignore the unambiguous statutory language of

subsection (s) and permit its application to proceed under subsection (t).

However, subsection (s) and subsection (t) projects are subject to different

criteria. See id. at 79 ("[p]rojects to which subsection (s) applies must satisfy a

more stringent set of criteria" to be deemed connected to the distribution system,

while "subsection (t) makes it relatively easy."). To permit CEP to elect to

proceed under subsection (t), thereby avoiding the additional conditions under

subsection (s), would frustrate the purpose of the latter and render statutory

language superfluous. Because we are bound to give effect to unambiguous

statutory language and to construe statutory provisions harmoniously, we

conclude CEP must meet the requirements applicable to farmland under

subsection (s), even though the Kober Site might otherwise meet the criteria of

a brownfield under subsection (t) at the time of the application.

CEP's questioning of the propriety of condemning a property to inutility

because of its farmland assessment status more than a decade ago is an issue for

the Legislature, not for this court. Our role is limited to review of the BPU's

decision under the statute as written.

A-0424-24
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We are unconvinced that the BPU's application of the subsection (s)

requirements to its evaluation of CEP's subsection (t) application constitutes

improper rulemaking. Subsection (s) applies to CEP's application by virtue of

the statute itself, rather than through improper rulemaking.

C.

We are also unpersuaded that reversal is warranted simply because of the

BPU's alleged delay in denying CEP's application and its failure to decide the

reconsideration motion. CEP has not cited to any supporting statutory or

regulatory law and has not demonstrated reversal is merited under its "turn

square corners" argument. F.M.C. Stores Co. v. Borough of Morris Plains, 100

N.J. 418, 426-27 (1985) (quoting Gruber v. Mayor & Twp. Comm. of Raritan

Twp., 73 N.J. Super. 120, 127 (App. Div. 1962)).

We reject CEP's argument that the BPU arbitrarily departed from its

reasoning in a prior decision. That decision is unpublished, see R. 1:36-3,

factually distinguishable and no longer relevant since CEP does not dispute the

Kober Site was farmland as defined in subsection (s).

To the extent we have not otherwise addressed CEP's arguments, it is

because they do not merit discussion in a written opinion. R. 2:11-3(e)(1)(E).

Affirmed.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/11232546. Public record. Not legal advice.
