TRENTON, NJ – Senator Michael Testa has raised concerns over the New Jersey Board of Public Utilities (BPU) potentially overstepping its authority by adopting a plan for the “decarbonization” of homes and buildings in the state. He argues that the BPU lacks the legal authority to use its regulatory powers to set environmental policy.
According to Senator Testa, the BPU’s proposed decarbonization plan would increase electricity usage and potentially destabilize the electric grid, which he believes contradicts state law. He also asserts that the BPU does not have the power to regulate carbon emissions, which is the primary purpose of the plan. In his view, the BPU’s proposal represents a clear overreach of the agency’s authority.
The BPU released a preliminary road map for building decarbonization on June 7, with the main goal being to reduce CO2 emissions in the built environment. However, Brian Lipman, Director of the Division of Rate Counsel, an independent state agency that advocates for consumer interests, has stated that the BPU lacks the authority to regulate greenhouse gas emissions.
Critics, including Lipman and others, have cautioned that the BPU does not possess the necessary authority to implement policies that would increase demand on the electric grid and require costly upgrades, potentially costing billions of dollars.
Senator Testa argues that previous attempts by the BPU to set environmental policy through regulatory powers have been blocked by the courts. Despite these warnings, he expresses concern that the BPU will continue to endorse Governor Murphy’s green energy plan and enforce it on New Jersey residents.
The BPU is set to vote on the decarbonization plan on Wednesday, July 12.