During the first term of New Jersey Governor Phil Murphy, his administration announced ambitious plans both to reduce emissions of greenhouse gases responsible for climate change and to change land use rules to mitigate the effects of rising sea levels and other effects of climate change. The State dubs this initiative “NJ PACT—New Jersey Protecting Against Climate Threats.”
On December 6th, in the waning days of Murphy’s first term and before the start of his second term, the New Jersey Department of Environmental Protection (NJDEP) proposed its most significant set of NJ PACT regulations to date, which focus on limiting emissions of carbon dioxide (CO2) from stationary sources. The proposed rule has three parts. First, it places emissions limits on CO2 from electric generating units (EGUs), i.e., the combustion or steam-generating equipment that generates electricity at power plants. These limits will become more stringent over time. Second, it creates a regulatory presumption that certain large boilers fired by fossil fuels should be replaced by electric boilers when they reach the end of their useful lives. Finally, the rule bans the sale and use of No. 4 and No. 6 fuel oil in New Jersey. This rule, each portion of which is described in more detail below, will have a significant impact in the coming years. Various elements of this wide-ranging rule will impact diverse industries, including energy, manufacturing, commercial real estate, education, and healthcare, to name a few. Parties that may be affected by the restrictions should consider whether to comment on the proposed rule or even start to plan for potential operational impacts of new regulation.
Posted December 20, 2021