Bill Text: NJ S4440 | 2026-2027 | Regular Session | Introduced
Bill Title: "Clean Firm Energy Reliability Act;" directs BPU to establish program to procure certain electricity generation facilities in State.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-11 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S4440 Detail]
Download: New_Jersey-2026-S4440-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
"Clean Firm Energy Reliability Act;" directs BPU to establish program to procure certain electricity generation facilities in State.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning in-State electricity generation and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Clean Firm Energy Reliability Act."
2. (New section) a. The Legislature finds and declares that:
(1) New Jersey faces rising electricity demand and escalating PJM capacity costs, driven by load growth and insufficient firm energy generation;
(2) nuclear energy currently supplies approximately 40 percent of in-State electricity and 80 percent of carbon free generation, providing proven, fuel-secure energy generation capacity; and
(3) the recent enactment of P.L.2026, c.9 removed outdated permitting barriers to new nuclear facilities, enabling legislative action to advance the development of such facilities.
b. The Legislature therefore determines that it is in the public interest to establish a program in the Board of Public Utilities for the procurement of additional clean firm electricity generation facilities in the State.
3. (New section) As used in sections 1 through 5 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Advanced nuclear reactor" or "advanced reactor" means a nuclear reactor that:
(1) has significant improvements compared to reactors operating on December 27, 2020, including improvements such as: (a) additional inherent safety features; (b) lower waste yields; (c) improved fuel and material performance; (d) increased tolerance to loss of fuel cooling; (e) enhanced reliability and improved resilience; (f) increased proliferation resistance; (g) increased thermal efficiency; (h) reduced consumption of cooling water and other environmental impacts; (i) the ability to integrate into electric applications and nonelectric applications; (j) modular sizes that allow for deployment that corresponds with the demand for electricity or process heat; and (k) operational flexibility to respond to changes in demand for electricity or process heat and to complement integration with intermittent renewable energy or energy storage; or
(2) is of a design that has received design certification, design approval or a combined license from the Nuclear Regulatory Commission after January 1, 2000.
"Board" means the Board of Public Utilities.
"Clean firm development charge" or "CFDC" means the same as the term is defined in section 12 of P.L.1999, c.23 (C.48:3-60).
"Clean firm energy resource" means an electric energy generation facility that: (1) produces zero or near-zero greenhouse gas emissions; (2) is dispatchable, fuel secure, and capable of continuous operation; and (3) is accredited by PJM for capacity and reliability value. "Clean firm energy resource" includes, but is not limited to, an advanced nuclear reactor or an expansion unit at an existing nuclear site or qualified brownfield.
"Nuclear energy" means electric energy generated by a nuclear reactor.
"Nuclear reactor" means an apparatus required to be licensed by the Nuclear Regulatory Commission that is designed or used to sustain nuclear fission in a self-supporting chain reaction.
"Nuclear Regulatory Commission" or "NRC" means the United States Nuclear Regulatory Commission.
"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), or any successor entity thereto.
"Qualified project" means a clean firm energy resource project approved by the board pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
"Qualified project entity" means the person or entity that develops, owns, or operates a qualified project and is bound by the terms of the final board order, together with any permitted successor or assignee.
4. (New section) a. The Board or Public Utilities shall establish a program, in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), to promote the construction of clean firm energy resources in the State.
b. No later than 180 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall issue a request for expressions of interest for the construction of clean firm energy resources in the State.
c. Any entity wishing to construct a clean firm energy resource and obtain qualified project status shall file with the board, no later than 60 days following publication of the request pursuant to subsection b. of this section, an expression of interest, which shall include, but need not be limited to, the following:
(1) a letter of intent filed with the Nuclear Regulatory Commission, if applicable;
(2) a proposed licensing pathway under the Nuclear Regulatory Commission, if applicable, including identification of any applicable Early Site Permit, design certification, or other prior Nuclear Regulatory Commission determinations on which the project intends to rely;
(3) proposed State and municipal permitting pathways;
(4) a regulatory engagement plan, which contains the developer's organizational structure, the project's design and indicative construction timeline, including the anticipated completion date, and any pre-application engagement materials submitted to, or prepared for, the Nuclear Regulatory Commission;
(5) a technical description of the proposed system design and technology structure;
(6) the proposed capital structure and financing plan, identifying committed or prospective investors or lenders, and any proposed or anticipated sources of construction-phase funding;
(7) the rated output of the project per year in megawatt hours and the proposed amount of energy to be made available to the PJM Reliability Pricing Model capacity market or Fixed Resource Requirement, as appropriate, from the project per year in megawatt hours;
(8) a projection of the anticipated monthly bill impact on ratepayers resulting from the proposed clean firm energy resource;
(9) the requested amount of CFDC funding; and
(10) any additional information deemed necessary by the board.
d. The board shall undertake a preliminary evaluation of all proposed projects and provisionally qualify, or deny provisional qualification of, each proposed project no more than 90 days after receipt by the board of a complete expression of interest. The board may grant provisional qualification to one or more proposed projects. The board shall grant provisional qualification status upon a threshold finding that:
(1) the proposal is reasonably likely to significantly contribute to meeting the State's energy reliability, resilience, and capacity needs, consistent with the State's clean energy goals;
(2) the proposal will significantly increase the amount of electricity generated in New Jersey; and
(3) the proposal will result in a positive impact to New Jersey ratepayers in the long term.
e. An expression of interest shall create no contractual obligation between the State and the applicant, and the board's preliminary evaluation shall not commit the State to issue a final board order approving a project.
5. (New section) a. After granting provisional qualification status to a proposed project, the board shall enter into negotiations with the developers of the project concerning the CFDC funding, any real estate terms, agreements on supply chain guarantees, or any other terms and conditions the board deems necessary based on the information provided in the expression of interest. The board may request and consider any additional information they find necessary in connection with its evaluation and negotiations. Throughout the negotiation process, the board shall consult with the Department of Environmental Protection and other State agencies with applicable expertise. The Division of Rate Counsel shall have, with respect to P.L. , c. (C. ) (pending before the Legislature as this bill), the right to receive all filings and submissions made to the board, to submit written comments and evidence, and to petition the board for reconsideration of any final board order.
b. If the board and a provisionally qualified project entity reach an agreement, all key terms and conditions shall be memorialized in a final board order designating the project as a qualified project. The final board order shall not be subject to change except with the consent of the board and the qualified project entity. Key terms to be specified in the final board order shall include, but need not be limited to:
(1) the commercial operation date of the qualified project;
(2) a project construction cost estimate;
(3) critical project development milestones and the consequences for failing to meet the milestones;
(4) any CFDC funding to be provided to the project and the schedule for disbursements of the funding;
(5) provisions for the treatment of construction cost decreases or allowable cost increases; and
(6) project reporting requirements.
b. Any final agreement issued by the board pursuant to this section shall, at a minimum, include conditions to ensure the following:
(1) the qualified project entity will reimburse the board and the State for all reasonable costs incurred for review of the project by the board, including, but not limited to, consulting services, oversight, inspections, and audits;
(2) the qualified project entity will undertake all reasonable wildlife protection efforts necessary to sustain the natural population of wildlife present in the areas surrounding the nuclear energy generation facility; and
(3) the qualified project entity will undertake community engagement and public education for the duration of operations;
(4) the project shall be constructed utilizing a project labor agreement and pay prevailing wages, in accordance with the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), for any construction services in State;
(5) not less than 15 percent of the total labor hours of the construction work performed by a contractor or subcontractor, with respect to the facility shall be performed by apprentices. The requirements of this paragraph shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the United States Department of Labor or the Department of Labor and Workforce Development. The board may establish an exemption from the provisions of this paragraph for facilities that are unable to acquire sufficient apprentices to meet the required percentage of labor hours; and
(6) be constructed using materials with a supply chain based in the United States, wherever feasible.
c. If the board and a provisionally qualified project entity do not reach an agreement within 12 months from the date of provisional qualification, the provisional qualification shall expire and the project shall no longer be considered a provisionally qualified project, except if the board and the provisionally qualified project entity both agree to extend the time to reach agreement.
d. Notwithstanding any procurement threshold established under R.S.52:25-23, any circular issued pursuant thereto by the Division of Purchase and Property in the Department of the Treasury, or any board-specific procurement threshold, the board may engage consulting services on a non-advertised basis using the procedures authorized by R.S.52:25-23 and set forth by the Director of the Division of Purchase and Property in Circular No. 26-02-DPP to assist in carrying out its duties under P.L. , c. (C. ) (pending before the Legislature as this bill). Any such engagement shall not be applied against the board's delegated procurement authority threshold.
6. Section 12 of P.L.1999, c.23 (C.48:3-60) is amended to read as follows:
12. a. Simultaneously with the starting date for the implementation of retail choice as determined by the board pursuant to subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53), the board shall permit each electric public utility and gas public utility to recover some or all of the following costs through a societal benefits charge that shall be collected as a non-bypassable charge imposed on all electric public utility customers and gas public utility customers, as appropriate:
(1) the costs for the social programs for which rate recovery was approved by the board prior to April 30, 1997. For the purpose of establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of social program costs as is being collected in the bundled rates of the electric public utility on the effective date of P.L.1999, c.23 (C.48:3-49 et al.). The board may subsequently order, pursuant to its rules and regulations, an increase or decrease in the societal benefits charge to reflect changes in the costs to the utility of administering existing social programs. Nothing in P.L.1999, c.23 (C.48:3-49 et al.) shall be construed to abolish or change any social program required by statute or board order or rule or regulation to be provided by an electric public utility. Any such social program shall continue to be provided by the utility until otherwise provided by law, unless the board determines that it is no longer appropriate for the electric public utility to provide the program, or the board chooses to modify the program;
(2) nuclear plant decommissioning costs;
(3) the costs of demand side management programs that were approved by the board pursuant to its demand side management regulations prior to April 30, 1997. For the purpose of establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be set to recover the same level of demand side management program costs as is being collected in the bundled rates of the electric public utility on the effective date of P.L.1999, c.23 (C.48:3-49 et al.). Within four months of the effective date of P.L.1999, c.23 (C.48:3-49 et al.), and every four years thereafter, the board shall initiate a proceeding and cause to be undertaken a comprehensive resource analysis of energy programs, and within eight months of initiating such proceeding and after notice, provision of the opportunity for public comment, and public hearing, the board, in consultation with the Department of Environmental Protection, shall determine the appropriate level of funding for energy efficiency, light, medium, and heavy-duty plug-in electric vehicles, including school buses, and associated plug-in electric vehicle charging infrastructure, energy storage, and Class I renewable energy programs that provide environmental benefits above and beyond those provided by standard offer or similar programs in effect as of the effective date of P.L.1999, c.23 (C.48:3-49 et al.); provided that the funding for such programs be no less than 50 percent of the total Statewide amount being collected in electric and gas public utility rates for demand side management programs on the effective date of P.L.1999, c.23 (C.48:3-49 et al.) for an initial period of four years from the issuance of the first comprehensive resource analysis following the effective date of P.L.1999, c.23 (C.48:3-49 et al.), and provided that 25 percent of this amount shall be used to provide funding for Class I renewable energy projects in the State. In each of the following fifth through eighth years, the Statewide funding for such programs shall be no less than 50 percent of the total Statewide amount being collected in electric and gas public utility rates for demand side management programs on the effective date of P.L.1999, c.23 (C.48:3-49 et al.), except that as additional funds are made available as a result of the expiration of past standard offer or similar commitments, the minimum amount of funding for such programs shall increase by an additional amount equal to 50 percent of the additional funds made available, until the minimum amount of funding dedicated to such programs reaches $140,000,000 total. After the eighth year the board shall make a determination as to the appropriate level of funding for these programs. Such programs shall include a program to provide financial incentives for the installation of Class I renewable energy projects in the State, and the board, in consultation with the Department of Environmental Protection, shall determine the level and total amount of such incentives as well as the renewable technologies eligible for such incentives which shall include, at a minimum, photovoltaic, wind, and fuel cells. The board shall simultaneously determine, as a result of the comprehensive resource analysis, the programs to be funded by the societal benefits charge, the level of cost recovery and performance incentives for old and new programs and whether the recovery of demand side management programs' costs currently approved by the board may be reduced or extended over a longer period of time. The board shall make these determinations taking into consideration existing market barriers and environmental benefits, with the objective of transforming markets, capturing lost opportunities, making energy services more affordable for low income customers and eliminating subsidies for programs that can be delivered in the marketplace without electric public utility and gas public utility customer funding. In addition to the determinations above, the board shall allocate sufficient funding from the societal benefits charge to cover the remaining cost of fully funding incentive awards issued for transmission-scale energy storage systems that are eligible projects pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.), after accounting for funding allocated to this purpose from other sources;
(4) manufactured gas plant remediation costs, which shall be determined initially in a manner consistent with mechanisms in the remediation adjustment clauses for the electric public utility and gas public utility adopted by the board; and
(5) the cost, of consumer education, as determined by the board, which shall be in an amount that, together with the consumer education surcharge imposed on electric power supplier license fees pursuant to subsection h. of section 29 of P.L.1999, c.23 (C.48:3-78) and the consumer education surcharge imposed on gas supplier license fees pursuant to subsection g. of section 30 of P.L.1999, c.23 (C.48:3-79), shall be sufficient to fund the consumer education program established pursuant to section 36 of P.L.1999, c.23 (C.48:3-85).
b. There is established in the Board of Public Utilities a nonlapsing fund to be known as the "Universal Service Fund." The board shall determine: the level of funding and the appropriate administration of the fund; the purposes and programs to be funded with monies from the fund; which social programs shall be provided by an electric public utility as part of the provision of its regulated services which provide a public benefit; whether the funds appropriated to fund the "Lifeline Credit Program" established pursuant to P.L.1979, c.197 (C.48:2-29.15 et seq.), the "Tenants' Lifeline Assistance Program" established pursuant to P.L.1981, c.210 (C.48:2-29.30 et seq.), the funds received pursuant to the Low Income Home Energy Assistance Program established pursuant to 42 U.S.C. s.8621 et seq., and funds collected by electric and gas public utilities, as authorized by the board, to offset uncollectible electricity and natural gas bills should be deposited in the fund; and whether new charges should be imposed to fund new or expanded social programs.
c. Upon designating a qualified clean firm energy resource project pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall establish, by board order, a non-bypassable charge to be known as the clean firm development charge, or CFDC, which shall be imposed on all electric utility customers. The board shall determine the amount of the charge necessary to provide the agreed-upon funding, and shall establish, and adjust from time to time as necessary, the amount that each electric public utility is required to collect accordingly. The board shall require each electric public utility to begin assessing the charge on all customer bills no later than 180 days after the designation of a clean firm energy resource project, or other date specified by the board. Monies collected through the CFDC shall be deposited in the "Clean Firm Energy Development Fund" for the purposes described in subsection d. of this section.
d. There is established in the Board of Public Utilities a nonlapsing fund to be known as the "Clean Firm Energy Development Fund." The monies in the fund shall be used to support the development of one or more qualified clean firm energy resource projects. The level of funding to be provided to a qualified clean firm energy project shall be established by the board in any order designating a qualified clean firm energy resource project pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
e. The "Clean Firm Energy Development Fund" shall be administered by the board and shall be credited with:
(1) monies received from the CFDC pursuant to subsection c. of this section;
(2) such monies as are appropriated by the Legislature for this purpose; and
(3) any return on investment of monies deposited in the fund.
f. The board shall disburse the monies collected in the "Clean Firm Energy Development Fund" to a qualified clean firm energy resource project entity based on the construction milestone and payment schedule agreed to and specified in the board's order issued pursuant to section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill). The disbursement of funds shall be directed by the board upon submission of documentation satisfactory to the board of costs incurred and construction progress, and a determination by the board that such costs were prudently incurred. Submissions shall include proof of actual expenditures and any other information the board deems necessary to verify eligibility for disbursement of funds. The board shall not disburse monies for any qualified advanced nuclear reactor project until the project has been issued a construction permit, combined construction permit and operating license, or Limited Work Authorization by the United States Nuclear Regulatory Commission, as applicable. The board shall report collections to the fund as revenues, and disbursements from the fund as expenditures, for the purposes of the Governor's annual budget message to the Legislature.
g. When all disbursements to a qualified clean firm energy resources have been made pursuant to subsection f. of this section, or if the designation of the qualified advanced nuclear reactor has been terminated by the board, the board shall direct each electric public utility to immediately cease collecting the CFDC for that clean firm energy resource.
h. As used in this section:
"Clean firm development charge" or "CFDC" means a charge imposed by an electric public utility at a level determined by the board, pursuant to the provisions of subsections c. through g. of this section.
"Clean firm energy resource" means the same as the term is defined in section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.2025, c.136, s.7)
7. The Board of Public Utilities shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.
8. This act shall take effect immediately.
STATEMENT
This bill, to be known as the "Clean Firm Energy Reliability Act," would direct the Board of Public Utilities (BPU) to establish a program to procure clean firm energy resources in the State.
As defined in the bill, "clean firm energy resource" means an electric energy generation facility that: (1) produces zero or near-zero greenhouse gas emissions; (2) is dispatchable, fuel secure, and capable of continuous operation; and (3) is accredited by PJM for capacity and reliability value. "Clean firm energy resource" includes, but is not limited to, an advanced nuclear reactor or an expansion unit at an existing nuclear site or qualified brownfield.
The bill would direct the BPU to issue a request for expressions of interest within 180 days of the bill's enactment. Entities that are interested in participating in the program would then have 60 days to submit an expression of interest. The bill would establish certain minimum content requirements for an expression of interest, including, for nuclear energy projects, that it contain a letter of intent filed with the United States Nuclear Regulatory Commission (NRC) and a proposed licensing pathway under the NRC.
The BPU would then have 90 days to review an expression of interest and would be authorized to grant provisional qualification status to those projects that sufficiently meet the BPU's criteria, are reasonably likely to significantly contribute to meeting the State's energy reliability, resilience, and capacity needs, and provide a net benefit to ratepayers. The BPU would then enter into negotiations with the developer of the proposed clean firm energy resource concerning the terms of the project. If an agreement is reached, the BPU would approve the project by issuing a board order, which would not be subject to change, except by mutual agreement between the BPU and the project developer.
If approved, a qualified clean firm energy resource project would be authorized to receive financial support through a clean firm development charge (CFDC). Under the CFDC, a qualified clean firm energy resource 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 "Clean Firm Development Fund." The bill would require the BPU to include revenues and expenditures from the fund in the Governor's annual budget message to the Legislature. Finally, the bill would authorize the BPU to adopt rules and regulations as necessary to implement the bill's provisions.
