The bill establishes a comprehensive framework for the development and incentive awards for transmission-scale energy storage systems in New Jersey, as specified in P.L.2025, c.136. It defines essential terms such as "accredited capacity," "eligible project," and "energy storage program," and mandates the Board of Public Utilities (BPU) to create a program to procure and provide incentive awards for eligible projects. The BPU is required to approve incentive awards totaling at least 1,000 MW AC in installed capacity by June 30, 2026, with specific milestones for Tranche 1 and Tranche 2 applications. The bill also sets eligibility criteria for projects, including participation restrictions, anticipated commercial operation dates, and project maturity requirements, while outlining the BPU's responsibilities in evaluating applications.

Furthermore, the bill establishes the Energy Storage Fund within the BPU, a special, non-lapsing fund aimed at supporting energy storage initiatives, which will receive annual deposits of at least $60 million from the societal benefits charge and other sources. The board is mandated to use this fund exclusively for incentive awards related to energy storage and to ensure adequate funding throughout the award periods. The bill also streamlines the process for the board to adopt rules and regulations regarding energy storage incentives, allowing for the issuance of awards without waiting for rule-making completion. It ensures appropriate allocation of funds from the societal benefits charge for social programs and energy efficiency initiatives, with the act taking effect immediately upon approval.

Statutes affected:
Introduced: 48:3-60
Advance Law: 48:3-60
Pamphlet Law: 48:3-60