New Jersey Senate Bill S3672

New Jersey 2022-2023 Regular Session

• Introduced: 2/28/23
• Refer: 2/28/23

Caption

Requires BPU to establish beneficial building electrification program and requires electric public utilities to prepare and implement building electrification plans.

Impact

If enacted, the bill would establish requirements for electric utilities to not only prepare but also adhere to multi-year plans aimed at meeting specified greenhouse gas emission reduction targets. These plans must demonstrate a cost-effective approach that includes a societal perspective on the benefits of reduced emissions, particularly concerning methane. The BPU is tasked with determining the details of these plans, ensuring that they align with New Jersey's broader energy master plan, and providing direct incentives for the installation of energy-efficient appliances and systems.

Summary

Senate Bill S3672 aims to direct the New Jersey Board of Public Utilities (BPU) to create a beneficial building electrification program which will require electric public utilities to implement plans that promote electrification in buildings. The bill defines 'beneficial electrification' as transforming existing non-electric systems to efficient electrical ones for various building applications such as heating, water heating, and industrial processes. This change is framed as both a means of reducing statewide greenhouse gas emissions and a method to maximize the use of the electric grid during off-peak hours.

Contention

There may be points of contention due to the implications of such a program on existing infrastructure and utility operations. Critics might argue that transitioning from fossil fuel-based systems to electrification could impose challenges, especially with regards to costs and logistical execution for both utilities and consumers. Further, questions may arise about the adequacy of infrastructure to support a significant increase in electric demands, particularly concerning renewable energy sources. The balance of ensuring reliable energy supply while promoting sustainability will likely be a focal point during legislative discussions.