Substitute House Bill No. 5356 proposes amendments to the Renewable Portfolio Standard by redefining "Class I renewable energy source" to include certain fuel cell power plants, while removing language concerning run-of-the-river hydropower facilities and the construction date for nuclear power facilities to qualify as Class I. The bill also eliminates the sunset clause for electric distribution companies to purchase 5% of their power from Class III renewable resources. Additionally, it requires the Commissioner of Energy and Environmental Protection to conduct a study on the state's natural gas capacity, with a report due by January 1, 2025. The bill may incur costs up to $500,000 for the Department of Energy and Environmental Protection and could affect municipal revenues due to property tax and building permit fee exemptions for renewable energy technologies. The effective dates are October 1, 2024, for Sections 1 and 2, and from passage for Section 3.

House Bill 5356 expands the eligibility of certain fuel cell, hydropower, and nuclear facilities to be classified as Class I renewable energy sources, allowing them to contribute to the Renewable Portfolio Standard and to participate in power procurements. The bill also continues the requirement for electric distribution companies and suppliers to source at least 5% of their output from Class III sources indefinitely. The DEEP commissioner is tasked with studying the state's natural gas capacity and recommending potential expansions, with the study's findings due by January 1, 2025. The bill's provisions are effective from October 1, 2024, except for the natural gas study, which is effective upon passage. The bill has been unanimously approved by the Energy and Technology Committee.