Energy (Oil & Gas)

This bill requires New Jersey's Board of Public Utilities (BPU) to create a program for gas utilities to gradually increase renewable natural gas (RNG) in their supply, starting at 5% by 2024 and reaching 30% by 2050. Gas utilities can make qualifying investments in RNG infrastructure and purchase RNG from third parties to meet these targets, with costs recoverable through regulated customer rate increases. The bill establishes a rate recovery mechanism allowing utilities to pass on approved costs to customers, while capping annual incremental costs at 5% of the utility's total revenue to protect ratepayers. It directly affects gas utilities and their customers by structuring a transition toward lower-carbon energy use through a regulated cost-recovery system.

This bill requires New Jersey to amend its construction code to prohibit burning high-emission fuels (like natural gas) in most new buildings. Starting 12 months after enactment, it bans such combustion in new buildings under seven stories, expanding to all new buildings after 36 months. Exemptions apply to emergency systems, emergency facilities, and commercial kitchens, but buildings using exemptions must still be designed as "all-electric ready" where feasible. The bill also mandates a joint report on utility rate changes and allows municipalities to enforce stricter rules than the state code.

This bill allows New Jersey municipalities to pass local ordinances requiring that new buildings be constructed without natural gas connections. Under the law, municipalities could mandate that construction permits for new buildings only be issued if plans specify alternative energy sources (like electricity) instead of natural gas. The bill also requires the state commissioner to create rules for implementing these local policies, and it takes effect immediately. This directly affects developers and builders working on new construction projects in municipalities that adopt such ordinances.

S 684 establishes a three-year pilot program in New Jersey allowing gas public utilities to replace aging natural gas pipelines with geothermal energy infrastructure (like underground heating/cooling systems) and recover the project costs through customer utility rates. Gas utilities must submit detailed infrastructure plans to the Board of Public Utilities for approval, which will evaluate project costs, benefits like reduced emissions, and impacts on ratepayers. The program requires annual reports to the Governor and Legislature, with a final assessment on whether to make it permanent. This directly affects gas utilities operating in New Jersey, aiming to transition infrastructure toward renewable geothermal energy.

This bill (S 2735) exempts sales of fuel cell devices and systems from New Jersey's sales and use tax. It applies to devices that generate electricity from fuel without combustion (e.g., for heating, cooling, or power) and covers related tangible property. The exemption also extends to fuels like natural gas, propane, and hydrogen used in these systems. This directly benefits businesses and consumers purchasing fuel cell technology for energy use.