Bill Text: NJ A4882 | 2026-2027 | Regular Session | Amended
Bill Title: "New Jersey Natural Gas Modernization Act."
Sponsorship: Partisan Bill (Democrat 3)
Status: (Introduced) 2026-05-28 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly State and Local Government Committee [A4882 Detail]
Download: New_Jersey-2026-A4882-Amended.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Assemblywoman ANDREA KATZ
District 8 (Atlantic and Burlington)
Assemblyman KEVIN P. EGAN
District 17 (Middlesex and Somerset)
SYNOPSIS
"New Jersey Natural Gas Modernization Act."
CURRENT VERSION OF TEXT
As reported by the Assembly Telecommunications and Utilities Committee on May 28, 2026, with amendments.
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 1[households] household1 incomes in many regions of the State, 1[and]1 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 1[deliverability] delivery1 year, PJM Interconnection 1, L.L.C.1 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 1No.1 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 1No.1 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 1[supporting] supports1 the responsible development of renewable energy, energy efficiency programs, storage technologies, and modernized conventional generation 1[,]1 in order to reduce emissions while strengthening grid resilience and 1[improving] improves1 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 1[,]1 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 1[this act] P.L. , c. (C. ) (pending before the Legislature as this bill)1:
"CO2 emissions intensity" means the mass of carbon dioxide emitted per unit of electricity generated, 1as1 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 1[within the preceding 60 months,]1 and at which 1[the] some1 necessary site infrastructure, 1[including] which may include, but shall not be limited to,1 interconnection facilities, gas supply, 1[and] or1 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.) 1[,] ;1 the "Coastal Area Facility Review Act," P.L.1973, c.185 (C.13:19-1 et seq.) 1[, or subchapter 22 of chapter 27 of Title 7 of] ; the "Freshwater Wetlands Protection Act," P.L.1987, c.156 (C.13:9B-1 et seq.); and any permits and authorizations for minor source air facilities, operating permits, waterfront development, and flood hazard area control, established pursuant to rules and regulations adopted by the department and published in1 the New Jersey Administrative Code.
"PJM Interconnection, L.L.C." 1or "PJM"1 means the 1[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] same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51)1.
"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 1[Interconnection, L.L.C.]1 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 1[this act] P.L. , c. (C. ) (pending before the Legislature as this bill). The department shall prioritize the issuance of permits to:
(1) qualifying projects that use renewable natural gas over qualifying projects that would not use renewable natural gas; and
(2) qualifying projects that are located on an eligible site where a permitted natural gas-fired electric generating unit operated at any time within the preceding 60 months but may, at the department's discretion, issue permits to qualifying projects on an eligible site where a permitted natural gas-fired electric generating unit operated at any time before the preceding 60 months1.
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 1for1 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 1[this act] P.L. , c. (C. ) (pending before the Legislature as this bill)1 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
(c) a commitment to either:
(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 1[Interconnection, L.L.C.]1 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.
