A4491

An Act concerning electrical energy supply, supplementing Title 48 of the Revised Statutes, and amending P.L.1999, c.23.

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

1. (New section) As used in sections 1 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):

“Allowable cost increase” means a construction cost for a qualified project that the board finds: (1) is higher than the verified total construction cost estimate approved as part of the final project approval, (2) is adequately documented, (3) was reasonably and prudently incurred, and (4) could not have been reasonably foreseen by the project.

“Basic generation service provider” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Board” means the Board of Public Utilities.

“Construction costs” means the costs, as specified in a final order issued pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), inclusive of capital costs, incurred by a qualified project prior to natural gas power plant operation. “Construction costs” may include, but need not be limited to, costs related to the analysis, design, manufacture, fabrication, quality assurance, placement, erection, installation, modification, supervision, inspection, or testing of a facility necessary for building a qualified project, and the purchase of land for, and the building of, a qualified project. “Construction costs” shall not include financing costs.

“Electric power supplier” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Electric public utility” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Natural gas development charge” or “NGDC” means the same as the term is defined in section 12 of P.L.1999, c.23 (C.48:3-60).

“Natural gas energy certificate” or “NGEC” means a certificate, issued by the board or its designee, representing the energy supply and reliability attributes of one megawatt hour of electric generation from a qualified project.

“PJM” means “PJM Interconnection, L.L.C.” or “PJM,” as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Qualified energy” means electric energy generated by a qualified project.

“Qualified project” means a newly constructed natural gas power plant located in the State, connected to the electric transmission system in the State, and approved by the board pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

2. (New section) a. No later than 270 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall issue a request for expressions of interest and information for the construction of natural gas power plants to generate at least 1,100 megawatts of electric power in the State.

b. Any entity seeking to construct a natural gas power plant and qualify as a qualified project shall submit to the board, no later than 90 days after the release of the request pursuant to subsection a. of this section, an expression of interest and information, which shall include, but need not be limited to, the following information:

(1) proposed State and municipal permitting pathways;

(2) a regulatory engagement plan, which shall include:

(a) the company’s structure;

(b) the project’s structure, including anticipated construction timeframe and completion date; and

(3) the proposed system design and technology structure;

(4) the estimated costs of construction and operations, including a detailed analysis of all project components;

(5) the proposed financing structure, including proposed investors and any proposed energy offtake agreements or proposed co-located energy users;

(6) any proposed or anticipated sources of construction funding, including whether the entity proposing the project is seeking and anticipates a loan from the United States Department of Energy’s Loan Programs Office and the percentage of total construction costs that would be covered by the loan;

(7) the proposed NGEC price structure pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), which reflects the total revenue requirements of the project over the proposed period on a dollars per megawatt hour basis and the anticipated impact to ratepayers, including the anticipated impact per month on ratepayer bills;

(8) the proposed amount of NGDC funding pursuant to subsection c. of section 12 of P.L.1999, c.23 (C.48:3-60) and the anticipated impact to ratepayers, including the anticipated impact per month on ratepayer bills;

(9) proposed laddered structures for adjustments to the NGDC or NGEC to provide for sharing of allowable cost increases of less than or equal to 20 percent of the proposed construction cost estimate between the entity proposing the project and ratepayers;

(10) an analysis of the impact of the proposed project on jobs, wages, income, tax revenue, local and regional economy, infrastructure development, and economic development for the State;

(11) a proposal for returning to New Jersey ratepayers some or all of the revenues generated by the qualified project from the sale of energy, capacity, or any ancillary services in PJM during the term for which the project is eligible to receive NGECs; and

(12) any other information deemed necessary by the board.

c. An expression of interest and information shall not result in a binding agreement, but shall be used by the board to grant provisional qualification status to a natural gas power plant project. The board shall undertake an extensive and complete evaluation of all proposed projects and provisionally qualify or deny provisional qualification of any proposed project no more than 270 days after receipt by the board of a complete expression of interest and information. The board shall grant provisional qualification status upon a determination that a proposed natural gas power plant project will significantly contribute to meeting the State’s energy reliability, resilience, and capacity needs at reasonable cost to ratepayers based on a review of the information submitted pursuant to subsection b. of this section.

d. Upon granting provisional qualification status, the board shall enter into negotiations with the provisionally qualified project with respect to the NGEC price and schedule, any NGDC funding, risk sharing for construction cost decreases and allowable cost increases, and any other terms and conditions that the board deems necessary based on the information provided in the expression of interest. In conducting its evaluation and negotiations, the board may request and consider any additional information the board deems necessary for these purposes.

