A4882

An Act concerning the modernization of natural gas-fired electric generating facilities, establishing streamlined permitting pathways, and supplementing Title 48 of the Revised Statutes.

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

1. This act shall be known and may be cited as the “New Jersey Natural Gas Modernization Act.”

2. The Legislature finds and declares that:

a. New Jersey residents continue to face a significant energy affordability crisis, with utility costs rising faster than households incomes in many regions of the State, and placing disproportionate burdens on low- and moderate-income families, seniors, and small businesses that rely on stable and predictable energy prices to manage monthly expenses.

b. In its December 2025 auction for the 2027-2028 deliverability year, PJM Interconnection was, for the first time in its history, unable to procure sufficient energy capacity to meet its reserve margin, falling short by 6,623 MW and raising the alarm that the region is experiencing an energy reliability crisis.

c. Reliable access to electricity is essential to public health, safety, and economic stability, and the worsening imbalance between electricity supply and rapidly rising electricity demand, including from the increasing buildout of artificial intelligence-serving data centers, is contributing to higher wholesale electricity prices, service interruptions, and increased volatility in consumer utility bills.

d. New Jersey maintains some of the strongest air quality and environmental protection standards in the nation, and the State has consistently demonstrated that economic growth, energy reliability, and environmental stewardship can be advanced together.

e. Modernizing existing natural gas infrastructure under these standards does not weaken environmental protections; rather, it provides an opportunity to reduce emissions, improve efficiency, and ensure that older facilities operate with cleaner, more advanced technologies.

f. On January 20, 2026, Governor Sherrill signed Executive Order 2, which declared a State of Emergency on Utility Costs and directed State agencies to take coordinated action to address affordability challenges.

g. Executive Order 2 of 2026 further instructed agencies to identify measures to modernize the natural gas-fired power plants already operating in New Jersey and to enable those facilities to generate electricity more efficiently, with lower carbon output, and at levels that support system reliability during periods of high demand.

h. Upgrading and uprating existing natural gas facilities can provide rapid and cost-effective benefits to ratepayers by improving efficiency, reducing outages, and lowering the cost of electricity generation, all while operating within New Jersey’s stringent environmental framework.

i. This approach is consistent with an “all of the above” energy strategy, which supporting the responsible development of renewable energy, energy efficiency programs, storage technologies, and modernized conventional generation, in order to reduce emissions while strengthening grid resilience and improving affordability while moving toward a cleaner energy future.

j. Modernizing existing natural gas infrastructure ensures that the State’s current fleet of natural gas-fired facilities can continue to provide reliable, dispatchable power during periods when renewable resources are unavailable or insufficient, thereby supporting the integration of clean energy resources while protecting consumers from price spikes.

k. The Legislature therefore determines that it is in the public interest for the State to support targeted upgrades, efficiency improvements, and capacity enhancements at existing natural gas facilities, in order to improve system reliability, reduce emissions, stabilize energy costs, and advance the State’s long-term energy, environmental, and economic goals.

3. As used in this act:

“CO2 emissions intensity” means the mass of carbon dioxide emitted per unit of electricity generated, expressed in pounds per megawatt-hour.

“Department” means the Department of Environmental Protection.

“Eligible site” means a site located in New Jersey, with a nameplate capacity equal to or greater than 25 megawatts of electrical output, on which a permitted natural gas-fired electric generating unit operated at any time within the preceding 60 months, and at which the necessary site infrastructure, including interconnection facilities, gas supply, and cooling or emissions-control systems, remains available. Eligibility shall not require that any prior permit remain active.

“Permit” means any permit or authorization issued pursuant to the “Air Pollution Control Act (1954),” P.L.1954, c.212 (C.26:2C-1 et seq.), the “Coastal Area Facility Review Act,” P.L.1973, c.185 (C.13:19-1 et seq.), or subchapter 22 of chapter 27 of Title 7 of the New Jersey Administrative Code.

