Bill > A5591

Introduced Session

This bill would direct the New Jersey Board of Public Utilities (BPU) to establish a beneficial building electrification program, and would require electric public utilities to prepare and implement beneficial building electrification plans. As used in the bill, "beneficial electrification" means a change in end-use equipment from a nonelectric type to an efficient electric type for any building end use, including water heating, space heating, industrial process, or transportation, provided that the change: reduces cost from a societal perspective; reduces greenhouse gas emission, or promotes the increased use of the electric grid in off-peak hours. The bill directs the BPU to adopt, no later than one year after the bill becomes law, rules and regulations establishing a beneficial building electrification program. As part of the program, the BPU would develop greenhouse gas emission reduction targets for beneficial building electrification programs implemented by each electric public utility in the State and require electric public utilities to prepare and implement beneficial building electrification plans. The BPU would: (1) establish beneficial electrification program targets expressed in the amount of on-site greenhouse gas emission reductions; (2) establish program design elements and minimum filing requirements to achieve the goals of the energy master plan; (3) establish a cost recovery and performance incentive mechanism for programs established under the bill; (4) determine whether the electric public utilities or the board would be responsible for the implementation of building electrification programs for new construction; and (5) develop and provide direct incentives for the installation of electric heat humps. The bill would require each electric public utility to prepare a multi-year beneficial electrification plan to achieve the targets established by the BPU. To be approved by the BPU, an electricity public utility plan would be required to meet or exceed on-site greenhouse gas emission reduction targets set by the board and be cost effective from a societal perspective utilizing a cost-effectiveness test that includes consideration of the environmental benefits of reducing greenhouse gas emissions and methane emissions. Under the bill, a beneficial building electrification plan may meet the greenhouse gas emission reduction targets set pursuant to the bill through the following: (1) conversion of fossil fuel-based space and water heating systems, including natural gas and propane systems as well as other unregulated fuels, to systems that employ high-efficiency electric heat pumps; (2) replacement of fossil fuel based appliances with high-efficiency electric appliances such as induction cooking ranges and heat-pump clothes dryers; (3) conversion of fossil fuel-based industrial equipment or processes to energy-efficient electric-powered equipment or processes; or (4) market transformation programs aimed at educating and training contractors to use appliances, equipment, and systems that are high-efficiency.

AI Summary

Committee Categories

John McKeon (D)*, 

Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 06/08/2023)

Official Document