Murphy Signs 4 Bills Into Law, And Takes Position On Gas Tax

New Jersey Gov. Phil Murphy has signed 4 bills into law, including controversial legislation Wednesday that will compel more than a million residents to pay more for their electric service. He also offered an opinion on the 23-cent gas tax hike signed into law by ex-Gov. Chris Christie (see new laws below).

Murphy signed legislation to save New Jersey's financially stressed nuclear power plants in South Jersey, a bill that some are calling a $300-million-a-year "bailout" for PSEG. The plan is expected to increase the price of energy bills by about $55 a year, according to state officials.

During a press conference, Murphy also addressed the state's controversial 23-cent gas tax hike that was passed in 2016 now that the average gas prices in New Jersey hit $3 last week, the first time they reached that milestone since 2014.

Murphy, siding with Christie, said the gas tax hike was necessary because it replenished the state's bankrupt Transportation Trust Fund, which funded projects that had stopped when the money ran dry.

Murphy said the hike helped New Jersey "dig out of our mess," and helped the state finally address roadwork that had long been neglected. He credited lawmakers who had the "courage" to make an unpopular decision.
"We take every penny seriously, Murphy said, adding that, in New Jersey, "the one thing you gotta get right is infrastructure."

During the press conference, Murphy said he was signing the new legislation to promote clean energy, saying that boosting nuclear power and alternative forms of energy will ultimately boost New Jersey's economy. The governor said he was looking to save jobs in an industry that needs to protect its workforce.

"To do this will require a workforce ready for these jobs," Murphy said. "Our clean energy doesn't happen unless we take big, bold steps."

Murphy also shot back at critics of the legislation who say they'll adversely impact the middle class. "Those same people allowed the middle class to be ravaged over the last 8 years," he said.

PSEG has said it could shut nuclear reactors, including those at Salem and Hope Creek, in a few years if they don't get any help. “Lawmakers have come to appreciate that the financial difficulties facing the plants are real, that there will be severe consequences,” Michael Jennings, a spokesman for PSEG, said in an email to Patch.

Michele N. Siekerka, New Jersey Business and Industry Association president and CEO, said the signing of the energy bills "continues the concerning trend of adding to the already high cost of doing business in New Jersey, while creating new ratepayer obligations, without prior consideration of comprehensive planning to address the needs of our state."

"This legislation continues the trend of not analyzing what the ultimate economic impact to the ratepayer will be and does not offer any needed offsets to neutralize the impacts on business ratepayers," she said.

Environmental groups also have criticized the proposal, and they plan to hold a press conference after the legislation is signed. Jeff Tittel, director of the New Jersey Sierra Club, has accused PSEG of wanting "a $3 billion subsidy for their nuclear plants that don’t need funding."

"The whole bill is just an excuse to subsidize the nuclear power plants. PSEG are getting $300 million a year whether they need it or not. We should not be moving forward with this nuclear subsidy deal when PSEG will get $800 million in subsidies from Trump’s tax cut."

He also said the new nuclear bill still "does not have language for replacing the plants when they close with renewables."

"This bill is bad for the environment, the ratepayers, and the workers. This is all about helping PSEG’s bottom line,” he said.

Here are the bills Murphy signed into law Wednesday, and bills he signed within the past week.

– A-3723: The Renewable Energy bill takes several critical steps to improve and expand New Jersey’s renewable energy programs, Murphy says.

According to Murphy, these programs include:

• Renewable Energy Standard: This establishes one of the most ambitious renewable energy standards in the country by requiring 21 percent of the energy sold in the state be from Class I renewable energy sources by 2020; 35 percent by 2025 and 50 percent by 2030. A cap on costs provides additional protections for consumers.
• Solar: This provision reforms the state’s solar program by making near-term structural changes to ensure that the program is sustainable over the long term.
• Offshore Wind: The bill codifies the governor’s goal of 3,500 MW of offshore wind by 2030. It also reinstates an expired program to provide tax credits for offshore wind manufacturing activities.
• Energy Efficiency: This requires each utility to implement energy efficiency measures to reduce electricity usage by 2 percent and natural gas usage by 0.75 percent.
• Community Solar: The bill establishes a community solar energy program to allow all New Jersey residents to benefit from solar energy.
• Energy Storage: This provision codifies the governor’s goal of achieving 600 MW of energy storage by 2021 and 2,000 MW by 2030.

– S-2313: The so-called controversial PSEG "bailout" establishes a "Zero Emissions Certificate" program to maintain New Jersey’s nuclear energy supply, which contributes close to 40 percent of the State’s electric capacity and is by far New Jersey's largest source of carbon free energy, Murphy said.

Plants seeking to participate in the program would be required, among other things, to demonstrate that they make a significant contribution to New Jersey air quality and that they are at risk of closure within three years.

The new law gives the Board of Public Utilities broad latitude to engage outside experts to analyze nuclear power plant financial information and applications, and to adjust ZEC payments as necessary to meet a plant’s actual financial need, Murphy said.