e. The board may designate one or more provisionally qualified projects as a qualified project if, after reaching an agreement with the project on all relevant terms, the board finds that the project will significantly contribute to meeting the State’s energy reliability, resilience, and capacity needs at a reasonable cost to ratepayers pursuant to subsection f. of this section.

f. A provisionally qualified project shall be deemed by the board to satisfy the State’s energy reliability, resilience, and capacity needs at a reasonable cost to ratepayers, only if the proposed project satisfies the following conditions:

(1) all proposed costs of the project are necessary and justifiable, and cost estimates are found to be as accurate and realistic as possible and therefore comprise the verified total construction cost estimate;

(2) the proposed financing mechanisms fairly balance the risks and rewards of the project between ratepayers and shareholders, and ensure that any costs of non-performance shall be borne by shareholders;

(3) the entity proposing the project demonstrates financial integrity and sufficient access to capital to allow for a reasonable expectation of completion of construction of the project;

(4) the NGDC and NGEC funding, including funding for any allowable cost increases up to 20 percent above the verified total construction cost estimate, will not impose costs on New Jersey electric customers that are unreasonable or excessive, either in isolation or in relation to customers’ bills as a whole; and

(5) any other requirements specified by the board in the request for expressions of interest and information issued pursuant to subsection a. of this section.

g. In negotiating the total amount of funding provided through the NGDC, based on the verified total construction cost estimate, and any risk-sharing structure for allowable cost increases of up to 20 percent above the verified total construction cost estimate, the board shall evaluate the reasonableness of the funding based on the verified total construction cost estimate, other sources of project funding and financing, anticipated project revenues, the anticipated construction phase duration, and the cost to New Jersey electric customers. The total amount of funding provided through the NGDC to a qualified project for construction costs not exceeding the verified total construction cost estimate shall be no more than five percent of the verified total construction cost estimate approved by the board in the final agreement made pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(1) If a qualified project, or any other existing natural gas power plant in New Jersey owned in whole, or in part, by the same entities as the project or their parent companies, has an agreement to sell electricity to a co-located energy user or other end user via a direct power purchase agreement, the verified total construction cost estimate shall be reduced in proportion to the percentage of the project’s electricity output contracted to be sold to the co-located energy user or other end user.

(2) If a qualified project, or any other existing natural gas power plant in New Jersey owned in whole, or in part, by the same entities as the project or their parent companies, enters into an agreement to sell electricity to a co-located energy user or other end user via a direct power purchase agreement during construction or after construction is complete, the qualified project shall reimburse New Jersey ratepayers for any funding provided in excess of the amount that would have been allowed pursuant to paragraph (1) of this subsection.

h. (1) In negotiating the NGEC price schedule for the project, the board shall consider the return of revenues to New Jersey ratepayers from the qualified project’s sale of energy, capacity, or any ancillary services in PJM during the term of the NGEC, as well as any risk-sharing structure for construction cost decreases and allowable cost increases of up to 20 percent above the verified total construction cost estimate, and shall evaluate its reasonableness based on:

(a) the projected electrical output and anticipated market prices over the anticipated life of the project, including a forecast of electricity revenues from the sale of energy to the grid derived from the project and capacity, as well as revenues anticipated by the sale of NGECs, air emission credits or offsets, or any tradable environmental attributes created by the project;

(b) the verified total construction cost estimate of the project;

(d) the cost to New Jersey electric customers.

(2) The board may consult with, and, if the board deems appropriate, rely on the findings of, other State entities with relevant expertise when carrying out an evaluation pursuant to this subsection.

3. (New section) a. If the board and a provisionally qualified project entity reach an agreement, all key terms and conditions shall be memorialized in a final board order designating the project as a qualified project. The final board order shall not be subject to change except with the consent of the board and the qualified project entity. Key terms to be specified in the final board order shall include, but need not be limited to:

(1) the commercial operation date of the qualified project;

(2) the verified project construction cost estimate;

(3) the value and payment schedule for NGECs, including the portion of revenues generated by the qualified project from the sale of energy, capacity, or any ancillary services in PJM during the term of the NGEC to be returned to New Jersey ratepayers;

(4) critical project development milestones and the consequences for failing to meet the milestones;

(5) any NGDC funding to be provided to the project and the schedule for disbursements of the funding;

