Energy (Utility Regulation)

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.

S 454 requires New Jersey's Board of Public Utilities (BPU) to consider whether proposed electricity rate increases are affordable for customers before approving them. This directly affects electric utilities seeking rate hikes and the households and businesses that pay their bills. The bill adds "affordability to ratepayers" as a mandatory factor the BPU must evaluate, alongside existing considerations like utility costs and return on investment. It applies to all future rate cases submitted after the bill takes effect.

This bill requires New Jersey's Division of Rate Counsel to evaluate environmental impacts when representing the public interest in utility rate or service decisions. It mandates consideration of climate effects, including the social cost of carbon, how proposals affect the state's de-carbonization goals, and whether they worsen environmental health burdens in overburdened communities. The Division must prioritize cases with the greatest potential impact on climate, carbon goals, or environmental stressors. This change applies to all utility rate proceedings where the Division advocates for the public interest. The bill directly affects how utility rate decisions are reviewed by the state.