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Bill

A 4881

"Power NJ Act"; establishes advanced nuclear energy procurement program in BPU.

2026-2027 Regular Session Introduced by John Burzichelli and 9 co-sponsors

New Jersey will use a state-backed program to finance and procure advanced nuclear energy, via RCCs, to ensure reliable, zero-emission power with safeguards for ratepayers and jobs

Passed Senate (Passed Both Houses) (40-0)
0
WeVote Research Nonpartisan
Bill Summary · A 4881

Summary of Bill A 4881 (Power NJ Act)

Purpose and intent

  • Creates a state-backed program to promote and procure advanced nuclear energy generation in New Jersey.
  • Aims to improve electric reliability, support grid stability, reduce carbon emissions, create high-quality jobs, and expand New Jersey’s economic development through a domestic nuclear supply chain.
  • Establishes a framework for siting, financing, and operating an advanced nuclear energy project or projects within the state, with revenue flows and consumer protections tied to a Reliable Capacity Certificate (RCC).

Key provisions and changes

  • Definitions and framework

    • Introduces terms such as “advanced nuclear energy project,” “advanced nuclear reactor,” “RCC (Reliable Capacity Certificate),” and “qualified project.”
    • Defines cost, financing, and environmental attribute concepts and clarifies how RCCs are to function as a mechanism to value environmental attributes and capacity.

  • BPU and EDA program establishment (Section 4)

    • The Board of Public Utilities (BPU) shall establish a program to promote advanced nuclear energy projects.
    • The BPU must issue a request for expressions of interest (REI) within 180 days of enactment.
    • Entities submit expressions of interest within 60 days after REI publication, including comprehensive information (NR C involvement, licensing pathway, site analyses, cost estimates, financing plans, energy outputs, RCC structure, ratepayer impact, economic and environmental analyses, community benefits, and workforce plans).
    • The BPU has up to 90 days to evaluate expressions and may grant provisional qualification to projects likely to meet reliability/capacity needs with net ratepayer benefits.

  • Negotiation and stipulations (Section 5)

    • After provisional qualification, the BPU and the NJ Economic Development Authority (EDA) negotiate RCC terms, real estate terms, supply chain commitments, and other conditions.
    • A formal stipulation is created detailing:
    • Target commercial operation date
    • Verified construction cost estimate (Class II) and baseline for overrun costs
    • RCC price structure and schedule (up to 40 years)
    • Percentage of RCC revenues to be returned to ratepayers
    • Milestones, reporting, and conditions for RCC payments (e.g., no payment until generation begins)
    • Provisions for wildlife protection, community outreach, and other safeguards
    • If negotiations fail to produce a stipulation within 12 months, provisional qualification may lapse unless extended.

  • Final board order and criteria (Section 6)

    • Within 90 days of receiving a stipulation, the board must issue a final order approving the project if conditions are met, including:
    • Costs are necessary and justified; financial integrity and access to capital are demonstrated (including potential federal backing)
    • RCC structure fairly allocates risk and remains reasonable for ratepayers
    • Baseline threshold ensures substantial nuclear generation is added to the PJM capacity market
    • If the board has concerns, they may require revisions; renegotiation periods can continue while provisional status remains active.

  • RCC program and ratepayer protections (Section 7)

    • Within 18 months after the first board order, the board must establish a RCC program to require a proportional share of nuclear energy from qualified projects be used by electric suppliers and basic generation service providers (BGSPs) in New Jersey.
    • The program is designed to support at least 1,100 MW of generation, though this number is a design parameter and not a firm commitment.
    • Each RCC grants one certificate per MWh generated; some sales (e.g., with certain co-located end users) may be ineligible for RCC credits.
    • Utilities must satisfy RCC obligations through purchasing RCCs; revenues from RCCs and certain direct power purchase agreements are to be returned to ratepayers as specified in the final board order.

  • Transparency and confidentiality (Section 8)

    • Submissions to the board and authority may be confidential, protecting sensitive financial and technical information.

  • Rulemaking authority (Section 9)

    • The board may issue rules and regulations implementing the act immediately upon filing with the Office of Administrative Law, with rules usable for up to 18 months and subject to later readoption under standard administrative procedure laws.

  • Effective date (Section 10)

    • The act takes effect immediately upon enactment.

Who is affected

  • Primary participants

    • Qualified project entities seeking to develop advanced nuclear energy facilities in New Jersey.
    • The New Jersey Board of Public Utilities (BPU) and the New Jersey Economic Development Authority (EDA) as joint program administrators.
    • Electric power suppliers and basic generation service providers serving New Jersey customers, who must purchase RCCs to meet program requirements.

  • Ratepayers and communities

    • State residents and local communities may benefit from enhanced reliability, lower long-term costs, job creation, and local economic development, but RCCs may affect retail electricity bills depending on RCC design and ratepayer returns.

  • Investors and lenders

    • The program contemplates federal support (e.g., DOE or DOC funding) and requires demonstrated access to capital as a condition of final approval.

Timeline highlights

  • 180 days after enactment: BPU must issue an expression of interest solicitation.
  • 60 days after REI publication: Entities submit expressions of interest.
  • 90 days after complete expression: BPU evaluates and may provisionally qualify projects.
  • Post-provisional qualification: Negotiations proceed; stipulation drafted.
  • Up to 12 months for stipulation negotiations (extendable in defined increments).
  • Within 90 days after receiving a stipulation: Board issues final order if conditions are met.
  • Within 18 months after first board order: Establish RCC program framework and eligibility for at least 1,100 MW of nuclear generation.

Bottom line

The Power NJ Act seeks to proactively attract and finance an advanced nuclear energy facility or facilities in New Jersey by creating a structured process for site selection, licensing, financing, and revenue mechanisms (RCCs) designed to deliver reliable, zero-emission power while spurring state economic development and ensuring ratepayer protection through careful cost, risk, and revenue sharing controls.

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

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