New Jersey

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 2018), which outlines the fiscal year budgets and savings goals for programs operated by the New Jersey Clean Energy Program (NJCEP). 

The state's  Energy Master Plan was last updated in 2015. The plan examines the goals set forth in the 2011 update and makes recommendations on how to continue working towards and achieving them. The five overarching goals include:

1. Drive Down the Cost of Energy For All Customers 
2. Promote a Diverse Portfolio of New, Clean, In-State Generation
3. Reward Energy Efficiency and Energy Conservation/Reduce Peak Demand
4. Capitalize on Emerging Technologies for Transportation and Power Production
5. Maintain Support for the Renewable Energy Portfolio Standard

Complimentary Policies

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 at a Glance