A debate is developing in Newark as city officials move forward with proposals to restrict fossil fuel use, raising concerns about the impact on statewide energy affordability and reliability.
Last month, Newark City Council President C. Lawrence Crump introduced an ordinance to amend land-use codes that would prohibit new or expanded fossil fuel facilities, including those for power generation. A separate ordinance seeks to prevent the use of city funds for such purposes. Both measures also propose halting the renewal of business licenses required for operating fossil fuel facilities. These ordinances are scheduled for a vote after a second public reading on Wednesday, Feb. 4.
These actions come soon after Governor Mikie Sherrill signed Executive Order No. 2, which considers waiving certain compliance requirements for permitting or siting electricity generation and grid stabilization projects. The order also directs the Department of Environmental Protection to speed up permitting processes related to modernizing existing gas-fired power plants.
Ray Cantor, Deputy Chief Government Affairs Officer at the New Jersey Business & Industry Association (NJBIA), commented on the situation: “This is potentially a big deal on two fronts. 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 proposed ordinances may be questioned in light of previous legal challenges elsewhere in the country. In 2019, Berkeley, California became the first U.S. city to ban natural gas hookups in new buildings. However, four years later, the 9th Circuit Court of Appeals ruled that federal law preempts local regulations banning natural gas; Berkeley repealed its ban in January 2024.
Cantor added: “The bottom line is New Jersey needs to increase its energy load and its infrastructure for all kinds of energy sources. 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.”
The NJBIA is recognized as the largest statewide employer organization in the United States and represents businesses across various sectors including manufacturing and services [source]. The association offers advocacy and resources aimed at supporting member prosperity and collaborates with government entities and educational institutions [source]. It maintains its headquarters in Trenton, New Jersey [source].
