Requires BPU to pay for certain compliance costs of State energy policies.

A4517

ASSEMBLY, No. 4517

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 9, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Requires BPU to pay for certain compliance costs of
State energy policies.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning certain compliance costs associated
with State energy policies and supplementing Title 48 of the Revised Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� As used in this
section:�

���� �Board� means the New Jersey
Board of Public Utilities or a successor agency.

���� �Compliance cost� means the
cost borne by a customer while attempting to comply with the requirements of
any State law, rule, regulation, or order concerning energy policy, including,
but not limited to, the Energy Master Plan.� �Compliance cost� includes, but is
not limited to, the cost of purchasing and installing new appliances or
equipment; permitting and other inspection fees; upgrading existing appliances;
and making infrastructure improvements, including, but not limited to, wiring
upgrades, electrical panel upgrades, and other structural changes associated
with upgrading electric public utility service from pole to residence.�
�Compliance cost� does not include the cost of energy supply.

���� �Customer� means a residential
or commercial customer of a public utility.

���� �Electric public utility�
means a public utility, as that term is defined pursuant to R.S.48:2-13, that
transmits and distributes electricity to end users within the State.

���� �Energy Master Plan� means the
2024 New Jersey Energy Master Plan prepared pursuant to section 12 of P.L.1977,
c.146 (C.52:27F-14), or any successor plan.

���� �Orsted� means �rsted A/S, Orsted
North America Inc., Orsted Wind Power North America LLC, Ocean Wind LLC, and
Ocean Wind II, LLC.

���� �Public utility� means the
same as that term is defined pursuant to R.S.48:2-13.

���� b.��� (1) Notwithstanding any
law, rule, regulation, or order to the contrary, the board shall pay for any
compliance costs incurred by a customer of a public utility.

���� (2)�� The board shall fund
compliance cost payments required pursuant to paragraph (1) of this subsection
through uncommitted monies from:�

���� (a)�� the revenue collections
of the societal benefits charge, established pursuant to section 12 of
P.L.1999, c.23 (C.48:3-60);

���� (b)�� the �Global Warming
Solutions Fund,� established pursuant to section 6 of P.L.2007, c.340
(C.26:2C-50); and

���� (c)�� the settlement agreement
with Orsted entered into as of May 25, 2024, as received by the State.

���� (3)�� If the amount of
compliance cost payments required pursuant to paragraph (1) of this subsection
exceeds the amount of uncommitted monies from the revenue sources outlined in
paragraph (2) of this subsection, the board shall fund such excess payments
from any appropriations made by the Legislature from the General Fund.

���� c.���� The board may, in
accordance with the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.), adopt rules and regulations as necessary to implement the provisions
of this section.

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill requires the New
Jersey Board of Public Utilities (board) to pay for any costs (compliance
costs) incurred by a residential or commercial customer of a public utility
while attempting to comply with the requirements of any State law, rule, regulation,
or order concerning energy policy in the State such as the Energy Master Plan.�
The board is to fund its payments of compliance costs through uncommitted
monies from the societal benefits charge, the �Global Warming Solutions Fund,�
and the settlement agreement with Orsted entered into as of May 25, 2024� If
the board exhausts such uncommitted monies, the bill requires the board to fund
compliance cost payments through appropriations made by the Legislature from
the General Fund.

���� Through its energy policies,
such as the Energy Master Plan, New Jersey has been promoting the
electrification of homes, businesses, and vehicles to reduce carbon emissions, regardless
of the cost or benefits to residents. �The sponsor believes that these
electrification efforts allow the State to virtue signal its stance on energy
policy in New Jersey without considering the cost of compliance borne by
consumers.� According to Governor Murphy�s �Strategic Roadmap for Building
Decarbonization,� released in November 2025, only 16 percent of the homes in
New Jersey use electricity for space heating and only 26 percent of the homes
in New Jersey use electricity for water heating.� The report also estimates that,
according to one study, the average lifecycle cost to retrofit a home for heat
pump installation is approximately $25,600. �With over 3.8 million housing
units in the State, the enormity of the cost to consumers for electrification is
apparent. �The sponsor believes that requiring homeowners and renters to shoulder
the cost of compliance with the State�s energy policies is unconscionable. �Moreover,
it is the sponsor�s opinion that the principle of the �State Mandate, State
Pay� amendment to the New Jersey Constitution, which was approved by voters in
1995 and intended to protect local government entities from unfunded State
mandates, should apply to residents across the State who bear the compliance
costs of New Jersey�s energy policies. �