Authorizes use of Global Warming Solutions Fund monies for cost reduction programs; requires DEP to prioritize consumer relief when allocating Global Warming Solutions Fund monies.

S4321

SENATE, No. 4321

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 21, 2026

Sponsored by:

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

SYNOPSIS

���� Authorizes use of Global Warming Solutions Fund
monies for cost reduction programs; requires DEP to prioritize consumer relief
when allocating Global Warming Solutions Fund monies.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning allocation of the Global Warming
Solutions Fund and amending P.L.2007, c.340.

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

���� 1.��� Section 7 of P.L.2007,
c.340 (C.26:2C-51) is amended to read as follows:�

���� 7.��� a. �The agencies
administering programs established pursuant to this section shall maximize
coordination in the administration of the programs to avoid overlap between the
uses of the fund prescribed in this section.

���� b.��� Moneys in the fund,
after appropriation annually for payment of administrative costs authorized
pursuant to subsection c. of this section, shall be annually appropriated and
used for the following purposes:

���� (1)�� Sixty percent shall be
allocated to the New Jersey Economic Development Authority to
support
programs that are designed to reduce costs to electricity and natural gas
consumers, and
provide grants and other forms of financial assistance to
commercial, institutional, and industrial entities to support end-use energy
efficiency projects and new, efficient electric generation facilities that are
state of the art, as determined by the department, including but not limited to
energy efficiency and renewable energy applications, to develop combined heat
and power production and other high efficiency electric generation facilities,
to stimulate or reward investment in the development of innovative carbon
emissions abatement technologies with significant carbon emissions reduction or
avoidance potential, to develop qualified offshore wind projects pursuant to
section 3 of P.L.2010, c.57 (C.48:3-87.1), and to provide financial assistance
to manufacturers of equipment associated with qualified offshore wind
projects.� The authority, in consultation with the board and the department,
shall determine:� (a) the appropriate level of grants or other forms of
financial assistance to be awarded to individual commercial, institutional, and
industrial sectors and to individual projects within each of these sectors; (b)
the evaluation criteria for selecting projects to be awarded grants or other
forms of financial assistance, which criteria shall include the ability of the
project to result in a measurable reduction of the emission of greenhouse gases
or a measurable reduction in energy demand, provided, however, that neither the
development of a new combined heat and power production facility, nor an
increase in the electrical and thermal output of an existing combined heat and
power production facility, shall be subject to the requirement to demonstrate
such a measurable reduction; and (c) the process by which grants or other forms
of financial assistance can be applied for and awarded including, if
applicable, the payment terms and conditions for authority investments in
certain projects with commercial viability;

���� (2)�� Twenty percent shall be
allocated to the board to support
programs that are designed to reduce costs
to electricity and natural gas consumers, in addition to
programs that are
designed to reduce electricity demand or costs to electricity customers in the
low-income and moderate-income residential sector with a focus on urban areas,
including efforts to address heat island effect and reduce impacts on ratepayers
attributable to the implementation of P.L.2007, c.340 (C.26:2C-45 et al.) or to
support the light duty plug-in electric vehicle incentive program and the incentive
program for in-home electric vehicle service equipment established pursuant to
sections 4 and 6 of P.L.2019, c.362 (C.48:25-4 and C.48:25-6).� For the
purposes of this paragraph, the board, in consultation with the authority and
the department, shall determine the types of programs to be supported and the
mechanism by which to quantify benefits to ensure that the supported programs
result in a measurable reduction in energy demand or accomplishment of the
plug-in electric vehicle goals established pursuant to section 3 of P.L.2019,
c.362 (C.48:25-3);

���� (3)�� Ten percent shall be
allocated to the department to support
programs that are designed to reduce
costs to electricity and natural gas consumers, and
programs designed to
promote local government efforts to plan, develop and implement measures to
reduce greenhouse gas emissions, including but not limited to technical
assistance to local governments, and the awarding of grants and other forms of
assistance to local governments to conduct and implement energy efficiency,
renewable energy, and distributed energy programs and land use planning where
the grant or assistance results in a measurable reduction of the emission of
greenhouse gases or a measurable reduction in energy demand. �For the purpose
of conducting any program pursuant to this paragraph, the department, in
consultation with the authority and the board, shall determine:� (a) the
appropriate level of grants or other forms of financial assistance to be
awarded
[
to
local governments
]
;
(b) the evaluation criteria for selecting projects to be awarded grants or
other forms of financial assistance; (c) the process by which grants or other
forms of financial assistance can be applied for and awarded; and (d) a
mechanism by which to quantify benefits; and

���� (4)�� Ten percent shall be
allocated to the department to support
programs that are designed to reduce
costs to electricity and natural gas consumers, and
programs that enhance
the stewardship and restoration of the State's forests and tidal marshes that
provide important opportunities to sequester or reduce greenhouse gases.

