New Jersey Assembly Bill A3935

New Jersey 2022-2023 Regular Session

• Introduced: 5/12/22
• Refer: 5/12/22

Caption

Prohibits adoption of any State rule or regulation mandating electric heating or water heating systems in buildings prior to issuance of DCA report.

Impact

The bill outlines that the DCA, along with the DEP and Board of Public Utilities (BPU), must conduct at least six public hearings within 18 months of the bill's enactment to gather information on various topics, such as the financial implications of retrofitting buildings for electric heating and the overall impact on ratepayers. Additionally, a report summarizing these findings, as well as recommendations for further regulatory actions, is required to be submitted within 24 months post-enactment. This approach aims to engage the public in the discussion surrounding the electrification of heating systems while also assessing the broader implications for greenhouse gas emissions reduction goals.

Summary

Assembly Bill A3935 proposes to prohibit state agencies, including the Department of Community Affairs (DCA) and the Department of Environmental Protection (DEP), from mandating the use of electric heating and water heating systems as the sole or primary means of heating and providing hot water in both residential and commercial buildings. This prohibition will remain in effect until the DCA completes a mandated report on the costs and benefits related to electric heating systems, which must include input from public hearings across the state.

Contention

Noteworthy points of contention surrounding A3935 include concerns regarding how such regulations could affect low-income ratepayers, potential job impacts in the fossil fuel sector due to a transition towards electric systems, and the suitability of electric heating as a primary option in relation to existing systems. Critics argue that imposing such mandates could disproportionately affect financially vulnerable populations and industries reliant on fossil fuels, while supporters advocate for a balanced consideration of environmental benefits against economic viability.