New Jersey Senate Bill S2978

New Jersey 2022-2023 Regular Session

• Introduced: 8/8/22
• Refer: 8/8/22

Caption

Revises State renewable energy portfolio standards.

Impact

The legislation mandates that by 2030, at least 50 percent of the renewable energy certificates (RECs) utilized by suppliers must be sourced from facilities established in New Jersey. Furthermore, by 2045, the bill requires that 100 percent of retail energy sold in the state must originate from Class I renewable sources. The expiration of the Class II RPS—which currently requires a minimum of 2.5 percent from Class II sources—by 2045 underscores the state's commitment to a 100 percent renewable energy strategy.

Summary

Senate Bill 2978 aims to revise and strengthen New Jersey's renewable energy portfolio standards (RPS), which outline the requirements for electric power suppliers to sell a portion of electricity generated from renewable sources. The bill proposes significant changes to the existing framework, stipulating that starting in 2030, the RPS for Class I renewable energy will exclude electricity produced by nuclear power plants and 'zero-carbon' sources that commence operations post-2030. This distinction emphasizes the importance of non-nuclear renewable sources in achieving state energy goals.

Contention

The bill has sparked discussions regarding its potential impacts on local energy markets and the state's overall energy strategy. Opponents may argue that this strong focus on renewable sources could have economic repercussions, particularly regarding cost and reliability of energy supply. Additionally, the transition from a mixed energy approach to a fully renewable standard may raise concerns about implementation and compliance for existing energy suppliers. Supporters emphasize that these standards are essential for reducing greenhouse gas emissions and addressing climate change effects.