New Jersey would leave regional carbon trading and charge power plants

New Jersey would leave the Regional Greenhouse Gas Initiative, a regional program where power plants trade permits to emit carbon dioxide. State public bodies and agencies could not participate in the program or its affiliated programs unless lawmakers authorize it. Returning would require environmental and utility officials to find protections for customers, reliable electricity, and the environment, and that participation serves New Jersey’s public interest. After a public hearing, lawmakers could authorize a return through a concurrent resolution, which both chambers must pass. The Department of Environmental Protection and Board of Public Utilities would publish a review within 18 months of enactment and annually afterward while New Jersey remains outside the program. The law would take effect immediately upon enactment, and withdrawal would take effect 30 days later.

Covered power plant owners or operators would pay $7 for each ton of carbon dioxide their plants emit. The fee would cover New Jersey generating units with state operating permits and a rated capacity of at least 25 megawatts, whether operating or being developed. On-site plants that produce both heat and electricity and sell less than 10 percent of their annual electricity output would be exempt. The fee would not apply to an operator required to obtain emissions permits under a state emissions trading program. Revenue would go into a new state fund for energy assistance, clean energy, and related environmental programs. The fee would begin 30 days after enactment and cover emissions released after the law’s effective date.