S2502

SENATE, No. 2502

STATE OF NEW JERSEY

210th LEGISLATURE

INTRODUCED MAY 15, 2003

Sponsored by:

Senator JOHN H. ADLER

District 6 (Camden)

SYNOPSIS

The "Smart Growth Tax Credit Act."

CURRENT VERSION OF TEXT

As introduced.

An Act providing a corporation business tax credit and a gross income tax credit for certain smart growth developments, and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the “Smart Growth Tax Credit Act.”

2. As used in sections 1 through 6 of this act:

"Adequate bus transit service” means at least one bus transit stop within a one-quarter mile radius of the geographic center of the development, with service of no less than one bus either (1) every 60 minutes, 18 hours per day, seven days per week, or (2) 30 times per weekday and 15 times per weekend day, provided that there are no physical impediments that prevent pedestrians from walking from the development to the transit stop;

"Adequate ferry transit service" means at least one ferry transit stop within a one-half mile radius of the geographic center of the development, with service of no less than five ferries during weekday peak periods, provided that there are no physical impediments that prevent pedestrians from walking from the development to the transit stop;

"Adequate rail transit service" means at least one rail or light rail transit stop within a one-half mile radius of the geographic center of the development, with service of no less than five trains during weekday peak periods, provided that there are no physical impediments that prevent pedestrians from walking from the development to the transit stop;

"Allowable costs" means amounts properly chargeable to capital account other than for purchase of land or any remediation costs, which are paid or incurred for construction or rehabilitation; commissioning costs; interest paid during the construction or rehabilitation period; legal, architectural, engineering and other professional fees allocable to construction or rehabilitation; closing costs for construction or mortgage loans; recording taxes and filing fees incurred with respect to construction or rehabilitation; site costs, such as temporary electric wiring, scaffolding, demolition costs, and fencing and security facilities; and costs of carpeting, partitions, walls and wall coverings, ceilings, lighting, plumbing, electrical wiring and ventilation; provided that such costs shall not include the cost of telephone systems and computers other than electrical wiring costs and shall not include the cost of fuel cells or photovoltaic modules including installation. For commercial space, allowable costs shall not exceed $250 per square foot of interior space, except that the Department of Community Affairs may raise the maximum allowable costs by up to 10% on each of up to two occasions in the seven-year period next following the date of enactment of this act. For residential space, allowable costs shall not exceed 110% of the amount set by the United States Department of Housing and Urban Development as per unit limits, codified in 12 U.S.C. s.1715l (d) (3) (ii);

“ASHRAE” means the American Society of Heating, Refrigeration, and Air-Conditioning Engineers;

"Brownfield site" means 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 hazardous substance as defined pursuant to section 3 of P.L.1976, c.141 (C.58:10-23.11b), a hazardous waste as defined pursuant to section 1 of P.L.1976, c.99 (C.13:1E-38), or a pollutant as defined pursuant to section 3 of P.L.1977, c.74 (C.58:10A-3);

"Carpet and Rug Institute Green Label Indoor Air Quality Test Program" means the testing program developed by the Carpet and Rug Institute, as recognized by the Department of Environmental Protection, to aid in the selection of carpet, adhesives, and cushion materials that minimize adverse impacts to indoor air quality;

"Critical habitat" means a biologically diverse area containing habitats of endangered and threatened animal or plant species, as determined by the Department of Environmental Protection;

"Critical slope area" means an area predominantly characterized by either an average change in elevation greater than 15 percent of the corresponding horizontal distance through the slope, otherwise also referred to as a 15% slope, or by a very high erosion hazard as indicated by an erodability factor “k” computed by the United States Department of Agriculture, Natural Resources Conservation Service, for soils of 0.40 or greater;

“Developer” means the legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land;

“Development” means the division of a parcel of land into two or more parcels; the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any building or other structure, or of any mining excavation or landfill; or any use or change in the use of any building or other structure, or land, or extension of use of land, for which permission may be required pursuant to the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.);

"Energy Star" means the voluntary labeling program administered by the United States Environmental Protection Agency designed to identify and promote energy-efficient products, equipment, and buildings;

