Kelsey Lamp Director, Protect Our Oceans Campaign, Environment America | Environment New Jersey
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A. I. Benavidez | May 16, 2024

Coalition urges proper use of clean energy fund for NJ Transit electrification

On May 16, 2024, the Jersey Renews Coalition issued a call to legislators to support an upcoming Senate Budget Resolution aimed at ensuring funds from New Jersey's Clean Energy Fund are allocated towards NJ Transit's bus electrification projects. The coalition expressed gratitude for past efforts in addressing climate change and promoting clean energy but criticized Governor Murphy’s proposed FY25 Budget for diverting Clean Energy Fund resources to cover gaps in NJ Transit’s operating budget.

"Diverting these legislatively dedicated funds will stymie New Jersey’s ability to generate good well-paying jobs, protect vulnerable communities, and meet climate policy goals – including critical NJ Transit electrification projects that need capital dollar investment," stated the coalition.

The resolution seeks advance support from more than 40 organizations representing labor, business, faith, and environmental groups. It emphasizes the importance of using the Clean Energy Fund as intended for capital expenditures necessary to electrify NJ Transit's bus fleet and infrastructure. This move aligns with the goals outlined in P.L.2019, c.362 and NJ Transit's Sustainability Plan.

P.L.2019, c.362 mandates that all NJ Transit bus purchases after December 2024 must include at least 10 percent zero-emission buses, escalating to 50 percent by December 2026 and reaching 100 percent by December 2032. However, New Jersey is currently behind on meeting these targets.

NJ Transit estimated in its 2020 capital plan that approximately $5.7 billion would be required to replace its entire diesel bus fleet by 2040—eight years past the original goal of full transition by 2032. According to a report by New Jersey Policy Perspective, only a small percentage of this amount has been earmarked so far.

Electric buses are seen as essential for reducing emissions in low-income urban areas or environmental justice communities. The success of eight electric buses in Camden highlights both favorable field performance and positive feedback from customers and drivers.

Federal grants have supported some electrification efforts: $44.6 million was allocated for rebuilding Union City Bus Garage and $68.1 million for modernizing Hilton Bus Garage in Maplewood near Newark's border. Nonetheless, without dedicated state capital dollars for further bus electrification projects cannot progress.

The coalition stressed that the Clean Energy Fund should address public health disparities exacerbated by air pollution concentrated in cities along racial and class lines. A Columbia University study found that annual public health benefits of electrifying one transit bus exceed $150,000.

With an annual intake of about $344 million paid by ratepayers into the Clean Energy Fund, it is crucial these funds return as cleaner electricity, lower rates, and improved air quality. The proposed FY25 Budget plans to divert $70 million from this fund for NJ Transit's operating budget—a practice criticized by advocates who argue over $2 billion has already been misallocated over several administrations.

"We are simply asking that the State meet its obligations and direct funding where it is legislatively intended—to electrify and clean up NJ TRANSIT’s fleet," said the coalition letter signed by numerous supporting organizations including Action Together New Jersey, BlueWave NJ, Environmental Defense Fund among others.

The letter concluded with a plea: "We must invest in the health of the State’s residents and promote a more affordable and clean energy future."

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