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New JerseyA4529221st Legislature (2026-2027)HouseWALLET

Modifies certain requirements for transmission-scale energy storage procurement under BPU incentive program.

Sponsored By: John J. Burzichelli (Democratic), Wayne P. DeAngelo (Democratic), Kevin P. Egan (Democratic), Robert J. Karabinchak (Democratic), Bob Smith (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

New Jersey funds large storage projects

New Jersey’s Board of Public Utilities must approve incentives for at least 1,000 megawatts AC of large-scale energy storage by December 31, 2026. The law sets a first-round minimum of 350 megawatts AC by December 31, 2025. A second round must cover any shortfall, with awards completed by December 31, 2026. Eligible projects without awards can join a waiting list for later rounds. The law took effect March 24, 2026, retaining earlier deadlines for first-round awards and rules due September 30, 2025; first-round applications can precede those rules.

Storage developers face eligibility and fee rules

Storage developers must enter PJM’s grid-connection process and pay a Board-set application fee; the Board can add eligibility rules. First-round applicants need a signed connection agreement, a completed surplus-connection study, or notice to transfer connection rights from a closing power plant; the latter two routes also require securing those rights. Second-round applicants can use those milestones or be in, or have reached, PJM’s Phase I System Impact Study. Projects must expect to start operating by December 31, 2030, unless exempted, and cannot join another storage program except when incorporated into the Grid-Scale Energy Storage Program. Applications must show site control, permit readiness or plans, connection filings and initial fee payments, construction funds and market or non-ratepayer revenue plans, safety compliance, and planning coordination with PJM and utilities; bids rank mainly by incentive price, with readiness, experience, redevelopment, brownfield reuse, fossil-plant replacement, and environmental justice also considered.

Storage developers get payments with performance limits

Board orders set each project’s capacity, incentive amount, and 15-year annual payment schedule, starting no earlier than commercial operation. Orders specify the starting fiscal year, funding, any participation fee, and pre-development security capped at $100,000 per megawatt and $10 million per project. Payments must fall proportionally when projects miss required yearly availability for dispatch. The Board can require reporting and added financial security, revoke awards, or keep security for missed deadlines or award conditions. The Board can change the funding source, but awards and operating conditions remain in force for the full term; the law sets no single funding source or explicit household charge.

Sponsors & Cosponsors

Sponsors

  • John J. Burzichelli

    Democratic • Senate

  • Wayne P. DeAngelo

    Democratic • House

  • Kevin P. Egan

    Democratic • House

  • Robert J. Karabinchak

    Democratic • House

  • Bob Smith

    Democratic • Senate

Cosponsors

  • Patrick J. Diegnan Jr.

    Democratic • Senate

  • Linda R. Greenstein

    Democratic • Senate

  • Angela V. McKnight

    Democratic • Senate

  • Annette Quijano

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 94 • No: 16

Senate vote • 3/23/2026

3RDG FINAL PASSAGE

Yes: 36 • No: 2

House vote • 3/23/2026

3RDG FINAL PASSAGE

Yes: 58 • No: 14 • Other: 2

Actions Timeline

  1. Governor: APP

    3/24/2026Governor

  2. Approved by Governor — P.L.2026, c.2.

    3/24/2026Governor

  3. Passed Senate, PBH — (36-2)

    3/23/2026Senate

  4. Substituted for S3819

    3/23/2026Senate

  5. Received in Senate, SWR, 2nd Reading in Senate

    3/23/2026Senate

  6. Passed Assembly — (58-14-2)

    3/23/2026House

  7. Reported, 2nd Reading in Assembly

    3/19/2026House

  8. Reported, Referred to Assembly Appropriations Committee

    3/16/2026House

  9. Introduced, 1st Reading in Assembly, Referred to Assembly Telecommunications and Utilities Committee

    3/9/2026House

Bill Text

  • Version PL2026

    9/17/2026

    HTMLPDF

  • Version AL2026

    8/13/2026

    HTMLPDF

  • As Introduced

    3/24/2026

    HTMLPDF

  • 3/23/26; as introduced

    3/23/2026

    HTMLPDF

  • Assembly Appropriations Substitute (3/19/26)

    3/20/2026

    HTMLPDF

  • Assembly Telecommunications and Utilities Substitute (3/13/26)

    3/17/2026

    HTMLPDF

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