A plant seeking to participate in the program would be required to certify that it is not receiving funding from any other federal, regional, or state source that would negate the need for the ZEC. Employees at plants participating in the ZEC program would further be protected from layoffs for reasons other than underperformance or misconduct.

– S-1229/A-3685: Increases annual salary of governor’s cabinet officers, judges, county prosecutors, and certain other public employees.

“ I have signed Senate Bill No. 1229, which, among other things, increases the annual salaries of our State judges. This long overdue measure marks the first increase in judicial salaries in nearly a decade and is critical to ensuring that we continue to retain and attract quality legal talent to the State bench,” said Murphy.

“As important as it is to make sure judges and senior public servants are justly compensated, we cannot allow ourselves to forget the more than one million hardworking New Jerseyans who are currently struggling to provide for themselves and their families on a substandard hourly wage. This is completely unacceptable – and changing this unfair status quo has been a priority of mine since day one.

“I urge the Legislature to move quickly to advance legislation that will increase the minimum wage to $15 an hour. A $15 minimum wage will not only ensure that all New Jersey workers can earn a livable wage, but will also stimulate and strengthen our economy.”

– A-3686: "Workplace Democracy Enhancement Act." Murphy said the bill helps the state make it a priority to "protect working men and women."

"I am signing A3686, which will give labor unions the chance to organize workers and collectively bargain on their behalf. This legislation will simply ensure that unions can operate in an environment that treats them fairly and eliminates unnecessary hurdles to organizing," he said.

Murphy also signed an executive order directing the development of an updated "Energy Master Plan" for the state to achieve 100 percent clean energy by 2050.

“Today, we’re taking another step forward in rebuilding New Jersey’s reputation as a leader in the development of clean energy sources while fulfilling a critical promise to foster our state’s energy future,” said Murphy. “Signing these measures represents a down payment to the people of New Jersey on the clean energy agenda I set forth at the beginning of my administration – a plan that will always consider the best interests of our residents and our environment while growing our economy.”

The so-called "bailout" bill will provide $300 million annually for nuclear power plants operated by PSEG. In December, the New Jersey Division of Rate Counsel, an independent advocacy group appointed by the governor's office, said the plan would lead to a rate hike of at least $40.80 annually.

In an Assembly Appropriations Committee hearing last week, however, Assemblyman Wayne DeAngelo, D-Mercer, Middlesex, said the legislation would jack up electric bills by $55 per year, and about $40 of would pay for the nuclear subsidy.

"Your job is to put them first," Stefanie A. Brand, director, Division of Rate Counsel, said in a report recently submitted to state lawmakers.

PSEG has said the rate increase will actually amount to $2.60 a month or $31.20 a year, based on the New Jersey Board of Public Utilities’ standards.

Assemblyman John Burzichelli, D-Cumberland, Gloucester and Salem, said during a legislative hearing that the plan could save thousands of jobs at PSEG plants that operate in Salem County. "This is important stuff," he said in a video of his testimony. "From a policy standpoint, we have to take the steps that this legislation is allowing us to take.".

In her report, Brand said she with met residential customers who "can’t use their air conditioning in the summer because they can’t afford it, and both small businesses and large aren’t sure they can continue to do business in New Jersey if their rates keep going up at this pace.

"Let the federal, in-market solutions have a chance to work. That’s what is best for those who are your priority."

PSEG has its two nuclear plants account for between 40 and 50 percent of electricity production in New Jersey, but they are in danger of not becoming financially viable within two years.

Jennings has told Patch that the stakes are very high for New Jersey. "It will cost New Jersey much more if the plants were to close – in higher health and environmental costs, reduce resilience and reliability and higher electricity costs which will harm the economy."

Jennings said his company is "sympathetic to the cost to ratepayers, but the opposition is being disingenuous and providing a false choice."

"The cost to customers will be far greater if the plants were to close, as has been demonstrated by several economic studies," he said. "And that will be a greater burden on businesses and make it more difficult to achieve the clean energy future we all want."

Assemblyman John McKeon, D-Essex, issued the following statement on the signing of two bills he sponsored that would improve and expand on renewable energy programs in the state:

“Today’s bill signing marks a new era in New Jersey. One that moves the state further in the direction toward stronger environmental protection practices which support clean energy initiatives. Establishing standards and requirements for renewable energy sets New Jersey on the right path toward growing our sustainable resources and investing in clean energy.

“New Jersey continues be a leader in the nation in developing our clean energy resources with the agenda we have set today. New Jersey families will reap the benefits for years to come.”

“We could always do more to protect our environment. Now, with these renewable energy goals set, we really are doing more and we are doing what should have been done over the last eight years. Thank you, Governor.”

McKeon is the prime sponsor of A-3723, which establishes and modifies clean energy and energy efficient programs and modifies the states’s solar renewable energy portfolio. He is also the sponsor of A-3724, which directs the Board of Public Utilities to establish a Zero Emission Certificate (ZEC) program.

Watch Murphy's press conference:

Gov. Murphy photo