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Author: Daniel J. Muñoz

Legislators hope to slow down part of the Murphy government's clean energy goals surrounding the electrification of building heating systems by prohibiting the state from mandating commercial and residential properties to switch from oil and natural gas to electricity.

On December 6, the Senate Committee on Community and Urban Affairs passed the lame duck proposal-Senate Bill 4133 by a 5-0 vote.

Proponents of fossil and natural gas praised the bill as a means to control what they believe might lead to a surge in costs due to unreliable technologies outlined in Governor Phil Murphy’s clean energy goals. Environmentalists believe that the bill only caters to these industries at the expense of national welfare.

State officials argue that the electrification of building heating systems is the key to reducing greenhouse gas emissions and fossil fuel dependence-part of the Murphy Administration’s goal to make the state completely dependent on clean and renewable energy in the middle of this century.

Murphy's plan estimates that space and water heating, household appliances, and industrial use that rely on fossil fuels and natural gas account for 28% of the state's greenhouse gas emissions, so the plan calls for the electrification of these processes.

"[C] Continue to expand the natural gas distribution system and rely on fossil fuel heating for new construction and replacement of aging heating systems will lock in continuous emissions for decades," the plan reads.

Murphy’s office did not comment on the bill, citing a policy of not commenting on pending legislation. However, the governor and his office did comment on pending legislation, such as when Murphy announced his support for several bills enacting new gun restrictions on December 2.

The official estimated installation cost is between US$4,000 and US$7,000. But according to a study commissioned by the Fuel Merchants Association, the cost will be closer to US$12,000 to US$22,000.

Eric DeGesero, executive vice president of the New Jersey Fuel Merchants Association, wrote in a prepared statement on Monday: "The Murphy Administration has been unable to refute this, nor can it provide their own realistic Cost Estimate."

"Although we support clean energy goals, Governor Murphy's energy master plan and all his electrification tasks are too costly for New Jersey households," he said.

According to the proposed S4133, the state’s main environmental regulators-the New Jersey Public Utilities Commission, the Department of Environmental Protection and Community Affairs-will be prohibited from mandating electric heating systems or electric hot water systems as the main source of heating for residential or commercial buildings .

These institutions can still provide financial incentives, and homes or businesses are still free to switch to electric heating systems completely if they wish.

State Senator Vin Gopal received the award at the New Jersey Chamber of Commerce Legislation and Business Awards Ceremony held at the Holmdel Bell factory on October 20, 2021. – RUSS DESANTIS PHOTOGRAPHY

One of the main initiators of the measure, State Senator Vin Gopal of District D-11, stated in a prepared statement that the electrification process will be "a major undertaking with very serious consequences", especially For the holder's building.

“If we force the use of electric heating systems, this will definitely lead to an increase in energy rates and customer costs,” he continued. "New Jersey residents shouted, they want us to reduce costs, not increase costs."

Ray Cantor, vice president of government affairs for the New Jersey Chamber of Commerce and Industry, said that considering the potential cost, business owners and consumers decided to switch to electric heating and required "they choose the fuel for heating purposes."

But environmentalists accuse lawmakers of succumbing to lobbying pressure and public relations activities.

"This bill exists to promote the interests of the fossil fuel industry's movement to mislead people in the transition to clean energy," New Jersey Food and Water Observation Director Matt Smith wrote in a statement.

"It is disappointing that the legislators are trying to slow down progress only to support the interests of polluters."

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