Gov Will Sign Nuclear Bill Package That Sells Out Clean Energy

Governor Murphy will sign a package of bills later today that will simultaneously give nuclear power a corporate subsidy and undermine our efforts for renewable energy in New Jersey. The Nuclear Subsidy S2313 (Sweeney)/ A3724 (McKeon), Solar renewable energy standards-modify S2314 (Sweeney)/ A3723 (McKeon), and Wind Energy Project Offshore Application S1217 (Sweeney)/ A2485 (Mazzeo) were originally one bill but then turned into three.

“Governor Murphy will shamefully sell out ratepayers and clean energy in giving PSEG the biggest corporate subsidy in state history: $300 million a year. This bill package will mean New Jersey stays hooked on nuclear power at the expense of renewables like solar and wind. It will essentially block our efforts to get to 100% renewable energy and will lead to a crash in our solar market. The so-called green bill was created as cover for this nuclear giveaway and the wind project that doesn’t really give us any wind,” said Jeff Tittel, Director of the New Jersey Sierra Club. “It’s incredulous that they’re holding their bill signing at a solar farm considering that the bill will end NJ’s solar program and crash the market a year from now. These laws will move us backwards with clean energy and are a complete contradiction to Murphy’s campaign promises for renewables and a green economy.”

Nuclear Subsidy Bill S2313 (Sweeney)/ A3724 (McKeon) directs the Board of Public Utilities (board) to establish a Zero Emission Certificate (ZEC) program. Under the bill, a ZEC is a certificate, issued by the board or its designee, representing the fuel diversity, air quality, and other environmental attributes of one megawatt-hour of electricity generated by an eligible nuclear power plant selected by the board to participate in the ZEC program, Jeff Tittel, Director of the New Jersey Sierra Club released the following statement:

“This is a $3 billion subsidy for PSEG’s nuclear plants that don’t need the money. They’re signing the bill earlier in the day before PJM releases the auction results. If the plants make auction to be profitable by 2024, they don’t need the subsidy, but this bill has already been signed so they get it anyway. They can also double dip and get federal aid through FERC or the PJM. Ratepayers will be paying $3 billion in 10 years but it could go beyond that. We will be ignoring in-state renewable energy that makes us cleaner and builds a green economy. This is a shameful bill that forces New Jersey to align with nuclear energy at the expense of renewables such as solar and wind.”

“The legislation requires consumers have to buy 40% of electricity coming from nuclear power plants. The bill does not have a sunset provision, so this can go on indefinitely. If we have to buy 40% of our electricity from nuclear, we will never get to Governor Murphy’s 100% clean energy renewable goals. Next year, when Oyster Creek Nuclear Plant closes, NJ will only be producing 31% of our power by nuclear. This means we’ll have to go out-of-state to get enough power to reach the 40%. If we expand more natural gas power plants, we’ll end up buying even more out-of-state nuclear power to make up for it. Just like nuclear waste, this is forever. Putting out all this hot air to defend the indefensible, saying that this will reduce greenhouse gasses when it won’t. In reality, the nuclear subsidy will hurt renewable energy.

“The new nuclear bill still does not guarantee the financial transparency needed to ensure ratepayers won’t subsidize profitable nuclear plant. It also does not have language for replacing the plants when they close with renewables. This means that when the plants close, they can be replaced with natural gas. Murphy opposed this sell-out before he became Governor but is now supporting the subsidy. This bill is bad for the environment, the ratepayers, and the workers. This is all about helping PSEG’s bottom line.”

Solar renewable energy standards S2314 (Sweeney)/ A3723 (McKeon): Establishes and modifies clean energy and energy efficiency programs; modifies State’s solar renewable energy portfolio standards. Jeff Tittel, Director of the New Jersey Sierra Club, released the following statement:

“This so-called ‘green’ energy bill is nothing but cover for the nuclear subsidies. It was created to fool the public into thinking New Jersey would have strong renewable energy goals in the light of the nuclear giveaway. In reality, this bill completely undermines and even blocks clean energy. This bill ties us to 40% nuclear energy, which means we’ll never be able to reach 100% renewable energy by 2050. This is a fraud that actually works against renewable energy in the long-run and keeps us hooked on nuclear power instead.

“There is no cap for coal, oil, gas, pipelines, or nuclear but this bill unfairly targets renewable energy by placing a cap on it, limiting the amount of renewable energy we can use in the state. Our concern is the cost of solar SREC program, which have been analyzed to take up 6% of the cap, whether it’s a 7% or 9% cap. The reason why we will not reach our renewable energy goals is because OLS says that in 2020 the cost of our RPS will exceed the cap by $280 million. This means the BPU will set aside the Renewable Portfolio Standard for that year. This leaves no room for New Jersey to move forward to meet targets of the Renewable Portfolio Standard (50% by 2030).

“A year after signing this bill, the solar program will end. Despite once being a leader in the country for solar power, our state solar market will collapse completely, no longer accepting applications for solar projects. This could lead to the bankrupting of countless renewable energy projects. This is a clean energy disaster that will put a wrench in our plays to make New Jersey cleaner and greener. This bill is an undermined way to block renewable energy at the expense of the ratepayers.

Wind Energy Project Offshore Application S1217 (Sweeney)/ A2485 (Mazzeo): BPU consideration and approval of amended application for qualified wind energy project offshore in certain NJ territorial waters. Jeff Tittel released the following statement:

“Fisherman’s Energy is a small wind project that’s been kicking around for more than a dozen years. This project was merely approved as green cover for the nuclear subsidy bill. Our concern is that it will interfere with the proper process for offshore wind projects. We’re also concerned that the time and energy spent on this project will stop us from moving forward with larger, more efficient projects. We need to focus on putting together programs and mechanisms to get the 1100 MW built further off the coast. This will help make our long-term goals a reality. Our concern is that if the project becomes too expensive or has environmental impacts because it’s too close to shore, it could also undermine public support for the larger offshore wind projects.”