Murphy’s ‘next 6 big steps’ to combat climate change elicit praise, pushback

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“It’s time to change our mindset from simply being ‘Stronger than the Storm’ to being ‘Smarter than the storm,’” Gov. Phil Murphy said Feb. 15 during a speech at Rutgers University, where he laid out steps to combat climate change in New Jersey, including an accelerated timeline of previously announced goals and targets.

The “Clean Energy & Jobs to Power the Next New Jersey” speech outlined six steps, which include three executive orders, that Murphy said will serve as the foundation for a cleaner, greener, and more resilient New Jersey.

“After many months of stakeholder conversations and policy planning, we are ready to take the next six big steps in our fight against climate change,” said Murphy. “Now, let me make one thing perfectly clear at the outset before the right-wing meme-makers go off. No one is coming for anyone’s gas stove. No one is walking into anyone’s kitchen. No one is going to be forced to do anything, in any way.”

The six steps Murphy outlined are:

• An accelerated target of 100% clean energy by 2035, defined as 100% of the electricity sold in the state coming from clean sources of electricity by Jan. 1, 2035, through clean energy market mechanisms, paired with support for a Clean Energy Standard in New Jersey — adopted through Executive Order No. 315
• Targeting installation of zero-carbon-emission space heating and cooling systems in 400,000 homes and 20,000 commercial properties, and making 10% of all low-to-moderate income (LMI) properties electrification-ready by 2030 — adopted through Executive Order No. 316
• Initiating a process in partnership with the state’s hometown utilities, key stakeholders including organized labor, and the New Jersey Board of Public Utilities (NJBPU) to plan for the Future of the Natural Gas Utility in New Jersey — adopted through Executive Order No. 317
• Allocation of $70 million in unobligated Regional Greenhouse Gas Initiative (RGGI) auction proceeds toward lowering consumer upfront costs for medium- and heavy-duty EV adoption
• Initiation of the stakeholder process to adopt Advanced Clean Cars II in New Jersey, which would require all new cars and light-duty truck sales to be zero-emission vehicles (ZEV) by 2035
• Anticipated proposal of the NJ PACT REAL rules in summer 2023, which will provide enhanced flood protection for homeowners, businesses and infrastructure against increased flooding in riverine and coastal areas

“These bold targets and carefully crafted initiatives signal our unequivocal commitment to swift and concrete climate action today,” said Murphy. “We’ve turned our vision for a greener tomorrow into a responsible and actionable roadmap to guide us, and it’s through that pragmatic, evidence-based approach that we will ultimately arrive at our destination. Combined with our federal partnerships reinforced through the Inflation Reduction Act, 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.”

This subject has been a lightning rod both in terms of support, opposition and those who are in favor of the broader goals, but concerned with the how and cost. Wednesday’s announcement continued that trend.

‘A blueprint for progress’

In a release from Murphy’s office, a number of leaders, stakeholders and activists offered their full-throated support for the steps the governor laid out.

“The climate change impacts we are already experiencing in our state demand that we take innovative, decisive action today to give future generations of New Jersey residents a chance at a good quality of life,” said Lt. Gov. Sheila Oliver. “Our deep affection for New Jersey and the people who call it home propel us to adopt policies and launch programs that help us address and adapt to the realities of climate change.”

“Today’s commitments prove that we are fortifying our state’s resilience with more focus than ever before,” said Jane Cohen, executive director of the Governor’s Office of Climate Action and the Green Economy.

“Gov. Murphy’s new goal of 100% clean energy by 2035 is 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 as one of only two states plus the District of Columbia with a 100% clean energy goal in the 2030s,” said NJBPU President Joseph Fiordaliso.

“The Department of Environmental Protection (NJDEP) looks forward to engaging routinely with residents and stakeholders as we take further steps to reduce and respond to the increasing impacts of climate change that are adversely affecting our state,” said NJDEP Commissioner Shawn LaTourette.

“These bold, transformative initiatives will help safeguard our environment, improve the health of New Jerseyans, and secure our economic future.”
— Tim Sullivan, CEO, New Jersey Economic Development Authority

“These bold, transformative initiatives will help safeguard our environment, improve the health of New Jerseyans, and secure our economic future,” said New Jersey Economic Development Authority (NJEDA) CEO Tim Sullivan. “The steps announced today will bolster our transition to 100% clean energy and create high-quality, good-paying jobs now and in the years to come.”

Support also came from outside of the administration.

“We are 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,” said Ed Potosnak, executive director of the New Jersey League of Conservation Voters.

In a separate statement, state Sen. Bob Smith, D-17th District, and chairman of the Senate Environment and Energy Committee, welcomed Murphy’s support of his clean energy goals, some of which are reflected in the updates, and praised the governor for embracing these other initiatives.

“This plan will put us on the path to achieve the goals of a clean energy economy that is critical for the environment, protects public health and supports the growth of job-creating, clean energy businesses,” said Smith. “It’s a blueprint for progress that will help New Jersey make a smooth transition to clean, renewable sources of energy as we build a stronger economy.”

Going to extremes?

Meanwhile, Republicans in the Senate and Assembly immediately blasted the plan.

“Gov. Murphy’s green energy plan is extreme, expensive, and totally unrealistic,” said Senate Republican Leader Steve Oroho, R-24th District. “It seems the governor was serious when he said he wants to turn New Jersey into the California of the East Coast. Somebody should tell him that’s not a good thing when people and businesses are fleeing California in droves as the Golden State declines under liberal policy failures.”

“Gov. Murphy’s original goal of forcing New Jersey to go all electric by 2050 was unrealistic at best, but his new 2035 target is nuts,” said Sen. Anthony Bucco, R-25th District. “If the cost of his extreme energy plan was $1.4 trillion before, I can’t even imagine what it’ll cost to convert in less than half the time. It’ll be an absolutely astronomical financial burden for homeowners, businesses, and taxpayers.”

