IMPORTANT Camden for Clean Air Press Release
A 143% increase in REC prices means that incinerators in NJ and PA have received significantly more ratepayer subsidies in energy year (EY) 2021 than EY 2020. Using data from PJM-EIS’s GATS database and the BPU, in EY 2021, NJ trash incinerators received $7.2 million more than the $4.4 million they made the previous year — a 159% increase. Incinerators in NJ, MD, VA, and PA, have received more than $95 million in subsidies since 2004.
“These subsidies, at the expense of utilities and ratepayers, are extending the life of New Jersey’s aging and inefficient incinerators. I’d like my electric bills to be supporting wind and solar, not subsidizing trash burners that worsen my asthma,” said Richelle Lee of Camden for Clean Air.
Read the entire press release
NJ Renewable Portfolio Standard
New Jersey’s Renewable Portfolio Standard (RPS) mandates that by 2025, 35% of the electricity sold in NJ must come from a Class I renewable energy source, and by 2030, that percentage must be 50%. It further stipulates that 2.5% must come from a Class II energy source. Currently, electricity from solar and wind, among other technologies, qualifies as a Class I renewable energy source. However, of concern is that electricity generated by incineration and combustion-based technologies counts as “renewable” even though they release harmful toxins into the air.
The RPS statute has been modified numerous times by the state legislature (the most recent version is here). At its inception in 1999, pro-incinerator lobbyists made sure incinerators were eligible for subsidies. Recently, a 2018 bill, sponsored by Sen. Robert Smith and Sen. Stephen Sweeney (both of whom have received campaign contributions from Covanta), extended trash incinerators subsidies.
NJ RPS eligible technologies
| Class I | ||
| Wind Solar Landfills (for burning toxic gases) Anaerobic Digester Gas Biomass Fuel cells using carbon-based fuels Fuel cells using “green” hydrogen Wave/Tidal Geothermal |
| Class II | |
| Trash incineration Hydroelectric (between 3 and 30 MW) |
In 2001, energy that qualified for a Class II REC was amended from hydroelectric to “hydroelectric facility that has a maximum design capacity of 30 megawatts or less from all generating units combined” (N.J.A.C. 14:8-2.6). The Solar Act of 2012 removed the 30 MW cap and hydro facilities were able to compete with trash incinerators for subsidies (see the graph below). This must have ruffled some feathers since in 2015 the “RRF vs. Large Hydro Act” passed which reintroduced the 30 MW cap. Hydro facilities were unable to compete under the new regulations and trash incinerators dominated (and continue to dominate) class II receiving almost all available subsidies.
Additionally, out-of-state facilities can sell into the RPS market leading to PA, MD, and VA incinerators receiving “clean energy subsidies” at the expense of NJ utilities and ratepayers. Around half of Class II RECs retired in the NJ market are from out-of-state facilities.
RPS subsidies to trash incinerators
Using data from the NJ BPU and PJM-EIS GATs database, we were able to calculate that from 2004 to 2021:
- NJ incinerators have received more than $50 million of “clean energy” subsidies
- PA incinerators have received roughly $41 million of “clean energy” subsidies
- MD and VA incinerators have received more than $3 million of “clean energy” subsidies
