New Jersey, which has a history of taking a less aggressive path in energy efficiency programs compared to other states in the region, has stepped up to the plate. Democratic Governor Phil Murphy was sworn in as the Garden State’s 56th governor earlier in January 2018. To uphold the promise to his constituents, he signed an executive order to rejoin the Regional Greenhouse Gas Initiative (RGGI) with the intent to grow the clean energy economy in the state. This process may take six to nine months to fully reenter due to negotiations with current RGGI states to determine the best way for New Jersey to enter into the carbon budget trading program. With New Jersey rejoining RGGI, the state will be a part of the extension of RGGI through 2030, which reduces the emissions cap by 30 percent from 2020 levels.
The state continues to operate energy efficiency programs under the guidance of its new Comprehensive Resource Analysis (currently FY 2020), which outlines the fiscal year budgets and savings goals for programs operated by the New Jersey Clean Energy Program (NJCEP).
The State’s 2019 Energy Master Plan, released in January 2020, encompasses a dramatically broader scope than any previous energy master plan and provides a road map with seven main strategies to achieve 100% clean energy and an 80% reduction in GHGs by 2050. The seven strategies include:
- Reduce energy consumption and emissions from the transportation sector
- Accelerate the deployment of renewable energy and distributed energy resources
- Maximize energy efficiency and conservation and reduce peak demand
- Reduce energy consumption and emissions from the building sector
- Decarbonize and modernize New Jersey’s energy system
- Support Community energy planning and action with an emphasis on supporting low-and moderate income and environmental justice communities.
- Expand the clean energy innovation economy
Of note, senate bill 812 has been introduced, which would require that, by 2050, all electric power sold in New Jersey by each electric power supplier and basic generation provider be from Class I renewable energy sources. This bill also covers the implementation of electric and gas efficiency standards. Such standards would require a reduction of electricity usage and natural gas usage for heating in the state by 2020 to a level that is 20 percent below the usage projected by the board in the absence of such a standard.
Policy and Program Information
|New Jersey Board of Public Utilities|
|Preliminary Comprehensive Resource Analysis Order for 2015-2017|
|State Documents and Key Info- New Jersey|
|State Efficiency Screening Practice|
|U.S. Department of Energy|
New Jersey at a Glance
|Direct Jobs in Energy Efficiency||36,206|
|Electric Efficiency Program Expenditures||$129.3 million|
|Gas Efficiency Program Expenditures||$90.1 million|
|Per Capita Expenditures||$21.70|
|Annual Electric Savings||259,857 MWh|
|Electric Savings as Percent of Retail Sales||0.35%|
|Annual Gas Savings||12.4 million therms|
|Gas Savings as Percent of Retail Sales||0.29%|