Establishes bill credit for certain utility customers, eliminates societal benefits charge, and concerns certain rate treatment and utility charges.

A4967

ASSEMBLY, No. 4967

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� JOHN DIMAIO

District 23 (Hunterdon, Somerset and Warren)

SYNOPSIS

���� Establishes bill credit for certain utility
customers, eliminates societal benefits charge, and concerns certain rate
treatment and utility charges.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning public utility charges and credits,
supplementing Title 48 of the Revised Statutes, and revising various parts of
the statutory law.

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

���� 1.��� (New section) a.� As
used in this section:�

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

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

���� �Gas public utility� means a public utility, as
that term is defined in R.S.48:2-13, that distributes gas to end users within
the State.

���� �Lost revenue conservation
incentive program� means
an
incentive program,
established pursuant to section 13 of
P.L.2007, c.340 (C.48:3-98.1), that provides monies to
electric public utilities
and gas public utilities
to account for lost revenue resulting
from the decrease in utility customer usage of electricity and natural gas due
to customer participation in energy efficiency programs and peak demand
reduction programs.

���� �Residential universal bill
credit� means a one-time direct utility bill assistance payment to all
residential customers of electric public utilities and gas public utilities.

���� �Societal benefits charge�
means the non-bypassable charge, established pursuant to section 12 of
P.L.1999, c.23 (C.48:3-60), imposed on all electric public utility customers
and gas public utility customers.

����
b.��� Notwithstanding any law, rule, regulation, or
order to the contrary, the board shall not utilize
an incentive
accounting mechanism authorized pursuant to section 13 of P.L.2007, c.340
(C.48:3-98.1) that creates a lost revenue conservation incentive program.

���� c.���� (1) Notwithstanding any law, rule,
regulation, or order to the contrary,
within 30 days of the
effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill),
each electric public utility and gas public utility shall cease
collecting the
societal benefits charge and shall submit an
updated schedule of tariffs
to the board for approval, which schedule shall reflect any necessary changes
to an electric public utility�s or gas public utility�s tariffs without the
imposition of the societal benefits charge.

���� (2)�� W
ithin 60 days of the
effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill),
each electric public utility and gas public utility shall provide to
the board any monies collected from ratepayers by an electric public utility or
gas public utility through the
societal benefits charge.

���� (3)��
Notwithstanding any law,
rule, regulation, or order to the contrary, the board shall provide

a residential universal bill credit, composed of all uncommitted monies
collected through the societal benefits charge, to all residential customers of
electric public utilities and gas public utilities within 30 days of the
board�s receipt of all outstanding monies collected through the societal
benefits charge pursuant to paragraph (2) of this subsection.

���� d.��� (1)�
Notwithstanding any law,
rule, regulation, or order to the contrary, any program or incentive funded
whole or in part by the
societal benefits charge

prior to the
effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill) shall be funded by monies made available in the
annual appropriations act.

���� (2)�� After the effective date
of P.L. , c.
(C. ) (pending before the
Legislature as this bill), the board shall prohibit the collection of monies
through any ratemaking mechanisms for programs or incentives
funded in whole or in part
by the
societal benefits charge

prior to the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill).

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

���� 2.��� Section 1 of P.L.2022,
c.86 (C.26:2C-8.58) is amended to read as follows:�

���� 1.��� a.� No later than six
months after the effective date of P.L.2022, c.86 (C.26:2C-8.58 et al.), the
Department of Environmental Protection shall implement a three-year
"Electric School Bus Program" to determine the operational
reliability and cost effectiveness of replacing diesel-powered school buses
with electric school buses for the daily transportation of students.

���� b.��� On or after the date of
implementation of the program developed pursuant to subsection a. of this
section, and once each year for the next two years thereafter, the Department
of Environmental Protection shall, subject to available funding, select for participation
in the program no less than six school districts and school bus contractors
that operate school buses, as described in section 1 of P.L.1996, c.96
(C.39:3B-1.1), so that during the third year of the program, no less than a
total of 18 school districts or school bus contractors shall have been selected
for participation in the program amongst the northern, central, and southern
regions of the State.� The department shall choose school districts and school
bus contractors to participate in the program based on a competitive grant
solicitation.

���� In each year, the department
shall use its best efforts to select a mix of school districts that operate
their own bus fleets and school districts that contract for school bus
services; provided that, in each year, the department shall award no more than
half of the grants to school bus contractors.� Any school bus contractor
applying to participate in the program shall apply in conjunction with a
specific school district.� In each year, at least half of the school districts
or school bus contractors selected by the department, and at least half of the
grant funding awarded by the department in each year shall be located in a
"low-income, urban, or environmental justice community" as defined in
section 2 of P.L.2019, c.362 (C.48:25-2) and from those selected, the
department shall use its best efforts, in each year, to select, an equal number
of grantees from the northern, central, and southern regions of the State
respectively, subject to deviation based on the applicant pool.� Grants shall
be awarded in a manner that both prioritizes equity and tests a variety of
technological and funding approaches, including but not limited to outright
purchase, leased buses, leveraging of other funding sources, and
vehicle-to-grid or vehicle-to-building technologies.

���� For purposes of this
subsection: "northern," when referring to regions of the State, means
the counties of Bergen, Essex, Hudson, Morris, Passaic, Union, Sussex, and
Warren; "central," when referring to regions of the State, means the
counties of Hunterdon, Mercer, Middlesex, Monmouth, and Somerset; and
"southern," when referring to regions of the State, means the
counties of Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester,
Ocean, and Salem.

���� c.���� (1)� Under the program,
the department shall award grants to school districts or school bus contractors
selected to participate in the program to purchase or lease electric school
buses and to purchase or lease and install electric school bus charging infrastructure
in coordination with any State department, board, bureau, commission, agency,
public utility as defined pursuant to R.S.48:2-13 that provides electric
service to end users in the State, municipal public utility as defined in
N.J.S.40A:1-1 that provides electric service to end users in the State,
authority as defined in section 3 of P.L.1983, c.313 (C.40A:5A-3) that provides
electric service to end users in the State, or rural electric cooperative
organized under the general corporation laws of this State as necessary.�
Pursuant to any outright purchase or lease arrangement entered into by a school
district or school bus contractor participating in the program, an electric
school bus and charging infrastructure vendor purchase or lease arrangement
shall include, at a minimum, the following:

���� (a)�� an electric school bus
having a minimum range of 90 miles per full charge, or 30 percent more range
per full charge than the daily maximum miles used by the school district or
school bus contractor, whichever is greater, and having telematics system capabilities.�
The department shall collect data from on-board telematics monitoring systems
in order to evaluate parameters such as idle time, driving time, energy
consumption, and frequency of charging;

���� (b)�� an electric school bus
and charging infrastructure, as appropriate;

���� (c)�� appropriate training for
bus maintenance personnel and bus drivers, and other relevant personnel, which
shall be provided at no cost to a bus driver, bus maintenance personnel, or
other relevant personnel; and

���� (d)�� electric school bus and
charging infrastructure shop manuals and wiring schematics for troubleshooting
and a complete list of component parts.

���� (2)�� Monies for the
"Electric School Bus Program" shall be used by the Department of
Environmental Protection to provide grants, pursuant to this subsection, over
the three-year period.� In the first year, grants shall be provided in
accordance with P.L.2022, c.86 (C.26:2C-8.58 et al.) in the amount of
$15,000,000 for electrification.� Subject to the availability of funds, grants
shall continue to be provided in accordance with P.L.2022, c.86 (C.26:2C-8.58
et al.) in the amount of $15,000,000 per year for a total of $45,000,000 over
the three-year period.� The department may use available monies to provide
grants, pursuant to this subsection, singly or in combination, from the
following sources: societal benefits charge revenues received pursuant to
section 12 of P.L.1999, c.23 (C.48:3-60)
, until the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill)
; the "Global Warming Solutions Fund"
established pursuant to section 6 of P.L.2007, c.340 (C.26:2C-50); any
available monies from utility programs to upgrade electrical infrastructure for
purposes of electric vehicle charging; any appropriations made by the
Legislature for the program established pursuant to P.L.2022, c.86
(C.26:2C-8.58 et al.); or any other sources of available funding.� Up to five
percent of the monies made available to the program may be used to administer
the program.

���� The department shall determine
the amount of each grant provided pursuant to this subsection and shall award
grants in a manner that provides for the most efficient and highest efficacy
use of the grant.

���� d.��� At least once every six
months, the school districts or school bus contractors selected to participate
in the program shall submit a report to the department detailing the cost to
operate the electric school buses, the electric school bus maintenance records
and transponder data, and any reliability issues related to the operation or
delivery and procurement of the electric school buses.� The first report shall
be submitted six months after the school district or school bus contractor
first completes its initial procurement of electric school buses.

���� e.���� (1)� The department
shall, no less than twice per calendar year, convene a working group which
includes a representative of the Board of Public Utilities, the New Jersey
Economic Development Authority, the Department of Transportation, the
Department of Education, and the New Jersey Motor Vehicle Commission.� The
working group shall review the reports and, as appropriate, troubleshoot and
recommend solutions to any issue raised in a report submitted by a program
participant.� The working group shall consider issues raised in the reports
submitted by program participants and make recommendations regarding program
implementation.� The department may convene the working group on a more
frequent basis as may be required for the effective administration of the
program.� The department shall collect any additional information and data
necessary to complete any report required to be submitted to the Governor and
Legislature pursuant to subsection f. of this section.

���� (2)�� The department shall
permit a recipient of any grant under any State agency-administered program for
the provision of an electric school bus and electric school bus charging
infrastructure prior to the effective date of P.L.2022, c.86 (C.26:2C-8.58 et
al.) to submit any additional information and data to the department to
complement any data received by the department from program participants
pursuant to this subsection.

���� f.���� The department, in
collaboration with the Board of Public Utilities and the New Jersey Economic
Development Authority shall submit an "Electric School Bus Program"
report to the Governor and, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), to the Legislature.� The report shall be submitted within six
months after the conclusion of the program.

���� The department may use
available monies, singly or in combination from the following sources, to
procure professional services to assist with the development of the report:
societal benefits charge revenues received pursuant to section 12 of P.L.1999,
c.23 (C.48:3-60)
, until the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill)
; the "Global Warming
Solutions Fund" established pursuant to section 6 of P.L.2007, c.340
(C.26:2C-50); any available monies from utility programs to upgrade electrical
infrastructure for purposes of electric vehicle charging; any appropriations
made by the Legislature for the program established pursuant to P.L.2022, c.86
(C.26:2C-8.58 et al.); or any other sources of available funding.

���� The submitted report shall
include:

���� (1)�� a description and
comprehensive review of the program, including but not limited to, an
evaluation of the program's effectiveness;

���� (2)�� a summary description of
all grants provided under the program, including the names of the recipients,
the amount of funding each recipient received, the current status of the funds
provided to each recipient, and an itemization of the total project budget
including vehicle costs, hardware costs, installation costs, training costs,
and administrative costs;

���� (3)�� an analysis of the
operational reliability and cost effectiveness of the use of electric school
buses and charging infrastructure by each grantee and steps taken by the
grantee to fix any operational problems;

���� (4)�� an estimate of the
emission benefits of the electric school buses and charging infrastructure
funded under this program;

���� (5)�� any preliminary findings
from grant recipients pertaining to design or operation of electric school
buses and charging infrastructure and potential improvements to make the buses
and charging infrastructure safer, more economical or environmentally advantageous;

���� (6)�� as applicable, depending
on deployment of grant recipients, an analysis of the potential costs and
benefits of using electric school bus batteries for storing power to be
returned to the electric grid or to school buildings during periods of peak
electric power demand;

���� (7)�� an assessment of
reliability of electric school buses and charging infrastructure; and

���� (8)�� an analysis of any
additional external changes that the use of electric school buses and charging
infrastructure may require regarding electric service rate schedules, school
bus inspection standards, or any other major considerations.

