WeVote
Log In

Bill

Bill

S 4289

Extends DEC's authority to regulate management of crabs, and prohibits the taking of horseshoe crabs for commercial and biomedical purposes

2025 Regular Session Introduced by Pete Harckham and 3 co-sponsors

Directs BPU to procure 1,000 MW of transmission-scale energy storage (5 MW+) for PJM, funded by an Energy Storage Fund with at least $60M/year for 15-year incentives.

SUBSTITUTED BY A4997
0
WeVote Research Nonpartisan
Bill Summary · S 4289

Summary — S.4289 (Senate Committee Substitute, 6/9/2025)

Status: Substituted by A4997 (6/11/2025); introduced 3/24/2025.

Note: although the bill header in the tracking metadata references crabs, the committee substitute and accompanying documents for S.4289 exclusively address a Board of Public Utilities (BPU) program to procure and incentivize transmission‑scale energy storage in New Jersey.

Purpose / Intent

Require the New Jersey Board of Public Utilities to establish a program to procure and provide incentive awards for the development of transmission‑scale energy storage systems (≥5 MW AC) that can interconnect to the PJM transmission network and participate in PJM wholesale markets. The program aims to accelerate large‑scale storage deployment for grid reliability, capacity and ancillary services.

Key provisions

  • Definitions: establishes terms such as “transmission‑scale energy storage system,” “installed capacity,” “incentive award,” “Capacity Interconnection Rights,” etc.
  • Procurement goal and tranches:
    • BPU must approve incentive awards totaling at least 1,000 MW AC of installed capacity by June 30, 2026.
    • At least 350 MW AC must be approved in Tranche 1 by December 31, 2025. If the 1,000 MW target is unmet in Tranche 1, BPU may run Tranche 2; all Tranche 2 awards must be approved by June 30, 2026.
    • BPU may place unfunded eligible projects on a waiting list for later tranches.
    • Within 30 days of meeting the 1,000 MW goal, BPU must initiate a proceeding and report to the Governor and Legislature on whether to continue procurement via subsequent tranches (with market analysis before setting incentive levels).
  • Eligibility and project maturity:
    • Projects may not participate in other state storage programs (except to the extent incorporated with the Garden State Energy Storage Program, GSESP).
    • Anticipated commercial operation date generally no later than Dec 31, 2030 (board may grant exceptions).
    • Tranche‑specific PJM interconnection progress requirements (Tranche 1 requires more advanced interconnection milestones than Tranche 2).
  • Incentive award structure and conditions:
    • Awards are fixed series of annual payments over a 15‑year award period, paid per MW or per MWh (board discretion), starting at commercial operation (or alternate schedule set by board).
    • Board orders must specify capacity, payment schedule, annual funding allocation, developer participation fee, and pre‑development security (up to $100,000 per MW, cap $10,000,000).
    • Awards are conditioned on baseline performance (availability/uptime); failure to meet metrics can reduce award amounts and may lead to revocation and forfeiture of security.
    • Board may require reporting of development milestones, financial security, and other terms.
  • Application review: BPU must use a pre‑established scoring system (price, project maturity/likelihood of success, and environmental justice/redevelopment/community benefits factors).
  • Funding: creates an Energy Storage Fund to pay awards; authorizes annual transfers of at least $60 million from the societal benefits charge to that Fund beginning FY2026 (may be supplemented by federal or other sources).

Who is affected

  • Developers and owners of transmission‑scale energy storage projects (eligibility, interconnection and performance obligations).
  • Board of Public Utilities (program administration, rulemaking, monitoring).
  • PJM and electric public utilities (interconnection and market participation processes).
  • Ratepayers: funding is sourced primarily via a reallocation of societal benefits charge revenues (OLS projects an annual reallocation of at least $60 million; overall state expenditure impact is indeterminate).

Fiscal and timeline highlights

  • Fiscal impact: Office of Legislative Services estimates an indeterminate annual State expenditure increase for BPU administration; a revenue reallocation of at least $60 million annually to the Energy Storage Fund from FY2026 through the life of 15‑year awards.
  • Timeline milestones in the substitute:
    • Tranche 1 application period to begin no later than Sept 30, 2025 (per SCS language).
    • Minimum 350 MW approved by Dec 31, 2025; full 1,000 MW target by June 30, 2026.
    • Board must report and decide on further tranches soon after meeting 1,000 MW.

Legislative status and sponsors

  • Sponsors: Sen. Brad Hoylman-Sigal (primary); cosponsors Sen. Julia Salazar and Sen. Pete Harckham.
  • Passed committee substitute 6/9/2025; substituted by A4997 (6/11/2025); related companion/alternate bills include A5267 and A4997.

Main takeaway

S.4289 directs the BPU to run a targeted procurement and long‑term incentive program to rapidly deploy at least 1,000 MW of transmission‑scale energy storage in New Jersey by mid‑2026, establishes funding via a dedicated Energy Storage Fund (minimum $60M/year), and sets qualification, performance, and oversight rules designed to prioritize mature, grid‑beneficial projects.

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

Sign in to ask a question.