A5959

An Act regarding the contents of the Governor’s annual budget message and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. In addition to the requirements of section 11 of article 3 of P.L.1944, c.112 (C.52:27B-20), and any other provisions of law, the Governor’s budget message transmitted annually to the Legislature shall include a report of the revenues and expenditures derived from the societal benefits charge setting forth in columnar form the following information, for each of the five most recently completed fiscal years and the current fiscal year:

(1) the total amount of revenue collected through the societal benefits charge;

(2) the amount of revenues retained by the State from the societal benefits charge and allocated for demand side management programs, and including an itemized statement of all amounts committed for expenditure and expended, respectively, for energy efficiency programs, distributed energy resources, renewable energy programs, planning and administration, and other initiatives administered by the board pursuant to paragraph (3) of subsection a. of section 12 of P.L.1999, c.23 (C.48:3-60) and paragraph (3) of subsection a. of P.L.2007, c.340 (C.48:3-98.1);

(3) the amount of revenues retained by the State from the societal benefits charge and allocated to the Universal Services Fund established pursuant to subsection b. of section 12 of P.L.1999, c.23 (C.48:3-60), and including an itemized statement of all amounts committed for expenditure and expended, respectively from the fund, but not limited to, the amounts allocated for the “Lifeline Credit Program” established pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.) and the “Tenants’ Lifeline Assistance Program,” established pursuant to P.L.1981, c.210 (C.48:2-29.30 et seq.);

(4) the amount of revenues retained by the State from the societal benefits charge and allocated to the Plug-in Electric Vehicle Incentive Fund pursuant to paragraph (1) of subsection b. of section 7 of P.L.2019, c.362 (C.48:25-7), and including an itemized statement of all amounts committed for expenditure and expended, respectively, from the fund, including the amounts allocated under the light duty plug-in electric vehicle incentive program, established pursuant to section 4 of P.L.2019, c.362 (C.48:25-4) and the program established pursuant to section 6 of P.L.2019, c.362 (C.48:25-6); and

(5) the total amount of revenues retained by each electric public utility and gas public utility, respectively, from each component of the societal benefits charge for which each public utility has been approved to retain by the board.

b. The board shall assist and advise the Governor in the preparation of the report required pursuant to subsection a. of this section.

c. As used in this act:

“Board” means the New Jersey Board of Public Utilities or any successor agency.

“Societal benefits charge” means the charge imposed by an electric public utility or a gas public utility, at a level determined by the board, pursuant to, and in accordance with, section 12 of P.L.1999, c.23 (C.48:3-60).

2. This act shall take effect immediately and shall first apply to the fiscal year commencing July 1, 2026.

STATEMENT

This bill requires the Governor’s annual budget message to include a report of the revenues and expenditures related to the societal benefits charge. This bill is intended to provide greater transparency regarding the amount of revenues generated by the societal benefits charge and the purposes for which these revenues are expended and allocated.

Imposed under P.L.1999, c.23, the societal benefits charge is embedded in customer bills for electricity and natural gas service. The charge is collected by each electric and gas public utility and remitted to the Board of Public Utilities. The proceeds of the societal benefits charge finance energy assistance programs administered through the Universal Services Fund; energy demand management programs, energy efficiency programs, and renewable energy programs administered through the Clean Energy Program; energy consumer education programs; nuclear plant decommissioning; and manufactured gas plant remediation.

The bill requires the report to include, for the five most recently completed fiscal years and the current fiscal year, information revenues information concerning the total revenues generated by the societal benefits charge in each fiscal year, as well as an itemized statement of the amount of societal benefits charge revenues allocated, committed for expenditure, and expended for: (1) all energy demand management programs, energy efficiency, conservation, and renewable energy improvements; (2) energy assistance programs supported through the Universal Services Fund; and (3) the incentive programs supported through the Plug-in Electric Vehicle Incentive Fund.

Current law does not establish a uniform societal benefits charge rate for all electric and gas public utilities. Each electric and gas public utility determines, with the approval of the Board of Public Utilities, a rate for each component (i.e., utility assistance programs or manufactured gas plant remediation) to be funded through the societal benefits charge. The bill requires the report to also include information regarding the total societal benefit charge rate, and each component of the societal benefits charge rate, for each electric and gas public utility and the amount or societal benefits charge revenue retained by each electric and gas public utility.