Bill > A4490

Introduced Session

This bill would require the Board of Public Utilities (board) to establish a four-year pilot program to authorize gas public utilities to recover the cost of one or more thermal energy network projects, which would establish thermal energy network infrastructure in lieu of existing new natural gas infrastructure for new or existing developments, particularly in areas with aging or leaking natural gas pipeline or without existing natural gas infrastructure, through the utility rates charged to its ratepayers. The board would be authorized to locate a maximum of one project in each of the northern, central, southern, and coastal regions of the State. To participate in the pilot program, a utility would submit a thermal infrastructure plan with any information regarding the proposed project that the board deems necessary. While reviewing a plan, the board would consider: (1) the size, scope, and scale of each project; (2) the lifecycle cost of each project; (3) the expected benefits of the project; (4) the project's financial impact on the utility's ratepayers; (5) whether each project's benefits justify the cost of the project; (6) the extent to which each project serves low- to moderate-income households, residents of overburdened communities, and other vulnerable populations; (7) the degree to which each project targets or mitigates highly inefficient buildings; (8) the potential opportunities for cost-effective retrofits or the inclusion of future potential for thermal waste heat system tie-ins; (9) the extent to which the utility has identified non-ratepayer sources of funding; (10) the degree to which each project targets or mitigates old or leaking natural gas infrastructure, or presents an alternative to potential natural gas expansion; and (11) any other criteria that the board deems appropriate. In addition, a utility would be required to submit certain information on the operations of the pilot program to the board. The bill would require, no later than six months after the expiration of the pilot program, the board to, at a minimum, summarize this information in an annual report to be published on its Internet website and submit to the Governor and the Legislature. The bill would also require the board to determine, no later than six months after the expiration of the pilot program, whether or not to extend the pilot program, convert the pilot program to a permanent program, or recommend that New Jersey allow the distribution of geothermal energy as a regulated public utility service. If the board decides to convert the pilot program to a permanent program, after considering laws, rules, and regulations in other states with similar programs, the board is to adopt rules and regulations to effectuate the transition from a pilot program to a permanent program. Finally, the bill amends current law to provide that the term "public utility" is to include an entity that owns, operates, manages, and controls thermal energy distribution within the State, and to provide exceptions to certain statutory provisions that prohibit the board from regulating the sale of thermal energy.

AI Summary

Committee Categories

Clinton Calabrese (D)*,  Jim Kennedy (D)*,  Andrew Macurdy (D)*, 

Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 02/24/2026)

Official Document