This bill mandates the New Jersey Board of Public Utilities (BPU) to establish a beneficial building electrification program and requires electric public utilities to develop and implement plans to facilitate this transition. Beneficial electrification is defined as the replacement of non-electric equipment with efficient electric alternatives across various building uses, such as water heating and space heating, with the goals of reducing societal costs, lowering greenhouse gas emissions, and promoting off-peak electric grid usage. The BPU is tasked with adopting rules and regulations within one year of the bill's enactment, which will include setting greenhouse gas emission reduction targets for each electric public utility and establishing program design elements, cost recovery mechanisms, and incentives for electric heat pump installations.

Additionally, each electric public utility must submit a multi-year beneficial electrification plan that meets or exceeds the emission reduction targets set by the BPU and demonstrates cost-effectiveness from a societal perspective. The plans can achieve these targets through various means, including converting fossil fuel-based heating systems to high-efficiency electric heat pumps, replacing fossil fuel appliances with electric alternatives, and implementing educational programs for contractors on high-efficiency systems. The bill aims to promote a significant shift towards electrification in buildings, thereby contributing to environmental sustainability and energy efficiency in New Jersey.