This bill designates the Board of Public Utilities (BPU) as the sole authority for granting site approval for the construction of small modular reactors (SMRs) in New Jersey, in consultation with the Department of Environmental Protection. An SMR is defined as a nuclear fission reactor with a generating capacity of no more than 300 megawatts, which can be built alone or alongside similar reactors. The BPU can only approve sites located in municipalities where a nuclear energy facility has previously existed, and its approval will override any conflicting municipal or county regulations. Additionally, the BPU is required to develop a financial incentive program to support the construction of SMRs within one year of the bill's enactment.

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 comply with safety standards set by the United States Nuclear Regulatory Commission. The bill emphasizes that the construction and operation of SMRs must still adhere to existing laws, including those related to environmental protection and construction codes.