"Forest Stewardship Council" means the international nonprofit organization founded in 1993 to support environmentally appropriate, socially beneficial, and economically viable management of the world's forests;

"Highly urbanized area" means (1) an area where 30% of the ground within 1,000 feet of the perimeter of a development site consists of impervious surface, or (2) an area located in a municipality which the Commissioner of Community Affairs has determined, according to guidelines established by the commissioner, to be built out;

“Impervious surface” means a surface that has been compacted or covered with a layer of material so that it is highly resistant to infiltration by water;

“Improvement” means any constructed element which becomes part of, is placed upon, or is affixed to real estate;

"LEED Green Building Rating System” means the Leadership in Energy and Environmental Design green building rating system developed by the United States Green Building Council;

"LEED Residential Green Building Rating System” means the Leadership in Energy and Environmental Design green building rating system for residential buildings, as may be developed by the United States Green Building Council;

“Lot” means a designated parcel, tract, or area of land established by a plat, or otherwise as permitted by law, and to be used, developed, or built upon as a unit;

"Mixed use development" means a development that includes residential use and no more than 75% by interior square footage of one or more of the following uses: (1) commercial space; (2) office space; (3) retail space; or (4) such other nonresidential uses that the Department of Community Affairs has determined do not pose a public health threat or nuisance to nearby residential areas;

"Old growth timber" means timber of a forest from the late successional stage of forest development, as defined by the Department of Environmental Protection;

"Pinelands Comprehensive Management Plan" means the comprehensive management plan for the pinelands area prepared and adopted pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.);

"Pinelands National Reserve" means the "Pinelands National Reserve" as defined pursuant to section 3 of P.L.1979, c.111 (C.13:18A-3);

“Plat” means a map or maps of a subdivision or site plan;

"Potentially eligible development" means a residential or mixed use development or redevelopment project located within the State of New Jersey;

"Residential Site Improvement Standards" means the Statewide site improvement standards for residential development adopted pursuant to P.L.1993, c.32 (C.40:55D-40.1 et seq.);

“Site improvements” means any construction work on, or improvement in connection with, a development limited to streets, roads, parking facilities, sidewalks, drainage structures, and utilities;

"Smart growth development" means a potentially eligible development that meets the criteria set forth in section 6 of this act;

"State Plan" means the State Development and Redevelopment Plan adopted by the State Planning Commission pursuant to the "State Planning Act," P.L.1985, c.398 (C.52:18A-196 et al.);

"Statewide Water Supply Plan" means the New Jersey Statewide Water Supply Plan adopted by the Department of Environmental Protection pursuant to section 13 of P.L.1981, c.262 (C.58:1A-13) and any adopted revisions thereto;

“Stormwater management measures” means structural and nonstructural control of stormwater runoff and nonpoint pollution;

"Total cumulative rides available" means the sum of (1) the number of rides available by bus within a one-half mile radius of the geographic center of the development, (2) the number of rides available by rail or light rail within a one-half mile radius of the geographic center of the development, multiplied by the average number of cars on each train, and (3) the number of rides available by ferry within a one-half mile radius of the geographic center of the development, multiplied by three;

"Transit stop" means any stop for a bus, train, or ferry, as the case may be, which may be along either intercity routes, or intracity routes, or both. A transit stop serving more than one route, or serving routes in more than one direction, shall constitute a discrete stop for each directional route of service; and, if a location has one bus, train, or ferry, as the case may be, per hour heading in one direction, and one bus, train, or ferry, as the case may be, available in that same hour heading in the other direction, this shall constitute one bus, train, or ferry per hour at two separate stops;

"Tropical hardwood" means any hardwood scientifically classified as an angiosperm which grows in a tropical moist forest, as determined by the Department of Environmental Protection. "Tropical hardwood" shall include, but need not be limited to, the following species:

