This bill authorizes the Board of Public Utilities (BPU) to be the sole state agency responsible for providing site approval for the construction of small modular reactors (SMRs) in New Jersey. An SMR is defined as a nuclear fission reactor with a generating capacity of no more than 300 megawatts, which can be constructed either independently or in conjunction with other similar reactors. The BPU can only approve sites for SMRs located in municipalities where a nuclear energy facility has previously been built, and its approval will supersede any conflicting municipal or county regulations. Additionally, the BPU is required to develop an incentive program within one year of the bill's enactment to financially support the construction of SMRs.

Furthermore, the bill allows operators of SMRs to store spent nuclear fuel on-site until a national high-level radioactive waste repository is developed, as mandated by the federal "Nuclear Waste Policy Act of 1982." The storage methods must adhere to safety standards set by the United States Nuclear Regulatory Commission. The bill also stipulates that the BPU must adopt rules and regulations to implement the act, which will include criteria for decommissioning, environmental monitoring, and emergency preparedness related to SMRs, while ensuring that these regulations do not override the authority of the Nuclear Regulatory Commission.