Bill Text: NJ A3316 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires funds collected through societal benefits charge not allocated be credited to electric and gas public utility customers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-12 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A3316 Detail]
Download: New_Jersey-2018-A3316-Introduced.html
Sponsored by:
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
SYNOPSIS
Requires funds collected through societal benefits charge not allocated be credited to electric and gas public utility customers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning allocation of societal benefits charge funds and amending P.L.1999, c.23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 12 of P.L.1999, c.23 (C.48:3-60) is amended to read as follows:
12. a. Simultaneously with the starting date for the implementation of retail choice as determined by the board pursuant to subsection a. of section 5 of [this act] P.L.1999, c.23 (C.48:3-53), the board shall permit each electric public utility and gas public utility to recover some or all of the following costs through a societal benefits charge that shall be collected as a non-bypassable charge imposed on all electric public utility customers and gas public utility customers, as appropriate:
(1) The costs for the social programs for which rate recovery was approved by the board prior to April 30, 1997. For the purpose of establishing initial unbundled rates pursuant to section 4 of [this act] P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of social program costs as is being collected in the bundled rates of the electric public utility on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.). The board may subsequently order, pursuant to its rules and regulations, an increase or decrease in the societal benefits charge to reflect changes in the costs to the utility of administering existing social programs. Nothing in [this act] P.L.1999, c.23 (C.48:3-49 et al.) shall be construed to abolish or change any social program required by statute or board order or rule or regulation to be provided by an electric public utility. Any such social program shall continue to be provided by the electric public utility until otherwise provided by law, unless the board determines that it is no longer appropriate for the electric public utility to provide the program, or the board chooses to modify the program;
(2) Nuclear plant decommissioning costs;
(3) The costs of demand side
management programs that were approved by the board pursuant to its demand side
management regulations prior to April 30, 1997. For the purpose of
establishing initial unbundled rates pursuant to section 4 of [this act] P.L.1999,
c.23 (C.48:3-52), the societal benefits charge shall be set to recover the
same level of demand side management program costs as is being collected in the
bundled rates of the electric public utility on the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.). Within
four months of the effective date of [this
act]
P.L.1999,
c.23 (C.48:3-49 et al.), and every four years thereafter, the board
shall initiate a proceeding and cause to be undertaken a comprehensive resource
analysis of energy programs, and within eight months of initiating such
proceeding and after notice, provision of the opportunity for public comment,
and public hearing, the board, in consultation with the Department of
Environmental Protection, shall determine the appropriate level of funding for
energy efficiency and Class I renewable energy programs that provide
environmental benefits above and beyond those provided by standard offer or
similar programs in effect as of the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.);
provided that the funding for [such] demand
side management programs be no less than [50%] 50
percent of the total Statewide amount being collected in [public] electric
and gas public utility rates for demand side management programs on the
effective date of [this
act]
P.L.1999, c.23 (C.48:3-49 et al.)
for an initial period of four years from the issuance of the first
comprehensive resource analysis following the effective date of [this act] P.L.1999, c.23 (C.48:3-49 et al.), and
provided that [25%] 25
percent of this amount shall be used to provide funding for Class I
renewable energy projects in the State. In each of the following fifth through
eighth years, the Statewide funding for [such] demand
side management programs shall be no less than 50 percent of the total
Statewide amount being collected in [public] electric
and gas public utility rates for demand side management programs on the
effective date of [this
act]
P.L.1999, c.23 (C.48:3-49 et al.),
except that as additional funds are made available as a result of the
expiration of past standard offer or similar commitments, the minimum amount of
funding for [such] demand
side management programs shall increase by an additional amount equal to 50
percent of the additional funds made available, until the minimum amount of
funding dedicated to [such] demand
side management programs reaches $140,000,000 total. After the eighth year,
the board shall make a determination as to the appropriate level of funding for
these programs. [Such] The
demand side management programs shall include a program to provide
financial incentives for the installation of Class I renewable energy projects
in the State, and the board, in consultation with the Department of Environmental
Protection, shall determine the level and total amount of [such] the
incentives as well as the renewable technologies eligible for [such] the
incentives which shall include, at a minimum, photovoltaic, wind, and fuel
cells. The board shall simultaneously determine, as a result of the
comprehensive resource analysis, the programs to be funded by the societal
benefits charge, the level of cost recovery and performance incentives for old
and new programs and whether the recovery of demand side management programs'
costs currently approved by the board may be reduced or extended over a longer
period of time. The board shall make these determinations taking into
consideration existing market barriers and environmental benefits, with the
objective of transforming markets, capturing lost opportunities, making energy
services more affordable for low income customers and eliminating subsidies for
programs that can be delivered in the marketplace without electric public
utility and gas public utility customer funding;
(4) Manufactured gas plant remediation costs, which shall be determined initially in a manner consistent with mechanisms in the remediation adjustment clauses for the electric public utility and gas public utility adopted by the board; and
(5) The cost, of consumer education, as determined by the board, which shall be in an amount that, together with the consumer education surcharge imposed on electric power supplier license fees pursuant to subsection h. of section 29 of [this act] P.L.1999, c.23 (C.48:3-78) and the consumer education surcharge imposed on gas supplier license fees pursuant to subsection g. of section 30 of [this act] P.L.1999, c.23 (C.48:3-79), shall be sufficient to fund the consumer education program established pursuant to section 36 of [this act] P.L.1999, c.23 (C.48:3-85).
On and after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), all funds imposed and collected pursuant to this subsection which, as of the commencement of each State fiscal year, have not been allocated to the electric public utilities and gas public utilities to recover costs, as provided under this subsection, shall be appropriated to the electric public utilities and gas public utilities for the purpose of providing a credit to electric public utility customers and gas public utility customers in a manner to be determined by board regulation. Each customer shall be awarded a pro-rata share of the funds through a credit on the electric or gas public utility bill of a customer within 120 days after the date of the appropriation. A customer that is a customer of a single public utility providing both electric service and gas service to that customer shall receive a pro rata share of the credit in connection with each service.
b. There is established in the [Board of Public Utilities] board a nonlapsing fund to be known as the "Universal Service Fund." The board shall determine: the level of funding and the appropriate administration of the fund; the purposes and programs to be funded with monies from the fund; which social programs shall be provided by an electric public utility as part of the provision of its regulated services which provide a public benefit; whether the funds appropriated to fund the "Lifeline Credit Program" established pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.), the "Tenants' Lifeline Assistance Program" established pursuant to P.L.1981, c.210 [(C.48:2-29.31 et seq.)] (C.48:2-29.30 et seq.), the funds received pursuant to the Low Income Home Energy Assistance Program established pursuant to 42 U.S.C. s.8621 et seq., and funds collected by electric and [natural] gas public utilities, as authorized by the board, to offset uncollectible [electricity] electric and [natural] gas public utility bills should be deposited in the fund; and whether new charges should be imposed to fund new or expanded social programs.
(cf: P.L.1999, c.23, s.12)
2. This act shall take effect immediately.
STATEMENT
This bill provides that all funds collected in relation to the societal benefits charge (SBC) which, as of the commencement of each State fiscal year, have not been allocated to the electric and gas public utilities and, to recover costs associated with the SBC, are to be appropriated to the electric and gas public utilities for the purpose of providing a credit to electric and gas public utility customers in a manner to be determined by board regulation. Each customer is to be awarded a pro-rata share of the funds through a credit on that customer's electric or gas utility bill, as appropriate.