Scientific Name Common Name

Vouacapous americana Acapu

Pericopsis elata Afrormosis

Shorea almon Almon

Peltogyne spp. Amaranth

Guibourtia ehie Amazaque

Aningeris spp. Aningeria

Dipterocarpus grandiflorus Apilong

Ochroma lagopus Balsa

Virola spp. Banak

Anisoptera thurifera Bella Rose

Guibourtis arnoldiana Benge

Deterium Senegalese Boire

Priora copaifera Cativo

Antiaris africana Chenchen

Dalbergis retusa Concobola

Cordia spp. Cordia

Diospyros spp. Ebony

Aucoumes klaineana Gaboon

Chlorophors excelsa Iroko

Acacia koa Koa

Pterygota macrocarpa Koto

Shorea negrosensis Red Lauan

Pentacme contorta White Lauan

Shores ploysprma Tanguile

Terminalia superba Limba

Aniba duckei Louro

Kyaya ivorensis Africa Mahogany

Swletenia macrophylla Amer. Mahogany

Tieghemella leckellii Makora

Distemonanthus benthamianus Movingui

Pterocarpus soyauxii African Padauk

Pterocarpus angolensis Angola Padauk

Aspidosperma spp. Peroba

Peltogyne spp. Purpleheart

Gonystylus spp. Ramin

Dalbergia spp. Rosewood

Entandrophragm a cylindricum Sapela

Shores phillippinensis Sonora

Tectona grandis Teak

Lovoa trichilloides Tigerwood

Milletia laurentii Wenge

Microberlinia brazzavillensis Zebrawood

"Weekday peak period" means 5:30 a.m. to 10:30 a.m. and 3:30 p.m. to 8:30 p.m. on a weekday; and

"Wetland" means (1) a coastal wetland as defined pursuant to section 2 of P.L.1970, c.272 (C.13:9A-2) and any rules and regulations adopted pursuant thereto, or (2) a freshwater wetland as defined pursuant to section 2 of P.L.1987, c.156 (C.13:9B-3) and any rules or regulations adopted pursuant thereto.

3. a. A taxpayer shall be granted a credit, to be computed as provided in this section, against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). The credit shall be an amount equal to the sum of the following, provided, however, that the amount shall not exceed the amount set forth in the credit reservation certificate obtained pursuant to section 4 of this act:

(1) 4.0% of allowable costs;

(2) 0.5%, 1.0%, 1.5%, or 2.0% of allowable costs, attributable to buildings but not to other site improvements, qualifying as Certified, Silver, Gold, or Platinum status, respectively, under the LEED Green Building Rating System or the LEED Residential Green Building Rating System;

(3) 0.5% of allowable costs for mixed use developments;

(4) 0.5% of allowable costs for developments located on brownfield sites;

(5) 0.1% of allowable costs for developments in which less than 10% of the land of the development, not including shared open spaces, is devoted to parking areas, garages, and driveways;

(6) 0.1% of allowable costs for developments with respect to which variances are secured from the relevant municipalities to permit 50% or less parking than is required by applicable local zoning codes, and are built in accordance with such variances;

(7) up to 2.4% of allowable costs for developments with higher than required residential density, depending on the density level as set forth below; and

Dwelling Units Per Multiplier Value Additional Credit, Residential Acre As Percentage of

Allowable Costs

7-10 .05 0.2%

11-17 .10 0.4%

18-29 .30 1.2%

30-39 .50 2.0%

40 or higher .60 2.4%

(8) up to 1.4% of allowable costs for developments with higher than required transit service, depending on total cumulative rides available per weekday as set forth below:

Total Cumulative Multiplier Value Additional Credit, Rides Available As Percentage of

Allowable Costs

60-124 .05 0.2%

125-249 .10 0.4%

250-499 .15 0.6%

500-999 .20 0.8%

1,000 or more .35 1.4%

b. A taxpayer may only apply for a credit under this section with respect to allowable costs paid or incurred by the taxpayer in connection with the construction or rehabilitation of a smart growth development.

c. For any taxable year, a taxpayer may apply no more than 20% of the total amount allowed under subsection a. of this section.

d. The amount of tax credit otherwise allowed under this section which cannot be applied during a tax year may be carried over, if necessary, to the 15 tax years following a credit’s first eligible tax year.

