Topic Category: Climate

Gov. Murphy’s NJ Transit Funding Proposal Would Put Agency Back on Track

Posted on by Alex Ambrose

Later today, Governor Murphy will announce the first-ever dedicated source of funding for NJ Transit: A new Corporate Transit Fee of 2.5 percent on corporations with more than $10 million in annual profit. The tax is a scaled-down version of the Corporation Business Tax surcharge on corporations with more than $1 million in annual profit. The new tax is estimated to generate $800 million in annual revenue. Last year, New Jersey Policy Perspective (NJPP) published a report on the benefits of using the corporate surcharge as a dedicated source of funding for NJ Transit, which remains the only transit agency of its kind without dedicated public funding. In response to the new proposal to fund NJ Transit, NJPP releases the following statement.

Alex Ambrose, Policy Analyst:

“It’s hard to overstate how big of a deal this is for transit riders and the state as a whole. The governor’s proposal would finally provide stable, dedicated funding to an agency that’s never had it, setting a strong foundation to protect NJ Transit now and in the future. This is exactly the type of thinking needed to get NJ Transit back on track, and it’s long past time that big corporations pay for the infrastructure that helps them generate their record-breaking profits. At the same time, we can’t forget that riders are staring down a potential double-digit fare hike, and the agency is still raiding its capital budget, so there’s a strong argument for bringing back the full corporate surcharge to spare commuters from shouldering that burden.”

Read NJPP’s report, Getting Back on Track: Fully Fund NJ Transit by Taxing Big Corporations.

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New Jersey’s Transition to Clean Energy Must Be Equitable

Posted on by Alex Ambrose

My name is Alex Ambrose, and I am a policy analyst with New Jersey Policy Perspective.
Thank you Chairman Smith and members of the committee for your leadership on this issue.

I want to start by emphasizing that clean must mean clean. Ensuring a strong definition will not only make NJ a national leader in the green economy, but it will also safeguard our environmental justice communities. Black and brown families suffer disproportionately due to our state’s over reliance on dirty energy.

There’s a concept called energy privilege. The Univ of California found that communities that oppose clean energy tend to be wealthier and whiter communities, while poor communities and communities of color bear the brunt of fossil fuel-based energy generation.

The transition to clean energy must be equitable—we must ensure that a privileged few do not dictate our energy policy, but that we center the lived experience of our environmental justice community leaders.

We lift up the amendments specified by ICC and NJEJA on the definition of clean electricity production facilities. This is essential to moving our state forward and achieving true equity in our state.

We also want to lift up the importance of having strong workforce development and labor provisions. I understand that there is a balance that needs to be struck in how much energy we purchase from out of state and how much needs to be generated in state. We support a provision that maximizes the in-state benefits of clean energy job creation.

It is essential that the co-benefits of the green economy reach New Jerseyans, especially those in Black and brown communities who have historically been excluded from the benefits of energy generation.

We appreciate your work on this bill and hope you will take these amendments into consideration to ensure the best possible future for all New Jerseyans. Thank you.

The Best Response to Congestion Pricing is to Improve and Expand NJ Transit

Posted on by Alex Ambrose

Earlier today, Governor Murphy announced a new lawsuit against the Federal Highway Administration for approving New York’s congestion pricing plan for vehicles entering downtown Manhattan. Congestion pricing is meant to decrease the number of cars entering Manhattan and incentivize the use of public transportation. The governor’s announcement comes days after the NJ Transit Board of Directors approved a new annual budget that fails to address an imminent $1 billion shortfall that could result in drastic service cuts and fare hikes. In response to this announcement, New Jersey Policy Perspective (NJPP) releases the following statement.

Alex Ambrose, Policy Analyst, NJPP:

“The best way to respond to New York’s congestion pricing plan is to improve and expand our own public transit systems here in New Jersey. Fully funding NJ Transit would be a far better use of taxpayer dollars than suing the federal government for a plan lawmakers have known about for years and did nothing to prepare for. The irony here is that congestion pricing will benefit New Jersey and New York alike by reducing traffic, reducing air pollution, and generating revenue for subways that residents of both states rely on. It’s easy to oppose congestion pricing to score political points, but this sort of lawsuit does nothing for the nine out of ten New Jersey commuters who already rely on mass transit to get to and from work everyday.”

