This bill allocates $300 million from available balances collected through the societal benefits charge and the Global Warming Solutions Fund for grants aimed at the construction of small modular nuclear reactors (SMRs) in New Jersey. The funding will be managed by the Board of Public Utilities and the Department of Environmental Protection, with the allocation set to take place in the fiscal year beginning July 1, 2026. The bill also provides a definition for small modular reactors, specifying that they must have a generating capacity of no more than 300 megawatts and be licensed by the United States Nuclear Regulatory Commission.

The legislation is designed to address a significant decline in electric production in New Jersey, which has decreased by approximately 20 percent over the past eight years. By supporting the development of SMRs, the bill aims to stimulate electric production in the state and enhance energy sustainability. The act is set to take effect immediately and will expire on June 30, 2027.