This bill mandates that the New Jersey Board of Public Utilities (BPU) is responsible for covering compliance costs incurred by residential and commercial customers of public utilities when adhering to state energy policies, including the Energy Master Plan. Compliance costs encompass expenses related to purchasing and installing new appliances, upgrading existing systems, and making necessary infrastructure improvements. The BPU is required to fund these payments using uncommitted funds from the societal benefits charge, the Global Warming Solutions Fund, and a settlement agreement with Orsted. Should these funds be insufficient, the BPU must seek appropriations from the General Fund to cover any excess compliance costs.

The bill highlights concerns regarding the financial burden placed on consumers due to the state's electrification initiatives aimed at reducing carbon emissions. The sponsor argues that the costs associated with retrofitting homes for compliance with energy policies are significant, with estimates suggesting an average lifecycle cost of approximately $25,600 per home. The sponsor believes that it is unjust for homeowners and renters to bear these costs alone and asserts that the principle of the State Mandate, State Pay amendment should extend to residents affected by these energy policies, ensuring that the state covers the compliance costs rather than passing them onto consumers.