The Micro-Reactor Incentive Act establishes a program in New Jersey to encourage the construction of micro nuclear reactors, defined as small modular reactors (SMRs) with a power output of less than 20 megawatts. The Board of Public Utilities (BPU) is responsible for creating a competitive solicitation program to award financial incentives, termed micro-reactor incentives, based on the electricity produced by these reactors. The BPU will prioritize projects located on former nuclear or fossil fuel sites and those that provide emergency power to critical facilities. Funding for these incentives may be sourced from the Global Warming Solutions Fund, which derives revenue from the Regional Greenhouse Gas Initiative.

The bill requires the BPU to develop the solicitation program within one year of enactment and to commence the first round of solicitations within two years. It includes provisions to prevent micro-reactor operators from profiting from the environmental benefits of the energy produced, aside from participation in the zero emissions certificate program. Furthermore, each selected micro-reactor must pay an annual administrative fee to the BPU to cover the costs of managing the incentive program, ensuring its financial sustainability and effective administration. The legislation underscores the role of micro-reactors in enhancing electricity reliability and supporting New Jersey's clean energy objectives, particularly during outages.

Statutes affected:
Introduced: 26:2C-51