e. If a credit is owed to a building owner under sections 1 through 6 of this act with respect to property, and the property, or an interest therein, is sold, the credit for the period after the sale which would have been allowed under sections 1 through 6 of this act to the prior owner had the property not been sold shall be allowed to the successor owner if that right is specified in the deed transferring the property.

f. For any taxable year, a taxpayer may apply a credit under this section only if: (1) the taxpayer has, as described in section 4 of this act, obtained and filed a location certificate, a credit reservation certificate, and an eligibility certificate; and (2) a certificate of occupancy, for the building or buildings that is the subject of the credit, has been issued and the building or buildings remains in service during that year.

g. For each taxpayer who is eligible for a credit under this section, the Department of Community Affairs shall grant a credit, provided that the credits, in the aggregate, shall not exceed $20 million for the first fiscal year of tax credit availability and, in each of the subsequent six fiscal years, shall not exceed $50 million; provided further that any unused allocable amounts shall roll over to subsequent fiscal years.

4. a. Upon application by a taxpayer, the Department of Environmental Protection, in consultation with the Department of Community Affairs, shall issue a location certificate with respect to a specific property, where the taxpayer has shown that the property meets the location criteria set forth in subsection a. of section 6 of this act; provided that, in the event that the Department of Environmental Protection adopts a map designating areas within the State of New Jersey to which development is best directed, the property shall be located within those areas and shall not be required to meet the location criteria set forth in paragraphs (1), (3), and (4) of subsection a. of section 6 of this act, but shall continue to be required to meet the location criteria set forth in paragraph (2) of subsection a. of section 6 of this act; and provided further that, in the event that the property is located in an area designated as a water supply deficit area in the Statewide Water Supply Plan, the certificate shall so indicate. A taxpayer’s application for a certificate shall include plats, and such other information as the Department of Environmental Protection or the Department of Community Affairs may require. The Department of Environmental Protection may issue a location certificate without presentation by the taxpayer of a deed for the proposed site.

b. Upon application by a taxpayer, the Department of Community Affairs shall issue a credit reservation certificate, where the taxpayer has filed a copy of a location certificate and has made a showing that the taxpayer is likely, within a reasonable time, to place in service the development with respect to which the location certificate was issued, and that the development qualifies for the allowance of a credit under sections 1 through 6 of this act. The certificate shall state (1) the earliest taxable year for which the credit may be applied, (2) the maximum amount of the total credit allowed and the maximum amount of credit allowed in any single tax year, (3) an expiration date, and (4) such other information as the Department of Community Affairs may prescribe. The certificate shall apply only to the development placed in service by the specified expiration date. The expiration date may be extended at the discretion of the Commissioner of Community Affairs in order to avoid undue hardship. Certificates may be issued in the first fiscal year following the effective date of sections 1 through 6 of this act, and in each of the six subsequent fiscal years.

c. For the first taxable year for which a taxpayer applies a credit under sections 1 through 6 of this act, the taxpayer shall obtain an eligibility certificate from an architect or professional engineer licensed to practice in New Jersey. The certificate shall consist of a certification, under the seal of the architect or engineer, that, except for any provision for which the taxpayer has obtained a waiver from the Department of Community Affairs pursuant to subsection d. of section 6 of this act, the building or development with respect to which the credit is applied: (1) meets the neighborhood design criteria set forth in subsection b. of section 6 of this act; (2) meets either the green building criteria set forth in subsection c. of section 6 of this act or the criteria required for Certified, Silver, Gold or Platinum status under the LEED Green Building Rating System or LEED Residential Green Building Rating System; and (3) if the building or development is located in an area designated as a water supply deficit area in the Statewide Water Supply Plan, meets the criteria set forth in subparagraph (h) of paragraph (3) of subsection a. of section 6 of this act. The certification shall be made in accordance with the standards and guidelines in effect at the time the credit reservation for the development was issued. The certificate shall set forth the specific findings upon which the certification was based. The certificate shall include sufficient information to identify each building or development, and such other information as the Department of Community Affairs may prescribe. The taxpayer shall file with the Division of Taxation the eligibility certificate, and the associated location certificate and credit reservation certificate, with the application for credit and shall file duplicate copies with the Department of Community Affairs.

d. If the Department of Community Affairs has reason to believe that an architect or professional engineer, in making any certification under this section, engaged in professional misconduct, the department shall so inform the State Board of Architects, or the State Board of Professional Engineers and Land Surveyors, as appropriate, in the Division of Consumer Affairs of the Department of Law and Public Safety.

