A 4882 — "New Jersey Natural Gas Modernization Act."

A4882 1R [First Reprint] ASSEMBLY, No.

EGAN District 17 (Middlesex and Somerset)         SYNOPSIS      “New Jersey Natural Gas Modernization Act.”   CURRENT VERSION OF TEXT      As introduced.reported by the Assembly Telecommunications and Utilities Committee on May 28, 2026, with amendments.

       1.    This act shall be known and may be cited as the “New Jersey Natural Gas Modernization Act.”        2.    The Legislature finds and declares that:that:       a.     New Jersey residents continue to face a significant energy affordability crisis, with utility costs rising faster than 1[households] household1 incomes in many regions of the State, 1[and]1 placing disproportionate burdens on low- and moderate-income families, seniors, and small businesses that rely on stable and predictable energy prices to manage monthly expenses.

     a.   b.    NewIn Jerseyits residentsDecember continue2025 toauction facefor athe significant2027-2028 energy1[deliverability] affordabilitydelivery1 crisis,year, withPJM utilityInterconnection costs1, risingL.L.C.1 fasterwas, thanfor householdsthe incomesfirst time in manyits regionshistory, ofunable theto State,procure andsufficient placingenergy disproportionatecapacity burdensto onmeet low-its andreserve moderate-incomemargin, families,falling seniors,short andby small6,623 businessesMW thatand relyraising onthe stablealarm andthat predictablethe energyregion pricesis toexperiencing managean monthlyenergy expenses.reliability crisis.

     b.   c.     InReliable itsaccess Decemberto 2025electricity auctionis foressential theto 2027-2028public deliverabilityhealth, year,safety, PJMand Interconnectioneconomic was,stability, forand the firstworsening timeimbalance inbetween itselectricity history,supply unableand torapidly procurerising sufficientelectricity energydemand, capacityincluding tofrom meetthe itsincreasing reservebuildout margin,of fallingartificial shortintelligence-serving bydata 6,623centers, MWis andcontributing raisingto thehigher alarmwholesale thatelectricity theprices, regionservice isinterruptions, experiencingand anincreased energyvolatility reliabilityin crisis.consumer utility bills.

     c.    Reliable access to electricity is essential to public health, safety, and economic stability, and the worsening imbalance between electricity supply and rapidly rising electricity demand, including from the increasing buildout of artificial intelligence-serving data centers, is contributing to higher wholesale electricity prices, service interruptions, and increased volatility in consumer utility bills.

     e.   e.     Modernizing existing natural gas infrastructure under these standards does not weaken environmental protections;

     f.     On January 20, 2026, Governor Sherrill signed Executive Order 1No.1 2, which declared a State of Emergency on Utility Costs and directed State agencies to take coordinated action to address affordability challenges.

     g.    Executive Order 1No.1 2 of further instructed agencies to identify measures to modernize the natural gas-fired power plants already operating in New Jersey and to enable those facilities to generate electricity more efficiently, with lower carbon output, and at levels that support system reliability during periods of high demand.

     i.     This approach is consistent with an “all of the above” energy strategy, which supporting1[supporting] supports1 the responsible development of renewable energy, energy efficiency programs, storage technologies, and modernized conventional generation,generation 1[,]1 in order to reduce emissions while strengthening grid resilience and improving1[improving] improves1 affordability while moving toward a cleaner energy future.

     k.    The Legislature therefore determines that it is in the public interest for the State to support targeted upgrades, efficiency improvements, and capacity enhancements at existing natural gas facilities,facilities 1[,]1 in order to improve system reliability, reduce emissions, stabilize energy costs, and advance the State’s long-term energy, environmental, and economic goals.

       3.    As used in 1[this act] P.L.    , c.    (C.        ) (pending before the Legislature as this act:bill)1:       “CO2 emissions intensity” means the mass of carbon dioxide emitted per unit of electricity generated, 1as1 expressed in pounds per megawatt-hour.

     “CO2 emissions intensity” means the mass of carbon dioxide emitted per unit of electricity generated, expressed in pounds per megawatt-hour.

     “Eligible site” means a site located in New Jersey, with a nameplate capacity equal to or greater than 25 megawatts of electrical output, on which a permitted natural gas-fired electric generating unit operated at any time within1[within the preceding 60 months,months,]1 and at which the 1[the] some1 necessary site infrastructure, including1[including] which may include, but shall not be limited to,1 interconnection facilities, gas supply, and1[and] or1 cooling or emissions-control systems, remains available.

Eligibility Eligibility shall not require that any prior permit remain active.

     “Permit” means any permit or authorization issued pursuant to the “Air Pollution Control Act (1954),” P.L.1954, c.212 (C.26:2C-1 et seq.),seq.) 1[,] ;1 the “Coastal Area Facility Review Act,” P.L.1973, c.185 (C.13:19-1 et seq.),seq.) 1[, or subchapter 22 of chapter 27 of Title 7 ofof] the; New Jersey Administrative Code.

     “PJM Interconnection, L.L.C.” means the privately-held,“Freshwater limitedWetlands liabilityProtection corporationAct,” thatP.L.1987, servesc.156 as(C.13:9B-1 aet FERC-approvedseq.); Regional Transmission Organization, or its successor, that manages the regional, high-voltage electricity grid serving all or parts of 13 states including New Jersey and the District of Columbia, operates the regional competitive wholesale electric market, manages the regional transmission planning process, and establishes systems and rules to ensure that the regional and in-State energy markets operate fairly and efficiently.

and any permits and authorizations for minor source air facilities, operating permits, waterfront development, and flood hazard area control, established pursuant to rules and regulations adopted by the department and published in1 the New Jersey Administrative Code.

