In a move critics warn could delay key progress on energy affordability and air pollution, New Jersey lawmakers have once again redirected money from the state's Clean Energy Fund. 

Inside Climate News reported that it's the 17th consecutive year the state legislature has done so, despite past promises to protect the fund. Nearly $200 million intended for clean energy programs is being used to address budget gaps.

What's happening?

Governor Phil Murphy signed a record-setting $58.8 billion state budget into law in early July, a component of which is the reallocation of $190 million from the Clean Energy Fund.

The bulk of the money — $140 million — is going to New Jersey Transit, according to Inside Climate News, while the remaining $50 million is being funneled into the general budget.

The Clean Energy Fund is designed to support initiatives like wind and solar projects, transportation electrification, and home energy efficiency upgrades. It's funded by a small charge on utility bills paid by residents across the state.

But, year after year, lawmakers have siphoned funds from it to fill other holes in the budget. This marks the second-largest reallocation from the fund since its inception, per ICN, following a $255 million withdrawal in 2014. And it frames clean energy as a "nice to have" instead of a priority.

Why is this concerning?

New Jersey's transportation sector is its largest source of heat-trapping emissions, according to the state's Department of Environmental Protection. And residents are already feeling the strain of rising energy prices and delayed infrastructure upgrades. 

Meanwhile, this new Clean Energy Fund diversion comes just as the state has also lost access to at least $104 million in federal funding intended for electric vehicle chargers, ICN reported.

Upon passage of the budget, State Senator Andrew Zwicker noted that reliable funding for cleaner, more affordable energy is increasingly important, given the uncertain nature of federal support at present. 

"Given what is happening in Washington right now … if we are really going to ensure that every single person in this state has access to clean air, clean water — that the electrical prices that we're all talking about, that we can continue to do something about — it is critically important that we make those investments moving forward," Zwicker said.

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A Murphy spokesperson also told Gothamist that the "Big Beautiful Bill" recently passed at the federal level will "only make energy more expensive for everyday New Jerseyans."

Then again, it was Murphy who said when campaigning in 2017 that he would stop "the raid of the Clean Energy Fund."

What can be done about it?

With Zwicker seemingly on board, lawmakers plan to look at bills in November that would streamline solar power permitting and authorize safer nuclear projects.

On an individual level, residents can still look to resources like the Green Neighbor Challenge and the Inflation Reduction Act for tools and funding to lower utility bills and support cleaner air.

It's worth noting, though, that the Big Beautiful Bill passed by Congress and signed into law by President Donald Trump includes provisions to end several clean energy tax benefits, with credits for some solar and wind energy assets set to expire at the end of 2025. Potential buyers may want to look into using them before they disappear.

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