5. a. Each taxpayer shall, for any taxable year for which a credit is claimed under sections 1 through 6 of this act, maintain records of such information as the Department of Community Affairs and the Division of Taxation shall determine, and report that information to the Department of Community Affairs and the Division of Taxation in the form and at the time that the two departments shall determine.

b. The Department of Community Affairs, the Department of Environmental Protection, and the Division of Taxation shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as may be necessary to implement sections 1 through 6 of this act. These rules and regulations shall be designed to encourage the implementation of smart growth principles and maintain high but commercially reasonable standards for obtaining tax credits under sections 1 through 6 of this act. The rules and regulations shall establish a reasonable time for submission of applications and shall establish a method certifying proposed locations and allocating credit reservation certificates among eligible applicants, which shall generally be on a first-come, first-served basis.

c. On or before six years after the effective date of sections 1 through 6 of this act, the Commissioner of Community Affairs, in consultation with the Commissioner of Environmental Protection and the Director of the Division of Taxation, shall prepare and submit a written report regarding the number of certificates and taxpayers applying the credit provided for under sections 1 through 6 of this act; the amount of the credits granted, the geographical distribution of the credits granted, and any other information that the Department of Community Affairs, the Department of Environmental Protection, or the Division of Taxation may deem useful or appropriate. A preliminary draft of the report shall be so issued within the first four years following the effective date of sections 1 through 6 of this act. The report shall be submitted to the Governor, the President of the Senate, and the Speaker of the General Assembly.

6. Except as set forth in subsection d. of this section, all buildings and developments with respect to which a tax credit is applied pursuant to sections 1 through 6 of this act shall be considered a smart growth development if they meet the following standards; provided that, with respect to residential and tenant space, compliance with standards set forth in paragraphs (1), (2), (3), (5) and (8) of subsection c. of this section shall not be required where the taxpayer does not incur or pay the cost of the equipment, appliances, fixtures, materials, finishes, furnishings or other items relevant to compliance with the standard:

a. (1) All buildings and developments with respect to which a tax credit is applied under sections 1 through 6 of this act shall be located in one of the following areas: (a) Planning Areas 1, 2, or 5b of the State Plan; (b) centers designated by the State Planning Commission; or (c) municipalities or portions of municipalities that the New Jersey Office of Smart Growth has declared as substantially conforming to the State Plan or to smart growth principles;

(2) All buildings and developments with respect to which a tax credit is applied under sections 1 through 6 of this act shall be served either by adequate bus transit service, adequate rail transit service, or adequate ferry transit service;

(3) No building or development with respect to which a tax credit is applied under sections 1 through 6 of this act shall be located: (a) in the Pinelands National Reserve, unless the site is within a Pinelands Regional Growth Area or Pinelands Town as designated in the Pinelands Comprehensive Management Plan; (b) in public parkland; (c) within 1,000 feet of any critical habitat site within public parkland; (d) in or within 300 feet of a wetland; (e) in or within 100 feet of a critical slope area, unless the site is located on a brownfield site or within a highly urbanized area; (f) within the 100-year floodplain, unless the site is located on a brownfield site or within a highly urbanized area; (g) within 1,000 feet of the mean high-water mark for any saltwater body, unless the site is located on a brownfield site or within a highly urbanized area; or (h) in an area designated as a water supply deficit area in the Statewide Water Supply Plan unless the Department of Environmental Protection has approved a water use plan for the development or the development includes fewer than 20 residential units and any nonresidential units will cumulatively use fewer than 10,000 gallons of water per day; and

