LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 4529

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: MARCH 23, 2026

 

 

SUMMARY

 

Synopsis:

Modifies certain requirements for transmission-scale energy storage procurement under BPU incentive program. 

Type of Impact:

Annual increase in State expenditures.

Agencies Affected:

New Jersey Board of Public Utilities.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

 

·       The Office of Legislative Services (OLS) determines that the bill may result in an indeterminate annual State expenditure increase for the New Jersey Board of Public Utilities due to administrative costs associated with modifying deadlines and eligibility requirements for the energy storage program established by P.L.2025, c.136.

·       Under the bill, the extended application period and broader eligibility requirements for Tranche 2 of the program may result in a longer procurement window and a larger applicant pool, which may require additional staff review, bid evaluation, and compliance work, ultimately increasing the board’s workload.

·       The bill does not modify the structure or individual amount of the fixed, 15-year incentive awards issued under the program.

 

BILL DESCRIPTION

 

      This bill extends the deadline for the board to approve Tranche 2 incentive awards for eligible transmission-scale energy storage systems under the energy storage program established by P.L.2025, c.136.  Under current law, the board is required to approve incentive awards for eligible projects totaling at least 1,000 MW AC in installed capacity by June 30, 2026.  This bill extends that solicitation deadline to December 31, 2026.  The bill also modifies certain project maturity requirements in order to expand the number of projects eligible to receive incentive awards under Tranche 2 of the program. 

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received. 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that the bill may result in an indeterminate annual State expenditure increase for the board’s administrative costs associated with modifying deadlines and eligibility requirements for the energy storage program established by P.L.2025, c.136.

      Under the bill, the extended application period and broader eligibility requirements for Tranche 2 of the program may result in a longer procurement window and a larger applicant pool, which may require additional staff review, bid evaluation, and compliance work, ultimately increasing the board’s workload.

      Notably, the bill does not modify the structure or individual amount of the fixed, 15-year incentive awards issued under the program.

 

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Michael D. Walker Jr.

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).