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S 4424

Enacts the anti-waiver of employment rights act

2025 Regular Session Introduced by Robert Jackson and 1 co-sponsor

A 3-year geothermal pilot lets gas utilities replace aging pipelines with geothermal systems and recover costs via rates, under BPU oversight and annual reports.

REFERRED TO LABOR
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Bill Summary · S 4424

Summary — S.4424 (S4424A) — Geothermal Energy Pilot Program

Note: The bill information header supplied an unrelated title (“Enacts the anti-waiver of employment rights act”). This summary is based on the bill text and fiscal note provided, which enact a geothermal energy pilot program for gas public utilities.

Main purpose

To create a three‑year pilot program allowing gas public utilities to replace aging or leaking natural gas pipelines with geothermal energy infrastructure and recover project costs through utility rates, with the goal of promoting utility‑scale adoption of geothermal heating/cooling.

Key provisions

  • Definitions: establishes terms including “geothermal energy” (includes networked and deep geothermal), “geothermal energy infrastructure,” “geothermal energy project,” “gas public utility,” and “infrastructure plan.”
  • Pilot program: requires the New Jersey Board of Public Utilities (BPU or “board”) to establish a three‑year pilot authorizing participating gas utilities to recover geothermal project costs via rates charged to their ratepayers.
  • Participation: gas utilities must submit an infrastructure plan containing whatever project information the board requires.
  • BPU review criteria: while evaluating plans, the board must consider project size/scale, cost, expected benefits (explicitly including the social value of greenhouse gas emissions reductions), financial impact on ratepayers, whether benefits justify costs, and other appropriate criteria.
  • Reporting and oversight:
    • Utilities must share operational information with the board as specified by the board.
    • BPU must submit annual written reports to the Governor and Legislature summarizing pilot operations beginning within one year of enactment and each year until the pilot expires.
    • In the third and final report, BPU must decide whether to expand the pilot into a permanent program; if so, BPU will adopt formal rules (after considering other states’ approaches).
    • Reports must be published on the BPU website.
  • Rulemaking/timeline mechanics:
    • Within 60 days of enactment the board must adopt interim rules (notwithstanding ordinary Administrative Procedure Act timing) by filing notice with the Office of Administrative Law; interim rules effective up to one year, then subject to normal APA rulemaking processes.
  • Statutory change: amends R.S.48:2‑13 to explicitly include entities that own/operate geothermal energy within the definition of “public utility.”

Who is affected

  • Gas public utilities electing to participate.
  • Utility ratepayers (residential, commercial, and public entities) — potential rate impacts if utilities recover project costs.
  • Board of Public Utilities — administrative and rulemaking duties.
  • State entities, local units, and school districts served by participating utilities — may face increased gas utility charges if cost recovery is passed through.

Fiscal and procedural impacts

  • Office of Legislative Services (OLS) fiscal estimate (dated Aug. 25, 2025): indeterminate State expenditure increase for BPU to adopt rules and administer the program over three years; potential indeterminate increased expenditures for certain State entities, local units, and school districts if participating utilities impose surcharges to recover project costs. Magnitude depends on number of participants and project costs.
  • Legislative status (selected): introduced May 19, 2025; reported out of committee May 22; amended (4424A) and passed Senate June 12, 2025; delivered to Assembly June 12, 2025 and referred to Assembly Labor Committee.
  • Sponsors: Sen. Jessica Ramos (primary), Sen. Robert Jackson (cosponsor).
  • Companion bill: A5411.

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

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