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

This bill caps New Jersey's annual use of energy tax revenues at $740 million, ensuring the remaining funds are paid directly to municipalities as aid. It amends existing law to establish a dedicated fund from energy-related taxes (including sales/use taxes on utilities and corporate taxes from public utilities), deducting $403 million before applying the $740 million cap. Municipalities receive annual payments based on historical aid levels from 1994-1996, with additional funds distributed to maintain previous support levels. The bill directly affects all New Jersey municipalities by guaranteeing predictable annual state aid tied to energy tax collections.