A5128

An Act concerning distributed energy sources and supplementing Title 48 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. The Board of Public Utilities shall conduct a study for the purpose of identifying, researching, and quantifying the effects of short-term solutions that could open segments of the electrical transmission and distribution system that are currently closed to new distributed energy generation sources.

b. The board shall consider the following potential solutions, as well as any additional potential solutions identified by the board:

(1) permitting the flow of electricity, through an electrical substation, from the distribution system to the transmission system;

(2) requiring solar inverters to include technology that allows the inverter to autonomously control the reactive power passing through the inverter;

(3) requiring energy storage systems to include technology that allows the power input and output of the system to vary in relation to the demand for electric power in the transmission and distribution system at a given time; and

(4) requiring solar photovoltaic systems to include technology that enables the power output of the system to autonomously respond to weather conditions.

c. No later than one year after the effective date of this act, the board shall prepare and submit to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, a report containing the findings and recommendations of the board, including any recommendations for legislative, regulatory, or local governmental action to open up additional segments of the transmission and distribution system to new distributed energy generation sources.

d. As used in this section:

"Board" means the Board of Public Utilities.

"Reactive power" means the portion of alternating current electricity, measured in volt-amperes reactive, that cannot do useful work due to a misalignment of the current and voltage waveforms of the electricity.

"Transmission and distribution system" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

2. No later than one year after the board transmits the report required pursuant to subsection c. of section 1 of this act, the board shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations that implement the report's recommendations for regulatory action. The rules and regulations shall initially implement the recommendations as a pilot program in a small region or regions of the State, and then, if the pilot program is determined by the board to be successful, the board shall provide for Statewide implementation of the rules and regulations.

3. This act shall take effect immediately.

STATEMENT

This bill would require the Board of Public Utilities (BPU) to conduct a study for the purpose of identifying, researching, and quantifying the effects of short-term solutions that could open segments of the electrical transmission and distribution system that are currently closed to new distributed energy generation sources.

The bill would require the BPU to consider the following potential solutions, as well as any additional potential solutions identified by the BPU:

(1) permitting the flow of electricity, through an electrical substation, from the distribution system to the transmission system;

(2) requiring solar inverters to include technology that allows the inverter to autonomously control the reactive power passing through the inverter;

(4) requiring solar photovoltaic systems to include technology that enables the power output of the system to autonomously respond to weather conditions.

As defined by the bill, "reactive power" means the portion of alternating current electricity, measured in volt-amperes reactive, that cannot do useful work due to a misalignment of the current and voltage waveforms of the electricity.

The bill would require the BPU to submit a final report on its study to the Governor and the Legislature within one year after the bill's effective date, which contains recommendations for legislative, regulatory, or local governmental action. The bill would also require the BPU to adopt rules and regulations to implement the recommended regulatory action, within one year after the final report is published. The bill would direct the BPU to initially apply the recommendations as a pilot program and then, if successful, provide for Statewide implementation of the rules and regulations.