NJ Transit Needs Dedicated Funding, Not Service Cuts and Fare Hikes

Posted on by Alex Ambrose

Tonight, the NJ Transit Board of Directors will vote to adopt the agency’s budget for Fiscal Year 2024. With no source of dedicated funding in the state budget approved last month, the proposed NJ Transit budget continues to raid the Clean Energy Fund and divert capital funds to cover operating expenses. As the agency predicts a nearly $1 billion budget deficit in the coming years, the Murphy administration has signaled that they will prioritize service cuts and fare hikes before they consider additional state funding. In anticipation of tonight’s vote to adopt the budget, and with no movement from state lawmakers to fully fund NJ Transit, New Jersey Policy Perspective (NJPP) releases the following statement.

Alex Ambrose, Policy Analyst, NJPP:

“State lawmakers are failing NJ Transit and the millions of residents who rely on the agency’s buses and trains. Without additional funding from the state, riders are looking at steep fare hikes and service cuts that will have them paying more for less frequent and less reliable service.

“While a post-pandemic budget shortfall is not unique to NJ Transit, it remains the only agency of its size in the country without dedicated funding. It’s not like the money isn’t there. Lawmakers are poised to give the biggest and most profitable corporations a $1 billion tax cut at the end of this year, even though these funds can and should be used to fund NJ Transit. Across the river, New York avoided drastic service cuts by increasing taxes on corporations that benefit from public transit, and there’s no reason New Jersey can’t do the same.”

 

The Biggest Threat to Whales is the Climate Crisis, Not Offshore Wind

Posted on by Alex Ambrose

Today, the Assembly Science, Innovation, and Technology Committee held a hearing on marine mammal deaths along the Atlantic Coast. The hearing follows months of fossil-fuel-funded groups, conservative politicians and media personalities, and celebrities like Snooki claiming, without evidence, that recent whale and marine mammal deaths are a result of offshore wind. In response to the hearing, New Jersey Policy Perspective (NJPP) released the following statement.

Alex Ambrose, Policy Analyst, NJPP:

“There is no evidence that anything related to offshore wind is harming whales or other marine mammals. There is, however, extensive evidence that the climate crisis will continue to harm not only whales but every resident of New Jersey, particularly those living near the shore and in communities hit hardest by fossil fuel pollution. New Jersey needs to continue the responsible development of clean energy to add good union jobs in the state and improve the health of our wildlife and our people.”

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Stop the Raids: The Clean Energy Fund Should Fund Clean Energy

Posted on by Alex Ambrose

The health and safety of every New Jersey resident is threatened by the state’s reliance on fossil fuels to power our homes, businesses, and transportation. Fossil fuels — such as gas, oil, and coal — account for a majority of carbon dioxide and greenhouse gas emissions, with a large percentage generated by energy produced for heat and electricity.[i] Air pollution and environmental toxins disproportionately harm New Jersey’s low–income families and residents of color, who are more likely to live and work closest to sources of pollution.[ii]

In recent years, state lawmakers and the Murphy administration have set ambitious goals to reduce emissions that will require a transition to alternative energy sources that are clean, affordable, sustainable, and reliable. Renewable sources of energy have many advantages to fossil fuels — they are abundant, increasingly cost-efficient, healthier, and create jobs — but they require investments in new technology and infrastructure. The state’s Clean Energy Fund, which is supported by a surcharge on monthly utility bills, is designed to support these investments in renewable energy, but the fund has been consistently raided by lawmakers to plug holes in the state budget. Since Fiscal Year 2010, lawmakers have raided nearly $2 billion from the fund, hampering the state’s ability to meet its clean energy goals, improve air quality, and mitigate against the worst harms of the climate crisis.[iii]

New Jersey’s Reliance on Fossil Fuels Threatens Public Health and Safety

Almost all of the energy consumed and produced in New Jersey comes from nonrenewable sources that pollute the air we breathe and the environment more broadly. In 2020, nearly 95 percent of energy consumed in the state came from nonrenewable sources, with nearly three-quarters of New Jersey families relying on natural gas as their primary heating fuel[iv]. In 2021, 90 percent of New Jersey’s energy production came from nonrenewable sources such as natural gas[v].