���� In addition to the information
included pursuant to paragraphs (1) through (8) of this subsection, the final
report shall include recommendations regarding the establishment of grant and
loan programs to provide assistance to school districts and school bus
contractors for the replacement of their bus fleets, other types of financial
agreements to assist school districts and school bus contractors with
implementing and using electric school buses, and the optimization of electric
school bus grant programs to most efficiently and effectively distribute
available funds to maximize environmental and health benefits.

���� The final report shall also
include recommendations for how additional funding may be distributed in the
most efficient and effective manner to maximize the number of electric school
buses operating in the State.

(cf:� P.L.2022, c.86, s.1)

���� 3.��� Section 3 of P.L.1995,
c.180 (C.48:2-21.26) is amended to read as follows:�

���� 3.��� a.� No later than
October 18, 1995 and notwithstanding any provision of the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the
Board of Public Utilities shall initiate a proceeding and shall adopt, after notice,
provision of the opportunity for comment, and public hearing, specific
standards regarding minimum prices, confidentiality standards, maximum contract
duration, filing requirements, and such other standards as the board may
determine are necessary for off-tariff rate agreements consistent with this
act.� Any subsequent modification of the standards that is adopted by the board
shall be adopted pursuant to the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.).�

���� b.��� After the adoption by
the board of specific standards pursuant to subsection a. of this section, an
electric public utility may, within seven years of July 20, 1995, enter into an
off-tariff rate agreement with an individual retail customer pursuant to the
provisions of sections 3 and 4 of P.L.1995, c.180 (C.48:2-21.26 and
48:2-21.27).� The provisions of sections 3 and 4 shall not apply to an
off-tariff rate agreement entered into by an electric public utility after that
seven-year period, except as otherwise provided by the board.� Notwithstanding
the seven-year limitation imposed pursuant to this subsection, an off-tariff
rate agreement that is entered into during that seven-year period shall remain
in effect until its expiration pursuant to the terms of the agreement.

���� c.���� An off-tariff rate
agreement shall be filed with the board a minimum of 30 days prior to its
effective date along with sufficient information to demonstrate that the
off-tariff rate agreement meets the conditions established in subsection d. of
this section and the standards established pursuant to subsection a. of this
section.� The entire agreement shall be available to the public, except that a
public utility may petition the board to keep confidential certain parts of the
agreement or supporting documentation that are competitively sensitive.� Upon
petition by the public utility, the board may classify as confidential any part
of the agreement that is found to contain competitively sensitive information
that, if revealed, would harm the competitive position of either party to the
agreement.� A copy of the off-tariff rate agreement and supporting information
shall be served simultaneously upon the Director of the Division of the
Ratepayer Advocate, or its successor agency.� The staff of the board and the division
shall have full access to all portions of the agreement and to any supporting
documentation, subject to a standard non-disclosure agreement to be approved by
the board. The board or its staff shall review the agreement, and upon review
the board may delay its implementation if it requires additional time to review
the agreement or shall disapprove the agreement upon a finding that it does not
meet the conditions established in subsection d. of this section and the
standards established pursuant to subsection a. of this section.� If the board
does not issue notice that it is delaying implementation for further review or
that it disapproves the agreement, the utility may implement the off-tariff
rate agreement.

���� An off-tariff rate agreement
implemented pursuant to this subsection shall not include any reduction in the
gross receipts and franchise tax or a successor tax pursuant to P.L.1997, c.162
(C.54:30A-100 et seq.).

���� d.��� An off-tariff rate
agreement implemented pursuant to this section prior to the effective date of
retail competition as provided in subsection a. of section 5 of P.L.1999, c.23
(C.48:3-53) may establish a price for electricity to a retail customer that is
different from, but in no case higher than, that specified in the utility's
current cost-of-service based tariff rate otherwise applicable to that
customer.� An off-tariff rate agreement implemented pursuant to this section on
or after the effective date of retail competition as provided in subsection a.
of section 5 of P.L.1999, c.23 (C.48:3-53) may establish a price for the
transmission or distribution of electricity to a retail customer that is
different from, but in no case higher than, that specified in the electric
public utility's current cost-of-service based tariff rate for transmission or
distribution service otherwise applicable to that customer.� An off-tariff rate
agreement shall be subject to the following conditions:�

���� (1)�� There shall be no
retroactive recovery by the utility from its general ratepayer base of any
revenue erosion that occurs prior to the conclusion of the utility's next base
rate case.� Subsequent to the conclusion of the utility's next base rate case,
any such recovery shall be prospective only and in accordance with section 4 of
P.L.1995, c.180 (C.48:2-21.27).�

���� (2)�� In no event shall any
customer be required to enter into an off-tariff rate agreement.�

���� (3)�� An off-tariff rate for
electricity at a minimum shall equal the sum of the following:

���� (a)�� the electric public
utility's marginal cost to provide transmission or distribution service to the
customer over the term of the off-tariff rate agreement,

���� (b)�� the per kilowatt hour
contribution to the societal benefits charge
, until the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill)
, market transition charge, and transition bond
charge, as established pursuant to P.L.1999, c.23 (C.48:3-49 et al.) and
otherwise chargeable under the standard applicable rate schedule, and

���� (c)�� a floor margin to be
specified by the board pursuant to subsection a. of this section, which shall
constitute the minimum contribution by an off-tariff customer toward a public
utility's fixed transmission and distribution costs.

���� (4)�� Evidence of a
comprehensive energy audit of the customer's facility must be submitted to the
utility prior to the effective date of the off-tariff rate agreement, in order
to ensure that the customer has evaluated cost-effective energy efficiency and
demand side management measures at its facility as part of its efforts to
reduce electricity costs.

���� (5)�� The term of the
off-tariff rate agreement shall not exceed a maximum number of years, to be
specified by the board pursuant to subsection a. of this section, except that
the term of an off-tariff rate agreement may exceed the maximum contract term
established by the board, only with the prior review and approval of the board
on a case by case basis.

���� (6)�� The electric public
utility shall not make the provision of any competitive service or basic
generation service offered by the public utility or its related competitive
business segment to the customer a pre-condition to the offering of or
agreement to an off-tariff rate agreement.

���� (7)�� The utility shall submit
any information required by the filing requirements established pursuant to
subsection a. of this section.

���� e.���� Each electric public
utility shall file with the board and the Director of the Division of the
Ratepayer Advocate, on a periodic basis to be determined by the board, a
report, which shall be made available to the public, that includes the number
of off-tariff rate contracts implemented, the aggregate expected revenues and
margins derived thereunder, and an estimate of the aggregate differential
between the revenues produced under the off-tariff rate agreements and the
revenues that would have been produced under a standard board-approved tariff
rate, so that the board can evaluate the total impact of off-tariff rate
agreements on the financial integrity of the utility and on its ratepayers.

���� f.���� Upon notice and
hearing, the board may suspend an electric public utility's implementation of
additional off-tariff rate agreements based upon information in the report
filed pursuant to subsection e. of this section or with other good cause.� The
board may suspend additional off-tariff rate agreements during the pendency of
any such hearings.

(cf:� P.L.1999, c.23, s.53)

���� 4.��� Section 3 of P.L.1999,
c.23 (C.48:3-51) is amended to read as follows:�

���� 3.��� As used in P.L.1999,
c.23 (C.48:3-49 et al.):

���� "Assignee" means a
person to which an electric public utility or another assignee assigns, sells,
or transfers, other than as security, all or a portion of its right to or
interest in bondable transition property.� Except as specifically provided in
P.L.1999, c.23 (C.48:3-49 et al.), an assignee shall not be subject to the
public utility requirements of Title 48 or any rules or regulations adopted
pursuant thereto.

���� "Base load electric power
generation facility" means an electric power generation facility intended
to be operated at a greater than 50 percent capacity factor
,
including,
but not limited to, a combined cycle power facility and a combined heat and
power facility.

���� "Base residual
auction" means the auction conducted by PJM, as part of PJM's reliability
pricing model, three years prior to the start of the delivery year to secure
electrical capacity as necessary to satisfy the capacity requirements for that
delivery year.

���� "Basic gas supply
service" means gas supply service that is provided to any customer that
has not chosen an alternative gas supplier, whether or not the customer has
received offers as to competitive supply options, including, but not limited to,
any customer that cannot obtain such service for any reason, including
non-payment for services.� Basic gas supply service is not a competitive
service and shall be fully regulated by the board.

���� "Basic generation
service" or "BGS" means electric generation service that is
provided
[
,
]
to any
customer that has not chosen an alternative electric power supplier, whether or
not the customer has received offers for competitive supply options, including,
but not limited to, any customer that cannot obtain such service from an
electric power supplier for any reason, including non-payment for services.�
Basic generation service is not a competitive service and shall be fully
regulated by the board.

���� "Basic generation service
provider" or "provider" means a provider of basic generation
service.

���� "Basic generation service
transition costs" means the amount by which the payments by an electric
public utility for the procurement of power for basic generation service and
related ancillary and administrative costs exceeds the net revenues from the
basic generation service charge established by the board pursuant to section 9
of P.L.1999, c.23 (C.48:3-57) during the transition period, together with
interest on the balance at the board-approved rate, that is reflected in a
deferred balance account approved by the board in an order addressing the
electric public utility's unbundled rates, stranded costs, and restructuring
filings pursuant to P.L.1999, c.23 (C.48:3-49 et al.).� Basic generation
service transition costs shall include, but are not limited to, costs of
purchases from the spot market, bilateral contracts, contracts with non-utility
generators, parting contracts with the purchaser of the electric public
utility's divested generation assets, short-term advance purchases, and
financial instruments such as hedging, forward contracts, and options.� Basic
generation service transition costs shall also include the payments by an
electric public utility pursuant to a competitive procurement process for basic
generation service supply during the transition period, and costs of any such
process used to procure the basic generation service supply.

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

���� "Bondable stranded
costs" means any stranded costs or basic generation service transition
costs of an electric public utility approved by the board for recovery pursuant
to the provisions of P.L.1999, c.23 (C.48:3-49 et al.), together with, as approved
by the board:� (1) the cost of retiring existing debt or equity capital of the
electric public utility, including accrued interest, premium and other fees,
costs, and charges relating thereto, with the proceeds of the financing of
bondable transition property; (2) if requested by an electric public utility in
its application for a bondable stranded costs rate order, federal, State, and
local tax liabilities associated with stranded costs recovery, basic generation
service transition cost recovery, or the transfer or financing of the property,
or both, including taxes, whose recovery period is modified by the effect of a
stranded costs recovery order, a bondable stranded costs rate order, or both;
and (3) the costs incurred to issue, service, or refinance transition bonds,
including interest, acquisition, or redemption premium, and other financing
costs, whether paid upon issuance or over the life of the transition bonds,
including, but not limited to, credit enhancements, service charges,
overcollateralization, interest rate cap, swap or collar, yield maintenance,
maturity guarantee or other hedging agreements, equity investments, operating
costs, and other related fees, costs, and charges, or to assign, sell, or
otherwise transfer bondable transition property.

���� "Bondable stranded costs
rate order" means one or more irrevocable written orders issued by the
board
,
pursuant to P.L.1999, c.23 (C.48:3-49 et al.)
,
which
determines the amount of bondable stranded costs and the initial amount of
transition bond charges authorized to be imposed to recover the bondable
stranded costs, including the costs to be financed from the proceeds of the
transition bonds, as well as
[
on-going
]

ongoing

costs associated with servicing and credit enhancing the transition bonds, and
provides the electric public utility specific authority to issue or cause to be
issued, directly or indirectly, transition bonds through a financing entity and
related matters as provided in P.L.1999, c.23 (C.48:3-49 et al.), which order
shall become effective immediately upon the written consent of the related
electric public utility to the order as provided in P.L.1999, c.23 (C.48:3-49
et al.).

