LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 1478

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: AUGUST 11, 2025

 

 

SUMMARY

 

Synopsis:

Requires study of ocean energy potential; directs BPU to establish wave and tidal energy generation goals and take other action to establish NJ as nationwide leader in ocean energy.

Type of Impact:

Multi-year State expenditure increase.

Agencies Affected:

Board of Public Utilities and Department of Environmental Protection.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 and Thereafter

 

State Expenditure Increase

Up to 500,000

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that this bill would increase State costs by up to $500,000 in FY 2026 and by an indeterminate amount in FY 2027 and thereafter to oversee the implementation of a wave and tidal energy pilot project, conduct a feasibility study based on the pilot’s outcomes, incorporate study findings into State clean energy planning and goals, and produce a report detailing the actions to be taken to facilitate and promote the development and increased use of wave and tidal energy technologies in the State.  

 

 

BILL DESCRIPTION

 

     This bill requires the Board of Public Utilities to solicit and approve an application for the implementation of a wave and tidal energy pilot project.  Within 12 months after the completion of the pilot project, the board and the Department of Environmental Protection would be required to prepare a study to evaluate the feasibility and benefits of using wave and tidal energy as forms of clean energy in the State.  Within 15 months after the completion of the pilot project, the board and the department would be required to submit a written report to the Governor and the Legislature that includes a strategic plan and identifies the findings of the study and provides recommendations for legislative, executive, and other actions that can be taken to promote the development of wave and tidal energy technologies, infrastructure, and facilities in the State. 

     The bill also requires the Energy Master Plan Committee to incorporate information into the Energy Master Plan regarding the wave and tidal energy strategic plan developed under the bill and the wave and tidal energy generation goals recommended by the strategic plan.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that this bill would increase State costs by up to $500,000 in FY 2026 and by an indeterminate amount in FY 2027 and thereafter to select and oversee the implementation of a wave and tidal energy pilot project, conduct a feasibility study based on the pilot’s outcomes, incorporate study findings into State clean energy planning and goals, and produce a report detailing the actions to be taken to facilitate and promote the development and increased use of wave and tidal energy technologies in the State.  

      The Legislature added $500,000 to the FY 2023 Appropriations Act for a wave and tidal energy feasibility study and pilot program.  This funding was to be used by the Board of Public Utilities and the Department of Environmental Protection to conduct a feasibility study of introducing wave energy technology to the energy grid.  The study was to include the environmental impact of the technology, its impact on electricity rates and labor markets, the potential reduction of greenhouse gas emissions, challenges with transmission, and the potential establishment of renewable energy credits.  The funding also was to provide for a solicitation of a pilot demonstration along New Jersey’s coastline.  None of the funding has been expended.

      The OLS notes that the bill requires the Energy Master Plan Committee to incorporate information regarding the wave and tidal energy strategic plan developed under the bill and the wave and tidal energy generation goals recommended by the strategic plan into the Energy Master Plan.  The OLS determines that there would be an indeterminate one-time State cost associated with incorporating the information needed into the Energy Master Plan.

 

 

Section:

Environment, Agriculture, Energy, and Natural Resources

Analyst:

Neha Patel

Senior Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).