New Jersey Assembly Bill A1462

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Directs BPU to establish program concerning renewable natural gas; provides gas public utilities with customer rate recovery mechanism for costs associated with program.

Impact

The legislation mandates that utilities can periodically recover costs associated with their investments and operations related to the RNG program. These costs encompass capital investments, operational expenses, and the procurement of RNG from third parties. The BPU is tasked with creating a mechanism that ensures these costs are approved and recovery is feasible for ratepayers, ultimately allowing utilities to pass costs onto customers while fostering infrastructure investment in RNG.

Summary

Assembly Bill A1462 is designed to establish a renewable natural gas (RNG) program in New Jersey managed by the Board of Public Utilities (BPU). The bill outlines the framework for gas public utilities to procure renewable natural gas and invest in necessary infrastructure. By encouraging the development of RNG resources, the bill aims to facilitate a transition to a lower carbon energy economy, emphasizing the societal benefits associated with renewable sources of energy. The legislation acknowledges the potential of RNG in reducing greenhouse gas emissions from the consumption of traditional natural gas.

Contention

While the bill presents benefits in terms of environmental impact and energy transition, discussions around it may include concerns about cost implications for consumers. Some stakeholders may argue that the financial burden of these initiatives could fall on ratepayers, especially if the recovery mechanisms are not carefully regulated by the BPU. Therefore, maintaining a balance between ecological benefits and consumer protection is likely to be a point of contention among legislators and the public as this bill proceeds through the legislative process.