The "Small Modular Nuclear Energy Incentive Act" aims to establish a program in New Jersey to promote the construction of small modular nuclear reactors (SMRs) by directing the Board of Public Utilities (BPU) to solicit bids for these projects. The BPU will provide financial incentives, known as SMR incentives, for each megawatt hour of electricity produced by the reactors, with the incentive amounts determined through a competitive solicitation process. The bill emphasizes the importance of SMRs as a reliable energy source that can help the state meet its clean energy goals while also replacing jobs lost from retiring fossil fuel plants. The BPU is tasked with developing the program within one year of the bill's enactment and initiating the first solicitation round within two years.

Additionally, the bill includes provisions that restrict SMR owners from profiting from the environmental attributes of the energy produced if they receive SMR incentives. It also mandates that selected SMR facilities pay an annual administrative fee to the BPU to cover the costs of administering the program. The bill allows the BPU to use funds from the "Global Warming Solutions Fund" to finance the SMR incentives and gives preference to projects located on sites of former nuclear or fossil fuel power plants. Overall, the legislation seeks to enhance New Jersey's energy landscape by integrating advanced nuclear technology while ensuring fiscal responsibility and environmental accountability.

Statutes affected:
Introduced: 26:2C-51