Provides Solutions to 21^st Century Challenges

TRENTON — Governor Jon S. Corzine today unveiled New Jersey’s energy master plan, a roadmap to guide the state toward a responsible energy future with adequate, reliable energy supplies that are both environmentally responsible and competitively priced. This roadmap requires not only long-term actions, but also immediate investments that will help ease energy costs in the short-term, create jobs, grow clean-energy businesses, and establish the clean energy industry as a cornerstone of the State’s economy.

“I’m pleased to say that today is the first day of New Jersey’s energy future,” said Governor Corzine. “With one of the strongest solar programs in the nation, potentially the country’s first offshore wind project in the works, our participation in the Regional Greenhouse Gas Initiative, and the most aggressive greenhouse-gas emission reduction targets in the nation, New Jersey has already taken the lead.

“With the release of today’s energy roadmap, the first in this State in 15 years, New Jersey is paving the way for a future where a burgeoning, robust energy industry is a major engine of New Jersey’s economy. By investing in our energy infrastructure, we anticipate creating an estimated 20,000 jobs between now and 2020. At a time in our history when energy independence has never been more critical, it is imperative that we proactively seek that ambition.”

In developing the Plan’s long-term action items that will effectively create an energy infrastructure that is clean, competitively priced and reliable, the following energy challenges were taken into account:

• Energy demand is outpacing energy supply.
  
• The price of electricity continues to rise.
  
• The serious threats of global climate change, and the need to ensure that New Jersey’s energy policies respond to this unprecedented environmental issue.
  
• New Jersey does not have complete jurisdictional control of its energy infrastructure and energy future.

The economic and environmental consequences of not addressing these challenges are tremendous. For example, PJM forecasts that the State’s electricity reliability could be jeopardized unless we broaden our capabilities. In addition, energy prices will continue to rise, costing New Jersey customers $30.7 billion, or 96% more in 2020 than in 2005. The State’s contributions to global climate change also would increase. If climate change continues unabated, sea levels are likely to rise significantly, with possible catastrophic effects to coastal states like New Jersey. Ultimately, without action, the Garden State economy will continue to depend on an unsustainable and outdated energy system.

In response to these challenges, the Plan lays out a series of action steps and strategies to achieve the following five goals:

• Maximize the State’s energy conservation and energy efficiency to achieve reductions in energy consumption of at least 20% by 2020.
  
• Reduce peak demand for electricity by 5,700 MW by 2020.
  
• Strive to surpass the current Renewable Portfolio Standard goals with a new goal of achieving 30% of the State’s electricity needs from renewable sources by 2020.
  
• Develop a 21st century energy infrastructure that supports the goals and action items of the Energy Master Plan, ensures the reliability of the system, and makes available additional tools to consumers to manage their energy consumption.
  
• Invest in innovative clean-energy technologies and businesses to stimulate the industry’s growth in New Jersey.

“By embracing new approaches to energy, we are providing the pathway to both economic prosperity and environmental protection,” said the Governor. “This Plan offers aggressive policies that create an energy system that is responsible and will establish the clean-energy industry as a major part of New Jersey’s economy. It will strengthen New Jersey’s economy by reducing consumers’ overall energy expenditures, while creating jobs, improving the current energy infrastructure and meeting our environmental goals.”

To develop the energy picture of the future through projections for the year 2020, the State worked with the Center for Energy, Economic, and Environmental Policy (CEEEP) and the Rutgers Economic Advisory Service of the Center for Urban Policy Research (R/ECONTM) in the Bloustein School at Rutgers University. This modeling included a “business as usual” scenario that assumed no major changes in state policies and actions, as well as an “alternative scenario” reflecting the implementation of changes outlined in the Plan. The modeling outlines how “business as usual” and the “alternative scenario” could affect energy use, economic growth, air quality, and greenhouse gas emissions.

For more information on New Jersey’s energy master plan, including fact sheets, frequently asked questions and other background material, visit www.nj.gov/emp/.