The bill introduces an "alternative compliance payment" (ACP) mechanism for electric power suppliers in New Jersey to meet Class II renewable energy requirements. Defined as a payment made per megawatt hour (MWh) to the Board of Public Utilities (BPU), the ACP allows suppliers to fulfill their renewable energy obligations as outlined in existing legislation. This new provision aims to provide flexibility for suppliers while promoting the development of renewable energy sources. The bill amends Section 3 of P.L.1999, c.23 to incorporate this definition, thereby enhancing the state's renewable energy goals by offering an alternative compliance route that may encourage greater participation in the renewable energy market.

Furthermore, the bill establishes a fixed ACP value of $10 per megawatt hour, which suppliers can opt to pay if they fail to meet renewable energy requirements through the purchase and retirement of Renewable Energy Certificates (RECs). It also mandates that any collected ACPs be refunded directly to ratepayers by electric public utilities, ensuring that the financial burden of non-compliance does not fall on consumers. This provision promotes fairness in the energy market while encouraging adherence to renewable energy standards. The act is set to take effect immediately upon passage, aiming to modernize the regulatory landscape of the energy sector in alignment with current environmental standards and market dynamics.

Statutes affected:
Introduced: 48:3-51