ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5440

with committee amendments

STATE OF NEW JERSEY

DATED:  MAY 15, 2025

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 5440.

      As amended and reported, this bill requires the Department of Community Affairs, Department of Human Services, Board of Public Utilities (BPU), and any other State agency that administers a utility bill payment assistance program or energy efficiency program to, within one year of when the BPU issues a final order in the proceeding entitled “In the Matter of Addressing New Jersey Energy Affordability for Low- and Moderate-Income Households” (Docket No. QO24110853), complete a review of the program, as provided for in the bill, and increase the income threshold if the department, board, or agency determines and increase to be appropriate.

      The bill requires that a State agency 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.

      The bill further specifies that if an increase in income thresholds for the State’s low-income energy efficiency programs is ordered, the BPU is required to assess if further guidance is necessary to change income thresholds in the utilities’ triennium energy efficiency and peak demand reduction programs for moderate-income energy efficiency programs to ensure that low- and moderate-income customers are eligible for only one energy efficiency assistance program and to expand access to moderate-income programs, if appropriate.

COMMITTEE AMENDMENTS:

      The committee amendments:

· provide that the reviews required under the bill are to be completed within one year of issuance of a final order of the BPU, as specified in the bill;

· specify that reviews required under the bill are to consider factors such as the alignment of separate low-income and moderate-income income thresholds used across programs and agencies, the use of alternate income thresholds, including State median income, and the aggregate cost and impacts of the increased income thresholds;

· specify that program income thresholds are to only be increased if the department, board, or agency determines an increase to be appropriate;

· require that State agencies request public comment; and

· specify that if an increase in income thresholds for the State’s low-income energy efficiency programs is ordered, the Board of Public Utilities is required to assess if further guidance is necessary to change income thresholds in the utilities’ triennium energy efficiency and peak demand reduction programs for moderate-income energy efficiency programs, as specified in the bill.

· Make conforming changes to the bill’s title.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that, in the first year after the bill’s enactment and in the event that income thresholds are increased as a result of initial review, the bill will result in increased administrative costs to State agencies that administer utility bill payment assistance, energy efficiency, and peak demand reduction programs associated with the bill’s requirement to review the programs for the purpose of increasing the programs’ income thresholds.

      The OLS also concludes that, to the extent that State agencies increase income thresholds for utility bill payment assistance and energy efficiency programs based on the reviews required by the bill, it may be necessary for State agencies to increase funds available for each program in order to manage the increase in the number of households eligible for assistance through these programs.