As a result of this overreliance on nonrenewable energy, New Jersey consistently ranks among states with the worst air quality in the nation, and this burden is not shared equally. People of color are significantly more likely to live in a county that received an ‘F’ on the American Lung Association’s most recent air quality report card than white people.[vi][vii] Air pollution cuts life expectancy by more than 2 years, and particulate matter poses a larger threat to human health than cigarettes.[viii]

Gas- and diesel-powered transportation are the biggest sources of air pollution in New Jersey, and natural gas and oil account for almost all of the state’s energy-related emissions.[ix][x] Natural gas leaks also release air toxins into the atmosphere which are linked to illnesses such as cancer.[xi]

The burning of fossil fuels and the resulting air pollution come at a severe cost to New Jersey families in regard to both their health and personal finances. In addition to the costs associated with treating illnesses linked to pollution, the prices of nonrenewable energy are on the rise, as exemplified by a recent double-digit rate increase by gas providers serving millions of residents across the state.[xii] A recent report from the New Jersey Board of Public Utilities found that gas energy prices may continue to rise, particularly for low-income families who cannot afford more efficient appliances and heating and cooling systems.[xiii] Investing in 21st century technologies that promote clean energy would not only reduce nonrenewable energy consumption and improve air quality, but also save families money in the short- and long-term.

The Clean Energy Fund: A Path to Funding New Jersey’s Clean Energy Future

New Jersey lawmakers recognize the threats associated with fossil fuels and the importance of transitioning to a clean energy economy. Since 2018, state lawmakers and the Murphy administration have set the following clean energy goals:

  • 50 percent of energy consumed must come from renewable energy sources by 2030,[xiv] and 100 percent of energy consumed must come from clean energy by 2050[xv]
  • 80 percent reduction in greenhouse gas emissions by 2050 (compared to 2006 levels)[xvi]
  • 100 percent of new NJ Transit bus purchases are electric by 2032[xvii]
  • 100 percent of state-owned light-duty vehicle (i.e. passenger car) sales are electric by 2032[xviii]
  • 11,000 MW of offshore wind production by 2040[xix]
  • 2,000 MW of energy storage by 2030[xx]

 

Meeting these clean energy targets will not happen on their own, however; they will require the right policies and funding mechanisms to steward the transition to a clean energy economy.

The Clean Energy Fund is New Jersey’s primary mechanism for financing clean energy investments and incentivizing the use of clean energy through the state’s Clean Energy Program. Established in 1999, the fund is supported by the Societal Benefits Charge on residential and commercial energy bills, which is set by the Board of Public Utilities and funds numerous social and clean energy programs.[xxi] In 2021, the fund collected more than $380 million in revenue to invest in clean energy, with the average customer paying less than $65 annually on their household electricity bill, and less than $63 annually on their gas bill, into the Societal Benefits Charge. [xxii][xxiii]

The Clean Energy Program primarily funds two types of investments: energy efficiency measures and renewable energy infrastructure. The energy efficiency measures provide funding for businesses and homeowners to retrofit existing buildings for clean energy technology and purchase more energy-efficient appliances. Investments in renewable energy infrastructure include support for solar technology, development of an offshore wind industry, creation of energy storage, and more.

The Clean Energy Fund is not as effective as it should be, however, as it has been raided for years by Republican and Democratic administrations alike. Since Fiscal Year 2010, lawmakers have raided the Clean Energy Fund to plug budget holes and finance line items unrelated to clean energy, such as state park maintenance and utility bills for state buildings. In total, lawmakers have raided $1.98 billion (in 2022 dollars) from the Clean Energy Fund.[xxiv] The diversions include $242 million under Governor Corzine, more than $1.2 billion under Governor Christie, and more than $533 million under Governor Murphy.[xxv]

While the Clean Energy Fund has been used to plug various budget holes over the years, the largest percentage of funds were diverted to NJ Transit operations. Public transportation is essential to a thriving New Jersey and deserves to be fully funded, but not at the expense of much-needed investments in clean energy. Ideally, NJ Transit would be funded through the state budget or a new, dedicated source of revenue, and the Clean Energy Fund would be used for its intended purpose. Lawmakers should not be robbing Peter to pay Paul.

In the FY 2023 budget, new language was added that states the Clean Energy Fund raids directed to NJ Transit can be used to pay for bus electrification and other clean energy projects.[xxvi] However, there is no mandate or guarantee that the funds will be used for those purposes. Since the funding is directed to NJ Transit operations, not capital projects, it is unlikely it will be invested in clean energy projects as the new budget language suggests. Until these raids end, New Jersey will continue to shortchange and delay its transition to a clean energy future.

End the Raids, Invest in New Jersey’s Future

There is no shortage of opportunities to use the Clean Energy Fund for its intended purpose, from electrifying NJ Transit’s bus fleet, to assisting low-income families with purchasing new energy efficient appliances and heating systems, to developing clean energy infrastructure. Investing in clean energy projects will reduce air pollution across the state, make energy more affordable for families, and create good-paying jobs in the burgeoning green energy economy. State lawmakers have already set admirable goals for the state’s clean energy future, now it’s time to stop raiding the Clean Energy Fund to make these goals a reality.