“Murphy’s ‘next New Jersey’ should be called ‘exit New Jersey,’ because that is exactly what will happen when you limit energy sources and drive up costs,” said Assemblymen Parker Space and Hal Wirths, both R-24th District. “Murphy is carelessly charging ahead with more aggressive green energy mandates without accounting for costs or grid stability. In an attempt to score political points with his progressive base, he is jeopardizing good jobs and burdening New Jersey taxpayers.”

“Murphy’s ‘next New Jersey’ should be called ‘exit New Jersey,’ because that is exactly what will happen when you limit energy sources and drive up costs.” — Assemblymen Parker Space and Hal Wirths

Ray Cantor, deputy chief of government affairs for the New Jersey Business & Industry Association (NJBIA), said their concern is about the costs and logistics of an even shorter transition timeline.

“There is nothing wrong with trying to reduce carbon emissions and we support cleaner energy, as well as the opportunity to create jobs,” said Cantor. “But in mandating an energy transition in such a short time range, we should know – from the start – what the overall, actual costs will be for New Jersey residents or the feasibility of such aspirational goals.”

“Regarding achieving 100% clean energy status by 2035, New Jersey’s current Energy Master Plan set that status for 2050 without any real answers over the course of years as to actual costs or feasibility,” Cantor continued. “As a basic premise, our decarbonization goals should not be looked at from one side of the ledger. The fossil fuels that the EMP seeks to fully replace are the basis of New Jersey’s and the world’s energy supply, using infrastructure that has been built up for over a century. The all-electrification policies the administration seeks ignores or discounts other options for carbon reduction that will develop over time, such as hydrogen, renewable natural gas and other emerging technologies. While we support our wind and solar industries, we cannot decarbonize our electricity sector by renewables alone.”

Michael Egenton, executive vice president, Government Relations, for the New Jersey Chamber of Commerce, echoed the concerns about the feasibility and costs of such a rapid transition.

“Our stance has always been that we need a reliable, safe, reasonably priced and environmentally-sound energy supply, which is going to be essential for New Jersey’s economic progress,” Egenton told NJBIZ. “The state chamber essentially supports a balanced approach toward achieving those goals, that doesn’t depend or rely on one technology, one fuel source, or overburdening one segment of the economy or group of energy consumers.”

Egenton said the chamber wants everything on the table in terms of achieving that reliable, safe, reasonably priced and environmentally-sound energy supply, which he adds are essential components to continue growing the economy and businesses here in the Garden State.

“We want to make sure that we continue natural gas and continue nuclear, that we support solar and wind, as we move into electrification,” said Egenton. “But, again, we need to know what the realistic, not only expectations, but delivery of these lofty goals are, and that our energy providers can meet those goals within a reasonable amount of time. And if they say they can’t, then the state and federal government need to work with these folks.”

New Jersey Utilities Association (NJUA) President and Chief Executive Officer Rich Henning said his group and member companies support the ultimate goal of making New Jersey a clean energy state, in taking action to combat climate change, and looking for innovative ways to deliver renewable energy to millions of state residents.

But he said we need to make sure these goals and plans can be done in a responsible manner that does not financially devastate the customers his members serve.

“We know that energy grids across the country have buckled under the weight of heightened clean energy mandates. We have seen issues arise when good intentions are not matched by proper planning. We cannot let that happen here in New Jersey,” said Henning. “The consequences would be devastating to any long-term renewable energy goals. New Jersey must create and implement more options to provide renewable energy. Those options, however, need to be part of a comprehensive, all-inclusive plan that outlines the cost, the requirements, and the realities of overhauling our electric grid and the manner we provide energy. Our members stand ready and willing to take a leadership role in defining how we move forward.”

“We know that energy grids across the country have buckled under the weight of heightened clean energy mandates. We have seen issues arise when good intentions are not matched by proper planning. We cannot let that happen here in New Jersey.”
— Rich Henning, president and CEO, New Jersey Utilities Association

Eric DeGesero, executive vice president of the Fuel Merchants Association of New Jersey – which has opposed boiler electrification mandates, an issue extensively covered by NJBIZ – released the following statement in response to Murphy’s announcement: “After years of secrecy surrounding Strategy Four of the 2020 Energy Master Plan, we’re gratified to hear Gov. Murphy announce that no homeowner or business will be mandated to switch their appliances or operating systems to electric heat. For the 85% of New Jerseyans who heat with natural gas, heating oil, or propane and all taxpayers, this is a surprise and welcome relief.

“However, in order to fully achieve clean energy goals, the Murphy Administration and the Legislature need to include all energy options on the table, not just electrification,” said DeGesero. “Focus should now shift to the most cost-effective way to decarbonize the incumbent fuels to those of the future. Finally, we urge the governor and Legislature to seriously consider the cost to every New Jersey business and family when implementing these clean energy policies, with full transparency provided to taxpayers.”

Murphy acknowledged that these steps will take a lot of work, communication and collaboration to achieve, but said that his administration is not giving lip service to climate change, and instead are actively engaged in the fight to transform our energy infrastructure.

“The ultimate goal of every New Jerseyan is to leave to their kids and to future generations a state that is better than the one in which we currently live. That’s my goal, too,” said Murphy. “And it’s a goal we can achieve by tapping into our offshore wind, our sun, and into clean forms of energy still being researched to produce our own, home-grown electricity more affordably and more independently.”

He said it is a goal that can be achieved by supporting the new jobs the clean-energy industry can create, and by leaning into partnerships with the federal government and the private sector.

“But to get to this future, we must begin building these opportunities today,” said Murphy.