TITLE 48. PUBLIC UTILITIES
CHAPTER 3. PUBLIC UTILITIES GENERALLY
ARTICLE 8. ENERGY RATE COMPETITION
N.J. Stat. § 48:3-87 (2009)
§ 48:3-87. Environmental disclosure requirements; standards; rules; terms
defined
a. The
board shall require an electric power supplier or basic generation service
provider to disclose on a customer's bill or on customer contracts or marketing
materials, a uniform, common set of information about the environmental
characteristics of the energy purchased by the customer, including, but not
limited to:
(1) Its fuel mix, including categories for oil, gas, nuclear, coal, solar,
hydroelectric, wind and biomass, or a regional average determined by the board;
(2) Its emissions, in pounds per megawatt hour, of sulfur dioxide, carbon
dioxide, oxides of nitrogen, and any other pollutant that the board may
determine to pose an environmental or health hazard, or an emissions default to
be determined by the board; and
(3) Any discrete emission reduction retired pursuant to rules and regulations
adopted pursuant to P.L.1995, c.188.
b. Notwithstanding any provisions of the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board
shall initiate a proceeding and shall adopt, in consultation with the
Department of Environmental Protection, after notice and opportunity for public
comment and public hearing, interim standards to implement this disclosure
requirement, including, but not limited to:
(1) A methodology for disclosure of emissions based on output pounds per
megawatt hour;
(2) Benchmarks for all suppliers and basic generation service providers to use
in disclosing emissions that will enable consumers to perform a meaningful
comparison with a supplier's or basic generation service provider's emission
levels; and
(3) A uniform emissions disclosure format that is graphic in nature and easily
understandable by consumers. The board shall periodically review the disclosure
requirements to determine if revisions to the environmental disclosure system as implemented are necessary.
Such standards 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."
c. (1) The board may adopt, in consultation with the Department of
Environmental Protection, after notice and opportunity for public comment, an
emissions portfolio standard applicable to all electric power suppliers and
basic generation service providers, upon a finding that:
(a) The standard is necessary as part of a plan to enable the State to meet
federal Clean Air Act or State ambient air quality standards; and
(b) Actions at the regional or federal level cannot reasonably be expected to
achieve the compliance with the federal standards.
(2) By July 1, 2009, the board shall adopt, pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
a greenhouse gas emissions portfolio standard to mitigate leakage or another
regulatory mechanism to mitigate leakage applicable to all electric power
suppliers and basic generation service providers that provide electricity to
customers within the State. The greenhouse gas emissions portfolio standard or
any other regulatory mechanism to mitigate leakage shall:
(a) Allow a transition period, either before or after the effective date of the
regulation to mitigate leakage, for a basic generation service provider or
electric power supplier to either meet the emissions portfolio standard or
other regulatory mechanism to mitigate leakage, or to transfer any customer to
a basic generation service provider or electric power supplier that meets the
emissions portfolio standard or other regulatory mechanism to mitigate leakage.
If the transition period allowed pursuant to this subparagraph occurs after the
implementation of an emissions portfolio standard or other regulatory mechanism
to mitigate leakage, the transition period shall be no longer than three years;
and
(b) Exempt the provision of basic generation service pursuant to a basic
generation service purchase and sale agreement effective prior to the date of
the regulation.
Unless the Attorney General or the Attorney General's designee determines that
a greenhouse gas emissions portfolio standard would unconstitutionally burden
interstate commerce or would be preempted by federal law, the adoption by the
board of an electric energy efficiency portfolio standard pursuant to
subsection g. of this section, a gas energy efficiency portfolio standard
pursuant to subsection h. of this section, or any other enhanced energy
efficiency policies to mitigate leakage shall not be considered sufficient to
fulfill the requirement of this subsection for the adoption of a greenhouse gas
emissions portfolio standard or any other regulatory mechanism to mitigate
leakage.
d. Notwithstanding any provisions of the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board
shall initiate a proceeding and shall adopt, after notice, provision of the
opportunity for comment, and public hearing, interim renewable energy portfolio
standards that shall require:
(1) that two and one-half percent of the kilowatt hours sold in this State by
each electric power supplier and each basic generation service provider be from
Class I or Class II renewable energy sources; and
(2) beginning on January 1, 2001, that one-half of one percent of the kilowatt
hours sold in this State by each electric power supplier and each basic
generation service provider be from Class I renewable energy sources. The board
shall increase the required percentage for Class I renewable energy sources so
that by January 1, 2006, one percent of the kilowatt hours sold in this State
by each electric power supplier and each basic generation service provider
shall be from Class I renewable energy sources and shall additionally increase
the required percentage for Class I renewable energy sources by one-half of one
percent each year until January 1, 2012, when four percent of the kilowatt
hours sold in this State by each electric power supplier and each basic generation
service provider shall be from Class I renewable energy sources.
