Provides for BPU incentives for district energy collaboratives and certain combined heat and power facilities.

This bill (S 2303) proposes creating financial incentives administered by New Jersey's Board of Public Utilities (BPU) for two types of energy systems: district energy collaboratives (community-scale energy systems serving multiple buildings) and specific combined heat and power (CHP) facilities. It would allow the BPU to offer these incentives to encourage the development and operation of these energy-efficient systems, which generate both electricity and usable heat from a single fuel source. The bill amends existing energy law definitions to clarify these systems' eligibility for incentives. The bill was introduced in the Senate on January 13, 2026, and referred to the Environment and Energy Committee.