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 called Tranche 1. The program aims to solicit applications for projects that collectively achieve a minimum installed capacity of 500 megawatts (MW AC). To qualify for incentive awards, projects must not be involved in other energy storage programs, must have a commercial operations date by December 31, 2030, and must complete interconnection processes with PJM. The BPU will evaluate applications using a scoring system that considers price, project maturity, and community benefits, and is mandated to approve at least $60 million in incentive awards for Tranche 1.

Additionally, the bill amends existing laws related to the societal benefits charge, allowing for the recovery of costs associated with various social programs and the incentive awards for energy storage systems. The BPU is tasked with establishing a Universal Service Fund to support these initiatives and is required to conduct a Ratepayer Impact Review within a year of final procurement approval to assess the impact of the energy storage programs. The funding for the incentive awards will primarily come from the societal benefits charge, with a minimum annual allocation of $60 million starting in Fiscal Year 2029, ensuring that the funding mechanism for Tranche 1 remains stable without requiring developer consent for any successor programs.

Statutes affected:
Introduced: 48:3-60