This bill establishes a three-year pilot program overseen by the New Jersey Board of Public Utilities (BPU) to allow gas public utilities to recover costs associated with geothermal energy projects. These projects aim to replace aging or leaking natural gas pipelines with geothermal energy infrastructure, which is defined as utility-scale distribution systems that provide heating or cooling from geothermal sources. To participate, utilities must submit an infrastructure plan that includes necessary project information, which the BPU will evaluate based on criteria such as project size, cost, expected benefits, and financial impact on ratepayers. The BPU is also required to report annually to the Governor and Legislature on the pilot program's operations and determine in its final report whether to transition the pilot program into a permanent initiative.

Additionally, the bill amends existing law to include geothermal energy as part of the definition of public utilities, thereby expanding the regulatory scope of the BPU to encompass entities involved in geothermal energy operations within the state. The bill outlines the process for the BPU to adopt necessary rules and regulations for the pilot program's implementation and stipulates that the program will expire 30 days after the submission of the BPU's third and final report unless it is converted into a permanent program. The BPU is also tasked with publishing its findings on its website to ensure transparency.