���� "Bondable transition
property" means the property consisting of the irrevocable right to
charge, collect, and receive, and be paid from collections of, transition bond
charges in the amount necessary to provide for the full recovery of bondable
stranded costs which are determined to be recoverable in a bondable stranded
costs rate order, all rights of the related electric public utility under the
bondable stranded costs rate order including, without limitation, all rights to
obtain periodic adjustments of the related transition bond charges pursuant to
subsection b. of section 15 of P.L.1999, c.23 (C.48:3-64), and all revenues,
collections, payments, money, and proceeds arising under, or with respect to,
all of the foregoing.

���� "British thermal
unit" or "Btu" means the amount of heat required to increase the
temperature of one pound of water by one degree Fahrenheit.

���� "Broker" means a
duly licensed electric power supplier that assumes the contractual and legal
responsibility for the sale of electric generation service, transmission, or
other services to end-use retail customers, but does not take title to any of
the power sold, or a duly licensed gas supplier that assumes the contractual
and legal obligation to provide gas supply service to end-use retail customers,
but does not take title to the gas.

���� "Brownfield" means
any former or current commercial or industrial site that is currently vacant or
underutilized and on which there has been, or there is suspected to have been,
a discharge of a contaminant.

���� "Buydown" means an
arrangement or arrangements involving the buyer and seller in a given power
purchase contract and, in some cases third parties, for consideration to be
given by the buyer in order to effectuate a reduction in the pricing, or the
restructuring of other terms to reduce the overall cost of the power contract,
for the remaining succeeding period of the purchased power arrangement or
arrangements.

���� "Buyout" means an
arrangement or arrangements involving the buyer and seller in a given power
purchase contract and, in some cases third parties, for consideration to be
given by the buyer in order to effectuate a termination of such power purchase
contract.

���� "Class I renewable
energy" means electric energy produced from solar technologies,
photovoltaic technologies, wind energy, fuel cells, geothermal technologies,
wave or tidal action, small scale hydropower facilities with a capacity of
three megawatts or less and put into service after the effective date of
P.L.2012, c.24, methane gas from landfills, methane gas from a biomass facility
provided that the biomass is cultivated and harvested in a sustainable manner,
or methane gas from a composting or anaerobic or aerobic digestion facility
that converts food waste or other organic waste to energy.

���� "Class II renewable
energy" means electric energy produced at a hydropower facility with a
capacity of greater than three megawatts, but less than 30 megawatts, or a
resource recovery facility, provided that the facility is located where retail
competition is permitted and provided further that the Commissioner of
Environmental Protection has determined that the facility meets the highest
environmental standards and minimizes any impacts to the environment and local
communities.� Class II renewable energy shall not include electric energy
produced at a hydropower facility with a capacity of greater than 30 megawatts
on or after the effective date of P.L.2015, c.51.

���� "Co-generation"
means the sequential production of electricity and steam or other forms of
useful energy used for industrial or commercial heating and cooling purposes.

���� "Combined cycle power
facility" means a generation facility that combines two or more
thermodynamic cycles, by producing electric power via the combustion of fuel
and then routing the resulting waste heat by-product to a conventional boiler
or to a heat recovery steam generator for use by a steam turbine to produce
electric power, thereby increasing the overall efficiency of the generating
facility.

���� "Combined heat and power
facility" or "co-generation facility" means a generation
facility which produces electric energy and steam or other forms of useful
energy such as heat, which are used for industrial or commercial heating or cooling
purposes.� A combined heat and power facility or co-generation facility shall
not be considered a public utility.

���� "Competitive
service" means any service offered by an electric public utility or a gas
public utility that the board determines to be competitive pursuant to section
8 or section 10 of P.L.1999, c.23 (C.48:3-56 or C.48:3-58) or that is not regulated
by the board.

���� "Commercial and
industrial energy pricing class customer" or "CIEP class
customer" means that group of non-residential customers with high peak
demand, as determined by periodic board order, which either is eligible or
which would be eligible, as determined by periodic board order, to receive
funds from the Retail Margin Fund established pursuant to section 9 of
P.L.1999, c.23 (C.48:3-57) and for which basic generation service is
hourly-priced.

���� "Comprehensive resource
analysis" means an analysis including, but not limited to, an assessment
of existing market barriers to the implementation of energy efficiency and
renewable technologies that are not or cannot be delivered to customers through
a competitive marketplace.

���� "Community solar
facility" means a solar electric power generation facility participating
in the Community Solar Energy Pilot Program or the Community Solar Energy
Program developed by the board pursuant to section 5 of P.L.2018, c.17
(C.48:3-87.11).

���� "Connected to the
distribution system" means, for a solar electric power generation
facility, that the facility is:� (1) connected to a net metering customer's
side of a meter, regardless of the voltage at which that customer connects to
the electric grid; (2) an on-site generation facility; (3) qualified for net
metering aggregation as provided pursuant to paragraph (4) of subsection e. of
section 38 of P.L.1999, c.23 (C.48:3-87); (4) owned or operated by an electric
public utility and approved by the board pursuant to section 13 of P.L.2007,
c.340 (C.48:3-98.1); (5) directly connected to the electric grid at 69
kilovolts or less, regardless of how an electric public utility classifies that
portion of its electric grid, and is designated as "connected to the
distribution system" by the board pursuant to subsections q. through s. of
section 38 of P.L.1999, c.23 (C.48:3-87); or (6) is certified by the board, in
consultation with the Department of Environmental Protection, as being located
on a brownfield, on an area of historic fill, or on a properly closed sanitary
landfill facility.� Any solar electric power generation facility, other than
that of a net metering customer on the customer's side of the meter, connected
above 69 kilovolts shall not be considered connected to the distribution
system.

���� "Contaminated site or
landfill" means:� (1) any currently contaminated portion of a property on
which industrial or commercial operations were conducted and a discharge
occurred, and its associated disturbed areas, where "discharge" means
the same as the term is defined in section 23 of P.L.1993, c.139 (C.58:10B-1);
or (2) a properly closed sanitary landfill facility and its associated
disturbed areas.

���� "Customer" means any
person that is an end user and is connected to any part of the transmission and
distribution system within an electric public utility's service territory or a
gas public utility's service territory within this State.

���� "Customer account
service" means metering, billing, or such other administrative activity
associated with maintaining a customer account.

���� "Delivery year" or
"DY" means the 12-month period from June 1st through May 31st,
numbered according to the calendar year in which it ends.

���� "Demand side
management" means the management of customer demand for energy service
through the implementation of cost-effective energy efficiency technologies,
including, but not limited to, installed conservation, load management, and
energy efficiency measures on and in the residential, commercial, industrial,
institutional, and governmental premises and facilities in this State.

���� "Electric generation
service" means the provision of retail electric energy and capacity which
is generated off-site from the location at which the consumption of such
electric energy and capacity is metered for retail billing purposes, including
agreements and arrangements related thereto.

���� "Electric power
generator" means an entity that proposes to construct, own, lease, or
operate, or currently owns, leases, or operates, an electric power production
facility that will sell or does sell at least 90 percent of its output, either
directly or through a marketer, to a customer or customers located at sites
that are not on or contiguous to the site on which the facility will be located
or is located.� The designation of an entity as an electric power generator for
the purposes of P.L.1999, c.23 (C.48:3-49 et al.) shall not, in and of itself,
affect the entity's status as an exempt wholesale generator under the Public
Utility Holding Company Act of 1935, 15 U.S.C. s.79 et seq., or its successor
act.

���� "Electric power
supplier" means a person or entity that is duly licensed pursuant to the
provisions of P.L.1999, c.23 (C.48:3-49 et al.) to offer and to assume the
contractual and legal responsibility to provide electric generation service to
retail customers, and includes load serving entities, marketers, and brokers
that offer or provide electric generation service to retail customers.� The
term excludes an electric public utility that provides electric generation
service only as a basic generation service pursuant to section 9 of P.L.1999,
c.23 (C.48:3-57).

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

���� "Electric related
service" means a service that is directly related to the consumption of
electricity by an end user, including, but not limited to, the installation of
demand side management measures at the end user's premises, the maintenance,
repair, or replacement of appliances, lighting, motors, or other
energy-consuming devices at the end user's premises, and the provision of
energy consumption measurement and billing services.

���� "Electronic
signature" means an electronic sound, symbol, or process, attached to, or
logically associated with, a contract or other record, and executed or adopted
by a person with the intent to sign the record.

���� "Eligible generator"
means a developer of a base load or mid-merit electric power generation
facility including, but not limited to, an on-site generation facility that
qualifies as a capacity resource under PJM criteria and that commences construction
after the effective date of P.L.2011, c.9 (C.48:3-98.2 et al.).

���� "Energy agent" means
a person that is duly registered pursuant to the provisions of P.L.1999, c.23
(C.48:3-49 et al.), that arranges the sale of retail electricity or electric
related services, or retail gas supply or gas related services, between
government aggregators or private aggregators and electric power suppliers or
gas suppliers, but does not take title to the electric or gas sold.

���� "Energy consumer"
means a business or residential consumer of electric generation service or gas
supply service located within the territorial jurisdiction of a government
aggregator.

���� "Energy efficiency
portfolio standard" means a requirement to procure a specified amount of
energy efficiency or demand side management resources as a means of managing
and reducing energy usage and demand by customers.

���� "Energy year" or
"EY" means the 12-month period from June 1st through May 31st,
numbered according to the calendar year in which it ends.

���� "Existing business
relationship" means a relationship formed by a voluntary two-way
communication between an electric power supplier, gas supplier, broker, energy
agent, marketer, private aggregator, sales representative, or telemarketer and
a customer, regardless of an exchange of consideration, on the basis of an
inquiry, application, purchase, or transaction initiated by the customer
regarding products or services offered by the electric power supplier, gas
supplier, broker, energy agent, marketer, private aggregator, sales
representative, or telemarketer; however, a consumer's use of electric
generation service or gas supply service through the consumer's electric public
utility or gas public utility shall not constitute or establish an existing
business relationship for the purpose of P.L.2013, c.263.

���� "Farmland" means
land actively devoted to agricultural or horticultural use that is valued,
assessed, and taxed pursuant to the "Farmland Assessment Act of
1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).

���� "Federal Energy
Regulatory Commission" or "FERC" means the federal agency
established pursuant to 42 U.S.C. s.7171 et seq. to regulate the interstate
transmission of electricity, natural gas, and oil.

���� "Final remediation
document" shall have the same meaning as provided in section 3 of
P.L.1976, c.141 (C.58:10-23.11b).

���� "Financing entity"
means an electric public utility, a special purpose entity, or any other
assignee of bondable transition property, which issues transition bonds.�
Except as specifically provided in P.L.1999, c.23 (C.48:3-49 et al.), a financing
entity which is not itself an electric public utility shall not be subject to
the public utility requirements of Title 48 of the Revised Statutes or any
rules or regulations adopted pursuant thereto.

���� "Gas public utility"
means a public utility, as that term is defined in R.S.48:2-13, that
distributes gas to end users within this State.

���� "Gas related
service" means a service that is directly related to the consumption of
gas by an end user, including, but not limited to, the installation of demand
side management measures at the end user's premises, the maintenance, repair or
replacement of appliances or other energy-consuming devices at the end user's
premises, and the provision of energy consumption measurement and billing
services.

