Translator Disclaimers
For Immediate Release: Contact: Peter Peretzman
Date: 03/6/2023 609-900-5626
Goal to Reduce Greenhouse Gas Emissions Below 2006 Levels by 2030 Through Development of Natural Gas Utility Plans
TRENTON, N.J.—The New Jersey Board of Public Utilities (NJBPU) today voted to initiate a proceeding to formally engage with stakeholders concerning development of natural gas utility plans to reduce emissions from the natural gas sector to levels that are consistent with achieving the State’s 50 percent reduction in greenhouse gas emissions below 2006 levels by 2030.

The Board took today’s action as outlined in Governor Murphy’s Executive Order 317, which was signed on February 15, 2023.

Within 18 months from the date of the Executive Order, the Board is also required to develop recommendations for how the natural gas industry can best meet these goals. The recommendations will consider the cost and support for well-paying jobs, including union jobs, necessary to deliver on these goals.

“This is perhaps the seminal climate issue of today,” said NJBPU President Joseph L. Fiordaliso. “As we fight the ravages of climate changes which are brought about mainly by fossil fuels we must do all we can to significantly reduce greenhouse gases and create a cleaner climate.” The President added, “I am anticipating a robust stakeholder process which will feature input from the gas utilities and other key stakeholders so that we might arrive at the best recommendations to enable the state to meet its clean energy goals.”

As part of the proceeding, the Governor’s Executive Order required the Board to consider the following:


  • Competitive market mechanisms to drive the lowest cost methods for reducing total greenhouse gas emissions associated with the natural gas sector, including but not limited to adoption of a “clean heat” standard that would allow natural gas public utilities to select from a suite of measures to meet emission reduction standards, which may include accelerated energy efficiency and peak demand reduction targets, enhanced building electrification targets, leak minimization, or other similar measures;


  • The need to ensure reliable operation and long-term financial viability of natural gas public utilities and the business model needed to keep the gas system intact while accounting for a shrinking customer base, including ensuring that gas distribution company growth assumptions and peak usage calculations factor into state decarbonization policies and minimize investment in new infrastructure so as to reduce risk of stranded asset costs;


  • Alternative programs and investments that could provide natural gas utilities with new revenue streams and promote good-paying jobs, including union jobs, such as the potential to convert existing pipeline infrastructure to provide decarbonized heating and cooling to New Jersey’s residents and businesses;


  • Elimination of subsidies that encourage unnecessary investment in natural gas infrastructure that is likely to result in stranded costs being passed on to customers;


  • Long-term impacts on residential and industrial customers who fail to or are unable to switch away from natural gas, with particular attention to the needs of and barriers faced by low-income customers, and ways to reduce barriers to transition, including rate design, incentive structuring, and pilot programs to accelerate infrastructure conversion;


  • Electric grid readiness to handle electrification of building heating and cooling, as well as transportation, including recommendations for shifting investment funding from natural gas to electric system infrastructure upgrades.


As an initial step in this proceeding, Board Staff will soon conduct a stakeholder process, including scheduling stakeholder meetings. The Board anticipates robust engagement with key stakeholders including organized labor and members of the public as this planning process moves forward, aimed at helping the State reach the Governor’s new goal of 100 percent clean energy by 2035.


About New Jersey’s Clean Energy Program (NJCEP)

NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is


About the New Jersey Board of Public Utilities (NJBPU) 

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at