LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 5733

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: MAY 27, 2025

 

 

SUMMARY

 

Synopsis:

Provides for State agency reviews and increases of income thresholds for residential customers to participate in certain utility bill payment assistance and energy efficiency 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 the bill will result in increased administrative costs for State agencies that administer utility bill payment assistance, energy efficiency, and peak demand reduction programs to review these programs and increase their income thresholds if appropriate.

·       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 to increase funds available for each program in order to manage the increase in the number of households eligible for assistance.

 

BILL DESCRIPTION

 

      This bill requires 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 to, within one year of the bill’s effective date, complete a review of the program, as provided for in the bill, and increase the income threshold if the department, board, or agency determines an 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 board 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.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The 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 to review these programs and increase their income thresholds if appropriate. 

      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 bill requires the State agencies to request public comment or seek assistance from other State agencies to determine an appropriate increase to the program’s income threshold.  In the event an increase in income thresholds for the State’s low-income energy efficiency programs is ordered, the board would be 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.  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, energy efficiency, and peak demand reduction programs, and is therefore unable to estimate the increase in administrative costs to State agencies due to this requirement in the first year following the bill’s applicability.

      The OLS concludes that, in subsequent years, increased income thresholds for utility bill payment assistance and energy efficiency programs, and triennium energy efficiency and peak demand reduction 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.).