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Ruiz Bill To Support Energy Efficiency Through Development Of Combined Heat And Power Grant Program Clears Senate

Senator M. Theresa Ruiz listens to testimony during the Senate Budget and Appropriations Committee hearing.
M. Teresa Ruiz News & Releases

TRENTON – A measure sponsored by Senator Teresa Ruiz which would create a grant program to encourage the use of Cogeneration/Combined Heat and Power (CHP) received final legislative approval today by the full Senate by a vote of 31 to 6.

Under the bill, CHP is defined as the use of a combined heat engine or a power station to simultaneously generate both electricity and heat. CHP plants utilize the heat that comes from electricity generation and use it for industrial or domestic heating needs.

“As we continue through the winter, and energy costs continue to rise, the use and development of renewable energy will become increasingly necessary,” said Senator Ruiz, D-Essex and Union. “Through the funding of these grants, we would be allowing businesses to cultivate combined heat and power energy, which in turn, would create healthy competition between companies to offer renewable energy that is both efficient and affordable, and that would also keep New Jersey in the forefront of energy innovation.”

The Senator’s measure, S-1932, would amend the Electric Discount Energy Competition Act to permit the Board of Public Utilities (BPU) to use monies from the retail margin fund on grants for combined heat and power and other demand response measures.

“This bill would not create any new charges or taxes. Utility companies would collect the retail margin charge and deposit all monies into the Retail Margin Fund, which was established in 2002, for development of Cogeneration and other similar demand response measures,” Senator Ruiz said.

The bill would also authorize the State Treasurer to have access to the Retail Margin Fund.

Currently, there is already over $100 million in the Retail Margin Fund, and the fund will continue to grow over time. Of the funding in the Retain Margin Fund, $60 million would be appropriated to provide grants to companies seeking to install or expand combined heat and power production. All grants would be awarded on a first-come, first-served basis. Grant amounts would vary based on the amount of energy used per company.

This measure now heads to the Governor’s desk where his signature would make it State law.

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“Clean, renewable energy and co-generation grants make New Jersey much more attractive to business investors and represent the future in environmentally-friendly energy production,” said Senator Ruiz, D-Essex and Union, and a member of the Senate Economic Growth Committee. “Particularly as we work to encourage businesses to locate to the Garden State, these programs will reduce our carbon footprint and lower energy costs for consumers across the board. I applaud the Governor for working with us to promote energy alternatives and for making New Jersey a national leader in low-impact energy production which will revitalize our economy and preserve our natural resources for future generations.”

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Ruiz/Gordon Bill Would Support Energy Efficiency Through Development Of Combined Heat And Power Grant Program

TRENTON – A measure sponsored by Senators Teresa Ruiz and Robert M. Gordon which would create a grant program to encourage the use of Cogeneration/Combined Heat and Power (CHP) was unanimously approved today by the Senate Budget and Appropriations Committee.

Under the bill, CHP is defined as the use of a combined heat engine or a power station to simultaneously generate both electricity and heat. CHP plants utilize the heat that comes from electricity generation and use it for industrial or domestic heating needs.

“As energy costs continue to increase, it is imperative that we find new, more affordable energy sources,” said Senator Ruiz, D-Essex and Union. “The grants would be funded through this legislation, and would allow businesses to develop combined heat and power energy, which would help to cut down on costs and spur healthy competition within the State’s energy market.”

“The goal of this legislation is to encourage businesses to generate their own energy, thereby reducing the State’s overall energy demands,” said Senator Gordon, D-Bergen. “In addition to compelling companies to try new energy sources, this legislation would help to develop New Jersey’s Cogeneration market, and help keep our State at the forefront of energy innovation.”

11 Dec 2008