Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
SYNOPSIS
Requires electric public utilities to develop and implement grid modernization plans; appropriates $300 million.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the electric transmission and distribution system, supplementing Title 48 of the Revised Statues, amending P.L.1999, c.23 and P.L.2007, c.340, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) As used in sections 1 through 4 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Board" means the Board of Public Utilities.
"Distributed energy resource" means an electricity-producing resource or controllable load that is connected to an electric public utilitys distribution infrastructure.
"Electric public utility" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).
"Grid Modernization Plan," or "plan," means the plan prepared by each electric public utility pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and implemented pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Transmission and distribution system" means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).
2. (New section) a. No later than one year after the effective date of this act, each electric public utility in the State shall prepare and submit to the board a Grid Modernization Plan. The purpose of the plan shall be to identify the most beneficial, cost-efficient, and practicable projects, to be undertaken by the electric public utility pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), to modernize the State's electric transmission and distribution system within the utility's service area.
b. A plan may include, but shall not be limited to, projects that:
(1) integrate energy storage systems into the electric transmission or distribution system;
(2) increase the capacity of the electric distribution system to interconnect distributed energy resources;
(3) prepare the electric transmission and distribution system to deliver power in accordance with the State's greenhouse gas emissions goals;
(4) decrease the risk of power outages, particularly outages caused by storms or other adverse weather events;
(5) improve the resilience of the electric transmission and distribution system against natural hazards associated with climate change, including increased temperatures and flood risk; and
(6) otherwise improve the ability of the electric public utility to provide uninterrupted electric power to customers, given the foreseeable changes in physical and market conditions.
c. A plan shall include a cost estimate for each project included in the plan and an appropriate timeline for the plan's implementation.
d. No later than 120 days after receipt of a Grid Modernization Plan, the board shall approve, conditionally approve, or disapprove the plan and provide written notice of the determination to the electric public utility. The board shall assess a plan on the basis of its ability to achieve the objectives enumerated in subsections a. and b. of this section, in addition to the plans feasibility, cost effectiveness, and expected ratepayer impact considering all available revenue streams. If the board does not provide written notice of the determination made pursuant to this subsection, the plan shall be deemed to have been approved, and the electric public utility shall proceed to implement the plan as provided by paragraph (1) of subsection e. of this section.
e. (1) If a Grid Modernization Plan is approved, the electric public utility shall implement the approved plan within 90 days after receipt of the boards written notice or after the expiration of the 120-day period established by subsection d. of this section, as the case may be, or within another timeframe agreed to by the board.
(2) If a plan is conditionally approved, the boards written notice shall specify the conditions that are to be satisfied in order for the plan to be deemed approved pursuant to this section. The electric public utility shall implement the conditionally approved plan, in accordance with the conditions specified in the notice, either within 90 days after receipt of the boards notice or within another timeframe agreed to by the board.
(3) If a plan is disapproved, the boards written notice shall be accompanied by a detailed statement describing the reasons for disapproval. Not more than 30 days after receipt of the boards notice, the electric public utility shall submit a revised Grid Modernization Plan to the board, and the board shall approve, conditionally approve, or disapprove the revised plan in accordance with the provisions of this section.
3. (New section) a. No later than 90 days after a Grid Modernization Plan receives approval, or within another timeframe agreed to by the board pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the electric public utility shall commence implementing the plan. The plan shall be fully implemented within the timeframe specified in the plan pursuant to subsection c. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). In the event that an electric public utility is unable to fully implement its plan, it shall provide written notice to this effect to the board.
b. Subject to review by the board, an electric public utility shall be entitled to full and timely cost recovery for all costs incurred in the implementation of its plan.
4. (New section) a. No later than one year after the effective date of this act, the board shall develop a program to provide grants to electric public utilities for the purpose of providing financial relief to ratepayers for rate increases caused by the implementation of a Grid Modernization Plan.
b. The board shall develop priority ranking criteria for the award of grants under the program. The priority ranking criteria shall provide additional priority for a project that receives funding pursuant to the federal "Infrastructure Investment and Jobs Act," Pub.L. 117-58, or the federal Inflation Reduction Act, Pub.L. 117-169.
c. There is established in the Board of Public Utilities a special, nonlapsing fund to be known as the Grid Modernization Ratepayer Relief Fund. Moneys in the fund shall be used by the board solely for the purpose of administering the grant program developed pursuant to this section. The fund shall be administered by the board and shall be credited with:
(1) moneys that are appropriated into the fund by the Legislature;
(2) moneys received from the societal benefits charge established pursuant to section 12 of P.L.1999, c.23 (C.48:3-60), as deemed appropriate by the board;