TRENTON, NJ – New Jersey Governor Phil Murphy is aiming for a carbon-free electrical grid and a total ban on the sale of gasoline-powered consumer vehicles by 2035 and he’s getting a large financial boost from the rest of America to do it.
According to the U.S. Department of Energy, the Biden administration is earmarking billions of dollars to make sure Governor Murphy’s agenda succeeds and he’s using the Inflation Reduction Act as a funding source for New Jersey’s clean energy agenda.
Over the past year, more than $4.8 billion was made available by the U.S. Department of Energy to state and local governments to boost energy efficiency and grid resilience. Princeton NuEnergy Inc. received $10 million from the Bipartisan Infrastructure Law for refining lithium-ion battery recycling methods.
Since 2015, over $57 million has been invested in New Jersey by the U.S. Department of Energy’s Weatherization Assistance Program and State Energy Program. This investment has generated 861 jobs and benefited over 3,200 homes with lower energy costs. New Jersey will also see over $183 million for a Home Energy Rebate program, which will aid low-income households in reducing energy bills.
More is on the way.
According to the administration, as of last year, the energy sector in New Jersey employed 140,643 workers. In 2021, wind, solar, and hydroelectric powered 48% of Mercer County’s electric power generation, and the county had 1,800 energy efficiency workers. The upcoming Inflation Reduction Act promises to infuse the state with an estimated $11.4 billion investment in large-scale clean power generation and storage through 2030.
Of the 953,416 small businesses in New Jersey, which make up 99.6% of all businesses and employ 49.2% of the state’s workers, many will see financial benefits from the Inflation Reduction Act. Provisions include tax credits for commercial building owners for energy efficiency upgrades and for the installation of low-cost solar power and purchasing clean trucks and vans for fleets.
New Jersey aims for 100% carbon-free electricity by 2035. With 1.1 GW of clean energy capacity already in place and another 2.2 GW planned, the state’s clean energy output is expected to nearly triple. This will power over 240,000 additional homes. The Inflation Reduction Act’s tax credits are anticipated to drive down costs of solar and offshore wind power by 25% and 68% respectively over the next three decades.
The U.S. Department of Energy has noted significant investments in the New Jersey Wind Port, including a 1.5 GW project that will power over 700,000 homes.
Last year, New Jersey ranked in the top ten states for per capita electric vehicle ownership with 101,000 electric vehicles registered. The Inflation Reduction Act offers incentives for purchasing electric vehicles, aiming to reduce the reliance on gasoline. Additionally, New Jersey will utilize $22 million from the Bipartisan Infrastructure Act to expand its EV charging station infrastructure.
The Biden Administration’s Justice40 Initiative strives to direct 40% of benefits from federal investments in areas like clean energy and affordable housing to disadvantaged communities. The U.S. Department of Energy oversees more than 140 programs under this initiative. Local efforts include partnerships with La Casa de Don Pedro in Newark and grants to Irvington Public Schools to foster energy efficiency and indoor air quality improvements.