(4) No building or development with respect to which a tax credit is applied under sections 1 through 6 of this act shall require (a) a sanitary sewer line extension of 1,000 feet or greater, unless sited in an area that has been approved for sanitary sewer service prior to the date of enactment of this act, or (b) a septic system.

b. Notwithstanding any provision of the Residential Site Improvement Standards, within one year after the date of enactment of this act, the Department of Community Affairs, in consultation with the Department of Environmental Protection, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), standards for the purpose of sections 1 through 6 of this act with respect to:

(1) Land Use. The standards shall require, at a minimum, that average residential density shall be six or more residential dwelling units per residential acre. Residential acreage shall be calculated net of any land on the lot that is used for public open space, public sidewalks, or public roads. For lots occupied by residential buildings, residential acres used in the density calculation shall be the footprint area of buildings, plus any associated driveways, yards, and parking areas except for on-street parallel parking. For lots occupied by mixed use buildings, residential acres used in the density calculation shall be a percentage of the footprint area of building that equals the percentage of interior space devoted to residential use, plus any associated driveways, yards, and the percentage of associated parking areas used by residents;

(2) Streets and Sidewalks. The standards shall require, at a minimum, that if new streets are constructed as part of a development with respect to which a credit is applied under sections 1 through 6 of this act, they shall meet the following standards: (a) no more than one new cul-de-sac shall be constructed for every four new intersections within the development; (b) at least 50% of any new intersections and crossings within the development shall be equipped with traffic controls or such traffic calming measures that the Department of Community Affairs shall approve, including but not limited to speed bumps, stop signs and vegetative barriers; (c) the width of pavement of new streets shall not exceed 42 feet, consisting of a maximum of 10 feet per lane of motor vehicle traffic, four feet per bicycle lane, and seven feet per lane designated for on-street parallel parking. New streets shall not consist of more than two lanes devoted to motor vehicle traffic, two lanes devoted to bicycle traffic, and two lanes devoted to on-street parallel parking; and (d) sidewalks of no less than four feet in width shall be provided along frontage of all buildings and along all streets that connect buildings within the development; and

(3) Parking. The standards shall require, at a minimum, that the number of parking spaces associated with the development shall not exceed the number required by parking ratios specified in applicable local zoning codes.

c. Within one year after the date of enactment of this act, the Department of Community Affairs, in consultation with the Department of Environmental Protection, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), standards for the purpose of sections 1 through 6 of this act, and shall review and update those standards at least every two years from the date on which they are adopted, with respect to:

(1) Energy Efficiency. The standards shall require, at a minimum, that (a) single family homes comply with the energy standards of the New Jersey Energy Star Homes program, or, if that program is not in effect at the time of application, the United States Environmental Protection Agency Energy Star Homes program; (b) energy use in all other buildings shall not exceed 65% of the energy use permitted by the relevant New Jersey energy code; (c) equipment and appliances, for which Energy Star standards exist, including but not limited to refrigerators, dishwashers and washing machines, shall meet those Energy Star standards; and (d) no less than 40% of high-use lighting fixtures shall meet Energy Star standards;

(2) Building Materials. The standards shall, at a minimum, specify requirements regarding minimum percentages of recycled content and renewable source material and maximum levels of toxicity and volatile organic compounds. Standards shall be developed for building materials, finishes and furnishings, including but not limited to: concrete and concrete masonry units; millwork substrates; insulation; ceramic, ceramic/ glass and cementitious tiles; ceiling tiles and panels; flooring and carpet; paints, coatings sealants and adhesives; and furniture. The development of the standards shall be informed by the LEED Green Building Rating System and the LEED Residential Green Building Rating System;

(3) Wood Use. The standards shall, at a minimum, (a) specify requirements to minimize wood use in wood-framed houses; and (b) require that old growth timber and tropical hardwood, except recycled wood and tropical hardwood certified in accordance with the protocol of the Forest Stewardship Council or, in lieu thereof, of another organization deemed by the Department of Environmental Protection to be authorized and capable of providing an equivalent protocol, shall not be used;

