As New Jersey approaches a pivotal moment in its energy policy, climate advocates aim to solidify a lasting commitment to clean energy. With Gov. Phil Murphy nearing the end of his term, there is a push to ensure his successors adhere to an ambitious clean energy vision.
The New Jersey Clean Energy Act of 2024 seeks to enshrine the goal of 100 percent clean electricity by 2035, a target originally set by Murphy’s 2023 executive order. If the bill passes before the legislative session concludes in January, it will be presented to Governor-elect Mikie Sherrill, who has focused her campaign on reducing utility costs but has not committed to the 2035 timeline.
“This is a priority piece of legislation … to codify Governor Murphy’s Executive Order 315, which is the 100 percent clean electricity by 2035 into law,” stated Ed Potosnak, executive director of the New Jersey League of Conservation Voters. “So that the next governor … and beyond, are required to move the state in that direction.”
The bill proposes a robust clean-electricity standard, mandating that all electricity sold in the state comes from clean sources by 2035. This aligns with Murphy’s Executive Order 315 and the updated Energy Master Plan. It would require the Board of Public Utilities to develop a market for “clean electricity certificates,” enabling utilities to verify their compliance with the new standards.
From 2030 onward, at least 50% of the renewable energy certificates must come from in-state projects, thereby promoting local investment and job creation. The proposal also tightens the current renewable standard, which specifies the proportion of electricity from sources like solar and wind.
While aiming for a carbon-free grid by 2035, the renewable standard will continue to evolve, requiring utilities to source 100% of retail sales from Class I renewables by 2045. This is an increase from the current requirement of 50% by 2030.
Recognizing the challenges of transitioning, the bill allows an additional decade, until 2045, for fossil-fuel peaker plants, which are used only during peak demand, to transition to clean energy.
Currently, New Jersey’s energy landscape heavily relies on fossil fuels and nuclear power. In 2023, natural gas and nuclear power accounted for over 90% of the state’s electricity, with renewables contributing a minimal share.
Defining Clean Energy
The bill’s unique aspect is its stringent definition of “clean” energy. “It would specifically call out co-pollutants as not allowable … anywhere along the supply chain of energy production,” Potosnak explained.
This definition means that New Jersey’s controversial trash incinerators, previously classified as Class II renewables, would not meet the clean-energy mandate.
Assemblywoman Verlina Reynolds-Jackson emphasized the importance of this definition for communities burdened by pollution, particularly in areas like Trenton.
The 2018 Clean Energy Act already requires half of power to come from Class I renewables by 2030. The new bill aims to accelerate this transition by including nuclear and certain zero-carbon resources towards the 2035 goal while reducing reliance on fossil fuels.
Climate and health experts stress the urgency of this shift in a state with poor air quality. Brian Lestini from Clinicians for Climate Action highlighted the health benefits of clean energy, stating that “clean renewable energy like solar and wind, they’re the fastest, the cheapest, and also by far the healthiest to build.”
New Energy Plan, New Headwinds
This legislative push coincides with the release of the 2024 Energy Master Plan, which outlines New Jersey’s strategy to achieve its clean-energy goals. Despite the cancellation of major offshore wind projects, the plan leans heavily on solar and battery storage to fill the gap.
Amidst national challenges, including federal resistance to renewable projects, New Jersey must act independently to advance its clean energy agenda. The state is also facing rising electricity demand from new data centers within the PJM regional grid.
Reynolds-Jackson pointed out that the public’s primary concern is rising utility bills, which she believes can be mitigated by expanding clean energy infrastructure.
Can Sherrill Make It Work?
If the bill reaches the governor’s desk by January 19, Murphy can approve it. Otherwise, Sherrill, who has pledged to address utility rates, will oversee its implementation.
Sherrill’s campaign focused on an “all-of-the-above” energy strategy, emphasizing affordability and grid reliability without explicitly supporting Murphy’s 2035 target.
Potosnak noted that it’s common for governors to refrain from commenting on legislation until it advances significantly. State Sen. Andrew Zwicker acknowledged the time constraints facing the bill but expressed determination to reintroduce it if necessary.
Potosnak remains optimistic, viewing the lame-duck session as an opportunity for meaningful progress, citing voter support for affordable and clean energy.
If the bill does not pass, Murphy’s 2035 target will remain as an executive order, subject to change by future administrations. Potosnak stressed the importance of legal certainty to attract investors, who seek a stable regulatory environment.
Lestini emphasized the human impact, warning against narratives that blame high rates on renewables, when the real issue is insufficient clean energy supply.
Original Story at insideclimatenews.org