An electric power supplier or basic generation service provider may satisfy the
requirements of this subsection by participating in a renewable energy trading
program approved by the board in consultation with the Department of
Environmental Protection.
Such standards 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."
e. Notwithstanding any provisions of the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board
shall initiate a proceeding and shall adopt, after notice, provision of the
opportunity for comment, and public hearing:
(1) net metering standards for electric power suppliers and basic generation
service providers. The standards shall require electric power suppliers and
basic generation service providers to offer net metering at non-discriminatory
rates to industrial, large commercial, residential and small commercial
customers, as those customers are classified or defined by the board, that
generate electricity, on the customer's side of the meter, using a Class I
renewable energy source, for the net amount of electricity supplied by the
electric power supplier or basic generation service provider over an annualized
period. If the amount of electricity generated by the customer-generator plus
any kilowatt hour credits held over from the previous billing periods, exceeds
the electricity supplied by the electric power supplier or basic generation
service provider, then the electric power supplier or basic generation service
provider, as the case may be, shall credit the customer-generator for the
excess kilowatt hours until the end of the annualized period at which point the
customer-generator will be compensated for any remaining credits or, if the
customer-generator chooses, credit the customer-generator on a real-time basis,
at the electric power supplier's or basic generation service provider's avoided
cost of wholesale power or the PJM power pool's real-time locational
marginal pricing rate, adjusted for losses, for the respective zone in the PJM
electric power pool. Alternatively, the customer-generator may execute a
bilateral agreement with an electric power supplier or basic generation service
provider for the sale and purchase of the customer-generator's excess
generation. The customer-generator may be credited on a real-time basis, so
long as the customer-generator follows applicable rules prescribed by the PJM
electric power pool for its capacity requirements for the net amount of
electricity supplied by the electric power supplier or basic generation service
provider. The board may authorize an electric power supplier or basic
generation service provider to cease offering net metering whenever the total
rated generating capacity owned and operated by net metering
customer-generators Statewide equals 2.5 percent of the State's peak
electricity demand;
(2) safety and power quality interconnection standards for Class I renewable
energy source systems used by a customer-generator that shall be eligible for
net metering.
Such standards or rules shall take into consideration the goals of the New
Jersey Energy Master Plan, applicable industry standards and the standards of
other states and the
(3) credit or other incentive rules for generators using Class I renewable
energy generation systems that connect to New Jersey's electric public
utilities' distribution system but who do not net meter.
Such rules shall require the board or its designee to issue a credit or other
incentive to those generators that do not use a net meter but otherwise
generate electricity derived from a Class I renewable energy source and to
issue an enhanced credit or other incentive, including, but not limited to, a
solar renewable energy credit, to those generators that generate electricity
derived from solar technologies.
Such standards or rules 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."
f. The board may assess, by written order and after notice and opportunity for
comment, a separate fee to cover the cost of implementing and overseeing an
emission disclosure system or emission portfolio standard, which fee shall be
assessed based on an electric power supplier's or basic generation service
provider's share of the retail electricity supply market. The board shall not
impose a fee for the cost of implementing and overseeing a greenhouse gas
emissions portfolio standard adopted pursuant to paragraph (2) of subsection c.
of this section, the electric energy efficiency portfolio standard adopted
pursuant to subsection g. of this section, or the gas energy efficiency
portfolio standard adopted pursuant to subsection h. of this section.
g. The board may adopt, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), an electric energy efficiency
portfolio standard that may require each electric public utility to implement
energy efficiency measures that reduce electricity usage 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. Nothing in this section shall be construed to
prevent an electric public utility from meeting the requirements of this
section by contracting with another entity for the performance of the
requirements.
h. The board may adopt, pursuant to the "Administrative Procedure
Act," a gas energy efficiency portfolio standard that may require each gas
public utility to implement energy efficiency measures that reduce 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. Nothing in this
section shall be construed to prevent a gas public utility from meeting the
requirements of this section by contracting with another entity for the
performance of the requirements.
i. As used in this section:
"Energy efficiency portfolio standard" means a requirement to procure
a specified amount of energy efficiency or demand side management resources as
a means of managing and reducing energy usage and demand by customers.
"Greenhouse gas emissions portfolio standard" means a requirement
that addresses or limits the amount of carbon dioxide emissions indirectly
resulting from the use of electricity as applied to any electric power
suppliers and basic generation service providers of electricity.
"Leakage" means an increase in greenhouse gas emissions related to
generation sources located outside of the State that are not subject to a
state, interstate or regional greenhouse gas emissions cap or standard that
applies to generation sources located
within the State.