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S 4371

Enacts the statewide transportation authority reinvestment (STAR) act

2025 Regular Session Introduced by Leroy Comrie and 1 co-sponsor

A third-party study would assess whether public utilities could be owned or jointly operated by public entities instead of private owners, and what it would cost or save.

REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
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Bill Summary · S 4371

Summary of Bill S 4371 (Introduced May 12, 2025)

Note: The bill’s title references the statewide transportation authority reinvestment (STAR) act, but the introduced content focuses on studies related to de-privatization of public utilities in New Jersey.

Purpose and intent

  • To require the Board of Public Utilities (BPU) to appoint a third party to conduct a feasibility study on the de-privatization of public utilities in New Jersey.
  • To evaluate options for public ownership, operation, or joint ownership/operation of existing public utilities, with the aim of assessing potential environmental, service, and ratepayer impacts, as well as cost savings and revenue from clean energy programs.
  • To produce a comprehensive report with recommendations for legislative and executive actions within one year of enactment.

Key provisions

Definitions (Section 1a)

  • Board: Board of Public Utilities (BPU).
  • Clean energy program: a public-entity administered program promoting energy efficiency and renewable energy sources (solar, wind, geothermal, sustainable biomass, etc.).
  • Public entity: principal executive-branch departments and related divisions/boards/agencies or subdivisions.
  • Public utility: as defined by R.S.48:2-13.
  • Third party: an entity without ownership/financial ties to a public utility or public entity.

Study requirements (Section 1b–1e)

  • The board must engage a third party to study the feasibility and cost savings of de-privatizing public utilities.
  • The third party may request information and assistance from any public utility or public entity to carry out the study.
  • Potential options analyzed: 1) Acquisition or operation of existing public utilities by a public entity (in part or whole). 2) Joint ownership or operation of existing public utilities between a public entity and existing public utilities (in part or whole).
  • Study components include:
    • Short- and long-term benefits and challenges, environmental effects, service impact, and costs to ratepayers.
    • Strengths/weaknesses of potential public entities (including organizational structures).
    • Estimated financial costs and long-term state/public-entity impacts.
    • Estimated cost savings for each option.
    • Estimated revenue from clean energy programs.
    • Any other analyses directed by the board.
  • Public utilities/public entities must promptly respond to information requests.
  • Within one year of the act’s effective date, the board must submit a written report to the Governor and the Legislature detailing findings and providing recommendations regarding feasibility, need, cost savings, and a plan for de-privatization, including recommended actions.

Appropriation (Section 2)

  • A sum of $100,000 is appropriated from the General Fund to the BPU to implement the act.

Effective date (Section 3)

  • The act takes effect immediately.

Fiscal and administrative impact

  • One-time appropriation of $100,000 to the BPU to fund the third-party study.
  • Financial analysis would include costs and potential long-term savings associated with various de-privatization options, plus potential revenue from clean energy programs.

Timeline and process

  • Effective date: immediate upon enactment.
  • Within one year: BPU must deliver a comprehensive report to the Governor and Legislature with findings and recommended actions.

Legislative history and sponsorship

  • Introduced in the Senate on May 12, 2025 and referred to the Senate Economic Growth Committee; earlier referrals to the Corporations, Authorities and Commissions committee occurred on February 4, 2025.
  • Primary sponsor: Leroy Comrie; cosponsored by Jessica Ramos.
  • Related bills from prior sessions include S 5049, S 3435, and S 5594.

Potential impact and focus for readers

  • The bill would open a formal, data-driven examination of whether public utilities could be more effectively delivered as public-owned or jointly operated entities rather than privatized.
  • It would affect public utilities, public entities, ratepayers, and stakeholders in energy and infrastructure services by exploring ownership/operational models and their financial and environmental implications.
  • The output would be a concrete set of recommendations for policymakers on possible legislative or administrative actions to pursue de-privatization options.

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

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