Caps State use portion of energy tax revenues and ensures balance of such revenues are paid annually as municipal aid.

S 1926 caps New Jersey's annual use of energy tax revenues at $740 million, requiring the remaining funds to be distributed as annual municipal aid. The bill mandates that municipalities receive payments based on their historical tax distributions from 1994-1996, with additional funds allocated to correct previous imbalances in aid distribution. This ensures approximately $740 million in energy tax revenue directly supports local governments each year, rather than being retained by the state.