���� "Gas supplier" means
a person that is duly licensed pursuant to the provisions of P.L.1999, c.23
(C.48:3-49 et al.) to offer and assume the contractual and legal obligation to
provide gas supply service to retail customers, and includes, but is not
limited to, marketers and brokers.� A non-public utility affiliate of a public
utility holding company may be a gas supplier, but a gas public utility or any
subsidiary of a gas utility is not a gas supplier.� In the event that a gas
public utility is not part of a holding company legal structure, a related
competitive business segment of that gas public utility may be a gas supplier,
provided that
the
related competitive business segment is structurally
separated from the gas public utility, and provided that the interactions
between the gas public utility and the related competitive business segment are
subject to the affiliate relations standards adopted by the board pursuant to
subsection k. of section 10 of P.L.1999, c.23 (C.48:3-58).

���� "Gas supply service"
means the provision to customers of the retail commodity of gas, but does not
include any regulated distribution service.

���� "Government
aggregator" means any government entity subject to the requirements of the
"Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.),
the "Public School Contracts Law," N.J.S.18A:18A-1 et seq., or the "County
College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.), that
enters into a written contract with a licensed electric power supplier or a
licensed gas supplier for:� (1) the provision of electric generation service,
electric related service, gas supply service, or gas related service for its
own use or the use of other government aggregators; or (2) if a municipal or
county government, the provision of electric generation service or gas supply
service on behalf of business or residential customers within its territorial jurisdiction.

���� "Government energy
aggregation program" means a program and procedure pursuant to which a
government aggregator enters into a written contract for the provision of
electric generation service or gas supply service on behalf of business or
residential customers within its territorial jurisdiction.

���� "Governmental
entity" means any federal, state, municipal, local, or other governmental
department, commission, board, agency, court, authority, or instrumentality
having competent jurisdiction.

���� "Green Acres
program" means the program for the acquisition of lands for recreation and
conservation purposes pursuant to P.L.1961, c.45 (C.13:8A-1 et seq.), P.L.1971,
c.419 (C.13:8A-19 et seq.), P.L.1975, c.155 (C.13:8A-35 et seq.), any Green Acres
bond act, P.L.1999, c.152 (C.13:8C-1 et seq.), and P.L.2016, c.12 (C.13:8C-43
et seq.).

���� "Greenhouse gas emissions
portfolio standard" means a requirement that addresses or limits the
amount of carbon dioxide emissions indirectly resulting from the use of
electricity as applied to any electric power suppliers and basic generation service
providers of electricity.

���� "Grid supply solar
facility" means a solar electric power generation facility that sells
electricity at wholesale and is connected to the State's electric distribution
or transmission systems.� "Grid supply solar facility" does not include:�
(1) a net metered solar facility; (2) an on-site generation facility; (3) a
facility participating in net metering aggregation pursuant to section 38 of
P.L.1999, c.23 (C.48:3-87); (4) a facility participating in remote net
metering; or (5) a community solar facility.

���� "Historic fill"
means generally large volumes of non-indigenous material, no matter what date
they were emplaced on the site, used to raise the topographic elevation of a
site, which were contaminated prior to emplacement and are in no way connected
with the operations at the location of emplacement and which include, but are
not limited to, construction debris, dredge spoils, incinerator residue,
demolition debris, fly ash, and non-hazardous solid waste.� "Historic
fill" shall not include any material which is substantially chromate
chemical production waste or any other chemical production waste or waste from
processing of metal or mineral ores, residues, slags, or tailings.

���� "Incremental
auction" means an auction conducted by PJM, as part of PJM's reliability
pricing model, prior to the start of the delivery year to secure electric
capacity as necessary to satisfy the capacity requirements for that delivery
year, that is not otherwise provided for in the base residual auction.

���� "Leakage" means an
increase in greenhouse gas emissions related to generation sources located
outside of the State that are not subject to a state, interstate, or regional
greenhouse gas emissions cap or standard that applies to generation sources
located within the State.

���� "Locational
deliverability area" or "LDA" means one or more of the zones
within the PJM region which are used to evaluate area transmission constraints
and reliability issues including electric public utility company zones,
sub-zones, and combinations of zones.

���� "Long-term capacity
agreement pilot program" or "LCAPP" means a pilot program
established by the board that includes participation by eligible generators, to
seek offers for financially-settled standard offer capacity agreements with eligible
generators pursuant to the provisions of P.L.2011, c.9 (C.48:3-98.2 et al.).

���� "Market transition
charge" means a charge imposed pursuant to section 13 of P.L.1999, c.23
(C.48:3-61) by an electric public utility, at a level determined by the board,
on the electric public utility customers for a limited duration transition
period to recover stranded costs created as a result of the introduction of
electric power supply competition pursuant to the provisions of P.L.1999, c.23
(C.48:3-49 et al.).

���� "Marketer" means a
duly licensed electric power supplier that takes title to electric energy and
capacity, transmission, and other services from electric power generators and
other wholesale suppliers and then assumes the contractual and legal obligation
to provide electric generation service, and may include transmission and other
services, to an end-use retail customer or customers, or a duly licensed gas
supplier that takes title to gas and then assumes the contractual and legal
obligation to provide gas supply service to an end-use customer or customers.

���� "Mid-merit electric power
generation facility" means a generation facility that operates at a
capacity factor between baseload generation facilities and peaker generation
facilities.

���� "Net metered solar
facility" means a solar electric power generation facility participating
in the net metering program developed by the board pursuant to subsection e. of
section 38 of P.L.1999, c.23 (C.48:3-87) or in a substantially similar program
operated by a utility owned or operated by a local government unit.

���� "Net metering
aggregation" means a procedure for calculating the combination of the
annual energy usage for all facilities owned by a single customer where such
customer is a State entity, school district, county, county agency, county
authority, municipality, municipal agency, or municipal authority, and which
are served by a solar electric power generating facility as provided pursuant
to paragraph (4) of subsection e. of section 38 of P.L.1999, c.23 (C.48:3-87).

���� "Net proceeds" means
proceeds less transaction and other related costs as determined by the board.

���� "Net revenues" means
revenues less related expenses, including applicable taxes, as determined by
the board.

���� "Offshore wind
energy" means electric energy produced by a qualified offshore wind
project.

���� "Offshore wind renewable
energy certificate" or "OREC" means a certificate, issued by the
board or its designee, representing the environmental attributes of one
megawatt hour of electric generation from a qualified offshore wind project.

���� "Off-site end use thermal
energy services customer" means an end use customer that purchases thermal
energy services from an on-site generation facility, combined heat and power
facility, or co-generation facility, and that is located on property that is
separated from the property on which the on-site generation facility, combined
heat and power facility, or co-generation facility is located by more than one
easement, public thoroughfare, or transportation or utility-owned right-of-way.

���� "On-site generation
facility" means a generation facility, including, but not limited to, a
generation facility that produces Class I or Class II renewable energy, and
equipment and services appurtenant to electric sales by such facility to the
end use customer located on the property or on property contiguous to the
property on which the end user is located.� An on-site generation facility
shall not be considered a public utility.� The property of the end use customer
and the property on which the on-site generation facility is located shall be
considered contiguous if they are geographically located next to each other,
but may be otherwise separated by an easement, public thoroughfare,
transportation or utility-owned right-of-way, or if the end use customer is
purchasing thermal energy services produced by the on-site generation facility,
for use for heating or cooling, or both, regardless of whether the customer is
located on property that is separated from the property on which the on-site
generation facility is located by more than one easement, public thoroughfare,
or transportation or utility-owned right-of-way.

���� "Open access offshore
wind transmission facility" means an open access transmission facility,
located either in the Atlantic Ocean or offshore, used to facilitate the
collection of offshore wind energy or its delivery to the electronic transmission
system in this State.

���� "Person" means an
individual, partnership, corporation, association, trust, limited liability
company, governmental entity, or other legal entity.

���� "PJM Interconnection,
L.L.C." or "PJM" means the privately-held, limited liability
corporation that serves as a FERC-approved Regional Transmission Organization,
or its successor, that manages the regional, high-voltage electricity grid
serving all or parts of 13 states
,
including New Jersey
,
and the
District of Columbia, operates the regional competitive wholesale electric
market, manages the regional transmission planning process, and establishes
systems and rules to ensure that the regional and in-State energy markets
operate fairly and efficiently.

���� "Preliminary
assessment" shall have the same meaning as provided in section 3 of
P.L.1976, c.141 (C.58:10-23.11b).

���� "Preserved farmland"
means land on which a development easement was conveyed to, or retained by, the
State Agriculture Development Committee, a county agriculture development
board, or a qualifying tax exempt nonprofit organization pursuant to the
provisions of section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of P.L.1988,
c.4 (C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of
P.L.1999, c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152
(C.13:8C-37 through C.13:8C-40), or any other State law enacted for farmland
preservation purposes.

���� "Private aggregator"
means a non-government aggregator that is a duly-organized business or
non-profit organization authorized to do business in this State that enters
into a contract with a duly licensed electric power supplier for the purchase
of electric energy and capacity, or with a duly licensed gas supplier for the
purchase of gas supply service, on behalf of multiple end-use customers by
combining the loads of those customers.

���� "Properly closed sanitary
landfill facility" means a sanitary landfill facility, or a portion of a
sanitary landfill facility, for which performance is complete with respect to
all activities associated with the design, installation, purchase, or
construction of all measures, structures, or equipment required by the
Department of Environmental Protection, pursuant to law, in order to prevent,
minimize, or monitor pollution or health hazards resulting from a sanitary
landfill facility subsequent to the termination of operations at any portion
thereof, including, but not necessarily limited to, the placement of earthen or
vegetative cover, and the installation of methane gas vents or monitors and
leachate monitoring wells or collection systems at the site of any sanitary
landfill facility.

���� "Public utility holding
company" means:� (1) any company that, directly or indirectly, owns,
controls, or holds with power to vote, 10 percent or more of the outstanding
voting securities of an electric public utility or a gas public utility or of a
company which is a public utility holding company by virtue of this definition,
unless the Securities and Exchange Commission, or its successor, by order
declares such company not to be a public utility holding company under the
Public Utility Holding Company Act of 1935, 15 U.S.C. s.79 et seq., or its
successor
act
; or (2) any person that the Securities and Exchange
Commission, or its successor, determines, after notice and opportunity for
hearing, directly or indirectly, to exercise, either alone or pursuant to an
arrangement or understanding with one or more other persons, such a controlling
influence over the management or policies of an electric public utility or a
gas public utility or public utility holding company as to make it necessary or
appropriate in the public interest or for the protection of investors or
consumers that such person be subject to the obligations, duties, and
liabilities imposed in the Public Utility Holding Company Act of 1935, 15
U.S.C. s.79 et seq., or its successor act.

���� "Qualified offshore wind
project" means a wind turbine electricity generation facility in the
Atlantic Ocean and connected to the electric transmission system in this State,
and includes the associated transmission-related interconnection facilities and
equipment, and approved by the board pursuant to section 3 of P.L.2010, c.57
(C.48:3-87.1).

���� "Registration
program" means an administrative process developed by the board
,

pursuant to subsection u. of section 38 of P.L.1999, c.23 (C.48:3-87)
,

that requires all owners of solar electric power generation facilities
connected to the distribution system that intend to generate SRECs, to file
with the board documents detailing the size, location, interconnection plan,
land use, and other project information
,
as required by the board.

���� "Regulatory asset"
means an asset recorded on the books of an electric public utility or gas
public utility pursuant to the Statement of Financial Accounting Standards, No.
71, entitled "Accounting for the Effects of Certain Types of Regulation,"
or any successor standard and as deemed recoverable by the board.

���� "Related competitive
business segment of an electric public utility or gas public utility"
means any business venture of an electric public utility or gas public utility
,

including, but not limited to, functionally separate business units, joint
ventures, and partnerships, that offers to provide or provides competitive
services.

���� "Related competitive
business segment of a public utility holding company" means any business
venture of a public utility holding company, including, but not limited to,
functionally separate business units, joint ventures, and partnerships and
subsidiaries, that offers to provide or provides competitive services, but does
not include any related competitive business segments of an electric public
utility or gas public utility.

