Bill Text: NJ S249 | 2024-2025 | Regular Session | Amended

---

Bill Title: Requires BPU to establish beneficial building electrification and decarbonization program and requires electric public utilities to prepare and implement beneficial building electrification and decarbonization plans.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2024-06-20 - Referred to Senate Budget and Appropriations Committee [S249 Detail]

Download: New_Jersey-2024-S249-Amended.html

---

[First Reprint]

SENATE, No. 249

STATE OF NEW JERSEY

221st LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

 

 

Sponsored by:

Senator  BOB SMITH

District 17 (Middlesex and Somerset)

Senator  ANDREW ZWICKER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

 

Co-Sponsored by:

Senators McKeon and Mukherji

 

 

 

 

SYNOPSIS

      Requires BPU to establish beneficial building electrification and decarbonization program and requires electric public utilities to prepare and implement beneficial building electrification and decarbonization plans.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Environment and Energy Committee on June 20, 2024, with amendments.

  

An Act concerning building electrification ¹and decarbonization¹ and supplementing P.L.2018, c.17 (C.48:3-87.8 et al.).

 

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

 

      1.  a.  For the purposes of this section:

      "Beneficial ¹building¹ electrification ¹and decarbonization¹ " 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 ¹[emission] emissions¹ ; or promotes the increased use of the electric grid in off-peak hours.

      "Cost effective" means any beneficial ¹building¹ electrification ¹and decarbonization¹ program having a benefit-cost ratio of greater than one, consistent with the New Jersey Cost Test for Energy Efficiency adopted by the board, and any additional factors the board determines are necessary to achieve the goals of this section.

      b.  No later than one year after the date of enactment of this section, the Board of Public Utilities shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a beneficial building electrification ¹and decarbonization¹  program.  As part of the program adopted pursuant to this section, the board shall develop greenhouse gas emission reduction targets for beneficial building electrification ¹and decarbonization¹ programs implemented by each electric public utility in the State and require electric public utilities to prepare and implement beneficial building electrification ¹and decarbonization¹ plans.  The board shall:

      (1) establish beneficial building electrification ¹and decarbonization¹ program targets expressed in the amount of on-site greenhouse gas emission reductions;

      (2) establish program design elements and minimum filing requirements to achieve the goals of the energy master plan adopted pursuant to section 12 of P.L.1977, c.146 (C.52:27F-14);

      (3) establish a cost recovery and performance incentive mechanism for programs established under this section;

      (4) determine whether the electric public utilities or the board shall be responsible for the implementation of building electrification ¹and decarbonization¹ programs for new construction; and

      (5) develop and provide direct incentives for the installation of electric heat pumps.

      c.  Each electric public utility shall develop and submit to the board for approval, a multi-year beneficial building electrification ¹and decarbonization¹ plan to achieve the targets established in subsection b. of this section.  To qualify for approval, an electricity public utility plan shall:

      (1) meet or exceed on-site greenhouse gas emission reduction targets set by the board; and

      (2) be cost effective from a societal perspective utilizing a cost-effectiveness test that includes consideration of the environmental benefits of reducing greenhouse gas emissions, including methane emissions. 

      d.   A beneficial building electrification ¹and decarbonization¹ plan may meet the greenhouse gas emission reduction targets set by the board pursuant to subsection b. of this section through the following means:

      (1) conversion of fossil fuel-based space and water heating systems, including natural gas and propane systems as well as other unregulated fuels, to systems that employ high-efficiency electric heat pumps;

      (2) replacement of fossil fuel based appliances with high-efficiency electric appliances such as induction cooking ranges and heat-pump clothes dryers;

      (3) conversion of fossil fuel-based industrial equipment or processes to energy-efficient electric-powered equipment or processes; or

      (4) market transformation programs aimed at educating and training contractors to use appliances, equipment, and systems that are high-efficiency.

 

     2.  This act shall take effect immediately.