This bill requires the New Jersey Board of Public Utilities (BPU) to create a program for the procurement and incentivization of transmission-scale energy storage systems, starting with an initial phase known as Tranche 1. The BPU will solicit applications for projects that collectively achieve a minimum installed capacity of 500 megawatts (MW AC). To be eligible for incentive awards, projects must not be involved in other energy storage programs and must have a commercial operations date by December 31, 2030. The BPU will evaluate applications using a scoring system that considers factors such as pricing, project maturity, and community benefits, and is mandated to approve at least $60 million in incentive awards for Tranche 1.

The bill also introduces new legal language regarding funding mechanisms for these incentive awards, specifying that they will be financed through the societal benefits charge and ratepayer tariffs. It establishes conditions under which the BPU may revoke incentive awards and outlines performance requirements for developers, including regular data reporting and the potential reduction of awards based on unmet availability percentages. Additionally, the BPU is tasked with conducting a Ratepayer Impact Review within one year of the final Tranche 1 procurement approval to assess the impact of the energy storage programs and determine the need for extending procurement efforts. The funding for these initiatives is set to begin with a minimum annual allocation of $60 million starting in Fiscal Year 2029.

Statutes affected:
Introduced: 48:3-60