LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5440

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MAY 19, 2025

 

 

SUMMARY

 

Synopsis:

Requires State agencies that administer utility bill payment assistance or energy efficiency programs to review and increase income thresholds for residential customers to participate in programs.

Type of Impact:

Annual State expenditure increase.

Agencies Affected:

Department of Community Affairs, Department of Human Services, Board of Public Utilities.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual 

 

State Expenditure Increase

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) concludes that, in the first year after enactment, the bill will result in increased administrative costs for State agencies that administer utility bill payment assistance or energy efficiency programs to review these programs and increase their income thresholds.

·         The OLS concludes that, in subsequent years, increased income thresholds for utility bill payment assistance and energy efficiency programs would require increases in funds available for each program in order to manage the increase in the number of households eligible for assistance.

 

BILL DESCRIPTION

 

      This bill requires, within one year of the effective date of the bill, the Department of Community Affairs, Department of Human Services, Board of Public Utilities, and any other State agency that administers a utility bill payment assistance program or energy efficiency program active upon the effective date of the bill to review and increase the income threshold for residential customers to participate in those programs.  A State agency may request public comment, in a form and manner determined by that State agency, or seek assistance from other State agencies, to determine an appropriate increase to the program’s income threshold.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that, in the first year after enactment, the bill will result in increased administrative costs for State agencies that administer utility bill payment assistance or energy efficiency programs to review these programs and increase their income thresholds. The Department of Community Affairs, the Department of Human Services, and the Board of Public Utilities serve roles in administering the following utility bill payment assistance and energy efficiency programs: 1) Comfort Partners; 2) Weatherization Assistance Program; 3) federal Low Income Home Energy Assistance Program; 4) Universal Service Fund; 5) Lifeline Program; and 6) Payment Assistance for Gas and Electric.  The OLS is unable to speculate on the exact efforts of each of the State agencies in their required review of utility bill payment assistance and energy efficiency programs, and is therefore unable to estimate the increase in administrative costs to State agencies due to this requirement in the first year after the bill’s enactment.

      The OLS concludes that, in subsequent years, increased income thresholds for utility bill payment assistance and energy efficiency programs would require increases in funds available for each program in order to manage the increase in the number of households eligible for assistance.  The OLS notes that these annual cost increases may be minimized to the extent State agencies are able, and choose to, decrease the amount of monetary assistance provided to each household through the programs or condense the application period for the programs.  The bill requires applicable State agencies to determine the amount by which income thresholds would be increased and therefore, the OLS is unable to provide an evidence-based estimate on the total fiscal impact the bill would have on utility bill payment assistance or energy efficiency programs.

 

 

Section:

Local Government

Analyst:

Abigail Stoyer

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.).