Diverse Coalition of New Jersey Business and Labor Organizations Call on Legislative Leadership to Stop Murphy Electrification Mandates

NJDEP Regulations to Electrify Building Sector Take Effect in December, Leading to Increases in Rents, Property Taxes and Grocery Bills

TRENTON — With the first round of NJDEP regulations set to take effect on December 6th, a diverse coalition of 24 business and labor organizations sent a letter to Senate President Nick Scutari and Assembly Speaker Craig Coughlin calling on the Legislature to halt Governor 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