ASSEMBLY TELECOMMUNICATIONS AND UTILITIES COMMITTEE
STATEMENT TO
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 6155
STATE OF NEW JERSEY
DATED: DECEMBER 11, 2025
The Assembly Telecommunications and Utilities Committee reports favorably an Assembly Committee Substitute for Assembly Bill No. 6155.
As reported, this substitute directs the Board of Public Utilities (BPU) to establish a distributed energy storage capacity program (program) to support the development by electric public utilities of 500 megawatts of distributed energy storage capacity in the State by 2030. The substitute requires the BPU to establish minimum requirements for the program, but electric public utilities are to be responsible for implementation. Each electric public utility is required to file an implementation and reporting plan with the BPU, as well as an annual report to demonstrate the utility’s compliance with its approved implementation and reporting plan and with the BPU’s minimum filing requirements.
The substitute also requires the BPU to establish a distributed energy storage incentive program (incentive program) to provide incentive awards for the development of at least 1,500 megawatts of customer-sited energy storage systems and front-of-the-meter energy storage systems by 2030. In the first year of the incentive program, the BPU is required to provide incentive awards for applications collectively totaling up to 350 megawatts in customer-sited and front-of the meter energy storage, with applicants accepted on a first-come, first-served basis. The substitute establishes certain eligibility criteria for individuals seeking an incentive award through the incentive program. In addition, the substitute establishes certain requirements for the structure of the incentive awards provided through the incentive program, including, but not limited to: (1) a requirement that the board establish certain performance standards by April 1, 2026 to measure and score an energy storage project’s compliance with the substitute’s requirements; and (2) a requirement that electric public utilities are to file a tariff with the board to establish a new rate design for front-of-the-meter energy storage systems.
The board is required to reserve at least one third of the incentives provided to customer-sited energy storage systems for customer classes or deployment scenarios that face greater economic hurdles, including, but not limited to, low-to-moderate income customers and customers sited in overburdened communities. The board is also required to, as part of the incentive program, consider revising the eligibility requirement for net-metering for solar energy storage systems. The incentive program is not to prevent or discourage energy storage systems from providing services to, or participating in, the wholesale market, particularly the PJM Interconnection, L.L.C. capacity market and any evaluation of costs and benefits of energy storage systems is required to include benefits that accrue directly or indirectly to ratepayers due to the participation of the energy storage systems in wholesale markets.
Under the substitute, the BPU is required to report annually to the Governor and to the Legislature certain information pertaining to both programs established by the BPU pursuant to the substitute. In addition, both programs established by the bill are to be designed to achieve or exceed, together with other energy storage programs established by the BPU through law, rules, regulations, or orders, a total of incentive awards for new energy storage capacity equal to 3,000 megawatts by 2030.
MINORITY STATEMENT
By Assemblymen Sauickie, Barranco, and Kanitra
The Minority respectfully submits the following statement regarding the bill under consideration today.
New Jersey stands at a pivotal moment regarding its energy future. Before the State commits to the construction of a new nuclear facility and significant battery storage, or to advance any major generation initiative, it must first undertake a comprehensive and realistic reassessment of its entire energy system.
Over the past eight years, policies that prematurely closed reliable in-State generation while simultaneously accelerating electrification mandates have shifted New Jersey from an energy exporter to an energy importer. Coupled with grid operator PJM’s permitting and planning failures and the rapid growth in electricity demand—particularly from data centers and emerging artificial intelligence (AI) infrastructure encouraged by the Governor in his 2024 State of the State address—ratepayers now face unprecedented increases in energy costs. Without a fundamental course correction, these costs will continue to rise.
Accordingly, the Minority believes the State must adopt a responsible, data-driven approach to long-term planning. While we absolutely believe nuclear power will play a significant and necessary role in New Jersey’s future energy portfolio, the State cannot predetermine winners and losers without first producing a new, transparent, and analytically sound Energy Master Plan (EMP). The overdue 2024 EMP, only released by the Governor in late November 2025, repeats the same ideological policies of the past eight years, which put the State in this position.
This new plan must be grounded in three core principles: affordability, reliability, and achievable decarbonization that does not rely on unrealistic mandates or timelines. The public deserves full disclosure of projected demand, existing capacity, generation deficits, costs, and the rate impacts of any proposed policy pathway.
To that end, the Minority believes six policies should form the foundation of any responsible statewide energy strategy:
1. Development of a Realistic Energy Master Plan
A new plan must evaluate all available technologies—including nuclear, natural gas, renewables, geothermal, and demand-reduction strategies—and provide a transparent assessment of costs, capacity needs, and ratepayer impacts.
2. Accurate Demand Measurement, Particularly for Large-Capacity Users
Legislation should ensure that projected high-demand projects, such as data centers, are practical and that such users can demonstrate access to adequate generation without compromising grid reliability.
3. Upgrading the Transmission and Distribution Grids
The State must prioritize modernization of the grid, and allocate a significant portion of the Clean Energy Fund to transmission and distribution upgrades that enhance reliability and reduce long-term costs.
4. Meaningful Permitting Reform
Approval processes for new energy generation must be expedited at the State, local, and PJM levels. The creation of a centralized “Electric and Energy Generation Permitting Group” would help standardize and accelerate reviews. Additionally, the Legislature should consider designating energy-generation projects as “beneficial uses” under the Municipal Land Use Law and reexamining environmental justice rules that may unnecessarily impede essential projects.
5. Policies Aimed at Lowering Energy Costs
The State must address cost drivers, including withdrawal from the Regional Greenhouse Gas Initiative (RGGI), which has contributed to higher ratepayer costs and emissions leakage. The State should also consider repealing excessive utility taxes, including the sales tax on electricity and natural gas, and support PJM capacity price caps to prevent further cost escalation.
6. Encouragement of Natural Gas as Firm Baseload Generation
Natural gas remains the most immediate and practical means of increasing in-State firm capacity. State policies and Department of Environmental Protection regulations that effectively prohibit upgrades or new construction of natural gas electric generation units should be revised, delayed, or replaced with incentives that preserve reliability while continuing to pursue reasonable emissions reductions.
In conclusion, the Minority believes the State should not proceed with long-term generation commitments until it adopts a transparent and realistic Energy Master Plan that places affordability and reliability at the forefront. New Jersey families and businesses cannot continue to shoulder the burden of rising electric rates driven by policy decisions disconnected from grid realities. It is essential that the State realign its energy strategy with practical, science-based, and economically sound principles that encourage the building of new reliable energy sources, and to ensure a stable and affordable energy future.