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Bill

A 1072

Direct BPU to establish certain incentive programs for energy storage and management.**

2026-2027 Regular Session Introduced by Wayne DeAngelo and 5 co-sponsors

Establish a statewide program to deploy 500 MW of battery storage by 2030, with requirements, competitive procurement, and protections to lower costs and aid overburdened and low-i

Reported from Assembly Comm. as a Substitute, 2nd Reading
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Bill Summary · A 1072

Bill overview

  • Bill: A 1072
  • Session: 222
  • Jurisdiction: New Jersey
  • Title: Directs BPU and electric utilities to establish distributed battery storage programs
  • Purpose: To create a state-wide distributed capacity program that promotes 500 megawatts (MW) of battery storage capacity by 2030, with the goal of improving grid stability, reducing interconnection timeframes, and lowering system costs. The Board of Public Utilities (BPU) would establish program requirements; electric public utilities would implement the program and report on progress.

Key provisions

  • Definition and scope
    • Clarifies terms: Board (BPU), electric public utility, and overburdened community (as defined in existing statutes).
  • Establishment of a distributed capacity program
    • The BPU must establish by board order a program to support 500 MW of battery storage capacity in New Jersey by 2030.
    • Objectives include: enhance grid stability, shorten interconnection timelines, and reduce overall system costs.
  • Minimum requirements (due within 12 months of enactment)
    • (1) Amount of storage capacity each electric public utility must develop (in MW or equivalent).
    • (2) Size limits and other technical requirements for storage resources participating in the program.
    • (3) Alignment with demand optimization programs and other grid-service compensation programs.
    • (4) Standards for selecting developers and vendors, favoring competitive procurement where practicable.
    • (5) Enhanced incentives for storage located in overburdened communities and areas undergoing redevelopment.
    • (6) Options for leasing storage assets to customers.
    • (7) Provisions ensuring benefits for low- and moderate-income customers and those in overburdened communities.
    • (8) Provisions to leverage all funding sources, including federal DOE financing and federal tax credits, to reduce costs to ratepayers.
    • (9) Clarification of which costs related to program implementation may be recovered from ratepayers.
  • Utility implementation and planning
    • After minimum filing requirements are issued, each electric public utility must file an implementation and reporting plan detailing how it will implement the program and use storage assets.
    • The BPU will review plans and may require changes. The BPU can approve, approve in part, or deny plans and will set appropriate spending levels and rate of return on equity (ROE) for each utility; ROE may be less than that in the utility’s last base rate case.
    • The BPU must consider impact on customer bills and ensure program results include cost savings to ratepayers (e.g., avoided distribution upgrades, and effects on energy, capacity, and ancillary services markets).
  • Reporting and accountability
    • Each utility must file an annual report demonstrating compliance with the approved plan and minimum requirements.
    • If a utility fails to meet key metrics (e.g., peak demand reduction, avoided energy system cost), the BPU may disallow recovery of all or part of related costs, subject to factors beyond the utility’s control and reasonable predictability.
  • Regulation and timelines
    • The BPU will adopt rules and regulations necessary to implement the act under the Administrative Procedure Act.
    • Effective date: The act takes effect immediately upon enactment.

Who is affected

  • State: New Jersey, via the BPU (Board of Public Utilities).
  • Electric public utilities operating in New Jersey (e.g., investor-owned utilities and others designated as electric public utilities under state law).
  • Ratepayers/customers of these utilities, including:
    • General ratepayers (potentially benefiting from avoided costs and lower system costs).
    • Low- and moderate-income customers and residents of overburdened communities (targeted protections and benefits).
  • Developers, vendors, and financing entities involved in battery storage projects (subject to procurement standards and funding considerations).
  • Municipal or redevelopment actors in overburdened communities where storage projects may be sited (due to redevelopment incentives).

Procedural and timeline aspects

  • Timeframe for minimum requirements: Within 12 months after the act’s effective date, BPU must establish minimum program requirements.
  • Implementation planning: Utilities must file implementation and reporting plans after minimum requirements are set; the BPU reviews and may require changes.
  • Reporting: Annual progress reports from each utility; potential disallowance of cost recovery for noncompliance.
  • Rulemaking: The BPU will issue regulations to implement the act under the Administrative Procedure Act.
  • Effective date: Immediate effect upon enactment.

Potential impact and considerations

  • Policy goal: Accelerates deployment of 500 MW of battery storage by 2030 to improve grid reliability and efficiency.
  • Ratepayer impact: The plan aims to balance utility spending with measurable cost savings, though initial investments and procurement costs may affect bills; oversight includes potential disallowance of costs for underperformance.
  • Equity focus: Special emphasis on overburdened communities and LMI customers, with incentives and program design considerations intended to maximize local benefits.
  • Procurement and cost management: Encourages competitive procurement and leveraging federal funding and tax credits to reduce state costs.

Compiled from official sources — confirm details with the bill’s official record.

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