���� "Reliability pricing
model" or "RPM" means PJM's capacity-market model, and its
successors, that secures capacity on behalf of electric load serving entities
to satisfy load obligations not satisfied through the output of electric generation
facilities owned by those entities, or otherwise secured by those entities
through bilateral contracts.

���� "Renewable energy
certificate" or "REC" means a certificate representing the
environmental benefits or attributes of one megawatt-hour of generation from a
generating facility that produces Class I or Class II renewable energy, but shall
not include a solar renewable energy certificate or an offshore wind renewable
energy certificate.

���� "Resource clearing
price" or "RCP" means the clearing price established for the
applicable locational deliverability area by the base residual auction or
incremental auction, as determined by the optimization algorithm for each
auction, conducted by PJM as part of PJM's reliability pricing model.

���� "Resource recovery
facility" means a solid waste facility constructed and operated for the
incineration of solid waste for energy production and the recovery of metals
and other materials for reuse, which the Department of Environmental Protection
has determined to be in compliance with current environmental standards,
including, but not limited to, all applicable requirements of the federal
"Clean Air Act" (42 U.S.C. s.7401 et seq.).

���� "Restructuring related
costs" means reasonably incurred costs directly related to the
restructuring of the electric power industry, including the closure, sale,
functional separation, and divestiture of generation and other competitive
utility assets by a public utility, or the provision of competitive services as
those costs are determined by the board, and which are not stranded costs as
defined in P.L.1999, c.23 (C.48:3-49 et al.) but may include, but not be
limited to, investments in management information systems, and which shall
include expenses related to employees affected by restructuring which result in
efficiencies and which result in benefits to ratepayers, such as training or
retraining at the level equivalent to one year's training at a vocational or
technical school or county community college, the provision of severance pay of
two weeks of base pay for each year of full-time employment, and a maximum of
24 months' continued health care coverage.� Except as to expenses related to
employees affected by restructuring, "restructuring related costs"
shall not include going forward costs.

���� "Retail choice"
means the ability of retail customers to shop for electric generation or gas
supply service from electric power or gas suppliers, or opt to receive basic
generation service or basic gas service, and the ability of an electric power
or gas supplier to offer electric generation service or gas supply service to
retail customers, consistent with the provisions of P.L.1999, c.23 (C.48:3-49
et al.).

���� "Retail margin"
means an amount, reflecting differences in prices that electric power suppliers
and electric public utilities may charge in providing electric generation
service and basic generation service, respectively, to retail customers, excluding
residential customers, which the board may authorize to be charged to
categories of basic generation service customers of electric public utilities
in this State, other than residential customers, under the board's continuing
regulation of basic generation service pursuant to sections 3 and 9 of
P.L.1999, c.23 (C.48:3-51 and 48:3-57), for the purpose of promoting a
competitive retail market for the supply of electricity.

���� "Sales
representative" means a person employed by, acting on behalf of, or as an
independent contractor for, an electric power supplier, gas supplier, broker,
energy agent, marketer, or private aggregator who, by any means, solicits a
potential residential customer for the provision of electric generation service
or gas supply service.

���� "Sanitary landfill
facility" shall have the same meaning as provided in section 3 of
P.L.1970, c.39 (C.13:1E-3).

���� "School district"
means a local or regional school district established pursuant to chapter 8 or
chapter 13 of Title 18A of the New Jersey Statutes, a county special services
school district established pursuant to article 8 of chapter 46 of Title 18A of
the New Jersey Statutes, a county vocational school district established
pursuant to article 3 of chapter 54 of Title 18A of the New Jersey Statutes,
and a district under full State intervention pursuant to P.L.1987, c.399
(C.18A:7A-34 et al.).

���� "Shopping credit"
means an amount deducted from the bill of an electric public utility customer
to reflect the fact that the customer has switched to an electric power
supplier and no longer takes basic generation service from the electric public
utility.

���� "Site investigation"
shall have the same meaning as provided in section 3 of P.L.1976, c.141
(C.58:10-23.11b).

���� "Small scale hydropower
facility" means a facility located within this State that is connected to
the distribution system, and that meets the requirements of, and has been
certified by, a nationally recognized low-impact hydropower organization that
has established low-impact hydropower certification criteria applicable to:�
(1) river flows; (2) water quality; (3) fish passage and protection; (4)
watershed protection; (5) threatened and endangered species protection; (6)
cultural resource protection; (7) recreation; and (8) facilities recommended
for removal.

���� "Social program"
means a program implemented with board approval to provide assistance to a
group of disadvantaged customers, to provide protection to consumers, or to
accomplish a particular societal goal, and includes, but is not limited to, the
winter moratorium program, utility practices concerning "bad debt"
customers, low income assistance, deferred payment plans, weatherization
programs, and late payment and deposit policies, but does not include any
demand side management program or any environmental requirements or controls.

���� "Societal benefits
charge" means a charge imposed
, until the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill),
by an electric public utility, at a level
determined by the board, pursuant to, and in accordance with, section 12 of
P.L.1999, c.23 (C.48:3-60).

���� "Solar alternative
compliance payment" or "SACP" means a payment of a certain
dollar amount per megawatt hour (MWh) which an electric power supplier or
provider may submit to the board in order to comply with the solar electric
generation requirements under section 38 of P.L.1999, c.23 (C.48:3-87).

���� "Solar renewable energy
certificate" or "SREC" means a certificate issued by the board
,

or its designee, representing one megawatt hour (MWh) of solar energy that is
generated by a facility connected to the distribution system in this State and
has value based upon, and driven by, the energy market.

���� "Solar renewable energy
certificate II" or "SREC-II" means a transferable certificate
[
,
]
issued by the
board
,
or its designee
,
pursuant to P.L.2021, c.169 (C.48:3-114
et al.), which is capable of counting towards the renewable energy portfolio
standards of an electric power supplier or basic generation service provider in
the State pursuant to section 38 of P.L.1999, c.23 (C.48:3-87).

���� "SREC-II program"
means the program established pursuant to section 2 of P.L.2021, c.169
(C.48:3-115) to distribute SREC-IIs.

���� "SREC-II value per
megawatt-hour" means the value, in dollars-per-megawatt-hour, assigned by
the board to each solar electric power generation facility eligible to receive
SREC-IIs, which is paid to the facility and which represents the environmental
attributes of the facility.

���� "Standard offer capacity
agreement" or "SOCA" means a financially-settled transaction
agreement, approved by board order, that provides for eligible generators to
receive payments from the electric public utilities for a defined amount of
electric capacity for a term to be determined by the board but not to exceed 15
years, and for such payments to be a fully non-bypassable charge, with such an
order, once issued, being irrevocable.

���� "Standard offer capacity
price" or "SOCP" means the capacity price that is fixed for the
term of the SOCA and which is the price to be received by eligible generators
under a board-approved SOCA.

���� "State entity" means
a department, agency, or office of State government, a State university or
college, or an authority created by the State.

���� "Stranded cost"
means the amount by which the net cost of an electric public utility's electric
generating assets or electric power purchase commitments, as determined by the
board consistent with the provisions of P.L.1999, c.23 (C.48:3-49 et al.),
exceeds the market value of those assets or contractual commitments in a
competitive supply marketplace and the costs of buydowns or buyouts of power
purchase contracts.

���� "Stranded costs recovery
order" means each order issued by the board in accordance with subsection
c. of section 13 of P.L.1999, c.23 (C.48:3-61) which sets forth the amount of
stranded costs, if any, the board has determined an electric public utility is
eligible to recover and collect in accordance with the standards set forth in
section 13 of P.L.1999, c.23 (C.48:3-61) and the recovery mechanisms therefor.

���� "Telemarketer" shall
have the same meaning as set forth in section 2 of P.L.2003, c.76 (C.56:8-120).

���� "Telemarketing sales
call" means a telephone call made by a telemarketer to a potential
residential customer as part of a plan, program, or campaign to encourage the
customer to change the customer's electric power supplier or gas supplier.� A telephone
call made to an existing customer of an electric power supplier, gas supplier,
broker, energy agent, marketer, private aggregator, or sales representative,
for the sole purpose of collecting on accounts or following up on contractual
obligations, shall not be deemed a telemarketing sales call.� A telephone call
made in response to an express written request of a customer shall not be
deemed a telemarketing sales call.

���� "Thermal efficiency"
means the useful electric energy output of a facility, plus the useful thermal
energy output of the facility, expressed as a percentage of the total energy
input to the facility.

���� "Transition bond
charge" means a charge, expressed as an amount per kilowatt hour, that is
authorized by and imposed on electric public utility ratepayers pursuant to a
bondable stranded costs rate order, as modified at any time pursuant to the
provisions of P.L.1999, c.23 (C.48:3-49 et al.).

���� "Transition bonds"
means bonds, notes, certificates of participation, beneficial interest, or
other evidences of indebtedness or ownership issued pursuant to an indenture,
contract, or other agreement of an electric public utility or a financing
entity, the proceeds of which are used, directly or indirectly, to recover,
finance
,
or refinance bondable stranded costs and which are, directly or
indirectly, secured by or payable from bondable transition property. References
in P.L.1999, c.23 (C.48:3-49 et al.) to principal, interest, and acquisition or
redemption premium with respect to transition bonds which are issued in the
form of certificates of participation or beneficial interest or other evidences
of ownership shall refer to the comparable payments on such securities.

���� "Transition period"
means the period from August 1, 1999 through July 31, 2003.

���� "Transmission and
distribution system" means, with respect to an electric public utility,
any facility or equipment that is used for the transmission, distribution, or
delivery of electricity to the customers of the electric public utility
,

including, but not limited to, the land, structures, meters, lines, switches,
and all other appurtenances thereof and thereto, owned or controlled by the
electric public utility within this State.

���� "Universal service"
means any service approved by the board with the purpose of assisting
low-income residential customers in obtaining or retaining electric generation
or delivery service.

���� "Unsolicited
advertisement" means any advertising claims of the commercial availability
or quality of services provided by an electric power supplier, gas supplier,
broker, energy agent, marketer, private aggregator, sales representative, or telemarketer
which is transmitted to a potential customer without that customer's prior
express invitation or permission.

