This bill proposes the allocation of $300 million from available balances collected through the societal benefits charge and the Global Warming Solutions Fund to finance grants for the construction of small modular nuclear reactors in New Jersey, starting in the fiscal year that begins on July 1, 2025. The Board of Public Utilities and the Department of Environmental Protection are tasked with overseeing this allocation. The bill also provides a definition for small modular reactors (SMRs), specifying that they are nuclear fission reactors with a generating capacity of no more than 300 megawatts, which can be constructed and operated independently or in conjunction with other similar reactors, and must be licensed by the United States Nuclear Regulatory Commission.

The act is designed to address a significant decline in electric production in New Jersey, which has reportedly decreased by approximately 20 percent over the past eight years. The bill is set to take effect immediately upon passage and will expire on June 30, 2026.