Bill Text: NJ A4698 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires BPU to conduct study concerning zero emission credits.
Sponsorship: Partisan Bill (Democrat 4)
Status: (Introduced - Dead) 2017-03-20 - Introduced, Referred to Assembly Environment and Solid Waste Committee [A4698 Detail]
Download: New_Jersey-2016-A4698-Introduced.html
Sponsored by:
Assemblyman TIM EUSTACE
District 38 (Bergen and Passaic)
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
SYNOPSIS
Requires BPU to conduct study concerning zero emission credits.
CURRENT VERSION OF TEXT
As introduced.
An Act requiring the Board of Public Utilities to conduct a study concerning zero emission credits.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Within one year after the effective date of this act, the Board of Public Utilities shall conduct a study and submit a written report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature concerning the feasibility and benefits of adopting an energy policy in this State that includes a zero emission credit program. In conducting this study, the board shall:
(1) consider how implementation of a zero emission credit program may benefit ratepayers by incentivizing the production of carbon-free energy in the State;
(2) consider whether zero emission credits are an appropriate financial incentive to aid in the development and promotion of nuclear energy and other carbon-free energy production technologies in the State;
(3) evaluate methods to value zero emission credits, considering the potential benefits and costs to ratepayers, local governments, and electric public utilities, and any impact on renewable energy certificates and solar renewable energy credits;
(4) determine the optimal amount of zero emission credits and the price thereof in order to provide the maximum benefit to ratepayers; and
(5) calculate the cost to the State's ratepayers of adding the optimal amount of zero emission credits.
b. In conducting the study concerning a zero emission credit program required by this section, the board shall consult with public and private entities in other states that have conducted studies concerning, or are implementing, zero emission credit programs or other carbon-free energy incentives.
c. The board's written report shall: (1) summarize the study conducted pursuant to subsection a. of this section; (2) discuss and quantify the potential benefits and costs associated with implementing zero emission credits; (3) recommend appropriate methods to value zero emission credits taking into account costs to ratepayers; and (4) include any other mechanism determined by the board to be a feasible alternative to incentivize the production of carbon-free energy in the State.
2. This act shall take
effect immediately.
STATEMENT
This bill requires the Board of Public Utilities (board) to conduct a study concerning the feasibility and benefits of implementing a zero emission credit (ZEC) program in this State.
In conducting the study required by the bill, the board would:
(1) consider how implementation of a ZEC program may benefit ratepayers by incentivizing the production of carbon-free energy in the State;
(2) consider whether ZECs are an appropriate financial incentive to aid in the development and promotion of nuclear energy and other carbon-free energy production technologies in the State;
(3) evaluate methods to value ZECs, considering the potential benefits and costs to ratepayers, local governments, and electric public utilities, and any impact on renewable energy certificates and solar renewable energy credits;
(4) determine the optimal amount of ZECs and the price thereof in order to provide the maximum benefit to ratepayers; and
(5) calculate the cost to the State's ratepayers of adding the optimal amount of ZECs.
The bill directs the board to consult with public and private entities in other states that have conducted studies concerning, or are implementing, ZEC programs or other carbon-free energy incentives.
The bill requires the board to prepare and submit, within one year after enactment of the bill into law, a written report to the Governor and the Legislature concerning zero emission credits needs and opportunities in the State. The report would: (1) summarize the study conducted pursuant to the bill; (2) discuss and quantify the potential benefits and costs associated with implementing ZECs; (3) recommend appropriate methods to value ZECs taking into account costs to ratepayers; and (4) include any other mechanism determined by the board to be a feasible alternative to incentivize the production of carbon-free energy in the State.
The term "zero emission credit" refers to a mechanism intended to compensate nuclear power plants for their carbon-free attributes. They are similar in nature to solar renewable energy credits. Illinois and New York recently adopted policies concerning ZECs as a means to retain existing nuclear power plants in those states. Under these programs, a nuclear plant would receive a credit, i.e., a payment at a set rate, for every megawatt-hour of carbon-free electricity it generates.
