ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 3781

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3781 (1R).

      This bill requires the Board of Public Utilities (BPU) to develop and implement a program to promote women-owned, minority-owned, veteran-owned, and lesbian, gay, bisexual, transgender, or questioning (LGBTQ)-owned energy businesses in the State.

      The bill authorizes the program to include public information campaigns, marketing, advertising, the provision of incentives, or other means and methods determined appropriate by the BPU.  The bill establishes certain target percentages for the energy procured by businesses and public entities that utilize electric power or gas suppliers.  These target percentages are to culminate, in the fourth energy year after the program is established and thereafter, with the goal that 25 percent of the energy procured by businesses and public entities that utilize board-licensed energy agents, energy consultants, or private energy aggregators be sourced utilizing a women-owned, minority-owned, veteran-owned, or LGBTQ-owned energy business.

      The bill establishes certain requirements for determining which businesses qualify for the program and directs the BPU to develop an application process for businesses that seek to participate in the program.  Finally, the bill requires the BPU and electric and gas public utilities in the State to post a list of approved energy businesses on their Internet websites and requires the BPU to track the progress of the program in meeting the targets established by the bill and to post updates on the BPU’s Internet website.

FISCAL IMPACT:

The OLS estimates the bill would result in an indeterminate but incidental annual State expenditure increase to establish a new program that would promote women-owned, minority-owned, veteran-owned, and LGBTQ-owned energy businesses.  The higher costs would stem from an increase in the Board of Public Utilities’ administrative workload to develop and administer the new program and to monitor procurement percentages for the targeted energy businesses, but notes that these additional tasks may be subsumed within existing staff duties.

Under the bill, the program may include a public information campaign, marketing, advertising, the provision of incentives, or other means and methods to promote the program.  The scope of the campaign will depend on decisions made by the Board of Public Utilities.

      Other states with similar legislation, such as Florida and California, estimate minor expenditure increases as a result of requiring comparable minority-owned business promotion activities. Florida practices small business promotion by identifying participation target percentages for minority-owned businesses in each water management district. The promotion program encourages small businesses that are owned by women and minorities to participate in the procurement and contract activities of the water management district.  The fiscal analysis estimated no tax or fee issues, private sector impact, or government sector impact as a result of the bill.