End Notes

Note:
In the context of this report, clean energy means any energy that does not produce greenhouse gas emissions. Renewable energy means any energy that uses a source like sunlight or wind that cannot be consumed or depleted.

[i]New Jersey Department of Environmental Protection, New Jersey Greenhouse Gas Inventory, December 2022. https://dep.nj.gov/wp-content/uploads/ghg/2022-ghg-inventory-mcu_final.pdf pages 3-4

[ii] American Lung Association, Disparities in the Impact of Air Pollution, 2022. https://www.lung.org/clean-air/outdoors/who-is-at-risk/disparities

[iii]Reported in 2022 dollars. NJPP Analysis of FY2010-FY2023 Appropriations Acts.

[iv]New Jersey State Profile and Energy Estimates, 2020. U.S. Energy Information Administration. https://www.eia.gov/state/?sid=NJ#tabs-1

[v]New Jersey State Profile and Energy Estimates. U.S. Energy Information Administration. https://www.eia.gov/state/?sid=NJ

[vi]American Lung Association, State of the Air Report Card Key Findings, 2022. https://www.lung.org/research/sota/key-findings

[vii]NJ Spotlight News, Air quality worse for communities of color, 2022. https://www.njspotlightnews.org/2022/04/air-pollution-ozone-particle-pollution-communities-of-color-american-lung-association/

[viii]Air Quality Life Index, Pollution Facts. https://aqli.epic.uchicago.edu/pollution-facts/

[ix]New Jersey Department of Environmental Protection, Bureau of Mobile Services. https://dep.nj.gov/stopthesoot/

[x]U.S. Energy Information Administration, State Energy-Related CO2 Emission Data Tables. https://www.eia.gov/environment/emissions/state/excel/table2.xlsx

[xi]Environmental Protection Agency, Basic Information about Oil and Natural Gas Air Pollution Standards. https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/basic-information-about-oil-and-natural-gas

[xii]NorthJersey.com, NJ heating bills in line for double-digit increases after state OKs big rate hikes, 2022. https://www.northjersey.com/story/news/2022/09/08/nj-natural-gas-bills-approved-hikes-pseg-njng/66934128007/

[xiii]New Jersey Energy Master Plan Ratepayer Impact Study, August 2022. https://nj.gov/bpu/pdf/reports/2022-08-13%20-%20BPU,%20EMP%20Ratepayer%20Impact%20Study%20Report_PUBLIC_Brattle.pdf#page=6

[xiv]N.J. Stat. Sec. 48:3-87.8. (d)(2) 2022. https://pub.njleg.gov/bills/2018/PL18/17_.HTM

[xv]Executive Order No. 28, 2018. https://www.nj.gov/infobank/eo/056murphy/pdf/EO-28.pdf

[xvi]N.J. Stat. Sec. 26:2C-38.2. 2022. https://pub.njleg.state.nj.us/Bills/2018/PL19/197_.PDF

[xvii]N.J. Stat. Sec. 48:25-3a.(9)(b). 2022. https://pub.njleg.gov/bills/2018/S2500/2252_U2.PDF

[xviii]N.J. Stat. Sec. 48:25-3a.(8)(b). 2022 https://pub.njleg.gov/bills/2018/S2500/2252_U2.PDF

[xix]Executive Order No. 307, 2022. https://nj.gov/infobank/eo/056murphy/pdf/EO-307.pdf#page=5

[xx] N.J. Stat. Sec. 48:3-87.8. 1(d). https://pub.njleg.gov/bills/2018/PL18/17_.HTM

[xxi]N.J. Stat. Sec. 48:3-60.12a. 2022. https://www.njcleanenergy.com/files/file/23_.pdf

[xxii]Reported in 2022 dollars. New Jersey Board of Public Utilities Response to Office of Legislative Services Budget Analysis, Fiscal Year 2022. https://pub.njleg.state.nj.us/publications/budget/governors-budget/2023/BPU_Response_2023.pdf#page=7

[xxiii]Reported in 2022 dollars. NJPP Analysis of New Jersey Board of Public Utilities Response to Office of Legislative Services Budget Analysis, Fiscal Year 2022. https://pub.njleg.state.nj.us/publications/budget/governors-budget/2023/BPU_Response_2023.pdf#page=8

[xxiv]Reported in 2022 dollars. NJPP Analysis of FY2010-FY2023 Appropriations Acts.