“PJM Interconnection, L.L.C.” means the privately-held, limited liability corporation that serves as a FERC-approved Regional Transmission Organization, or its successor, that manages the regional, high-voltage electricity grid serving all or parts of 13 states including New Jersey and the District of Columbia, operates the regional competitive wholesale electric market, manages the regional transmission planning process, and establishes systems and rules to ensure that the regional and in-State energy markets operate fairly and efficiently.

“Project labor agreement” means a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project.

“Qualifying project” means a project located at an eligible site that includes: (1) physical modification to an existing natural gas-fired electric generating unit; (2) installation of new equipment integrated with an existing unit; (3) installation of a primarily natural gas-fired electric generating unit to replace retired electric generating equipment; (4) installation of co-located energy storage or renewable energy generation; or (5) any combination thereof.

“Reliability event” means a period during which PJM Interconnection, L.L.C. declares an emergency, maximum generation event, or comparable reliability directive.

4. a. The department shall establish streamlined pathways for the expeditious issuance of permits subject to the provisions of this act.

b. The department shall establish distinct treatments for projects requiring initial permits, including, but not limited to, preconstruction permits issued pursuant to subchapter 8 of chapter 27 of Title 7 of the New Jersey Administrative Code and operating permits issued pursuant to subchapter 22 of chapter 27 of Title 7 of the New Jersey Administrative Code, and projects requiring permit modifications.

c. With respect to new permits and permit modifications, the department shall abide by the following timelines, as applicable:

(1) within 30 days of the date an applicant submits an application, the department shall determine the completeness of the application and inform the applicant;

(2) on the date the department determines that an application is complete and informs the applicant, the department shall initiate the public comment or public hearing process, if required;

(3) within 60 days of the date the department determines that an application is complete and informs the applicant, the department shall hold the public hearing, if required;

(4) 90 days after the date the department determines that an application is complete and informs the applicant, the public comment period shall close; and

(5) within 120 days of the date the department determines that an application is complete and informs the applicant, the department shall provide to the applicant a final agency action concerning the permit.

d. Preconstruction permits and permit modifications relating to qualifying projects subject to this section shall be considered expansions of existing facilities pursuant to P.L.2020, c.92 (C.13:1D-157 et seq.).

e. For permits subject to the provisions of P.L.2020, c.92 (C.13:1D-157 et seq.), all agency permit review shall occur concurrently with the applicable review pursuant to P.L.2020, c.92 (C.13:1D-157 et seq.).

f. Notwithstanding the provisions of any law, rule, or regulation to the contrary, there shall be no requirement that an applicant for a permit secure emissions offsets pursuant to N.J.A.C.7:27-18.5, or any successor regulation, as part of the application.

g. Notwithstanding the provisions of any law, rule, or regulation to the contrary:

(1) if a permit issued by a State agency for a qualifying project requires a public hearing or comment period, the public hearing or comment period shall occur simultaneously with the applicable agency’s internal review process of the project application; and

(2) the comment period for any permit subject to the provisions of this act shall be no longer than 30 days.

5. a. A qualifying project shall:

(1) comply with the provisions of section 13 of P.L.1967, c.106 (C.26:2C-9.2), the rules and regulations codified at subchapter 8 of chapter 27 of Title 7 of the New Jersey Administrative Code, and any subsequent amendments thereto;

(2) achieve a CO2 emissions intensity of less than 1,000 pounds per megawatt-hour; and

(3) submit to the Board of Public Utilities a workforce development and labor plan, including:

(a) estimates of temporary construction and permanent operations jobs;

(b) proposed partnerships with local educational or workforce training institutions; and

(i) enter into a project labor agreement and pay prevailing wages, in accordance with the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), for any construction services in State; or

(ii) pay the wages and benefits provided in a collective bargaining agreement between a labor organization, as defined in paragraph (5) of section 2 of the federal “National Labor Relations Act” (29 U.S.C. s.152), and the employer covering the work.

b. The Board of Public Utilities, in consultation with the department, shall coordinate with PJM Interconnection, L.L.C. to ensure timely interconnection review for qualifying projects and to prioritize interconnection requests that support system reliability and reduce CO2 emissions intensity.

