New Jersey Senate Bill Seeks to Eliminate Offshore Wind Project Costs for Ratepayers
TRENTON, NJ — Introduced by Senator Holly T. Schepisi of District 39, Senate Bill No. 3078 proposes significant changes to the financial structure of offshore wind projects in New Jersey. This legislation aims to prohibit the collection of costs associated with offshore wind projects from electric utility ratepayers, marking a pivotal shift in the funding strategy for renewable energy projects.
Currently managed under the Offshore Wind Economic Development Act, the Board of Public Utilities (BPU) facilitates an offshore wind renewable energy certificate (OREC) program. This program allows offshore wind projects to generate ORECs, which are then sold to power suppliers. Traditionally, these projects have been subsidized through OREC surcharges added to ratepayer bills, which are intended to be refunded from the revenues of OREC sales.
Senate Bill No. 3078, however, mandates that the BPU can no longer require ratepayers to pay or prepay any costs related to these subsidies, including OREC surcharges. This act aims to relieve ratepayers from the upfront financial burden of subsidizing offshore wind projects, shifting the economic responsibility away from the public.
This legislative change is set to take effect immediately and will apply to all offshore wind projects approved after the effective date of the bill. The proposal underscores a growing shift towards more sustainable environmental practices that also consider the financial impact on consumers.