LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 5188
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 30, 2026
SUMMARY
|
Synopsis: |
“Advanced Grid Technologies Act”; requires State oversight of supplemental projects and establishes expedited review for projects utilizing advanced transmission technologies. |
|
Type of Impact: |
Annual State expenditure and revenue increases. |
|
Agencies Affected: |
Board of Public Utilities. |
|
Office of Legislative Services Estimate |
||
|
Fiscal Impact |
Annual |
|
|
State Expenditure Increase |
Indeterminate |
|
|
State Revenue Increases |
Indeterminate |
|
· The Office of Legislative Services (OLS) finds that the bill will result in an indeterminate annual increase in State expenditures to the Board of Public Utilities associated with implementing and administering a new regulatory framework that governs supplemental projects, including supplemental projects that utilize advanced transmission technologies.
· The board may incur additional costs to review applications under the two separate review processes established by the bill, promulgate rules and regulations, conduct technical analyses, oversee compliance with the bill’s provisions, and administer the expedited review process established under the bill. The magnitude of these cost increases will depend on the number and complexity of applications submitted and the extent to which existing staff and resources may be utilized.
· To the extent the bill authorizes the board to impose an application fee under each review process established by the bill, the State may experience an indeterminate increase in revenue, offsetting the additional administrative expenditures associated with application review. However, the bill does not expressly establish a new fee schedule or dedicated revenue source. Instead, the bill permits the board to determinate the fee amount necessary to cover its cost of application reviews.
BILL DESCRIPTION
This bill, to be known as the Advanced Grid Technologies Act, requires electric public utilities to apply for a certificate of public convenience and necessity from the Board of Public Utilities prior to constructing a supplemental project. Specifically, the bill requires the board to review and approve eligible projects based on certain criteria specified in the bill under one of the two application review processes established by the bill. The bill also establishes an expedited review process for supplemental projects that, in part, meet certain grid performance benchmarks, as established by the board under the bill, by utilizing advanced transmission technologies.
Under the bill, the board is authorized to charge an application fee to cover the costs of the board’s review under each application process, which fee may be recovered by an electric public utility through the rates charged to its customers.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill will result in an indeterminate annual increase in State expenditures to the Board of Public Utilities associated with implementing and administering a new regulatory framework that governs supplemental projects, including supplemental projects that utilize advanced transmission technologies.
The board may incur additional costs to review applications under the two review processes established by the bill, promulgate rules and regulations, conduct technical analyses, oversee compliance with the bill’s provisions, and administer the expedited review process established under the bill. The magnitude of these cost increases will depend on the number and complexity of applications submitted and the extent to which existing staff and resources may be utilized.
To the extent the bill authorizes the board to impose an application fee under each review process established by the bill, the State may experience an indeterminate increase in revenue, offsetting the additional administrative expenditures associated with application review. Although the bill does not expressly establish a new fee schedule or dedicated revenue source, it permits the board to determinate the fee amount necessary to cover its cost of project reviews.
However, because the bill also authorizes an electric public utility to recover the cost of the application fees through the rates charged to its customers, State agencies, as electric public utility customers, may experience increased costs associated with higher electric public utility rates.
|
Section: |
Authorities, Utilities, Transportation and Communications |
|
Analyst: |
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.).