New Jersey Gov. Phil Murphy on Wednesday outlined a sweeping set of new clean energy initiatives designed to accelerate the state’s goal of reaching net zero, including eliminating power sector emissions and ending the sale of gas-powered cars and light-duty trucks by 2035.

Speaking at Rutgers University in New Brunswick, Murphy set targets to require all electricity sold in the state be “derived from clean sources” by 2035 — 15 years ahead of the current goal — and install electric heating and cooling equipment in 400,000 homes and 20,000 commercial properties by 2030. Murphy enshrined both measures in executive orders.

The governor also said he would step up the effort to cut transportation emissions by allocating $70 million in funds from Regional Greenhouse Gas Initiative auctions to reduce the “consumer upfront costs” for medium- and heavy-duty electric trucks.

Murphy added that he would direct the New Jersey Department of Environmental Protection (DEP) to begin the process of securing stakeholder input to implement a version of California’s Advanced Clean Cars II rules in New Jersey. The rules would require all new passenger vehicles sold in the state to be zero-emission vehicles by 2035. (See Calif. Adopts Rule Banning Gas-powered Car Sales in 2035.)

“These bold targets and carefully crafted initiatives signal our unequivocal commitment to swift and concrete climate action today,” Murphy said.” These comprehensive initiatives will better protect and prepare every New Jersey community, including those on the front lines of climate change who have previously been left out and left behind.”

The initiatives also included making 10% of all low-to-moderate income properties electrification-ready by 2030, part of an effort to reduce emissions from the state’s second largest source of greenhouse gases — homes and businesses.

Anticipating the opposition he might face, Murphy said, “No one is going to be forced to do anything,” and added that “No one is coming for anyone’s gas stove.”

“What today is about,” he said, is “giving consumers more choices and more chances to join us in creating a cleaner, more sustainable and more affordable energy future.”

He said his strategy of promoting a shift to electric heating and cooling systems would put “money right back into the pockets of consumers who choose to make the switch.”

Master Plan Concerns

The speech came just under a month after Murphy, who is thought to be preparing to run for president, announced plans to spend more than a year updating the 2019 Energy Master Plan that has underpinned much of the governor’s clean energy efforts, releasing the update in 2024.

In an apparently unrelated move, Sen. Bob Smith (D), who heads the Senate Energy and Environment Committee and shapes much of the state’s clean energy legislation, introduced a bill in January that would establish a sweeping new clean electricity certificate program to cover all energy sources. (See NJ Gov., Lawmakers Move Toward Updated Clean Energy Goals.)

New Jersey has sought to position itself as a clean energy leader, especially with its aggressive plan to build 11 GW of offshore wind power — of which three projects totaling more than 3.75 GW have been approved — and develop a special-purpose offshore wind port to handle the turbine supply chain.

But as the clean energy plans have grown, so have concerns about the cost and impact, with opponents urging the state to focus more on alternative low-emission fuels under development.

After vigorous business and union opposition, the DEP in December backed away from implementing a controversial rule that would have prevented the agency from issuing permits for new fossil fuel-fired boilers in certain situations. (See NJ Backs off Ban on Commercial-size Fossil Fuel Boilers.)

And critics of the master plan’s emphasis on shifting to making electricity the state’s main energy source have backed a bill, S2671, that would prohibit any state agency from mandating the use of electric building energy systems until the release of a government report on the costs and benefits of electric heating.

Eric DeGesero, executive vice president of the Fuel Merchants Association of New Jersey, which supports the bill, said he was “gratified to hear Governor Murphy announce that no homeowner or business will be mandated to switch their appliances to electric heat.” DeGesero said 85 % of New Jerseyans heat with natural gas, fuel oil or propane.

“The Murphy Administration and the legislature need to include all energy options on the table, not just electrification,” he said. “Focus should now shift to the most cost-effective way to decarbonize the incumbent fuels to those of the future.”

Preparing for an Electric Future

Murphy acknowledged that his plan “begs the question, ‘What happens to our natural gas utilities as we reduce our reliance on fossil fuels?’”

In response, he issued another executive order Wednesday that directs the state’s Board of Public Utilities (BPU) to “engage with all stakeholders from across the energy industry, organized labor, the environmental spaces, and the Governor’s Clean Buildings Working Group, to take on the big question of the future of the natural gas utility.”

The order said the topics for scrutiny would include:

• the “need to ensure reliable operation and long-term financial viability of natural gas public utilities” as their consumer base shrinks;
• alternative programs and “investments that could provide natural gas utilities with new revenue streams and promote good-paying jobs;” and
• the “elimination of subsidies that encourage unnecessary investment in natural gas infrastructure that is likely to result in stranded costs to customers.”

BPU President Joseph L. Fiordaliso called Murphy’s request for 100% clean energy by 2035 “an incredibly important and sensible policy initiative that solidifies New Jersey as a leader at the forefront of the battle to address the climate crisis.”

The proposal also drew support from two prominent environmental groups, the New Jersey League of Conservation Voters and the New Jersey Sierra Club.

Ed Potosnak, executive director of the state’s League of Conservation Voters, said the organization is “thrilled to see a roadmap to 100% clean electricity, meaningful commitments to electrify buildings, vans, trucks and buses, and updated coastal rules to protect families and businesses — all as we step up efforts to protect our communities from the impacts of climate change.”