Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Requires BPU to pay for certain compliance costs of State energy policies.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain compliance costs associated with State energy policies and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
“Board” means the New Jersey Board of Public Utilities or a successor agency.
“Compliance cost” means the cost borne by a customer while attempting to comply with the requirements of any State law, rule, regulation, or order concerning energy policy, including, but not limited to, the Energy Master Plan. “Compliance cost” includes, but is not limited to, the cost of purchasing and installing new appliances or equipment; permitting and other inspection fees; upgrading existing appliances; and making infrastructure improvements, including, but not limited to, wiring upgrades, electrical panel upgrades, and other structural changes associated with upgrading electric public utility service from pole to residence. “Compliance cost” does not include the cost of energy supply.
“Customer” means a residential or commercial customer of a public utility.
“Electric public utility” means a public utility, as that term is defined pursuant to R.S.48:2-13, that transmits and distributes electricity to end users within the State.
“Energy Master Plan” means the 2024 New Jersey Energy Master Plan prepared pursuant to section 12 of P.L.1977, c.146 (C.52:27F-14), or any successor plan.
“Orsted” means Ørsted A/S, Orsted North America Inc., Orsted Wind Power North America LLC, Ocean Wind LLC, and Ocean Wind II, LLC.
“Public utility” means the same as that term is defined pursuant to R.S.48:2-13.
b. (1) Notwithstanding any law, rule, regulation, or order to the contrary, the board shall pay for any compliance costs incurred by a customer of a public utility.
(2) The board shall fund compliance cost payments required pursuant to paragraph (1) of this subsection through uncommitted monies from:
(a) the revenue collections of the societal benefits charge, established pursuant to section 12 of P.L.1999, c.23 (C.48:3-60);
(b) the “Global Warming Solutions Fund,” established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50); and
(c) the settlement agreement with Orsted entered into as of May 25, 2024, as received by the State.
(3) If the amount of compliance cost payments required pursuant to paragraph (1) of this subsection exceeds the amount of uncommitted monies from the revenue sources outlined in paragraph (2) of this subsection, the board shall fund such excess payments from any appropriations made by the Legislature from the General Fund.
c. The board may, in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the provisions of this section.
2. This act shall take effect immediately.
STATEMENT
This bill requires the New Jersey Board of Public Utilities (board) to pay for any costs (compliance costs) incurred by a residential or commercial customer of a public utility while attempting to comply with the requirements of any State law, rule, regulation, or order concerning energy policy in the State such as the Energy Master Plan. The board is to fund its payments of compliance costs through uncommitted monies from the societal benefits charge, the “Global Warming Solutions Fund,” and the settlement agreement with Orsted entered into as of May 25, 2024 If the board exhausts such uncommitted monies, the bill requires the board to fund compliance cost payments through appropriations made by the Legislature from the General Fund.
Through its energy policies, such as the Energy Master Plan, New Jersey has been promoting the electrification of homes, businesses, and vehicles to reduce carbon emissions, regardless of the cost or benefits to residents. The sponsor believes that these electrification efforts allow the State to virtue signal its stance on energy policy in New Jersey without considering the cost of compliance borne by consumers. According to Governor Murphy’s “Strategic Roadmap for Building Decarbonization,” released in November 2025, only 16 percent of the homes in New Jersey use electricity for space heating and only 26 percent of the homes in New Jersey use electricity for water heating. The report also estimates that, according to one study, the average lifecycle cost to retrofit a home for heat pump installation is approximately $25,600. With over 3.8 million housing units in the State, the enormity of the cost to consumers for electrification is apparent. The sponsor believes that requiring homeowners and renters to shoulder the cost of compliance with the State’s energy policies is unconscionable. Moreover, it is the sponsor’s opinion that the principle of the “State Mandate, State Pay” amendment to the New Jersey Constitution, which was approved by voters in 1995 and intended to protect local government entities from unfunded State mandates, should apply to residents across the State who bear the compliance costs of New Jersey’s energy policies.