(cf:� P.L.2021, c.169, s.9)

���� 5.��� Section 12 of P.L.1999,
c.23 (C.48:3-60) is amended to read as follows:�

���� 12.� a.� Simultaneously with
the starting date for the implementation of retail choice as determined by the
board pursuant to subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53), the
board shall permit
, until the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill),
each electric public utility and gas public
utility to recover some or all of the following costs through a societal
benefits charge that shall be collected as a non-bypassable charge imposed on
all electric public utility customers and gas public utility customers, as
appropriate:

���� (1) the costs for the social
programs for which rate recovery was approved by the board prior to April 30,
1997.� For the purpose of establishing initial unbundled rates pursuant to
section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be
set to recover the same level of social program costs as is being collected in
the bundled rates of the electric public utility on the effective date of
P.L.1999, c.23 (C.48:3-49 et al.).� The board may subsequently order, pursuant
to its rules and regulations, an increase or decrease in the societal benefits
charge to reflect changes in the costs to the utility of administering existing
social programs
, until the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill)
.� Nothing in P.L.1999, c.23
(C.48:3-49 et al.) shall be construed to abolish or change any social program
required by statute or board order or rule or regulation to be provided by an
electric public utility.� Any such social program shall continue to be provided
by the utility until otherwise provided by law, unless the board determines
that it is no longer appropriate for the electric public utility to provide the
program, or the board chooses to modify the program;

���� (2) nuclear plant
decommissioning costs;

���� (3) the costs of demand side
management programs that were approved by the board pursuant to its demand side
management regulations prior to April 30, 1997.� For the purpose of
establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23 (C.48:3-52),
the societal benefits charge shall be set to recover the same level of demand
side management program costs as is being collected in the bundled rates of the
electric public utility on the effective date of P.L.1999, c.23 (C.48:3-49 et
al.).� Within four months of the effective date of P.L.1999, c.23 (C.48:3-49 et
al.), and every four years thereafter
until the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill)
, the board shall initiate a proceeding and cause
to be undertaken a comprehensive resource analysis of energy programs, and
within eight months of initiating such proceeding and after notice, provision
of the opportunity for public comment, and public hearing, the board, in
consultation with the Department of Environmental Protection, shall determine
the appropriate level of funding for energy efficiency, light, medium, and
heavy-duty plug-in electric vehicles, including school buses, and associated
plug-in electric vehicle charging infrastructure, energy storage, and Class I
renewable energy programs that provide environmental benefits above and beyond
those provided by standard offer or similar programs in effect as of the
effective date of P.L.1999, c.23 (C.48:3-49 et al.); provided that the funding
for such programs be no less than 50 percent of the total Statewide amount
being collected in electric and gas public utility rates for demand side
management programs on the effective date of P.L.1999, c.23 (C.48:3-49 et al.)
for an initial period of four years from the issuance of the first
comprehensive resource analysis following the effective date of P.L.1999, c.23
(C.48:3-49 et al.), and provided that 25 percent of this amount shall be used
to provide funding for Class I renewable energy projects in the State.� In each
of the following fifth through eighth years, the Statewide funding for such
programs shall be no less than 50 percent of the total Statewide amount being
collected in electric and gas public utility rates for demand side management programs
on the effective date of P.L.1999, c.23 (C.48:3-49 et al.), except that as
additional funds are made available as a result of the expiration of past
standard offer or similar commitments, the minimum amount of funding for such
programs shall increase by an additional amount equal to 50 percent of the
additional funds made available, until the minimum amount of funding dedicated
to such programs reaches $140,000,000 total.� After the eighth year
and
until the effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill),
the board shall make a determination as to the
appropriate level of funding for these programs.� Such programs shall include a
program to provide financial incentives for the installation of Class I renewable
energy projects in the State, and the board, in consultation with the
Department of Environmental Protection, shall determine the level and total
amount of such incentives as well as the renewable technologies eligible for
such incentives which shall include, at a minimum, photovoltaic, wind, and fuel
cells.� The board shall simultaneously determine, as a result of the
comprehensive resource analysis, the programs to be funded by the societal
benefits charge
, until the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill)
, the level of cost recovery
,
until the effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill),
and performance incentives for old and new
programs
[
and
whether the recovery of demand side management programs� costs currently
approved by the board may be reduced or extended over a longer period of time
]
.� The board
shall make these determinations taking into consideration existing market
barriers and environmental benefits, with the objective of transforming
markets, capturing lost opportunities, making energy services more affordable
for low income customers and eliminating subsidies for programs that can be
delivered in the marketplace without electric public utility and gas public
utility customer funding.� In addition to the determinations above, the board
shall allocate sufficient funding from the societal benefits charge
, until the
effective date of P.L. , c.
(C. ) (pending before the
Legislature as this bill)
, to cover the remaining cost of fully funding
incentive awards issued for transmission-scale energy storage systems that are
eligible projects pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.), after
accounting for funding allocated to this purpose from other sources;

���� (4) manufactured gas plant
remediation costs, which shall be determined initially in a manner consistent
with mechanisms in the remediation adjustment clauses for the electric public
utility and gas public utility adopted by the board; and

���� (5) the cost, of consumer
education, as determined by the board, which shall be in an amount that,
together with the consumer education surcharge imposed on electric power
supplier license fees pursuant to subsection h. of section 29 of P.L.1999, c.23
(C.48:3-78) and the consumer education surcharge imposed on gas supplier
license fees pursuant to subsection g. of section 30 of P.L.1999, c.23
(C.48:3-79), shall be sufficient to fund the consumer education program
established pursuant to section 36 of P.L.1999, c.23 (C.48:3-85).�

���� b.��� There is established in
the Board of Public Utilities a nonlapsing fund to be known as the
"Universal Service Fund."� The board shall determine:
[
the level of
funding and
]

the appropriate administration of the fund; the purposes and programs to be
funded with monies from the fund; which social programs shall be provided by an
electric public utility as part of the provision of its regulated services
which provide a public benefit; whether the funds appropriated to fund the
"Lifeline Credit Program" established pursuant to P.L.1979, c.197
(C.48:2-29.15 et seq.), the "Tenants' Lifeline Assistance Program"
established pursuant to P.L.1981, c.210 (C.48:2-29.30 et seq.), the funds
received pursuant to the Low Income Home Energy Assistance Program established
pursuant to 42 U.S.C. s.8621 et seq.
[
,
and funds collected by electric and gas public utilities, as authorized by the
board, to offset uncollectible electricity and natural gas bills
]
should be
deposited in the fund
[
;
and whether new charges should be imposed to fund new or expanded social
programs
]
.�

After the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), the board shall not deposit any
monies in the fund acquired through a ratemaking mechanism, pursuant to
paragraph (2) of subsection d. of section 1 of P.L. ,
c. (C. ) (pending
before the Legislature as this bill).

(cf:� P.L.2025, c.136, s.7)

���� 6.��� Section 28 of P.L.1999,
c.23 (C.48:3-77) is amended to read as follows:�

���� 28.� a.� Whenever an on-site
generation facility produces power that is not consumed by the on-site
customer, and that power is delivered to an off-site end-use customer in this
State,
[
all
]
the following
charges shall apply to the sale or delivery of such power to the off-site
customer:

���� (1)��
[
The
]

the

societal benefits charge or its equivalent, imposed pursuant to section 12 of
P.L.1999, c.23 (C.48:3-60)
, until the date of enactment of P.L. ,
c. (C. ) (pending
before the Legislature as this bill)
;

���� (2)��
[
The
]

the

market transition charge or its equivalent, imposed pursuant to section 13 of
P.L.1999, c.23 (C.48:3-61); and

���� (3)��
[
The
]

the

transition bond charge or its equivalent, imposed pursuant to section 18 of
P.L.1999, c.23 (C.48:3-67).

���� b.��� None of the following
charges shall be imposed on the electricity sold solely to the on-site customer
of an on-site generating facility, except pursuant to subsection c. of this
section:

���� (1)��
[
The
]

the

societal benefits charge or its equivalent,
as
imposed pursuant to
section 12 of P.L.1999, c.23 (C.48:3-60)
prior to the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill)
;

���� (2)��
[
The
]

the

market transition charge or its equivalent, imposed pursuant to section 13 of
P.L.1999, c.23 (C.48:3-61); and

���� (3)��
[
The
]

the

transition bond charge or its equivalent, imposed pursuant to section 18 of
P.L.1999, c.23 (C.48:3-67).

���� c.���� Upon finding that
generation from on-site generation facilities installed subsequent to the
starting date of retail competition as provided in subsection a. of section 5
of P.L.1999, c.23 (C.48:3-53) has, in the aggregate, displaced customer
purchases from an electric public utility by an amount such that the kilowatt
hours distributed by the electric public utility have been reduced to an amount
equal to 92.5 percent of the 1999 kilowatt hours distributed by the electric
public utility, the board shall impose, except as provided in subsection d. of
this section, the charges listed in subsections a., b., and c. of this section
on the on-site customer.� Such charges shall not be levied on any power
consumption that is displaced by an on-site generation facility that is
installed before the date of such finding:

���� (1)��
[
The
]

the

societal benefits charge or its equivalent,
as
imposed pursuant to
section 12 of P.L.1999, c.23 (C.48:3-60)
prior to the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill)
;

���� (2)��
[
The
]

the

market transition charge or its equivalent, imposed pursuant to section 13 of
P.L.1999, c.23 (C.48:3-61); and

���� (3)��
[
The
]

the

transition bond charge or its equivalent, imposed pursuant to section 18 of
P.L.1999, c.23 (C.48:3-67).

���� d.��� Notwithstanding the
provisions of subsection c. of this section, a charge shall not be imposed on
power consumption by the on-site customer that is derived from an on-site
generation facility:

���� (1)��
[
That
]

that

the on-site customer or its agent installed on or before the effective date of
P.L.1999, c.23 (C.48:3-49 et al.), including any expansion of such a facility
for the continued provision of on-site power consumption by the same on-site
customer that occurs after the effective date of P.L.1999, c.23; or

���� (2)��
[
For
]

for

which the on-site customer or its agent has made, on or before the effective
date of P.L.1999, c.23 (C.48:3-49 et al.), substantial financial and
contractual commitments in planning and development, including having applied
for any appropriate air permit from the Department of Environmental Protection,
including any expansion of such a facility for the continued provision of
on-site power consumption by the same on-site customer that occurs after the
effective date of P.L.1999, c.23.

���� e.���� A societal benefits
charge,
until the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill),
market transition charge,
transition bond charge, and transitional energy facilities assessment or their
equivalent, shall be imposed on the sale or delivery of power to an off-site
end use thermal energy services customer that is derived from the on-site
generation facility serving that customer.

(cf:� P.L.2009, c.240, s.2)

���� 7.��� Section 3 of P.L.2025,
c.47 (C.48:3-86.3) is amended to read as follows:�

���� 3.��� a.� An electric public
utility or a gas public utility shall include, at a minimum, the following
information in each bill issued to a customer:

���� (1)�� the dollar amount
charged to the customer by the electric public utility or gas public utility in
the previous billing cycle;

���� (2)�� the dollar amount
charged to the customer by the electric public utility or gas public utility in
the current billing cycle; and

���� (3)�� the difference between
the amount charged in the previous billing cycle and the current billing cycle.

���� b.��� An electric public
utility or a gas public utility shall include, within each dollar amount
required in each bill pursuant to subsection a. of this section, any tariffs,
fees, or taxes, including, but not limited to, charges for the distribution of
electricity or gas
[
,
]

and

third-party supplier services
[
,
and the societal benefits charge
]
.

(cf:� P.L.2025, c.47, s.3)

���� 8.��� Section 3 of P.L.2018,
c.17 (C.48:3-87.9) is amended to read as follows:�

���� 3.��� a.� No later than one
year after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the
Board of Public Utilities shall require each electric public utility and gas
public utility to reduce the use of electricity
[
,
]
or natural gas, as appropriate,
within its territory, by its customers, below what would have otherwise been
used.� For the purposes of this section, a gas public utility shall reduce the
use of natural gas for residential, commercial, and industrial uses, but shall
not be required to include a reduction in natural gas used for distributed
energy resources
,
such as combined heat and power.

���� Each electric public utility
shall be required to achieve annual reductions in the use of electricity of two
percent of the average annual usage in the prior three years within five years
of implementation of its electric energy efficiency program.� Each natural gas
public utility shall be required to achieve annual reductions in the use of
natural gas of 0.75 percent of the average annual usage in the prior three
years within five years of implementation of its gas energy efficiency
program.� The amount of reduction mandated by the board that exceeds two
percent of the average annual usage for electricity and 0.75 percent of the
average annual usage for natural gas for the prior three years shall be
determined pursuant to the study conducted pursuant to subsection b. of this
section until the reduction in energy usage reaches the full economic,
cost-effective potential in each service territory, as determined by the board.

���� b.��� No later than one year
after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the board
shall conduct and complete a study to determine the energy savings targets for
full economic, cost-effective potential for electricity usage reduction and
natural gas usage reduction as well as the potential for peak demand reduction
by the customers of each electric public utility and gas public utility and the
timeframe for achieving the reductions.� The energy savings targets for each
electric public utility and gas public utility shall be reviewed every three
years to determine if the targets should be adjusted.� The board, in conducting
the study, shall accept comments and suggestions from interested parties.

���� c.���� No later than one year
after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.), the board
shall adopt quantitative performance indicators pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.)
for each electric public utility and gas public utility, which shall establish
reasonably achievable targets for energy usage reductions and peak demand
reductions and take into account the public utility's energy efficiency
measures and other non-utility energy efficiency measures
,
including
measures to support the development and implementation of building code
changes, appliance efficiency standards, the Clean Energy program, any other
State-sponsored energy efficiency or peak reduction programs, and public
utility energy efficiency programs that exist on the date of enactment of
P.L.2018, c.17 (C.48:3-87.8 et al.).� In establishing quantitative performance
indicators, the board shall use a methodology that incorporates weather,
economic factors, customer growth, outage-adjusted efficiency factors, and any
other appropriate factors to ensure that the public utility's incentives or
penalties determined pursuant to subsection e. of this section and section 13
of P.L.2007, c.340 (C.48:3-98.1) are based upon performance, and take into
account the growth in the use of electric vehicles, microgrids, and distributed
energy resources.� In establishing quantitative performance indicators, the
board shall also consider each public utility's customer class mix and
potential for adoption by each of those customer classes of energy efficiency
programs offered by the public utility or that are otherwise available.� The
board shall review each quantitative performance indicator every three years.�
A public utility may apply all energy savings attributable to programs
available to its customers, including demand side management programs, other
measures implemented by the public utility, non-utility programs, including
those available under energy efficiency programs in existence on the date of enactment
of P.L.2018, c.17 (C.48:3-87.8 et al.), building codes, and other efficiency
standards in effect, to achieve the targets established in this section.

���� d.��� (1) Each electric public
utility and gas public utility shall establish energy efficiency programs and
peak demand reduction programs to be approved by the board no later than 30
days prior to the start of the energy year in order to comply with the requirements
of this section.� The energy efficiency programs and peak demand reduction
programs adopted by each public utility shall comply with quantitative
performance indicators adopted by the board pursuant to subsection c. of this
section.

���� (2)�� The energy efficiency
programs and peak demand reduction programs shall have a benefit-to-cost ratio
greater than or equal to 1.0 at the portfolio level, considering both economic
and environmental factors, and shall be subject to review during the stakeholder
process established by the board pursuant to subsection f. of this section.�
The methodology, assumptions, and data used to perform the benefit-to-cost
analysis shall be based upon publicly available sources and shall be subject to
stakeholder review and comment.� A program may have a benefit-to-cost ratio of
less than 1.0 but may be appropriate to include within the portfolio if
implementation of the program is in the public interest, including, but not
limited to, benefitting low-income customers or promoting emerging energy
efficiency technologies.

���� (3)�� Each electric public
utility and gas public utility shall file with the board implementation and
reporting plans as well as evaluation, measurement, and verification strategies
to determine the energy usage reductions and peak demand reductions achieved by
the energy efficiency programs and peak demand reduction programs approved
pursuant to this section.� The filings shall include details of expenditures
made by the public utility and the resultant reduction in energy usage and peak
demand.� The board shall determine the appropriate level of reasonable and
prudent costs for each energy efficiency program and peak demand reduction
program.

���� e.���� (1) Each electric
public utility and gas public utility shall file an annual petition with the
board to demonstrate compliance with the energy efficiency and peak demand
reduction programs, compliance with the targets established pursuant to the
quantitative performance indicators, and for cost recovery of the programs,
including any performance incentives or penalties, pursuant to section 13 of
P.L.2007, c.340 (C.48:3-98.1).� Each electric public utility and gas public
utility shall file annually with the board a petition to recover on a full and
current basis through a surcharge all reasonable and prudent costs incurred as
a result of energy efficiency programs and peak demand reduction programs
required pursuant to this section, including but not limited to recovery of and
on capital investment,
[
and
the revenue impact of sales losses resulting from implementation of the energy
efficiency and peak demand reduction schedules,
]
which shall be determined by the
board pursuant to section 13 of P.L. 2007, c. 340 (C.48:3-98.1).

���� (2)�� If an electric public
utility or gas public utility achieves the performance targets established in
the quantitative performance indicators, the public utility shall receive an
incentive as determined by the board through an accounting mechanism established
pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1) for its energy
efficiency measures and peak demand reduction measures for the following year.�

However, the electric public utility or gas public utility shall not be
eligible for an incentive that provides additional revenue to the utility to
account for lost revenue resulting from the decrease in customer usage of
electricity or natural gas, as appropriate, due to participation in energy
efficiency programs and peak demand reduction programs, pursuant to subsection
b. of section 1 of P.L. , c.
(C. ) (pending before the
Legislature as this bill).
� The incentive shall scale in a linear fashion
to a maximum established by the board that reflects the extra value of
achieving greater savings.

���� (3)�� If an electric public
utility or gas public utility fails to achieve the reductions in its
performance target established in the quantitative performance indicators, the
public utility shall be assessed a penalty as determined by the board through
an accounting mechanism established pursuant to section 13 of P.L.2007, c.340
(C.48:3-98.1) for its energy efficiency measures and peak demand reduction
measures for the following year.� The penalty shall scale in a linear fashion
to a maximum established by the board that reflects the extent of the failure
to achieve the required savings.�

���� (4)�� The adjustments made
pursuant to this subsection may be made through adjustments of the electric
public utility's or gas public utility's return on equity related to the energy
efficiency or peak demand reduction programs only, or a specified dollar amount,
reflecting the incentive structure as established in this subsection.� The
adjustments shall not be included in a revenue or cost in any base rate filing
and shall be adopted by the board pursuant to the "Administrative
Procedure Act
[
."
]

,� P.L.1968,
c.410 (C.52:14B-1 et seq.).

���� f.���� (1) The board shall
establish a stakeholder process to evaluate the economically achievable energy
efficiency and peak demand reduction requirements, rate adjustments,
quantitative performance indicators, and the process for evaluating, measuring,
and verifying energy usage reductions and peak demand reductions by the public
utilities.� As part of the stakeholder process, the board shall establish an
independent advisory group to study the evaluation, measurement, and
verification process for energy efficiency and peak demand reduction programs,
which shall include representatives from the public utilities, the Division of
Rate Counsel, and environmental and consumer organizations, to provide
recommendations to the board for improvements to the programs.�

���� (2)�� Each electric public
utility and gas public utility shall conduct a demographic analysis as part of
the stakeholder process to determine if all of its customers are able to
participate fully in implementing energy efficiency measures, to identify
market barriers that prevent such participation, and to make recommendations
for measures to overcome such barriers.� The public utility shall be entitled
to full and timely recovery of the costs associated with this analysis.

���� g.��� For the purposes of this
section, the board shall only consider usage for which public utility energy
efficiency programs are applicable.

(cf:� P.L.2018, c.17, s.3)

���� 9.��� Section 42 of P.L.1999,
c.23 (C.48:3-91) is amended to read as follows:�

���� 42.� a.� Pursuant to the
provisions of sections 42 through 45 of this act, a government aggregator may
obtain:� electric generation service, electric related service, gas supply
service or gas related service, either separately or bundled, for its own facilities
or with other government aggregators; and a government aggregator that is a
county or municipality may contract for the provision of electric generation
service or gas supply service, either separately or bundled, for the business
and residential customers within the territorial jurisdiction of the government
aggregator.� Such a government aggregator may combine the need for its own
facilities for electric generation service or gas supply service with that of
business and residential customers.

���� b.��� A government aggregator
shall purchase electric generation service and gas supply service only from
licensed electric power suppliers and licensed gas suppliers.

���� c.���� The government
aggregator shall enter into the contract for electric generation service,
electric related service, gas supply service or gas related service for its own
facilities or with other government aggregators under the provisions of the
"Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.),
the "Public School Contracts Law," N.J.S.18A:18A-1 et seq., the
"County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et
seq.), or the "Interlocal Services Act," P.L.1973, c.208 (C.40:8A-1
et seq.), as applicable.

���� d.��� Nothing in this act
shall preclude the State government or any State independent authority or State
college from exercising authority to obtain electric generation service,
electric related service, gas supply service or gas related service, either
separately or bundled, for its own facilities on an aggregated basis.

���� e.���� Nothing in this section
shall preclude a government aggregator from aggregating its own accounts for
regulated utility services, including basic generation or gas service.

���� f.���� Nothing in this act
shall preclude any interstate authority or agency from exercising authority to
obtain electric generation service or gas supply service, either separately or
bundled, for its own facilities in this State, including tenants in this State
and other utility customers in this State at such facilities, on an aggregated
basis. By exercising such authority, no interstate authority or agency shall be
deemed to be a public utility pursuant to R.S. 48:1-1 et seq.; provided,
however, that nothing in this act shall be construed to exempt such authority
or agency from the payment of the market transition charge or its equivalent,
imposed pursuant to section 13 of this act,
and
the transition bond
charge or its equivalent, imposed pursuant to section 18 of this act
[
and any
societal benefits charge or its equivalent, which may be imposed pursuant to
section 12 of this act
]
,
to the same extent that other customers of an electric public utility pay such
charges in conjunction with any transmission and distribution service provided
by an electric public utility to the authority or agency.

���� g.��� Notwithstanding any
other provision of this act to the contrary, a private aggregator that is a
private institution of higher education may enter into a contract with a
licensed electric power supplier other than a municipal system or rural
electric cooperative for the provision of electric generation service or
electric related service, either separately or bundled, including any private
aggregator that is a four-year private institution of higher education which is
located within the jurisdiction of a municipal system, or within the franchise
area of a rural electric cooperative, as the case may be.� The right hereunder
of a four-year private institution of higher education to enter into a contract
with a licensed electric power supplier other than the municipal system or
rural electric cooperative shall be subject to the condition that the municipal
system or rural electric cooperative shall have the right of first refusal to
offer a competitive, market-based price for electric power.� For the purposes
of this subsection, "municipal system" means a municipality that
provides light, heat or power pursuant to the provisions of R.S.40:62-12 et
seq.

���� h.��� The "New Jersey
School Boards Association," established pursuant to N.J.S.18A:6-45, is
authorized to serve as a government aggregator to obtain electric generation
service, electric-related service, gas supply service or gas-related service,
either separately or bundled, in accordance with the "Public School
Contracts Law," N.J.S.18A:18A-1 et seq., for members of the association
who wish to voluntarily participate and for counties, municipalities, and other
local contracting units who wish to voluntarily participate.� For purposes of
this subsection, "electric-related service" also includes electric
school buses and related goods and services.

���� i.���� Notwithstanding any
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and
shall adopt, after notice, provision of the opportunity for comment, and public
hearing, interim standards governing government energy aggregation programs.�
Such standards shall be effective as regulations immediately upon filing with
the Office of Administrative Law and shall be effective for a period not to
exceed 18 months, and may, thereafter, be amended, adopted or readopted by the
board in accordance with the provisions of the "Administrative Procedure
Act
[
."
]

,�
P.L.1968, c.410 (C.52:14B-1 et seq.).

���� j.���� No government
aggregator shall implement the provisions of section 42, 43, 44, or 45 of this
act, as appropriate, prior to the starting date of retail competition pursuant
to section 5 of this act, or the date on which the board adopts interim
standards pursuant to subsection i. of this section, whichever is earlier.

