Bill Text: NJ S4411 | 2026-2027 | Regular Session | Amended
Bill Title: "Advanced Grid Technologies Act"; requires State oversight of supplemental transmission projects and establishes expedited review for projects utilizing advanced transmission or distribution technologies.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-06-08 - Referred to Senate Budget and Appropriations Committee [S4411 Detail]
Download: New_Jersey-2026-S4411-Amended.html
Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Senator BRITNEE N. TIMBERLAKE
District 34 (Essex)
SYNOPSIS
"Advanced Grid Technologies Act"; requires State oversight of supplemental transmission projects and establishes expedited review for projects utilizing advanced transmission or distribution technologies.
CURRENT VERSION OF TEXT
As reported by the Senate Economic Growth Committee on June 8, 2026, with amendments.
An Act concerning electric transmission planning and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Advanced Grid Technologies Act."
2. The Legislature finds and declares that:
a. Electric transmission facilities serving New Jersey customers face unprecedented demands from rising load growth, lengthy interconnection queues, and the continuous need to provide adequate, reliable, and efficient electric service to customers;
b. In Order No. 1920 and other related proceedings, the Federal Energy Regulatory Commission (FERC) recognized that advanced transmission technologies are essential tools for modern grid planning that should be meaningfully considered in transmission planning processes;
c. Advanced transmission technologies, including grid-enhancing technologies and high-performance conductors, have demonstrated significant consumer savings, reliability improvements, and capacity gains in deployments within the United States and internationally, often with benefit-to-cost ratios substantially exceeding those of traditional transmission alternatives;
d. Advanced distribution technologies, including distribution automation, advanced inverters, distributed energy resource management systems, and grid-services-capable storage, are essential to integrating distributed energy resources, electrifying buildings and transportation, and maintaining reliable distribution service despite evolving load patterns;
e. Electric public utilities undertake transmission projects to supplement projects approved by PJM Interconnection, L.L.C. (PJM) for regional reliability, operational performance, or economic purposes. These projects are commonly referred to as supplemental projects in PJM's Attachment M-3 process and have historically received limited oversight from PJM and state regulatory authorities, even though costs for these supplemental projects are passed through to utility customers;
f. Often, cost-of-service ratemaking, as traditionally applied, fails to effectively incentivize electric public utilities to adopt advanced transmission technologies and advanced distribution technologies. However, regulatory mechanisms that align utility financial interests with consumer savings could successfully incentivize such adoption;
g. For more than a century, state regulatory authorities have exercised authority over the construction of electric transmission facilities through certificates of public convenience and necessity. Moreover, FERC has acknowledged 1[that authorizing supplemental projects undertaken pursuant to] the consultative role of state regulatory authorities in1 PJM's Attachment M-3 process 1[is a function of state regulatory authorities]1; and
h. It is therefore in the public interest for New Jersey to establish a process for issuing certificates of public convenience and necessity for supplemental transmission projects undertaken by electric public utilities in the State, which process shall require meaningful consideration of advanced transmission technologies and advanced distribution technologies and provide for expedited review where such technologies are deployed to meet applicable grid performance benchmarks.
3. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Advanced conductor" means a conductor used in an electric transmission system, which conductor has: (1) a similar diameter and weight as a traditional aluminum conductor steel reinforced conductor; (2) a direct electrical resistance that is at least 10 percent lower than a traditional aluminum conductor steel reinforced cable of a similar diameter and weight; and (3) an energy-carrying capacity that is at least 75 percent greater than a traditional aluminum conductor steel reinforced conductor of a similar diameter and weight. "Advanced conductor" shall include a carbon fiber conductor, a composite core conductor, and a superconductor.
"Advanced distribution technologies" or "ADTs" means: (1) software or hardware technologies that increase the capacity, efficiency, reliability, visibility, or safety of an existing or new electric distribution system, including distribution automation, advanced inverters, distributed energy resource management systems, distribution-sited energy storage deployed for grid-services purposes, including behind-the-meter energy storage systems and front-of-the-meter energy storage systems, and substation upgrades that facilitate aggregated power export, including virtual power plant integration and reverse power flow protection; and (2) other technologies designed to support the integration of distributed energy resources or to increase the capacity, efficiency, reliability, visibility, or safety of an existing or new electric distribution system.
"Advanced power flow control technology" means 1[any software or hardware technology used to push or pull electric power in a manner that balances overloaded lines and underutilized corridors within the electric distribution system or electric transmission system] power electronic-based devices that: (1) actively change how power flows through the transmission system without changing generator dispatch or network topology; and (2) divert power flow from congested lines to other circuits with spare capacity for more efficient use of transmission assets1.
"Advanced transmission technologies" or "ATTs" means software or hardware technologies that increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission system, including: (1) grid-enhancing technologies, including, but not limited to, dynamic line rating, advanced power flow controllers, and topology optimization; (2) advanced conductors; and (3) other technologies designed to reduce transmission congestion or increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission system.
"Board" means the New Jersey Board of Public Utilities or its successor.
"Certificate" means a certificate of public convenience and necessity issued pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
"Cost-effective" or "cost-effectiveness" means that a supplemental transmission project or component thereof produces benefits that justify its costs when evaluated on a life-cycle basis over the useful life of the investment, which benefits include, but are not limited to, reductions of both central and distributed generation interconnection, reduced line losses, reduced curtailment, 1[and]1 reduced transmission congestion 1, reductions in energy or capacity prices, and reliability and resilience improvements1. However, "cost-effectiveness" shall not be determined solely based on nominal capital costs.
"Dynamic line rating" means 1[any software or hardware technology used to appropriately update the calculated thermal limits of existing distribution or transmission lines based on real-time and forecasted weather conditions] a methodology for determining the real-time ampacity of transmission lines based on actual and forecasted environmental and operational conditions1.
"Electric public utility" or "utility" means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within the State.
"Grid performance benchmarks" means grid performance standards, benchmarks, and planning criteria identified by the board pursuant to section 1[8] 71 of P.L. , c. (C. ) (pending before the Legislature as this bill).
1"NERC" means the North American Electric Reliability Corporation.1
"PJM Interconnection, L.L.C." or "PJM" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).
"Supplemental transmission project" or "project" means a project undertaken by an electric public utility 1, pursuant to PJM's Attachment M-3 process,1 to: (1) construct a new transmission line of a design capacity of 100 kilovolts or more, whether overhead or underground, including submarine cable, and a length of one mile or more, including associated equipment 1included in or directly associated with the M-3 presentation to PJM1 ; or (2) modify an existing transmission line of a design capacity of 100 kilovolts or more, whether overhead or underground, including submarine cable. "Supplemental transmission project" does not include 1: (1)1 a 1regional1 project, or discrete component of a project, that has been deemed necessary and approved by the PJM Board of Managers to comply with PJM system reliability, operational performance, or economic criteria 1; or (2) a project that is undertaken solely for routine maintenance of an existing transmission line1.
"Topology optimization" means any software or hardware technology that identifies reconfigurations of the electric grid and can enable the routing of power flows around congested or overloaded distribution or transmission elements.
"Virtual power plant" means an aggregation of distributed energy resources, including, but not limited to, behind-the-meter generation, energy storage, and controllable loads, that participate in or support the operation of the electric grid as a coordinated resource through software-based control and dispatch.
4. a. Prior to constructing a supplemental transmission project in this State, an electric public utility shall apply to the Board of Public Utilities for a certificate of public convenience and necessity. The utility shall include in its application for a certificate to the board:
(1) any information the board deems necessary to review the application;
(2) an explanation of whether the supplemental transmission project will deploy advanced transmission technologies, either in addition to or in lieu of traditional transmission investments, and the benefits thereof, including a demonstration that the project will meet the applicable grid performance benchmarks established by the board pursuant to section 1[8] 71 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(3) if an electric public utility decides not to deploy ATTs in the project in a material manner, as determined by the board, a justification for that decision and a third-party analysis of the cost-effectiveness of the project. 1[However, an electric public utility shall not recover through any component of the rates charged to its customers any costs related to the third-party analysis]1;
(4) a request for review under section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill); and
(5) for applications processed under section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), an application fee 1, which fee shall be recoverable through rates,1 in an amount to be determined by the board to cover the cost of the board's review.
b. Within 30 days of receiving a completed application submitted pursuant to subsection a. of this section, the board shall determine whether to review the application under section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill). The board shall review an application under the provisions of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) only if the utility has made a prima facie showing that the conditions set forth in paragraph (1) of subsection a. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) are satisfied. All other applications shall be reviewed under the provisions of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill). 1[The board's determination under this subsection shall not be subject to interlocutory appeal but may be reviewed upon a final agency decision to issue a certificate pursuant to the board's review under section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill).]1
c. The board shall permit the public to participate in, and have access to, the electric public utility's application submitted pursuant to subsection a. of this section, including work papers and project scenarios. The board shall establish a public comment period of at least 30 days for each application. However, nothing in this section shall prohibit an electric public utility from requesting, or the board from approving, the protection of confidential or proprietary information under applicable law to the extent necessary to ensure the security of the electric grid and the intellectual property of the utility applying for a certificate pursuant to subsection a. of this section. The electric public utility may request any information provided pursuant to subsection a. of this section be confidential and not be made publicly available. The request shall be subject to approval by the board.
d. 1[An] To the extent applicable, an1 electric public utility may deploy ATTs at a location outside the State, undertaken by the utility or a neighboring electric public utility, pursuant to a reciprocity or other appropriate agreement, in addition to or in lieu of traditional transmission investments for the purpose of satisfying the requirements of subsection a. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill). However, the application submitted by the electric public utility pursuant to subsection a. of this section shall identify, for each deployment of ATTs at a location outside the State, the jurisdiction in which it is located and the status of any authorization required from the jurisdiction where it is located.
e. 1[If] To the extent applicable, if1 any component of a project is located outside of the State, the board shall review the project, under either section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill), to determine whether the project in its totality satisfies the applicable requirements of section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill), as applicable, and whether the costs associated with the component located outside the State may be recovered from the electric public utility's customers in the State. Approval by the board under section 5 or 6 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill) shall not exempt the electric public utility or a neighboring electric public utility from obtaining authorization from the jurisdiction in which the component of the project is located.
f. An electric public utility shall not apply for a certificate pursuant to this section until PJM has completed its review of the project under Attachment M-3 of the PJM Open Access Transmission Tariff. An application under this section shall include, as an exhibit, the complete record of the PJM Attachment M-3 process.
5. a. The Board of Public Utilities shall approve an application for a certificate of public convenience and necessity submitted by an electric public utility pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) if the board finds that:
(1) the supplemental transmission project meets the applicable grid performance benchmarks established by the board pursuant to section 1[8] 71 of P.L. , c. (C. ) (pending before the Legislature as this bill) through the proposed deployment of advanced transmission technologies; or the utility is concurrently deploying advanced distribution technologies of a scope and at a scale reasonably commensurate with the project that meets the grid performance benchmarks applicable to ADTs and that the ADTs address an identified distribution-system reliability constraint, distributed energy resource integration limitation, or load management need within the service area affected by 1any distribution component of1 the project, as supported by 1[substantial] the preponderance of the1 evidence in the utility's application;
(2) the utility can efficiently manage and supervise the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction; and
(3) the utility can finance the proposed construction without significant adverse financial consequences for the utility or its customers 1and, with respect to distribution capital spending, the financing is aligned with the most recent approved distribution capital structure1.
b. An application satisfying the requirements in paragraph (1) of subsection a. of this section shall be presumed to constitute a reasonable and cost-effective means of meeting the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill), subject to rebuttal by a party to the proceeding upon a showing of clear and convincing evidence. The board may condition its approval of a certificate under this section on changes to the utility's application that the board deems to be in the public interest.
c. The board shall issue an order with its determination regarding an application for a certificate submitted pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) and reviewed under this section no later than 1[90] 1201 days after the submission of a completed application. The board may extend this period by an additional period not to exceed 30 days upon a specific finding, made on the record, that an extension will serve the public interest.
1d. Nothing in this section shall authorize the board to conduct a siting review of the supplemental transmission project. The board shall not consider the environmental impacts of the project in the board's determination under this section.1
6. a. The Board of Public Utilities shall, after notice and hearing, approve an electric public utility's application for a certificate of public convenience and necessity submitted pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) that has not been approved pursuant to section 5 of P.L. , c. (C. (pending before the Legislature as this bill) if the board finds that:
(1) the supplemental transmission project is necessary to provide safe, adequate, and reliable service to the utility's customers and is a reasonable and cost-effective means of satisfying those service needs; or that the project is a reasonable and cost-effective means of promoting the development of a competitive electricity market that operates efficiently and is equitable to all customers;
(2) the utility can efficiently manage and supervise the construction process and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction; and
(3) the utility can finance the proposed construction without significant adverse financial consequences for the utility or its customers 1and, with respect to distribution capital spending, the financing is aligned with the most recent approved distribution capital structure1.
b. In determining whether the project is a reasonable and cost-effective means of meeting the requirements of paragraph (1) 1[pf] of1 subsection a. of this section, the board shall consider whether, and to what extent, the project:
(1) reduces energy and capacity prices for customers in the State, including the potential to reduce future price increases or price volatility;
(2) enhances the reliability and resilience of the 1[bulk power system, considering any reliability determination from PJM] utility's transmission or distribution system1;
(3) facilitates the connection of new load or generation resources to the electric grid;
(4) provides benefits to customers in the State, including, but not limited to, reduced line losses, reduced curtailment of energy generation resources, and reduced transmission congestion; and
(5) is supported by 1[substantial] the preponderance of the1 evidence in the utility's justification submitted pursuant to paragraph (3) of subsection a. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) for any decision not to deploy ATTs.
c. The board shall issue an order with its determination regarding an application for a certificate submitted pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) and reviewed under this section no later than 180 days after the submission of a completed application. The board may extend this period by an additional period not to exceed 90 days. The board may condition its approval of a certificate under this section on changes to the utility's application that the board deems to be in the public interest.
1d. The board shall confine its review of a supplemental transmission project under this section to the enumerated criteria in subsections a. and b. of this section. Nothing in this section shall authorize the board to conduct a siting review of the project. The board shall not consider the environmental impacts of the project in the board's determination under this section.1
1[7. a. The Board of Public Utilities may establish, by rule or order, mechanisms for cost recovery or deployment incentives applicable to the deployment of advanced transmission technologies and advanced distribution technologies undertaken by electric public utilities pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), which mechanisms may include, but shall not be limited to:
(1) recovery of prudently-incurred costs through base rates or a separate tariff rider;
(2) shared-savings mechanisms under which the utility retains a defined percentage of verified net benefits produced by the deployment of ATTs or ADTs, including, but not limited to, benefits in the form of reduced congestion costs, increased transfer capability, or deferred or avoided traditional transmission or distribution investment, improved distribution-system reliability, or reduced costs of integrating distributed energy resources; and
(3) performance-based incentives that are tied to measurable metrics, including congestion reduction, capacity gains, line-loss reduction, distribution-system improvements, or compliance with the applicable grid performance benchmarks established by the board pursuant to section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) and that are proportional to the amount of savings realized by ratepayers.
b. In establishing any mechanism under subsection a. of this section, the board shall ensure that:
(1) benefits are verified using methodologies that draw upon industry consensus standards and federal guidance, including, as appropriate, cost-benefit methodologies adopted by the Federal Energy Regulatory Commission or PJM;
(2) the mechanism is designed to align utility financial incentives with the interests of electric public utility customers in New Jersey; and
(3) the mechanism does not result in double recovery of the same costs or benefits through the State's retail rates and any Federal Energy Regulatory Commission jurisdictional transmission rates.]1
1[8.] 7.1 The Board of Public Utilities shall establish, and review and update at least once every three years, grid performance benchmarks that incorporate federal guidance and industry consensus standards, including, but not limited to, planning requirements adopted by the Federal Energy Regulatory Commission pursuant to Order No. 1920 and any modifications thereto, reliability standards of the North American Electric Reliability Corporation, and benchmarks published by the United States Department of Energy, including the National Transmission Planning Study.
The grid performance benchmarks established by this section shall include, at a minimum, criteria addressing: compliance with applicable reliability standards of 1[the North American Electric Reliability Corporation] NERC1 or the applicable distribution-system reliability standards adopted by the board; measurable reductions in transmission congestion or improvements in transfer capability, or measurable improvements in distribution-system performance metrics, including outage frequency and duration; demonstrated cost-effectiveness over a defined planning horizon; and consistency with applicable federal transmission planning requirements.
The board shall identify which grid performance benchmarks apply to advanced transmission technologies and which apply to advanced distribution technologies.
1Nothing in this section shall conflict with federally-established grid performance benchmarks, including NERC Reliability Standards. Nothing in this section shall affect FERC's jurisdiction over the planning of electric transmission facilities.1
1[9.] 8.1 a. Within 270 days after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Board of Public Utilities shall, immediately upon filing proper notice with the Office of Administrative Law, adopt rules and regulations as may be necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, rules and regulations:
(1) establishing a process through which electric public utilities shall apply for a certificate pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) 1, including categories of information that an electric public utility is required to submit pursuant to paragraph (1) of subsection a. of section 41;
(2) establishing processes for the review of applications for certificates submitted pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), which processes may vary, as determined by the board, depending on the type of supplemental transmission project;
(3) determining the amount of the application fee to be collected pursuant to paragraph (5) of subsection a. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill): and
(4) establishing grid performance benchmarks pursuant to section 1[8] 71 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The rules and regulations adopted pursuant to subsection a. of this section shall be in effect for a period not to exceed one year after the date of the filing. These rules and regulations shall thereafter be adopted, amended, or readopted by the board in accordance with the requirements of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
1[10.] 9.1 a. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall apply to any application to construct or modify a supplemental transmission project filed on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to any project, or discrete component thereof, that has received final approval from the Board of Public Utilities prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) pursuant to:
(1) an infrastructure investment program order issued by the board;
(2) a base rate case order; or
(3) any other board order specifically authorizing construction of the project.
c. Any application or proceeding pending before the board on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) that relates to a supplemental transmission project within the scope of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall conform to the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill) to the extent practicable, as determined by the board.
d. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to create a separate certificate of public convenience and necessity requirement for distribution infrastructure investment or to require approval of distribution infrastructure investment except as otherwise required under applicable law or to supersede, preempt, or otherwise affect the authority of any municipality, county, or other local government to review or approve the siting, construction, or modification of transmission facilities under the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.), 1[or any other applicable law] and rules and regulations promulgated by the New Jersey Department of Environmental Protection1.
e. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to confer upon the board authority over matters within the exclusive jurisdiction of the Federal Energy Regulatory Commission, including, but not limited to, the rates, terms, and conditions of transmission service in interstate commerce 1, determinations made pursuant to federal law by NERC, FERC, PJM, or the Secretary of Energy,1 and cost allocation determinations adopted pursuant to the 1[Federal Energy Regulatory Commission Order No. 1920 and any modifications thereto] "Federal Power Act" (16 U.S.C. s.791a et seq.) and FERC orders1. The board's consideration of the factor set forth in paragraph (1) of subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be 1undertaken1 solely for purposes of determining public convenience and necessity 1, in a manner consistent with federal law,1 and shall not constitute rate regulation 1or the exercise of planning authority over electric transmission facilities1.
1[11.] 10.1 Sections 17 and1 8 1[and 9]1 of this act shall take effect immediately. Sections 1 through 1[7] 61 and section 1[10] 91 of this act shall take effect either 90 days following the board's adoption of the rules and regulations required under section 1[9] 81 of this act or on the first day of the 19th month next following the effective date of sections 17 and1 8 1[and 9]1 of this act, whichever is earlier.
