Bill > A3374

Introduced Session

This bill would require heating fuel suppliers, including natural gas public utilities, to purchase a certain number of clean heat credits each year. Specifically, the bill would require heating fuel suppliers to purchase clean heat credits representing five percent of the greenhouse gas emissions associated with the heating fuel that they supply during the first year the program is active. The bill would require this percentage to increase to 20 percent by 2030, 50 percent by 2040, and 80 percent by 2050. The bill would require the Board of Public Utilities (BPU) to establish a system for the creation and sale of clean heat credits. Under the bill, residential, commercial, or industrial building owners would generate clean heat credits by taking steps to reduce the greenhouse gas emissions associated with heating their buildings. These steps - called "clean heat measures" in the bill - could include installing a heat pump, improving the thermal efficiency of the building, or switching to sustainably sourced biofuel or hydrogen instead of a fossil fuel, as well as other measures listed in subsection b. of section 3 of the bill. Each ton of annual avoided greenhouse gas emissions would generate a clean heat credit for the building owner, which could then be sold to heating fuel suppliers to meet their annual purchase obligations. Finally, the bill would direct the BPU to establish an alternative compliance payment system. Heating fuel suppliers could make an alternative compliance payment in lieu of purchasing and retiring a clean heat credit. The alternative compliance payments would be deposited in the "Global Warming Solutions Fund" established pursuant to the "Global Warming Response Act," P.L.2007, c.340 (C.26:2C-45 et seq.).

AI Summary

Committee Categories

Annette Quijano (D)*,  Verlina Reynolds-Jackson (D)*,  Sterley Stanley (D)*, 

Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 02/01/2024)

Official Document