TRENTON, NJ – Legislation introduced in the New Jersey General Assembly would require the Governor’s annual budget message to include a detailed accounting of revenues and expenditures tied to the state’s societal benefits charge, a utility surcharge that funds energy assistance, clean energy programs and other initiatives. The measure seeks to provide greater transparency into how billions of dollars collected from electric and gas customers are allocated and spent.
The societal benefits charge is embedded in monthly electricity and natural gas bills statewide and supports programs ranging from energy assistance for low-income households to renewable energy incentives and nuclear plant decommissioning. Assembly Bill A804 would require a standardized, multi-year financial report as part of the annual budget process, offering lawmakers and the public a clearer picture of how the funds are distributed and retained.
Assembly Bill A804 was pre-filed for introduction in the 2026–2027 legislative session.
The bill is sponsored by Assemblyman David Bailey Jr. (D-3), whose district includes Cumberland, Gloucester and Salem counties; Assemblyman Roy Freiman (D-16), representing Hunterdon, Mercer, Middlesex and Somerset counties; and Assemblyman Al Abdelaziz (D-35), representing Bergen and Passaic counties. It is co-sponsored by Assemblymen Scharfenberger and Karabinchak.
If enacted, the bill would supplement Title 52 of the Revised Statutes and take effect immediately, applying beginning with the fiscal year commencing July 1, 2026. Under the proposal, the Governor’s annual budget message must include a detailed report covering revenues and expenditures derived from the societal benefits charge over the past five fiscal years and the current year.
What the report would include
The required report would detail the total revenues collected through the societal benefits charge, the amount retained by the state and allocated to demand-side management programs, renewable energy programs, distributed energy resources, and administrative functions. It would also include funds directed to the Universal Services Fund—covering the Lifeline Credit Program and Tenants’ Lifeline Assistance Program—and allocations to the Plug-in Electric Vehicle Incentive Fund, which supports the light-duty electric vehicle rebate program and related infrastructure initiatives.
The legislation directs the Board of Public Utilities (BPU) to assist and advise the Governor in preparing the report. The BPU currently determines surcharge levels, which are collected by utilities and remitted to the board, though utilities may retain approved components.
Key points:
- Assembly Bill A804 mandates detailed disclosure of societal benefits charge revenues and expenditures in the annual state budget
- The report must include five prior fiscal years and the current year
- Itemized data would cover energy efficiency, renewable energy, utility-retained funds, and electric vehicle programs
The societal benefits charge was established in 1999 under the Electric Discount and Energy Competition Act, which restructured New Jersey’s electric utility industry. Rates for each component vary by utility and must be approved by the BPU. The funds finance programs including the Universal Services Fund, clean energy initiatives, energy consumer education, nuclear decommissioning, and remediation of former gas plant sites.
Over the years, portions of the surcharge have been redirected to support emerging policy goals, such as incentives for plug-in electric vehicles under the Plug-in Electric Vehicle Incentive Fund created in 2019. While individual program budgets appear in scattered reports and budget documents, no single consolidated account currently exists within the Governor’s budget message—something this bill aims to change.
If enacted, A804 would embed transparency into the state’s fiscal reporting framework, offering lawmakers and the public a unified look at one of New Jersey’s most consequential funding mechanisms. For ratepayers, the measure would not alter existing charges but could inform future debates about how funds are distributed among energy assistance, clean energy, and electrification programs.
Next steps for the legislation
The bill, pre-filed for the 2026–2027 legislative session, now awaits committee review and potential amendment before advancing to a floor vote. Should it pass, the new reporting mandate would take effect for the fiscal year beginning July 1, 2026—potentially reshaping how billions in utility surcharge revenues are disclosed in the state budget.
