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Bill > A2407


NJ A2407

NJ A2407
Establishes alternative compliance payment to satisfy Class II renewable energy requirements.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill establishes a new alternative compliance payment for Class II renewable energy generation requirements at the value of $10 per megawatt hour. Currently, the Board of Public Utilities (BPU) sets the price for alternative compliance payments. Energy suppliers and producers are required to sell a minimum amount of qualified renewable energy each energy year as set by BPU. Suppliers and producers can meet this requirement by purchasing and retiring Renewable Energy Certificate's (RECs) to meet their renewable energy requirements for that energy year. If an energy supplier or provider has not met their minimum renewable energy requirements by the submission of RECs, the supplier or provider can instead pay an alternative compliance payment for the amount of RECs that were required but not submitted.

AI Summary

This bill establishes a fixed alternative compliance payment (ACP) of $10 per megawatt hour (MWh) for electric power suppliers and basic generation service providers to meet Class II renewable energy generation requirements, which are obligations to generate or procure a certain amount of renewable energy each year. Currently, the Board of Public Utilities (BPU) determines the ACP amount, and suppliers can meet their renewable energy obligations by purchasing and retiring Renewable Energy Certificates (RECs). If they don't meet their obligations through RECs, they can pay the ACP. This bill amends the definition of ACP to include this new fixed payment and mandates that any ACPs collected be refunded directly to ratepayers by electric public utilities.

Committee Categories

Transportation and Infrastructure

Sponsors (3)

Last Action

Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 01/13/2026)

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