LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 3781
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 24, 2024
SUMMARY
Synopsis: Requires BPU to develop program to promote certain energy
businesses in State.
Type of Impact: Annual State expenditure increase.
Agencies Affected: Board of Public Utilities.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) estimates the bill would result in an indeterminate
but incidental annual State expenditure increase to establish a new program that would promote
women-owned, minority-owned, veteran-owned, or lesbian, gay, bisexual, transgender, or
questioning (LGBTQ)-owned energy businesses.
 The higher costs would stem from an increase in the Board of Public Utilities’ administrative
workload to develop and administer the new program and to monitor context specific energy-
use percentages for each energy business, but notes that these additional tasks may be
subsumed within existing staff duties.
 Under the bill, the program may include public information campaigns, marketing,
advertising, incentives, or other means and methods to promote the program. The scope of the
campaigns will depend on decisions made by the Board of Public Utilities.
BILL DESCRIPTION
The bill requires the Board of Public Utilities to develop a new program with the objective
of promoting women-owned, minority-owned, veteran-owned, or LGBTQ-owned energy
businesses in the State. Energy businesses are defined as energy brokers, electric power
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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suppliers, energy agents, gas suppliers, marketers, board-licensed energy agents, energy
consultants, or private energy aggregators.
The bill authorizes the program to include public information campaigns, marketing,
advertising, incentives, or other means and methods determined appropriate by the board. The
bill establishes certain target percentages for the energy procured by businesses and public
entities that utilize third-party energy suppliers. These target percentages are to culminate, in
the fourth energy year after the program is established and thereafter, with the goal that 25
percent of the energy procured by businesses and public entities that utilize third -party energy
suppliers be procured from a women-owned, minority-owned, veteran-owned, or LGBTQ-
owned energy business. The target percentages for the program are to be measured according
to graduated annual rates as follows:
Year of Implementation Target Rate of Natural Gas/Electricity Purchased
1st energy year 5 percent
2nd energy year 11 percent
3rd energy year 18 percent
4th energy year 25 percent
The bill establishes certain requirements for determining which businesses qualify for the
program and directs the board to develop an application process for businesses that seek to
participate in the program. Finally, the bill requires the board, and each electric and gas public
utility, to post a list of approved energy businesses on their websites. It also requires the board
to track the success of the program in meeting the targets established by the bill and post
updates on the board’s website.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS estimates the bill would result in an indeterminate but incidental annual State
expenditure increase to establish a new program that would promote women-owned, minority-
owned, veteran-owned, and LGBTQ-owned energy businesses. The higher costs would stem
from an increase in the Board of Public Utilities’ administrative workload to develop and
administer the new program and to monitor procurement percentages for the targeted energy
businesses, but notes that these additional tasks may be subsumed within existing staff duties .
Under the bill, the program may include a public information campaign, marketing,
advertising, the provision of incentives, or other means and methods to promote the program. The
scope of the campaign will depend on decisions made by the Board of Public Utilities.
Other states with similar legislation, such as Florida and California, estimate minor expenditure
increases as a result of requiring comparable minority-owned business promotion activities.
Florida practices small business promotion by identifying participation target percentages for
minority-owned businesses in each water management district. The promotion program
encourages small businesses that are owned by women and minorities to participate in the
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procurement and contract activities of the water management district. The fiscal analysis estimated
no tax or fee issues, private sector impact, or government sector impact as a result of the bill.
Section: Environment, Agriculture, Energy, and Natural Resources
Analyst: Anna Heckler
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).