In her first days in office, Governor Sherrill took swift action to advance solutions that target the root causes of higher energy costs: holding our grid operator, PJM, accountable; expanding solar and storage; streamlining permitting; and holding AI data centers to account.

Our energy affordability and reliability crisis didn't happen overnight—it is the result of decades of inaction. Short-term relief for New Jersey residents is necessary, but it is not enough on its own. Real, structural, durable relief is only possible if the NJLegislature and the Administration preserve and expand the state's ability to invest Regional Greenhouse Gas Initiative (RGGI) funds in the programs that form the backbone of the Governor's energy agenda to provide long-term rate relief. RGGI is a climate program that works and has provided more than $1.8 billion in cost savings to ratepayers.

The NJ Assembly and Senate approved a budget today that allows up to $510 million in diversions from RGGI programs this coming fiscal year. Deployed for other purposes without a clear framework—one with guardrails that balance any diversions against adequate funding for the programs that target the root causes of rising costs, air pollution and unreliable service—those diversions would severely hobble the Governor's energy agenda. At the same time, the budget gives the Governor significant discretion over how much to divert and how much to invest in that agenda.

While we strongly oppose diversions from RGGI and the Clean Energy Fund, we expect that the Sherrill Administration will use that discretion to maintain the balance needed to deliver on the promise of a cheaper, cleaner, and reliable energy future for every New Jersey family without hampering the program’s success and current programs