Coalition Calls on Legislative Leadership to Stop Electrification Mandates

On Sep 12, 2022

With the first round of NJDEP regulations set to take effect on Dec. 6, a diverse coalition of 24 business and labor organizations, including the New Jersey Business & Industry Association, sent a letter to Senate President Nick Scutari and Assembly Speaker Craig Coughlin calling on the Legislature to halt Gov. Phil Murphy’s building electrification mandate until a full analysis of costs can be developed.

The letter states:

“Unfortunately, the electrification of the building sector is not only expensive, but is moving forward without Legislative authorization. The first regulation mandating building electrification will be acted upon in less than 90 days.

“The NJDEP has stated it will cost 4-5 times more to heat buildings with electricity as opposed to natural gas. Additionally, the NJDEP did not provide the cost estimate to convert a building’s electrical system so it can run an electric boiler of that size. Compliance with this regulation will lead to significant increases in rents, property taxes, and grocery bills, at a time when the Legislature is focused on reducing these costs.”

Cost estimates to replace a 1.5 MMBTU gas boiler with an electric boiler begin at an estimated $2 million, when including the retrofitting of the building and conversion of the electrical system.

Currently, there are approximately 1500 apartment buildings, 1500 K-12 public schools, 1200 commercial, industrial, and manufacturing facilities, 195 county government buildings, and 143 auto body shops, in addition to religious facilities and other buildings that would be impacted by the NJDEP’s pending boiler regulations.

Governor Murphy has not sought input from lawmakers on the electrification mandate of the building sector, which is moving forward with out legislative authority.

“We respectfully request that both the Senate and Assembly engage in the building electrification policy by consideration of these bills or through alternative means,” the letter continued.

Pending legislation, S-2671 (Gopal) and A-3935 (Moriarty), would halt the building electrification mandate until a full analysis of costs can be developed.

The attached letter was signed by the following organizations:

• Air Conditioning Contractors of New Jersey
• Alliance of Auto Service Providers – NJ (auto body shops)
• Associated Builders and Contractors – NJ
• Chamber of Commerce Southern New Jersey
• Chemistry Council of New Jersey
• Commerce and Industry Association of New Jersey
• Engineers Labor-Employer Cooperative (ELEC 825)
• Fuel Merchants Association of New Jersey
• International Brotherhood of Boilermakers Local 28
• International Union of Operating Engineers Local 825
• Meadowlands Chamber
• Mid-Atlantic Hearth, Patio and Barbecue Association
• NAIOP – NJ
• National Federation of Independent Businesses – NJ
• New Jersey Apartment Association
• New Jersey Builders Association
• New Jersey Business and Industry Association
• New Jersey Chamber of Commerce
• New Jersey Concrete and Aggregate Association
• New Jersey Jewish Business Alliance
• New Jersey Pipe Trades
• Local 9
• Local 24
• Local 274
• Local 322
• Local 475
• Local 692
• Local 696
• Local 855
• New Jersey State League of Master Plumbers
• Plumbing Heating Cooling Contractors – NJ
• Utility & Transportation Contractors Association – NJ

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