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 financial incentives, known as SMR incentives, for each megawatt hour of electricity produced by these reactors. The BPU will develop a competitive solicitation program within one year of the bill's enactment, with the first solicitation round occurring no later than two years after. The bill emphasizes the importance of SMRs in providing reliable electricity, replacing jobs lost from retiring fossil fuel plants, and helping the state meet its clean energy goals. It also allows the BPU to use funds from the "Global Warming Solutions Fund" to finance these incentives.

Additionally, the bill outlines eligibility criteria for projects, including the requirement that they commence after the bill's effective date and be interconnected to a New Jersey electric public utility's transmission and distribution system. The BPU is authorized to give preference to projects located on former fossil fuel sites and to impose conditions to ensure successful project completion. Furthermore, the bill prohibits SMR owners from profiting from the environmental benefits of the energy produced while receiving incentives and mandates that selected SMRs pay an annual administrative fee to the BPU. Overall, the act seeks to incentivize the development of SMRs as a viable energy source while ensuring fiscal responsibility and environmental accountability.

Statutes affected:
Introduced: 26:2C-51