New Jersey Assembly Bill A1461

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Establishes Climate Change Mitigation and Resilience Financing Program in NJ Infrastructure Bank; imposes per-kilowatt hour charge on electric energy consumption to finance climate change mitigation and resilience projects.

Impact

Upon implementation, A1461 will impose a non-bypassable charge on customers of electric public utilities, starting at $0.0003 per kilowatt-hour of electricity consumed. This charge will fund the financing program, with the amount decreasing as more renewable energy is integrated into the state's energy supply. Specifically, once 100% of electricity is derived from designated renewable sources, the charge will be eliminated, thereby encouraging a transition towards a more sustainable energy framework and reducing greenhouse gas emissions.

Summary

Bill A1461 seeks to establish the Climate Change Mitigation and Resilience Financing Program through the New Jersey Infrastructure Bank. This program aims to provide low-interest loans and other forms of financial assistance to state entities, local government units, and private organizations for projects focused on mitigating climate change and enhancing resilience against its adverse impacts. The bill encompasses various project types, including renewable energy sources, community solar initiatives, energy efficiency improvements, and infrastructure adaptations to combat sea-level rise and extreme weather events.

Contention

Notable points of contention include the potential economic impact on utility customers due to the imposed charge, as some may view it as an additional financial burden. Furthermore, there are discussions surrounding the effectiveness and efficiency of the program in allocating funds to climate change projects, ensuring that the selected initiatives significantly contribute to public health and environmental resilience. The effectiveness of the Department of Environmental Protection and the Board of Public Utilities in managing the program and establishing project priorities may also be debated.