More Organizations Join Coalition Calling on Legislative Leadership to Stop Murphy Electrification Mandates

NJ Restaurant and Hospitality Association, NJ YMCA State Alliance, NJ Propane Gas Association, NJ Asphalt Pavement Association, and Mechanical Contractors Association of NJ join growing chorus of business, community and labor groups opposed to Mandated Building Electrification

TRENTON — Representing tens of thousands of individual businesses, workers, and organizations, several prominent New Jersey organizations today joined a growing chorus calling for the Legislature to stop Governor Murphy’s massively expensive mandate of electrification of boilers in large buildings. The organizations include New Jersey Restaurant and Hospitality Association, New Jersey YMCA State Alliance, New Jersey Propane Gas Association, New Jersey Asphalt Pavement Association, and Mechanical Contractors Association of New Jersey. 

On September 12th, 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.  When asked last week about the increased costs school districts and taxpayers would incur, Murphy said, “I don’t have a comment,” he said. “Obviously, we’re going to make sure we do it responsibly, in a way where, if there’s a fiscal burden, we do it the right way.”

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

In addition to the organizations listed above, 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