���� c.���� (1) �The department may
use up to four percent of the total amount in the fund each year to pay for
administrative costs justifiable and approved in the annual budget process,
incurred by the department in administering the provisions of P.L.2007, c.340
(C.26:2C-45 et al.) and in administering programs to reduce the emissions of
greenhouse gases including any obligations that may arise under subsection a.
of section 11 of P.L.2007, c.340 (C.26:2C-55).

���� (2)�� The board may use up to
two percent of the total amount in the fund each year to pay for administrative
costs justifiable and approved in the annual budget process, incurred by the
board in administering the provisions of P.L.2007, c.340 (C.26:2C-45 et al.)
and in administering programs to reduce the emissions of greenhouse gases
including any obligations that may arise under subsection a. of section 11 of
P.L.2007, c.340 (C.26:2C-55).

���� (3)�� The New Jersey Economic
Development Authority may use up to two percent of the total amount in the fund
each year to pay for administrative costs justifiable and approved in the
annual budget process, incurred by the authority in administering the provisions
of P.L.2007, c.340 (C.26:2C-45 et al.) and in administering programs to reduce
the emissions of greenhouse gases.

���� d.��� The State Comptroller
shall conduct or supervise independent audit and fiscal oversight functions of
the fund and its uses.

(cf:� P.L.2019, c.362, s.12)

���� 2.��� Section 8 of P.L.2007,
c.340 (C.26:2C-52) is amended to read as follows:�

���� 8.��� a.� Within one year
after the date of enactment of P.L.2007, c.340 (C.26:2C-45 et al.), the
department, in consultation with the New Jersey Economic Development Authority
and the board, shall adopt, in accordance with the �Administrative Procedure
Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), guidelines and a priority ranking
system to be used to assist in annually allocating funds to eligible projects
or programs pursuant to subsection b. of section 7 of P.L.2007, c.340
(C.26:2C-51).

���� b.��� The guidelines and the
priority ranking system developed pursuant to this section for selecting
projects or programs to be awarded grants or other forms of financial
assistance from the fund shall include
,
but need not be limited to
,

an evaluation of each eligible project or program as to its predicted ability
to:�

���� (1)�� result in a net
reduction in greenhouse gas emissions in the State or in greenhouse gas
emissions from electricity produced out of the State but consumed in the State
or net sequestration of carbon;

���� (2)�� result in significant
reductions in greenhouse gases relative to the cost of the project or program
and the reduction of impacts on ratepayers attributable to the implementation
of P.L.2007, c.340 (C.26:2C-45 et al.), and the ability of the project or program
to significantly contribute to achievement of the State's 2020 limit and 2050
limit established pursuant to the �Global Warming Response Act,� P.L.2007,
c.112 (C.26:2C-37 et al.), relative to the cost of the project or program;

���� (3)�� reduce energy use;

���� (4)�� provide co-benefits to
the State, including but not limited to creating job opportunities, reducing
other air pollutants, reducing costs to electricity and natural gas consumers,
improving local electric system reliability, and contributing to regional initiatives
to reduce greenhouse gas emissions; and

���� (5)�� be directly responsive
to the recommendations when submitted by the department to the Legislature
pursuant to section 6 of the �Global Warming Response Act,� P.L.2007, c.112
(C.26:2C-42).

���� c.���� In addition to the
criteria set forth in
[
subsection
]

subsections

b.
and d.
of this section, the guidelines and the priority ranking
system developed pursuant to this section for selecting projects or programs to
be awarded grants or other forms of financial assistance from the fund shall
include factors to ensure that grants or other forms of financial assistance
from the fund are allocated to projects or programs that will serve communities
that are disproportionality impacted by the effects of environmental
degradation and climate change, and alleviate the negative effects on human
health and the environment resulting therefrom.

����
d.��� Notwithstanding
subsection b. of this section, after the effective date of P.L. ,
c. (pending before the Legislature as this bill), the guidelines
and the priority ranking system developed pursuant to this section for
selecting projects or programs to be awarded grants or other forms of financial
assistance from the fund shall prioritize an eligible project or program�s
ability to reduce costs to electricity and natural gas consumers above all
other criteria, including, but not limited to, the criteria outlined in
subsection c. of this section.

(cf: �P.L.2019, c.328, s.3)

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

STATEMENT

���� This bill requires the
Department of Environmental Protection (DEP), in consultation with the New
Jersey Economic Development Authority (EDA) and the Board of Public Utilities (BPU),
to prioritize consumer relief when allocating funds under the Global Warming
Solutions Fund.� Under current law, the DEP, the EDA, and the BPU are
authorized to use these funds for programs for specific purposes.� Further, the
DEP, in consultation with the EDA and the BPU, considers multiple criteria as
part of a priority ranking system for selecting projects or programs to be
awarded grants or other forms of financial assistance from the fund, including
the project�s or program�s ability to reduce costs to electricity and natural
gas consumers.� Under the bill, the DEP, the EDA, and the BPU are:� (1)
authorized to use funds allocated to the Global Warming Solutions Fund for programs
that are designed to reduce costs to electricity and natural gas consumers; and
(2) required to prioritize consumer cost reduction over all other criteria when
selecting programs.