(6) provisions for the treatment of construction cost decreases or allowable cost increases; and

(7) project reporting requirements.

b. Any final agreement issued by the board pursuant to this section shall, at a minimum, include conditions to ensure the following:

(1) no NGEC shall be paid until electricity is produced by the qualified project and transmitted to the electric grid;

(2) the qualified project shall result in a net increase of electrical energy transmitted to the grid in the State equivalent to greater than 80 percent of the output of the natural gas power plants associated with the project when accounting for, if applicable, any agreement to sell electricity to a co-located energy user or to an end user via a direct power purchase agreement under any condition described in subsection g. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(3) the qualified project entity will reimburse the board and the State for all reasonable costs incurred for review of the project by the board, including, but not limited to, consulting services, oversight, inspections, and audits; and

(4) the qualified project entity will undertake all reasonable wildlife protection efforts necessary to sustain the natural population of wildlife present in the areas surrounding the natural gas power plant.

c. In addition to the cost-sharing structure determined pursuant to subsection g. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), for allowable cost increases of greater than 20 percent of the verified total construction cost estimate, the qualified project entity may petition the board for a further adjustment to the NGDC or NGEC, which the board may grant, in its discretion, upon a determination that the increase is necessary for the project’s continued financial viability and will not impose an unreasonable burden on ratepayers.

d. A qualified project entity shall not be required to pass along to ratepayers tax credits or other governmental benefits that are greater than projected due to higher than anticipated costs of construction. A qualified project entity shall pass along to ratepayers 50 percent, or other percentage agreed to by the board and the qualified project entity, of any new tax credits or governmental benefits that were not anticipated in the final board order.

e. If the board and a provisionally qualified project entity do not reach an agreement within 12 months from the date of provisional qualification, the provisional qualification shall expire and the project shall no longer be considered a provisionally qualified project, except if the board and the provisionally qualified project entity both agree to extend the time to reach agreement.

f. Notwithstanding the limits and thresholds established in R.S.52:25-23 and the circulars issued pursuant thereto by the Division of Purchase and Property in the Department of Treasury and any agency-specific threshold applicable to the board, the board may use the procedures allowed by R.S.52:25-23 and established by the Director of the Division of Purchase and Property in Circular No. 26-02-DPP to procure without advertising the services of a consultant to assist the board with its duties under this section, except that the board shall not use a sole source for this procurement. A procurement pursuant to this subsection shall not be counted against the board’s delegated procurement authority threshold.

4. (New section) a. No later than 18 months after the designation of any qualified project pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall establish, by board order, a natural gas energy certificate program to require that a certain number of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from qualified energy. The NGEC program shall be designed to support at least 1,100 megawatts of electric generation from qualified projects. The number of kilowatt hours of energy that is required to be from qualified energy shall reflect the projected NGEC production of each qualified project designated by the board pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) for a period to be agreed upon by the board and qualified project beginning from the commercial operation start date of the qualified project.

b. (1) A qualified project shall be eligible to receive NGECs for each kilowatt hour of electricity generated and sold through competitive wholesale markets in the PJM region. A qualified project shall not be eligible to receive NGECs for electricity sold to a co-located energy user or via a direct power purchase agreement with an end user.

(2) If an existing natural gas power plant in New Jersey that is owned in whole, or in part, by the same entities as the project or their parent companies, enters into an agreement to sell electricity to a co-located energy user or to an end user via a direct power purchase agreement after the designation of the qualified project, the electricity generated by the qualified natural gas power plant that is eligible to receive NGECs shall be reduced by the number of kilowatt hours of electricity generated by the other reactor that is sold to the end user.

c. An electric power supplier or basic generation service provider shall comply with the NGEC program established pursuant to this section through the purchase of NGECs at a price and for the time period required by the board.

d. Revenues generated by a qualified project from the sale of energy, capacity, or any ancillary services in PJM during the term for which the project is eligible to receive NGECs shall be returned to New Jersey ratepayers as specified in the final board order entered pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). This subsection shall not apply to revenues generated from the direct sale of energy to an end user that contributed to the funding or financing of construction of the project and whose purchase of power from the project was contemplated in the board order designating the project as a qualified project.

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 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. 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, 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 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, the level of cost recovery 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 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.

c. Upon designating a qualified natural gas power plant project pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall establish, by board order, a non-bypassable charge to be known as the natural gas development charge, or NGDC, which shall be imposed on all electric utility customers. The board shall determine the amount of the charge necessary to provide the agreed-upon funding for costs not exceeding the verified total construction cost estimate and any allowable cost increases approved by the board pursuant to subsection g. of section 2 and subsection c. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall establish, and adjust from time to time as necessary, the amount that each electric public utility is required to collect accordingly. The board shall require each electric public utility to begin assessing the charge on all customer bills no later than 180 days after the designation of a qualified natural gas power plant project, or other date specified by the board. Monies collected through the NGDC shall be deposited in the “Natural Gas Power Plant Development Fund” for the purposes described in subsection d. of this section.

d. There is established in the Board of Public Utilities a nonlapsing fund to be known as the “Natural Gas Power Plant Development Fund.” The monies in the fund shall be used to support the development of qualified natural gas power plant projects by providing funding for: (1) a portion of costs incurred for the construction of the project; and (2) a portion of the project’s allowable cost increases determined by the board to be reasonable and prudent and pursuant to the cost-sharing structure described at subsection g. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). The level of funding to be provided to a qualified natural gas power plant project shall be established by the board in any order designating a qualified natural gas power plant project pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The level of funding to be provided to the qualified advanced nuclear reactor project for allowable cost increases greater than 20 percent above the verified total construction cost estimate may be increased pursuant to subsection c. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

e. The “Natural Gas Power Plant Development Fund” shall be administered by the board and shall be credited with:

(1) monies received from the NGDC pursuant to subsection c. of this section;

(2) such monies as are appropriated by the Legislature for this purpose; and

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

f. The board shall disburse the monies collected in the “Natural Gas Power Plant Development Fund” to a qualified natural gas power plant project entity based on the construction milestone and payment schedule agreed to and specified in the board’s order issued pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The disbursement of funds shall be directed by the board upon submission of documentation satisfactory to the board of costs incurred and construction progress, and a determination by the board that such costs were prudently incurred. Submissions shall include proof of actual expenditures and any other information the board deems necessary to verify eligibility for disbursement of funds. The board shall not disburse monies for any qualified natural gas power plant project until the project has been issued all necessary construction and operating permits.

g. When all disbursements to any qualified natural gas power plants have been made pursuant to subsection f. of this section, the board shall direct each electric public utility to immediately cease collecting the NGDC.

h. As used in this section:

“Natural gas development charge” or “NGDC” means a charge imposed by an electric public utility at a level determined by the board, pursuant to the provisions of subsections c. through g. of this section.

“Qualified natural gas power plant project,” means the same as the term “qualified project” is defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(cf: P.L.2025, c.136, s.7)

6. (New section) The board may establish such rules and regulations as it deems necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). Any rules established by the board pursuant to this section 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 32 seq.).

7. This act shall take effect immediately.

STATEMENT

This bill would establish, in the Board of Public Utilities (BPU), a program to incentivize the development of new natural gas power plants in the State.

Under the program, the BPU would issue a request for expressions of interest and information for the construction of new natural gas power plants in order to generate at least 1,100 megawatts of electric power in the State. The bill would establish certain conditions that are required to be met in order for the BPU to approve a natural gas power plant project, including that the project will significantly contribute to meeting the State’s energy reliability, resilience, and capacity needs at a reasonable cost to ratepayers.

The bill would require the BPU to issue the request for expressions of interest and information within 270 days of the bill’s enactment. Entities seeking to participate in the program would then have 90 days to submit an expression of interest and information. The bill would establish certain minimum contents for the expressions of interest and information, as enumerated in subsection b. of section 2 of the bill, including information about the proposed system design and technology structure of the natural gas power plant, and the estimated costs of construction and operations, including a detailed analysis of all project components. The BPU could then grant provisional qualification status to a natural gas power plant project. The BPU and the project entity would then negotiate certain terms of the project agreement, including financial terms.

If a project is approved, the BPU would issue a board order that memorializes all key terms and conditions of the agreement. The qualified natural gas power plant project would be authorized to receive financial support through a natural gas development charge (NGDC) and natural gas energy certificates (NGECs). Under the NGDC, a qualified natural gas power plant project would be eligible to receive funding for a negotiated percentage of construction costs through a non-bypassable charge which would be imposed on all electric utility customers and deposited into a fund to be known as the Natural Gas Power Plant Development Fund. Under the NGEC program, a certain percentage of the electric power sold in the State would be required to be from new natural gas power plants, and electric utilities would satisfy this requirement by purchasing a certain number of NGECs each year.