New Jersey Department of Environmental Protection (NJDEP) Commissioner Shawn M. LaTourette and New Jersey Board of Public Utilities (NJBPU) President Christine Guhl-Sadovy recently presented their respective budgets before the Legislature.
New Jersey Department of Environmental Protection
NJDEP is tasked with a multitude of responsibilities including overseeing statewide environmental governance through the divisions of Water Resource Management, Air Quality Energy and Materials Sustainability, Contaminated Site Remediation & Redevelopment, Watershed & Land Management, Community Investment & Economic Revitalization, State Parks Forests & Historic Sites, and Fish & Wildlife.
In the Governor’s FY 2025 budget proposal, NJDEP is positioned to receive $491.35 million, a $21.6 million decrease from last fiscal year’s budget of $513.95 million. This reduction reflects the elimination of certain one-time, non-recurring appropriations, as well as reductions to other grant-in-aid and capital appropriations. NJDEP’s operational budget, however, would see a slight increase over its enacted FY 2024 budget under the Governor’s proposal.
In the last few years, the department has been focused on improving water quality and infrastructure. NJDEP’s Water Bank, a partnership between the department and the New Jersey Infrastructure Bank, has facilitated drinking water and wastewater system improvements across New Jersey, including projects to replace lead service lines and improve flood mitigation through storm water and wastewater conveyance upgrades. NJDEP expects investments will exceed $850 million by the close of the fiscal year. These investments will offer regulatory modernization and enforcement initiatives.
NJDEP is simultaneously focused on building a state parks legacy, as affirmed by the recent creation of the State Parks and Open Space Foundation. The primary focus includes ongoing efforts to revitalize Liberty State Park (LSP) in Jersey City and to commence the development of the Essex Hudson Greenway. To support the near-term improvements in LSP, Governor Murphy proposes an allocation of approximately $35 million to NJDEP from the Debt Defeasance and Prevention Fund.
The Essex Hudson Greenway, acquired in 2022, spans eight municipalities in Essex and Hudson Counties (Montclair, Glen Ridge, Bloomfield, Belleville, Newark, Kearny, Secaucus, Jersey City). The first phase will focus on mile-long sections in Newark and Kearny with expected costs to exceed $100 million. Regarding phase two, NJDEP is preparing a master plan process for the full nine miles of the Greenway, including potential development phases, cost estimates, and recommendations for development sequencing.
The Murphy Administration continues to emphasize the importance of vehicular and fleet electrification. In 2022, Governor Murphy signed into law the Electric School Bus Program to provide funding, over three years, to replace diesel school buses with battery-electric school buses and to install charging infrastructure. To date, only year one has been appropriated and the department is undergoing a solicitation process to collect feedback on the preliminary design of the program. As it pertains to electric vehicle (EV) efforts, the department is prioritizing the funding of projects on the EV charging station grant program waitlist (as the program has been oversubscribed since its inception in 2016), as well as focusing on the charging needs for medium and heavy-duty vehicles. NJDEP continues to work closely with NJBPU and other stakeholders on strategic analysis for the funding and placement of charging hubs.
Additionally, NJDEP formally adopted the Advanced Clean Cars II (ACCII) proposal in December 2023. This adoption requires vehicle manufacturers to ensure that by 2027, their vehicle production volume contains 43% zero-emission vehicles. That percentage then increases each year, peaking at 100 percent in 2035. While the intention is to reduce the state’s greenhouse gas emissions, it is important to simultaneously consider the practical impacts of ACCII and its imminent impact.
New Jersey Board of Public Utilities
Implementation of the Clean Energy agenda continues with expansion of $300 million in federal clean energy grants received to date, and $156 million received through the Solar for All award ensuring access to solar energy. Ensuring access to essential services regardless of income level remains a paramount objective for NJBPU.
NJBPU is in the process of updating the Energy Master Plan to optimize clean energy goals, while ensuring access to clean energy programs. NJBPU also touted the establishment of the permanent Community Solar Energy Program, ensuring 225 megawatts of new solar projects which would result in 30,000 subscribers receiving bill savings. NJBPU recently awarded the third offshore wind solicitation, procuring 3700 megawatts of capacity from two developers, expected to generate $6.8 billion in economic benefits to New Jersey. The fourth offshore wind solicitation is now open to help continue to reach these goals, which could create thousands of jobs to position the East Coast as a clean energy hub.
The Office of Broadband Connectivity continues its efforts to expand access to high internet access. Collaboration with federal partners continues in securing funds, including $300 million through the National Telecommunications and Information Administration, to sustain infrastructure development and make sure broadband is accessible and affordable for all. The modernization of the electric grid remains a crucial aspect of achieving New Jersey’s energy goals. Recently, a grid modernization rule proposal was approved to streamline the process for utility interconnection and require clearer and consistent information systems. Please contact a member of the McCarter Government Affairs team with any questions or to learn more about the NJDEP and NJBPU budget proposals.
Please contact a member of the McCarter Government Affairs team with any questions or to learn more about the NJDEP and NJBPU budget proposals.