(4) Heat Island Reduction. The standards shall require, at a minimum, that (a) at least 50%, by square footage, of non-roof impervious surfaces, including driveways, parking areas, walkways and plazas, be light-colored or covered with specified coatings that improve reflectance; and (b) roofs shall be composed of Energy Star labeled roof products, except where solar panels or roof gardens are installed;

(5) Water Efficiency. The standards shall require, at a minimum, that (a) each showerhead shall not exceed 2.0 gallons per minute; (b) each faucet shall not exceed 1.0 gallons per minute; (c) toilet flush volume shall not exceed 1.6 gallons; and (d) for commercial buildings, the drift rate of any cooling tower shall not exceed 1%;

(6) Heating and Cooling. The standards shall require, at a minimum, that central air conditioning refrigerant charge and air flow shall be documented to be within 10% of manufacturer recommendations;

(7) Durability. The standards shall require, at a minimum, that (a) roofs shall have a warranty of no less than 40 years; (b) insulated windows shall have a warranty of no less than 10 years; (c) overhangs shall include at least 80% of full attic/roof-slope insulation R-value; and (d) head casing flashing shall be installed for all windows and exterior doors;

(8) Indoor Air Quality. The standards shall require, at a minimum, that (a) interior paints shall contain no more than 100 grams per liter of volatile organic compounds; (b) sealants and adhesives used for interior applications shall contain no more than 250 grams per liter of volatile organic compounds; (c) carpets, carpet cushions and any necessary adhesives shall meet the standards set forth in the Carpet and Rug Institute Green Label Indoor Air Quality Test Program; (d) carpets shall not be installed in basements, bathrooms, kitchens, or within a four foot radius of the center of any doorway which leads outdoors; (e) only direct-vent, closed-combustion, or power vented space heating and water heating equipment shall be used, and vent-free space heating or water heating equipment shall not be used; (f) any wood stoves shall have ducted combustion air; (g) carbon monoxide detectors shall be installed consistent with Consumer Product Safety Commission recommendations, and with at least one detector per 500 square feet of interior space; (h) enclosed parking shall be completely air-sealed from attached indoor spaces; (i) every building shall be furnished with a ventilation system and for commercial buildings the sizing of the system shall conform with the ASHRAE standard known as ASHRAE G2-2001; and (j) foundations of residential units shall be constructed according to the following requirements, unless the Department of Community Affairs approves alternative plans to ensure dry basements: the foundation shall have a continuous footing drain that is covered with stone, which in turn shall be covered with filter fabric, and which shall drain either to daylight or to an interior, sealed sump pump system; the foundation shall have porous backfill material; the vapor retarder shall be directly under slab; and the exterior of the below grade foundation shall be waterproofed;

(9) Construction Waste. The standards shall require, at a minimum, development of and adherence to a waste reduction plan that provides for separation of materials which are reusable or recyclable, such that a minimum of 30% of waste by volume shall be diverted from the waste stream; and

(10) Stormwater Management. The standards shall require, at a minimum, that developments on parcels of undeveloped land of four acres or more shall employ stormwater management measures in order to meet at least one of the following requirements: (a) post-development runoff volume of the land area of the development shall not exceed pre-development runoff volume; where runoff volume is defined as the 1.5 year, 24-hour peak discharge rate; or (b) the first inch of runoff or 80% of 100-year runoff produced by the impervious surfaces of the development shall be treated for total suspended solids, total phosphorous, and total nitrogen.

d. Upon application by a taxpayer, the Department of Community Affairs, in consultation with the Department of Environmental Protection, may issue a waiver of any regulatory provision adopted pursuant to subsection a. of this section, where the taxpayer has made a showing that the development was in compliance with the provision at the time of the issuance to the taxpayer of a location certificate, and that the development is no longer in compliance because of circumstances out of the taxpayer’s control; or of any regulatory provision adopted pursuant to subsections b. or c. of this section, where the taxpayer has made a showing that compliance with the provision is impracticable due to unique characteristics of the site, or that deviation from the provision produces no net negative environmental impact.

7. As used in sections 7 through 11 of this act: