summary
Introduced
12/12/2024
12/12/2024
In Committee
12/12/2024
12/12/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill, to be known as the "Small Modular Nuclear Energy Incentive Act," would direct the Board of Public Utilities (BPU) to establish a program to solicit bids for the construction of new small modular nuclear reactors in the State. The bill would authorize the BPU to issue financial incentives to SMRs, to be known as SMR incentives, for each megawatt hour of electric energy produced by the reactor. The amount of the incentive would be determined through a competitive solicitation process. Private entities would submit bids to the BPU, which state the level of SMR incentive they estimate they would require to achieve profitability. The BPU would select the lowest bids, except that the bill authorizes the BPU to give preference to certain projects, for example projects sited at former nuclear energy facilities or fossil fuel power plants. The bill would authorize the BPU to use moneys in the "Global Warming Solutions Fund," which serves as the repository for funds collected by the State under the Regional Greenhouse Gas Initiative (RGGI), in order to fund the SMR incentives. The bill would direct the BPU to develop the program within one year after the bill's enactment, and to begin the first competitive solicitation round within two years after the bill's enactment. The bill would restrict the owner or operator of an SMR that receives an incentive from otherwise profiting from the environmental attributes of the energy it produces. Finally, the bill would require each SMR that is selected to participate in the incentive program to pay an annual administrative fee to the BPU, to compensate the BPU for its costs in administering the program.
AI Summary
This bill establishes a program to incentivize the construction of small modular nuclear reactors (SMRs) in New Jersey by creating a competitive solicitation process managed by the Board of Public Utilities (BPU). The bill defines SMRs as nuclear fission reactors with a generating capacity of up to 300 megawatts that are licensed by the Nuclear Regulatory Commission, and aims to support clean energy goals by providing financial incentives for each megawatt hour of electricity produced. The BPU will conduct solicitation rounds at least every 18 months, with preference given to projects located on sites of former power plants or those that retrain workers from retired facilities. Funding for these incentives will come from the Global Warming Solutions Fund, which is supported by the Regional Greenhouse Gas Initiative. The bill includes several key provisions to ensure project accountability, such as requiring escrow fees, setting milestones for commercial operation, and prohibiting SMR owners from separately selling environmental attributes of the energy produced. Additionally, the bill mandates that workers on SMR construction projects be paid prevailing wages and that the BPU submit a report to the Governor and Legislature within four years evaluating the program's effectiveness. The legislation is motivated by the potential of SMRs to provide reliable, carbon-free electricity and support the state's transition to clean energy sources.
Committee Categories
Transportation and Infrastructure
Sponsors (14)
John Allen (D)*,
Gregory Myhre (R)*,
Brian Rumpf (R)*,
Bob Auth (R),
Christian Barranco (R),
Robert Clifton (R),
Chris DePhillips (R),
Dawn Fantasia (R),
Vicky Flynn (R),
Don Guardian (R),
Michael Inganamort (R),
Sean Kean (R),
Greg McGuckin (R),
Claire Swift (R),
Last Action
Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 12/12/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5103 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5103_I1.HTM |
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