This bill mandates the Board of Public Utilities (BPU) to create a program that promotes the procurement of renewable natural gas (RNG) and investment in RNG infrastructure by gas public utilities in New Jersey. It establishes specific portfolio targets for the percentage of RNG that utilities must distribute to their retail customers, starting with a target of up to five percent from 2022 to 2024 and increasing to 30 percent by 2045 to 2050. The bill defines RNG and outlines the types of products that qualify, including biogas, hydrogen gas from renewable energy, and methane gas derived from renewable sources.

Additionally, the bill requires the BPU to implement a ratemaking mechanism that allows utilities to recover costs associated with qualified investments and the procurement of RNG from third parties. This includes ensuring that any costs approved by the BPU for these investments can be recovered from ratepayers. The bill also stipulates that if a utility's total incremental annual costs to meet the RNG program's targets exceed five percent of its total revenue requirement, it must seek BPU approval for further investments. The BPU is tasked with adopting necessary regulations within 180 days of the bill's enactment to facilitate its implementation.