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Bill

A 3951

Authorizes EDA to use moneys in "Global Warming Solutions Fund" to support projects to refurbish or upgrade existing electricity generation facilities.

2026-2027 Regular Session Introduced by Robert Karabinchak and 2 co-sponsors

The bill lets the EDA use the Global Warming Solutions Fund to fund modernization and expansion of electricity generation facilities, plus related efficiency and clean energy proje

Introduced, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 3951

Summary of Bill A-3951 (Session 222, New Jersey)

Purpose and Intent

This bill authorizes the New Jersey Economic Development Authority (EDA) to use moneys in the Global Warming Solutions Fund (the fund established under the state’s greenhouse gas reduction program) to support projects that refurbish or upgrade existing electricity generation facilities. The aim is to modernize, expand, or extend the lifespan of these facilities and to clarify how certain environmental benefits may be demonstrated for fund eligibility.

Key Provisions and Changes

  • Authorization of fund use by EDA: The bill amends the fund’s statutory framework to permit the EDA to provide grants and other financial assistance to commercial, institutional, and industrial entities for:

    • End-use energy efficiency projects
    • Refurbishment or upgrading of existing electricity generation facilities to modernize, expand, or lengthen their lifespan
    • Construction of new, efficient electric generation facilities that are state-of-the-art (including energy efficiency and renewable energy applications)
    • Projects to develop combined heat and power (CHP) and other high-efficiency electric generation
    • Investments to stimulate or reward development of innovative carbon emissions abatement technologies
    • Development of qualified offshore wind projects (per existing offshore wind statute)
    • Support to manufacturers of equipment used in qualified offshore wind projects

  • Measurable greenhouse gas reductions requirement: The bill specifies that grant criteria may include the project’s ability to achieve a measurable reduction in greenhouse gas emissions or energy demand. It adds that certain CHP-related developments may be exempt from this measurable reduction requirement.

  • Program oversight and allocation structure (existing framework retained):

    • The fund’s annual allocations continue to be divided among three primary purposes (with percentages):
    • 60% to the EDA for the above projects and related activities
    • 20% to the Board to support programs that reduce electricity demand or costs for low- and moderate-income residential customers (urban focus, heat island considerations, and electric vehicle infrastructure incentives)
    • 10% to the Department to assist local governments with planning and implementing energy efficiency, renewable energy, and distributed energy programs (with measurable emission or energy-demand reduction outcomes)
    • 10% to the Department for programs that steward forests and tidal marshes to sequester or reduce greenhouse gases
    • Additional administrative cost limitations: up to 4% of the fund for department costs, up to 2% for the Board, and up to 2% for the EDA, each year, approved in the annual budget process.
    • Independent fiscal oversight: the State Comptroller conducts or supervises audits of the fund and its uses.

  • Administrative and oversight framework remains consistent: The act preserves existing governance structures and accountability mechanisms for administering the fund and evaluating projects.

Affected Parties

  • Primary beneficiaries: Commercial, institutional, and industrial entities seeking grants or financing for energy efficiency, modernization of existing generation facilities, CHP developments, offshore wind-related activities, or related equipment manufacturing.
  • Public programs and local governments: State and local governments may access grants and technical assistance for emissions reductions, energy efficiency, and renewable energy programs.
  • Ratepayers and environmental outcomes: Low- and moderate-income residential customers may benefit indirectly through programs aimed at reducing electricity demand and costs; broader emissions reductions are targeted through fund allocations.

Procedural and Timeline Details

  • Effective date: The act takes effect immediately upon enactment.
  • Administrative process: The bill maintains the annual budget process as the mechanism for approving administrative costs and program funding.
  • Implementation scope: The bill directs the EDA to administer targeted grants and programs in consultation with the board and the Department, following criteria and processes established by the existing framework.

Overall Impact

This bill expands the use of the Global Warming Solutions Fund to explicitly empower the EDA to fund modernization and expansion of electricity generation facilities, in addition to broader energy efficiency and renewable energy initiatives. It clarifies eligible project types and emphasizes measurable greenhouse gas reductions as part of grant criteria, while maintaining established governance, reporting, and oversight structures.

Compiled from official sources — confirm details with the bill’s official record.

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