SENATE ENVIRONMENT AND ENERGY COMMITTEE

STATEMENT TO

SENATE, No. 4876

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 1, 2025

      The Senate Environment and Energy Committee reports favorably and with committee amendments Senate Bill No. 4876.

      As amended and reported, this bill, to be known as the “New Jersey Energy Reliability and Affordability Act,” would establish three new programs in the Board of Public Utilities (BPU): (1) a program to incentivize the development of advanced nuclear reactors in the State, (2) a program to support the installation of 500 megawatts of battery storage capacity in the State by 2030, and (3) a program to reduce peak demand on the electric grid.

      Under the advanced nuclear program established by the bill, the BPU would issue a request for expressions of interest and information for the construction of at least one advanced nuclear reactor to generate at least 1,100 megawatts of electric power in the State.  The bill would establish certain conditions that are required to be met in order for the BPU to approve an advanced nuclear reactor project, including that the project will significantly contribute to meeting the State’s energy reliability, resilience, and capacity needs at a reasonable cost to ratepayers.  If approved, a qualified advanced nuclear reactor project would be authorized to receive financial support through an advanced nuclear development charge (ANDC) and advanced nuclear energy certificates (ANECs).  Under the ANDC, a qualified advanced nuclear reactor project would be eligible to receive funding for a negotiated percentage of construction costs through a non-bypassable charge which would be imposed on all electric utility customers and deposited into a fund to be known as the Advanced Nuclear Development Fund.  Under the ANEC program, a proportional number of the kilowatts of electric power sold in the State would be required to be from advanced nuclear reactors, and electric utilities would satisfy this requirement by purchasing a certain number of ANECs each year. 

      The bill would also direct the BPU to establish a distributed capacity program, which would be designed to support the development by electric public utilities of 500 megawatts of battery storage capacity in the State by 2030.  The bill would require the BPU to establish minimum requirements for the program, but electric public utilities would be responsible for implementation.  Each electric public utility would be required to file an implementation and reporting plan with the BPU, as well as an annual report.

      The bill would further require the BPU to establish, by board order, a demand optimization program for electric public utilities to reduce system peak demand, increase resource adequacy, reduce or defer the need for costly distribution system infrastructure upgrades, and help maintain grid reliability through grid flexibility services provided by distributed energy resource aggregators in the State.  The program would be required to be designed to result in peak demand reduction of 500 megawatts by 2030.  Again, the bill would require the BPU to establish minimum requirements for the program, but electric public utilities would be responsible for implementation, and each electric public utility would be required to file an implementation and reporting plan with the BPU, as well as an annual report.

      Finally, the bill would amend the “Coastal Area Facility Review Act” (CAFRA), P.L.1973, c.185 (C.13:19-1 et seq.), to provide that nuclear facilities may be approved under CAFRA if the Commissioner of Environmental Protection finds that the proposed method for the storage of radioactive waste material to be produced or generated by the facility will be safe, will conform to standards established by the Nuclear Regulatory Commission, and will effectively remove danger to life and the environment from waste material.

COMMITTEE AMENDMENTS:

      The committee amendments to the bill:

      (1) change the short title of the bill to the “New Jersey Energy Reliability and Affordability Act”;

      (2) clarify that the BPU’s recommendations for improvements to the State’s energy programs should be designed to protect the interest, health, and safety of New Jersey electricity customers, in addition to the general public;

      (3) provide that the ANEC program would require electric utilities to sell a certain proportional number of kilowatts of advanced nuclear power, rather than a certain percentage of the total kilowatts of power sold in the State; and

      (4) make certain technical corrections.