     “PJM Interconnection, L.L.C.” 1or “PJM”1 means the 1[privately-held, limited liability corporation that serves as a FERC-approved Regional Transmission Organization, or its successor, that manages the regional, high-voltage electricity grid serving all or parts of 13 states including New Jersey and the District of Columbia, operates the regional competitive wholesale electric market, manages the regional transmission planning process, and establishes systems and rules to ensure that the regional and in-State energy markets operate fairly and efficiently] same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51)1.

     “Reliability event” means a period during which PJM Interconnection,1[Interconnection, L.L.C.L.L.C.]1 declares an emergency, maximum generation event, or comparable reliability directive.

declares  an     emergency,4.    maximuma.  generationThe event,department orshall comparableestablish reliabilitystreamlined directive.pathways for the expeditious issuance of permits subject to the provisions of 1[this act] P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  The department shall prioritize the issuance of permits to:       (1)   qualifying projects that use renewable natural gas over qualifying projects that would not use renewable natural gas;

 and      4.   (2)   a. qualifying Theprojects departmentthat shallare establishlocated streamlinedon pathwaysan foreligible site where a permitted natural gas-fired electric generating unit operated at any time within the expeditiouspreceding issuance60 ofmonths permitsbut subjectmay, toat the provisionsdepartment’s ofdiscretion, thisissue act.permits to qualifying projects on an eligible site where a permitted natural gas-fired electric generating unit operated at any time before the preceding 60 months1.

     b.    The department shall establish distinct treatments for projects requiring initial permits, including, but not limited to, preconstruction permits issued pursuant to subchapter 8 of chapter 27 of Title 7 of the New Jersey Administrative Code and operating permits issued pursuant to subchapter 22 of chapter 27 of Title 7 of the New Jersey Administrative Code, and 1for1 projects requiring permit modifications.

     c.   c.     With respect to new permits and permit modifications, the department shall abide by the following timelines, as applicable:applicable:       (1)   within 30 days of the date an applicant submits an application, the department shall determine the completeness of the application and inform the applicant;

     (1) (2)   withinon 30the daysdate of the datedepartment determines that an applicantapplication submitsis ancomplete application,and informs the applicant, the department shall determineinitiate the completenesspublic ofcomment theor applicationpublic andhearing informprocess, theif applicant;required;

     (2) (3)   onwithin 60 days of the date the department determines that an application is complete and informs the applicant, the department shall initiatehold the public commenthearing, or public hearing process, if required;

     (3) (4)   within90 60 days ofafter the date the department determines that an application is complete and informs the applicant, the department shall hold the public hearing,comment ifperiod required;shall close;

and      (4) (5)   90within 120 days afterof the date the department determines that an application is complete and informs the applicant, the publicdepartment commentshall periodprovide shallto close;the applicant a final agency action concerning the permit.

and      (5)  within 120 days of the date the department determines that an application is complete and informs the applicant, the department shall provide to the applicant a final agency action concerning the permit.

     e.   e.     For permits subject to the provisions of P.L.2020, c.92 (C.13:1D-157 et seq.), all agency permit review shall occur concurrently with the applicable review pursuant to P.L.2020, c.92 (C.13:1D-157 et seq.).

     g.    Notwithstanding the provisions of any law, rule, or regulation to the contrary:contrary:       (1)   if a permit issued by a State agency for a qualifying project requires a public hearing or comment period, the public hearing or comment period shall occur simultaneously with the applicable agency’s internal review process of the project application;

and      (1) (2)   ifthe acomment permitperiod issuedfor byany apermit Statesubject agencyto forthe aprovisions qualifyingof project1[this requiresact] aP.L.    , publicc.    hearing(C.        ) or(pending commentbefore period, the publicLegislature hearingas orthis commentbill)1 period shall occurbe simultaneouslyno withlonger thethan applicable30 agency’sdays. internal review process of the project application;

and       (2) 5.    thea.  commentA periodqualifying forproject anyshall:  permit     subject(1)   tocomply with the provisions of thissection act13 shallof beP.L.1967, noc.106 longer(C.26:2C-9.2), thanthe 30rules days.and regulations codified at subchapter 8 of chapter 27 of Title 7 of the New Jersey Administrative Code, and any subsequent amendments thereto;

       5.   (2)   a.        achieve Aa qualifyingCO2 projectemissions shall:intensity of less than 1,000 pounds per megawatt-hour;

and      (1) (3)   complysubmit withto the provisionsBoard of sectionPublic 13Utilities ofa P.L.1967,workforce c.106development (C.26:2C-9.2), the rules and regulationslabor codifiedplan, atincluding:  subchapter     8(a)   ofestimates chapter 27 of Titletemporary 7construction of the New Jersey Administrative Code, and anypermanent subsequentoperations amendmentsjobs; thereto;

     (2) (b)   achieveproposed apartnerships CO2with emissionslocal intensityeducational ofor lessworkforce thantraining 1,000institutions; pounds per megawatt-hour;

and      (3) (c)   submita commitment to theeither:  Board     of(i)    Publicenter Utilitiesinto a workforceproject developmentlabor agreement and laborpay plan,prevailing including:wages, in accordance with the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), for any construction services in State;

or      (a)  (ii)   estimatespay the wages and benefits provided in a collective bargaining agreement between a labor organization, as defined in paragraph (5) of temporarysection construction2 andof permanentthe operationsfederal jobs;“National Labor Relations Act” (29 U.S.C.

     (b)  proposed partnerships with local educational or workforce training institutions;

and      (c)   a commitment to either: