A2888

An Act creating the Office of Clean Energy and supplementing Title 48 of the Revised Statutes.

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

1. This act shall be known and may be cited as the “Office of Clean Energy Act.”

2. The Legislature finds and determines that:

a. As New Jersey’s population increases and its economy expands, the State’s demand for energy will continue to grow as well.

b. Current energy costs already place an outsized financial burden on the residents and businesses of this State, and any increase in demand could increase prices further.

c. As demand for energy increases and easily accessible sources of energy become depleted, the environmental ramifications of meeting the State’s energy needs are exacerbated.

d. The source from which energy is derived, the manner in which energy is transmitted, and the efficiency with which energy is used can all have considerable economic and environmental impacts on the State.

e. It is therefore in the public interest for this State to have an Office of Clean Energy dedicated to the mission of improving the efficiency of energy distribution and usage, reducing our reliance on fossil fuels and other fuels that create pollution, and increasing the proportion of the energy we use that is derived from renewable sources.

f. It is fitting and proper to establish the Office of Clean Energy and direct it to: (1) develop an effective strategy to accomplish that mission, (2) conduct research and draft reports on policy issues, programs run by other states, technologies, and products to maximize the effectiveness of its plan, (3) coordinate and fund programs designed to execute that strategy, (4) testify before Legislative committees to help ensure that State policy conforms to that plan, and (5) educate the general public about its mission.

3. As used in this act:

“Board” means the Board of Public Utilities.

“Office” means the Office of Clean Energy, established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).

4. a. There is hereby created in the Board of Public Utilities an Office of Clean Energy to coordinate the State’s programs to improve energy efficiency and reduce the amount of pollution created by generating, transmitting, and using energy in this State.

b. The office shall be headed by a director who shall be appointed by the president of the board and shall serve at the pleasure of the president of the board. The director shall be a person qualified by training, experience, or both, to direct the work of the office. In appointing the director, the president of the board may select from, but shall not be restricted to, any employee of the board.

c. The director, under the supervision of the board, shall organize the work of the office and employ such professional, technical, research, and clerical staff as may be necessary, proper, and expedient to carry out the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill). The board, in consultation with the director, may formulate and adopt rules and regulations and prescribe duties for the efficient conduct of the office’s business, work, and general administration in connection with P.L. , c. (C. ) (pending before the Legislature as this bill).

d. The office’s director, staff, and programs shall be funded through the use of a portion of the monies received by the board from the societal benefits charge, collected pursuant to section 12 of P.L.1999, c.23 (C.48:3-60). Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be interpreted to restrict the board's discretion to set the level of the societal benefits charge. Should the board determine to reduce or eliminate the societal benefits charge or take any action that might implicate the funding of the activities of the office, the board shall assess the continuing needs of the office and shall institute alternative funding options.

5. The mission of the office shall be to: (1) improve the efficiency of energy distribution and usage in this State; (2) reduce the State’s reliance on fossil fuels and other fuels that create pollution; and (3) maximize, to the extent practicable, the proportion of energy used in this State that is derived from renewable sources.

6. It shall be the function of the office to:

a. Develop, draft, publish and update as necessary a plan to accomplish its mission that contains statistically verifiable benchmarks over a 25 year period;

b. Conduct research and draft reports on policy issues, programs run by other states, technologies, and products that are related to its mission;

c. Utilize its funding to create programs that will assist the office in fulfilling its mission;

d. Testify before legislative committees on matters related to its mission; and

e. Coordinate educational programs and publish educational material related to its mission.

7. a. The office shall draft an annual report that describes the office's operations programs, which shall include detailed financial information about each program sponsored by the office, and transmit copies of that report to the board, to the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).

b. The office shall draft any other report that is requested by the board or required by law and transmit copies of that report to the board, to the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).

8. The board may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt such rules and regulations, as shall be necessary to implement the provisions of sections 2 through 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).

9. This act shall take effect 60 days after enactment.

STATEMENT

This bill establishes in law the Office of Clean Energy (office), which currently exists as a division of the Board of Public Utilities (BPU). The office will coordinate the State’s programs to improve energy distribution and the use of non-polluting energy sources.

The office and all of its programs are to be funded through the societal benefits charge, as the office is currently funded.

The mission of the office shall be to: (1) improve the efficiency of energy distribution and usage in this State; (2) reduce the State’s reliance on fossil fuels and other fuels that create pollution; and (3) maximize, to the extent practicable, the proportion of the energy we use that is derived from renewable sources in this State.

The bill directs the office to: (1) develop, draft, publish and update as necessary a plan to accomplish its mission that contains statistically verifiable benchmarks over a 25 year period; (2) conduct research and draft reports on policy issues, programs run by other states, technologies, and products that are related to its mission; (3) utilize its funding to create programs that will assist the office in fulfilling its mission; (4) testify before legislative committees on matters related to its mission; and (5) coordinate educational programs and publish educational material related to its mission.

Finally, the office is required to draft an annual report and transmit that report to the BPU, the Governor and the Legislature.