6. a. During a declared reliability event, a qualifying project may operate outside of permit-specified operating limits temporarily, so long as:

(1) operation of the qualifying project is necessary to maintain grid reliability;

(2) the authorization is limited to the duration of the reliability event; and

(3) the facility reports emissions and operating data to the department within 30 days of commencing temporary operations pursuant to this section.

b. Any hours that a facility operates during a reliability event shall not be counted toward the facility’s emissions limits or other capacity factor limits on the operation of the facility, if applicable, of any permit held by the facility.

c. Nothing in this section shall authorize a qualifying project to exceed federal emissions standards.

7. No person shall bring a legal action against the department for the issuance of a permit constituting a final agency action to a qualifying project, and no person shall appeal that final agency action, unless:

a. the person submitted a public comment that:

(1) is substantive and unique;

(2) was submitted within the noticed comment period;

(3) contains sufficient information to put the relevant State agency on notice of the issue; and

(4) demonstrates that the person would suffer direct harm if the comment were not addressed; and

b. the legal action concerns the same subject matter that was raised in the public comment.

8. This act shall take effect immediately.

STATEMENT

This bill, the “New Jersey Natural Gas Modernization Act,” requires the Department of Environmental Protection (DEP) to take certain action to expedite permits issued pursuant to the “Air Pollution Control Act (1954),” P.L.1954, c.212 (C.26:2C-1 et seq.), the “Coastal Area Facility Review Act,” P.L.1973, c.185 (C.13:19-1 et seq.); or subchapter 22 of chapter 27 of Title 7 of the New Jersey Administrative Code.

The bill requires the DEP to establish streamlined pathways for the expeditious issuance of permits subject to the provisions of the bill, and to establish distinct treatments for projects requiring initial permits, including certain preconstruction permits and operating permits, and projects requiring permit modifications.

With respect to new permits and permit modifications, the department is required to abide by the following timelines, as applicable:

(1) within 30 days of the date an applicant submits an application, determine the completeness of the application and inform the applicant;

(2) on the date the department determines that an application is complete and informs the applicant, initiate the public comment or public hearing process, if required;

(3) within 60 days of the date the department determines that an application is complete and informs the applicant, hold the public hearing, if required;

(4) 90 days after the date the department determines that an application is complete and informs the applicant, the public comment period shall close;

The bill establishes certain requirements for certain qualifying projects, defined under the bill to mean any project located at an eligible site, which project includes: (1) physical modification to an existing natural gas-fired electric generating unit; (2) installation of new equipment integrated with an existing unit; (3) installation of a primarily natural gas-fired electric generating unit to replace retired electric generating equipment; (4) installation of co-located energy storage or renewable energy generation; or (5) any combination thereof.

The Board of Public Utilities, in consultation with the DEP, is required under the bill to coordinate with PJM Interconnection, L.L.C. to ensure timely interconnection review for qualifying projects and to prioritize interconnection requests that support system reliability and reduce CO2 emissions intensity.

During a declared reliability event, a qualifying project may be authorized to operate outside of permit-specified operating limits temporarily, so long as:

(1) operation of the qualifying project is necessary to maintain grid reliability;

(2) the authorization is limited to the duration of the reliability event; and

(3) the facility reports emissions and operating data to the department within 30 days of commencing temporary operations pursuant to this section.

Any hours that a facility operates during a reliability event shall not be counted toward the facility’s emissions limits or other capacity factor time limits on the operation of the facility, if applicable, of any permit held by the facility.

Nothing in the bill authorizes a qualifying project to exceed federal emissions standards.

The bill prohibits persons from bringing a legal action against the DEP for the issuance of a permit constituting a final agency action to a qualifying project, or the appeal of the final agency action, unless:

a. the person submitted a public comment that:

(1) is substantive and unique;

(2) was submitted within the noticed comment period;

(3) contains sufficient information to put the relevant State agency on notice of the issue; and

(4) demonstrates that the person would suffer direct harm if the comment were not addressed; and

b. the legal action concerns the same subject matter that was raised in the public comment.