SENATE ENVIRONMENT AND ENERGY COMMITTEE

STATEMENT TO

SENATE, No. 249

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 20, 2024

      The Senate Environment and Energy Committee reports favorably and with committee amendments Senate Bill No. 249.

      This bill, as amended by the committee, would direct the New Jersey Board of Public Utilities (BPU) to establish a beneficial building electrification and decarbonization program, and would require electric public utilities to prepare and implement beneficial building electrification and decarbonization plans.  As used in the bill, "beneficial electrification and decarbonization" means a change in end-use equipment from a nonelectric type to an efficient electric type for any building end use, including water heating, space heating, industrial process, or transportation, provided that the change:  reduces cost from a societal perspective; reduces greenhouse gas emissions, or promotes the increased use of the electric grid in off-peak hours.

      The bill directs the BPU to adopt, no later than one year after the bill becomes law, rules and regulations establishing a beneficial building electrification and decarbonization program.  As part of the program, the BPU would develop greenhouse gas emission reduction targets for beneficial building electrification and decarbonization plans implemented by each electric public utility in the State.  The bill would also require each electric public utility to prepare a multi-year beneficial electrification and decarbonization plan to achieve the targets established by the BPU.  To be approved by the BPU, an electricity public utility plan would be required to meet or exceed on-site greenhouse gas emission reduction targets set by the board and be cost effective from a societal perspective utilizing a cost-effectiveness test that includes consideration of the environmental benefits of reducing greenhouse gas emissions and methane emissions.  Subsection d. of section 1 of the bill would establish the means by which a utility's beneficial building and decarbonization plan could meet the greenhouse gas emission reduction targets.

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amendments to the bill would:

      (1) revise the term "beneficial electrification" to "beneficial building electrification and decarbonization"; and

      (2) make technical and clarifying changes.