M E M O R A N D U M

TO: Members of the Assembly Environment and Solid Waste Committee

FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                        A-577 (Karabinchak/Greenwald/Munoz)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to voice our support for A-577 (Karabinchak/Greenwald/Munoz) which directs the Board of Public Utilities (BPU) to establish a program concerning renewable natural gas and provides gas public utilities with a customer rate recovery mechanism for costs associated with the program.

As written, bill directs the BPU to establish a program to encourage the procurement of renewable natural gas and investment in renewable natural gas (RNG) infrastructure by a gas public utility and establishes portfolio targets for the distribution of renewable natural gas to the utility’s retail natural gas customers in the State, for energy years 2022 through 2050.

This bill would promote the expansion these new environmentally responsible fuels while also maximizing the use of existing natural gas infrastructure. RNG and green hydrogen are new fuels that can utilize the existing natural gas infrastructure within the state while reducing carbon emissions. RNG is chemically identical to geologic natural gas, and is derived from landfills, sewerage treatment plants, and farms. Green hydrogen is created by applying electricity to water and breaking the H20 molecule into its component parts. The hydrogen gas can then be blended into the natural gas distribution system and consumed as a fuel like natural gas is today. When solar or wind power is used to generate the electricity used in the process, the hydrogen fuel produced by this process is 100 percent emission free.

CCSNJ believes that RNG and green hydrogen can assist the State in achieving it’s emissions goals. Additionally, because these fuels will use the existing natural gas distribution infrastructure, the good paying jobs in that industry will be preserved. Where existing geologic natural gas is sourced exclusively from outside New Jersey, RNG and hydrogen production can be sourced right here in New Jersey. This can spur additional jobs and economic development for the state with the construction of RNG and hydrogen production equipment.

For these reasons, CCSNJ respectfully urges you to support A-577 (Karabinchak/Greenwald/ Munoz).