This bill mandates the Board of Public Utilities (BPU) to create a program that promotes the procurement of renewable natural gas and investment in related infrastructure by gas public utilities in New Jersey. It establishes specific portfolio targets for the percentage of renewable natural gas that utilities must distribute to their retail customers, starting with a target of up to five percent from 2022 to 2024 and increasing to 30 percent by 2045 to 2050. Renewable natural gas is defined in the bill as biogas, hydrogen gas derived from renewable energy, or methane gas from various renewable sources.

Additionally, the bill requires the BPU to implement a ratemaking mechanism that allows gas public utilities to recover costs associated with qualified investments and procurement of renewable natural gas from ratepayers. This includes costs approved by the BPU for investments that help meet the established portfolio targets. The bill also stipulates that if a utility's total incremental annual costs exceed five percent of its total revenue requirement, it cannot make further qualified investments without BPU approval. The BPU is tasked with adopting necessary regulations within 180 days of the bill's enactment to ensure its implementation.