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 achieve this goal. Beneficial electrification is defined as the transition from non-electric to efficient electric end-use equipment in buildings, which should reduce societal costs, lower greenhouse gas emissions, and promote 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 BPU's emission reduction targets 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 facilitate a significant shift towards electrification in the building sector, contributing to environmental sustainability and energy efficiency.