Establishes cap and invest program in DEP to regulate major emitters of greenhouse gases.

New Jersey's A4278 establishes a cap-and-invest program requiring major greenhouse gas emitters (entities emitting 25,000+ metric tons of CO2 equivalent annually) to purchase and retire emissions allowances. The Department of Environmental Protection would hold annual auctions for these allowances, starting with a minimum price of $50 per allowance, with proceeds funding environmental programs through the Global Warming Solutions Fund. Certain emissions-intensive industries and utilities would initially receive no-cost allowances (100% of baseline emissions), with these allocations decreasing by 3% each four-year compliance period. The program would also allow limited use of offset credits (up to 5% of compliance obligation in the first period) to meet emissions reduction requirements, with specific requirements for these credits to represent real emissions reductions.