[xxv] Reported in 2022 dollars. NJPP Analysis of FY2010-FY2023 Appropriations Acts.

[xxvi]New Jersey Office of Management and Budget, FY 2022 Appropriations Act, 2021. Page 187, lines 44-48. https://www.nj.gov/treasury/omb/publications/23bill/AppropriationsAct.pdf

New Jersey Must Prepare for the Next Big Storm

Posted on by Alex Ambrose

My name is Alex Ambrose, and I’m the Transportation and Climate Policy Analyst with New Jersey Policy Perspective. Thank you Chair Karabinchak, Chair Kennedy, and members of both committees for the opportunity to speak today.

It is past time the state takes action to secure the safety and wellbeing of our families, small business, and overall economic security. This month, we honor the people who lost their lives in the deadliest storm in NJ history. Not coincidentally, we also just passed the one-year anniversary of the second deadliest storm event, Ida. As someone who comes from a family of first responders, I saw firsthand the danger frontline workers face during these disasters.

Fortunately, New Jersey is poised to be a leader in storm resiliency.

First, we need to stabilize our current energy portfolio by reducing emissions, investing heavily in public transportation, elevating New Jersey union jobs in exciting new sectors like offshore wind and solar, and modernizing our grid. This will require a Clean Energy Jobs bill that will add not just jobs, but careers in our state and uphold local standards for craftsmanship.

Second, we need to end the diversion of Clean Energy Funds started by Governor Christie and continued in this administration. Spending the funds as they are intended opens up more funding for projects that create a better and more resilient state.

Third, we need to give the DEP full authority to regulate flooding on residential properties. As it stands right now, that authority is unclear and would best be affirmed with a legislative fix.

Finally, we ask you to join us in calling on the Murphy Administration to release the flood zone rules and NJ PACT rules promised nearly three years ago. These rules will ensure new development does not put families and small businesses in harm’s way just so a developer can make a profit. We need more housing in our state, and we need to make sure we don’t repeat our past mistakes and wake up the day after a storm to headlines of people drowning in their own apartment. It is time to stop looking to the past for planning where to build and instead to plan for the future.

I grew up in a house that was built in a 500-year flood zone. One of my earliest memories is my father carrying my family through the waist-deep waters of Hurricane Floyd. We were fortunate enough to make it to my grandparents’ house nearby before we faced imminent peril. There are too many New Jersey residents who have not been so fortunate.

For too long, our state has been exploited by corporations prioritizing profits over people. We deserve a New Jersey that values people over polluters. After Sandy, the motto said, “We are stronger than the storm.” I posit that we are also smarter than these storms. It is not a matter of if the next storm comes–it’s when. Let’s be proactive now and plan for that future. Thank you.

Offshore Wind Benefits New Jersey in More Ways Than Meeting Climate Goals

Posted on by Alex Ambrose

My name is Alex Ambrose and I’m a policy analyst with New Jersey Policy Perspective. Thank you for the opportunity to speak today.

New Jersey Policy Perspective fully supports Ocean Wind 1 moving forward as quickly as is feasible and safe. We need clean energy to mitigate the worst effects of climate change, and without offshore wind, we will not be able to meet those clean energy goals. There is no doubt that climate change is one of the biggest known threats to our wildlife and our environment, and we are already seeing those effects on our oceans with sea level rise and ocean acidification. New Jersey is uniquely situated to not only be on the front line of the worst effects of sea level rise; we are also on the verge of becoming a national leader in offshore wind.

The offshore wind sector is the biggest job creator in the US’s energy economy, and is one of the best ways we have to meet our climate goals while keeping good-paying jobs in New Jersey.

There is no doubt climate change has already caused irreversible effects to New Jersey’s people and environment, and clean energy projects such as this are one of the best ways to mitigate those effects. Every day we delay these projects, we are letting the real threat to wildlife–climate change–take more than the already 3 billion birds that have disappeared and endanger more than the 1 million species of plants and animals threatened due to a rapidly changing environment.

Offshore wind sits at the intersection of protecting our shore tourism, preserving wildlife, creating local jobs, improving public health, and addressing long-standing inequities for overburdened communities. I look forward to seeing this project move forward with the environmental guardrails outlined in the proposal to ensure the net benefits are maximized for this essential clean energy resource. Thank you.