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A 5267

Requires the use of verified accounts and multi-factor authorization before state funds can be distributed digitally

2025 Regular Session Introduced by Keith Brown and 2 co-sponsors

BPU must create a program to procure and fund long-term incentives for transmission-scale energy storage (≥5 MW) in NJ to boost grid capacity and PJM market participation.

HELD FOR CONSIDERATION IN GOVERNMENTAL OPERATIONS
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Bill Summary · A 5267

Summary — A5267 (P.L.2025, c.136)

Requires the Board of Public Utilities (BPU) to procure and incentivize transmission‑scale energy storage

Main purpose

Establish a BPU‑administered program to procure and provide long‑term incentive awards for the development of transmission‑scale energy storage systems in New Jersey to increase grid capacity, reliability, and wholesale market participation in PJM.

Key definitions

  • Transmission‑scale energy storage system: an energy storage facility with installed capacity of at least 5 MW AC, interconnected with the PJM transmission network and located in New Jersey (or otherwise qualified to serve PJM markets).
  • Incentive award: a fixed series of annual payments issued over a 15‑year award period (paid on commercial operation), expressed in $/MW or $/MWh and subject to performance conditions.

Core provisions and requirements

  • BPU must establish a program and solicit applications in an initial Tranche 1 (and Tranche 2 if needed); it may run subsequent tranches or a successor program.
  • Procurement targets and deadlines (as enacted):
    • Approve incentive awards totaling at least 1,000 MW AC of installed capacity by June 30, 2026.
    • At least 350 MW AC of that goal must be approved in Tranche 1 by December 31, 2025.
    • (Tranche 1 solicitation was required to begin no later than September 30, 2025 per amendments.)
  • Eligibility (high level):
    • Projects may not participate in other state energy storage programs (except the Garden State Energy Storage Program if integrated).
    • Anticipated commercial operation no later than December 31, 2030 (unless BPU grants an exception).
    • Must meet PJM interconnection/maturity requirements (e.g., Generation Interconnection Agreement, Interconnection Service Agreement, or completed interconnection studies) as specified for the tranche.
  • Application materials and fees: applicants must provide site control, permitting plans, interconnection status, financial capability, as‑built or design drawings, and pay application fees set by BPU.
  • Board orders for awards must: define project and capacity, set payment schedule (annual payments over award term), require pre‑development security (up to $100,000 per MW, capped at $10 million total), establish baseline performance and reporting (with possible reductions for unmet availability), and permit revocation/retention of security for missed milestones.
  • BPU may use bidding/competitive solicitations to evaluate incentive amounts and may place non‑selected projects on a waiting list.

Funding and fiscal impact

  • Creates an Energy Storage Fund to receive a statutory minimum reallocation of $60 million annually from societal benefits charge revenues beginning FY2026 and continuing through the life of award periods.
  • Office of Legislative Services estimates: at least $60 million in annual revenue reallocated; overall State expenditure increase indeterminate (administrative costs and total incentive amounts depend on awards and supplemental funding sources). Federal funds or other sources may supplement the $60 million floor.

Who is affected

  • Primary: BPU (administration), energy storage developers and project sponsors, PJM market participants.
  • Secondary: electric and gas utility customers (via societal benefits charge funding reallocation), electric public utilities (interconnection/coordination), and potential suppliers/contractors in construction and O&M.

Procedural / timing notes

  • Enacted as P.L.2025, c.136. BPU has statutory deadlines for solicitation and award approvals (Tranche 1 start by Sept 30, 2025; 350 MW award by Dec 31, 2025; 1,000 MW by June 30, 2026).
  • BPU may hold further tranches or adopt a successor program with rules consistent with the statute and may integrate with the Garden State Energy Storage Program.

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

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