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) and will allocate at least $60 million in incentive awards for approved projects over a 15-year period. To qualify for these awards, projects must meet specific criteria, including not being involved in other energy storage programs and having a commercial operations date by December 31, 2030. The BPU will evaluate applications using a scoring system that considers price, project maturity, and community benefits.

Additionally, the bill amends existing laws to include costs associated with incentive awards for energy storage systems under the societal benefits charge. It mandates the BPU to adopt rules for Tranche 1 within a specified timeframe and allows for the procurement of energy storage systems even if these rules are not finalized. The BPU is also tasked with conducting a Ratepayer Impact Review within one year of final procurement approval to assess the impact of the energy storage programs and progress towards the state's 2030 energy storage target of 2,000 megawatts. The bill ensures that funding mechanisms for incentive awards remain stable and allows for the potential extension of procurement through future tranches or successor programs based on the review's findings.

Statutes affected:
Introduced: 48:3-60