A potential energy conflict may be brewing, pitting Newark efforts to stop fossil fuels against state priorities aiming for more affordable and reliable energy sources.
An ordinance sponsored by Newark City Council President C. Lawrence Crump, introduced last month, amends land-use codes to prohibit new or expanded fossil fuel facilities, including fossil fuel generation.
A second ordinance prohibits the “use of city funds” for those purposes.
The two measures, which also stop the renewal of a business license necessary to operate fossil fuel facilities, are up for a vote following a second public reading on Wednesday, Feb. 4.
That’s just two weeks after Gov. Mikie Sherrill signed Executive Order No. 2, which considers waiving compliance for permitting or siting for electricity generation and grid stabilization projects.
EO2 also orders the DEP to take all steps to expedite the permitting processes applicable to the modernization of existing gas-fired power plants.
“This is potentially a big deal on two fronts,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor.
“First, it sets a precedent of a municipality passing an ordinance that conflicts with state energy priorities – and asks what happens to the city should that happen.
“But probably more importantly, it creates a paradigm where a town that has this very important infrastructure could stop energy production that all of the state’s residents rely upon. And that’s when things could get scary for the entire state.”
The legality of Newark’s ordinances may also come into question.
While not an apples-to-apples comparison, Berkeley, California became the first city in the US to ban natural gas hookups in new buildings in 2019.
But four years later, the 9th Circuit Court of Appeals ruled that the Energy Policy and Conservation Act (EPCA) preempts local regulations that ban natural gas.
The city eventually repealed its ban in January 2024.
“The bottom line is New Jersey needs to increase its energy load and its infrastructure for all kinds of energy sources,” Cantor said. “We have seen our energy costs skyrocket as a result of New Jersey becoming a net importer of energy, rather than an exporter of energy.
“Gas remains our most affordable and reliable and source of energy. We look forward to continuing to address those challenges with the Sherrill administration.”