(cf:� P.L.2024, c.38, s.3)

���� 10.� Section 13 of P.L.2007,
c.340 (C.48:3-98.1) is amended to read as follows:�

���� 13.� a.� Notwithstanding the
provisions of any other law
[
or
]

,
rule
,

or regulation to the contrary:

���� (1)�� an electric public
utility or a gas public utility may provide and invest in energy efficiency and
conservation programs in its respective service territory on a regulated basis
pursuant to this section, regardless of whether the energy efficiency or conservation
program involves facilities on the utility side or customer side of the point
of interconnection;

���� (2)�� an electric public
utility or a gas public utility may invest in Class I renewable energy
resources, or offer Class I renewable energy programs on a regulated basis
pursuant to this section, regardless of whether the renewable energy resource
is located on the utility side or customer side of the point of
interconnection; and

���� (3)�� the board may provide
funding for energy efficiency, conservation, and renewable energy improvements
through the societal benefits charge established pursuant to section 12 of
P.L.1999, c.23 (C.48:3-60)
, until the effective date of
P.L. , c.
(C. ) (pending before the
Legislature as this bill)
, the retail margin on certain hourly-priced and
larger non-residential customers pursuant to the board's continuing regulation
of basic generation service pursuant to sections 3 and 9 of P.L.1999, c.23
(C.48:3-51 and
C.
48:3-57), or other monies appropriated for such
purposes.� The board may also direct electric public utilities and gas public
utilities to undertake energy efficiency, conservation, and renewable energy
improvements, and shall allow the recovery of program costs and incentive rate
treatment pursuant to subsection b. of this section.

���� b.��� An electric public
utility or a gas public utility seeking cost recovery for any program pursuant
to this section shall file a petition with the board to request cost recovery.�
In determining the recovery by electric public utilities and gas public utilities
of program costs for any program implemented pursuant to this section, the
board may take into account the potential for job creation from such programs,
the effect on competition for such programs, existing market barriers,
environmental benefits, and the availability of such programs in the
marketplace.� Unless the board issues a written order within 180 days after the
filing of the petition approving, modifying or denying the requested recovery,
the recovery requested by the utility shall be granted effective on the 181st
day after the filing without further order by the board.� Ratemaking treatment
may include placing appropriate technology and program cost investments in the
respective utility's rate base, or recovering the utility's technology and
program costs through another ratemaking methodology approved by the board,
[
including, but
not limited to,
]

except for, as of the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill),
the societal benefits charge
established pursuant to section 12 of P.L.1999, c.23 (C.48:3-60).� All electric
public utility and gas public utility investment in energy efficiency and
conservation programs or Class I renewable energy programs may be eligible for
rate treatment approved by the board, including a return on equity, or other
incentives or rate mechanisms that decouple utility revenue from sales of
electricity and gas.

���� c.���� Within 120 days after
the date of enactment of P.L.2007, c.340 (C.26:2C-45 et al.), the board shall
issue an order that allows electric public utilities and gas public utilities
to offer energy efficiency and conservation programs, to invest in Class I renewable
energy resources, and to offer Class I renewable energy programs in their
respective service territories on a regulated basis.� The board's order shall
be reflected in rules and regulations thereafter to be adopted by the board
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.).

���� d.��� As used in this section:

���� "Class I renewable energy
program" means any regulated program approved by the board pursuant to
this section for the purpose of facilitating the development of Class I
renewable energy in the State.

���� "Energy efficiency and
conservation program" means any regulated program, including customer and
community education and outreach, approved by the board pursuant to this
section for the purpose of conserving energy or making the use of electricity
or natural gas more efficient by New Jersey consumers, whether residential,
commercial, industrial, or governmental agencies.

���� "Program costs"
means all reasonable and prudent costs incurred in developing and implementing
energy efficiency, conservation, or Class I renewable energy programs approved
by the board pursuant to this section.� These costs shall include a full return
on invested capital and foregone electric and gas distribution fixed cost
contributions associated with the implementation of the energy efficiency,
conservation, or Class I renewable energy programs until those cost
contributions are reflected in base rates following a base rate case if such
costs were reasonably and prudently incurred.

(cf:� P.L.2007, c.340, s.13)

���� 11.� Section 5 of P.L.2025,
c.136 (C.48:3-121.6) is amended to read as follows:�

���� 5. a. There is established in
the Board of Public Utilities a special, non-lapsing fund to be known as the
�Energy Storage Fund.�� The fund shall be administered by the board and shall
be credited with:�

���� (1) monies deposited into the
fund by the board pursuant to subsection b. of this section;

���� (2) monies appropriated by the
Legislature; and

���� (3) any return on investment
of monies deposited in the fund.�

���� b.��� The board shall deposit
into the fund, each year, until the end of all award periods for incentive
awards issued pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.), a minimum of
$60,000,000 from the:�

���� (1)
[
revenues from the societal
benefits charge established pursuant to subsection a. of section 12 of
P.L.1999, c.23 (C.48:3-60); and
]

(
Deleted by amendment,
P.L. ,
c. (pending before the Legislature as this bill)

���� (2) monies made available from
other funding sources, as determined by the board, which sources shall include,
but not be limited to, federal funding.

���� c.���� Notwithstanding any
restrictions on the use of funds provided in section 12 of P.L.1999, c.23
(C.48:3-60), monies in the fund shall be used by the board solely to fund:

���� (1) incentive awards issued
pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.); and

���� (2) energy storage incentives
issued pursuant to the GSESP.�

���� d.��� In the fiscal year
beginning on July 1, 2027, and in each fiscal year thereafter, until the end of
all award periods for incentive awards issued pursuant to P.L.2025, c.136
(C.48:3-121.2 et al.), the board shall allocate sufficient monies from the
�Energy Storage Fund� established pursuant to subsection a. of this section to
fully fund the incentive awards issued by the board pursuant to P.L.2025, c.136
(C.48:3-121.2 et al.).

(cf:� P.L.2025, c.136, s.5)

���� 12.� Section 7 of P.L.2019,
c.362 (C.48:25-7) is amended to read as follows:�

���� 7.��� a.� There is established
in the Board of Public Utilities a special, nonlapsing fund to be known as the
�
Plug-in
Electric Vehicle Incentive Fund.
�
� The fund shall be administered by the
board and shall be credited with:

���� (1)�� moneys deposited into
the fund by the board pursuant to subsection b. of this section;

���� (2)�� moneys that are
appropriated by the Legislature; and

���� (3)�� any return on investment
of moneys deposited in the fund.

���� b.��� (1) The board shall
deposit into the fund, each year,
[
$30
million
]

$30,000,000
of
[
moneys
received from the societal benefits charge established pursuant to section 12
of P.L.1999, c.23 (C.48:3-60),
]

moneys made available to the board pursuant to the implementation of the
Regional Greenhouse Gas Initiative and P.L.2007, c.340 (C.26:2C-45 et seq.),
and moneys available from other funding sources, as determined by the board, to
make disbursements under the light duty plug-in electric vehicle incentive
program established pursuant to section 4 of P.L.2019, c.362 (C.48:25-4).

���� (2)��
[
The board may
deposit into the fund, each year, such additional amounts from the societal
benefits charge, as the board deems necessary, to make disbursement under an
incentive program for in-home electric vehicle service equipment established
pursuant to section 6 of P.L.2019, c.362 (C.48:25-6).
]
(
Deleted by amendment,
P.L. , c. (pending
before the Legislature as this bill)

���� c.���� Moneys in the fund
shall be used by the board solely for the purpose of disbursing the incentives
established pursuant to sections 4 and 6 of P.L.2019, c.362 (C.48:25-4 and
C.48:25-6).� The board shall recover any administrative costs incurred in
connection with P.L.2019, c.362 (C.48:25-1 et al.) separately from moneys
received from the societal benefits charge.�

���� d.��� The board shall provide
no less than
[
$30
million
]

$30,000,000
in disbursements under the light duty plug-in electric
vehicle incentive program established pursuant to section 4 of P.L.2019, c.362
(C.48:25-4) each year for 10 years.�

(cf:� P.L.2019, c.362, s.7)

���� 13.� Section 2 of P.L.2023,
c.316 (C.48:25-14) is amended to read as follows:�

���� 2.��� a.� The Board of Public
Utilities, in consultation with the New Jersey Economic Development Authority
and the Department of Environmental Protection, shall develop a request for
proposal to determine eligibility for the establishment of demonstration projects
involving the development of electric vehicle charging depots for electric
vehicle use.� Each electric vehicle charging depot shall be serviced by one or
more distributed energy resource charging centers, and the electric vehicle
charging depots shall be located within six regionally diverse locations within
the State, except that at least one electric vehicle charging depot, including
the distributed energy resource charging center servicing the depot, shall be
located within the service territory of each electric public utility operating
within this State and at least two of the electric vehicle charging depots
shall serve vehicles primarily operating within an overburdened municipality.�
The proposal shall describe, in detail, the requirements for the provision of
electric vehicle charging depots for electric vehicle charging, the production
or storage of Class I renewable energy, any demand management plans, and the
total number of electric vehicle miles traveled, which depots shall, at a
minimum, be capable of supporting coincident peak sufficient to meet vehicle
electric loads.� Within the proposal, the board shall provide a list and brief
description of any State or local incentives and support programs available to
an approved applicant.

���� b.��� Upon developing the
request for proposal, the board shall issue the proposal in a form and manner
determined by the board.� The board shall establish guidelines for the
approval, designation, operation, and reporting of a demonstration project in a
manner determined by the board.� The board may approve the development of more
than one electric vehicle charging depot within any of the six locations,
provided that the total number of approved projects satisfies the requirements
of subsection a. of this section.

���� c.���� The board, in
cooperation with the authority and the department, shall oversee, coordinate,
and assist the demonstration project approved and established pursuant to
P.L.2023, c.316 (C.48:25-13 et seq.) and shall allocate up to $2,000,000 in
assistance per project from
[
the
proceeds of the societal benefits charge imposed pursuant to paragraph (3) of
subsection a. of section 12 of P.L.1999, c.23 (C.48:3-60)
]

monies
made available through the annual appropriations act
to facilitate
investment in electric vehicle charging depots.� The funds allocated from
[
the societal
benefits charge
]

the annual appropriations act
shall be in addition to any utility
investment established pursuant to section 3 of P.L.2023, c.316 (C.48:25-15),
and any other incentives or funds available from PJM, or other renewable energy
or storage incentives that the project may be eligible to receive.

(cf: P.L.2023, c.316, s.2)

���� 14.� The following sections
are repealed:�

Section 1 of P.L.2011, c.126
(C.48:3-60.2); and

Section 1 of P.L.2011, c.216
(C.48:3-60.3).

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

STATEMENT

���� This bill requires the Board
of Public Utilities (board) to provide to each residential customer of an
electric public utility or a gas public utility (collectively, �utility�) in
the State a one-time residential universal bill credit composed of all uncommitted
monies collected through the societal benefits charge.� Additionally, the bill
prohibits the board from
utilizing

incentive accounting mechanisms that create a lost revenue conservation
incentive program and prohibits a utility from imposing the societal benefits
charge after the bill�s effective date.� The bill also requires certain
programs funded by the societal benefits charge to be funded instead through
annual appropriations.

���� Under current law, a utility
may invest in energy efficiency, peak demand reduction, conservation, and
renewable energy programs in its service territory on a regulated basis and
may, if approved by the board, impose and collect rate adjustment mechanisms
that provide additional revenue to the utility to offset a decrease in
consumption for customers participating in certain programs.� Additionally,
under current law, a utility may collect a societal benefits charge, a non-bypassable
charge imposed on all utility customers, to allow recovery on certain costs,
including social programs, nuclear plant decommissioning costs, demand side
management programs, manufactured gas plant remediation costs, and consumer
education programs.

���� It is the sponsor�s belief
that nearly 54 percent of the revenue from the societal benefits charge has
been used on the programs it was meant to fund and that the remainder has been
diverted for unrelated spending or has remained unused.� With this bill, the
sponsor intends to prevent the improper use of these funds while maintaining
support for societal benefits charge-funded programs through annual
appropriations.

���� Under the bill, �lost revenue
conservation incentive program� means
an incentive program, established by State law, that

provides monies to
electric
public utilities and gas public utilities
to account for lost
revenue resulting from the decrease in utility customer usage of electricity
and natural gas due to customer participation in energy efficiency programs and
peak demand reduction programs.