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New JerseyA5267220th Legislature (2024-2025)HouseWALLET

Requires BPU to procure and incentivize transmission-scale energy storage.

Sponsored By: David Bailey Jr. (Democratic), John J. Burzichelli (Democratic), Wayne P. DeAngelo (Democratic), Kevin P. Egan (Democratic), Bob Smith (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Utility customers help fund storage awards

The board must deposit at least $60 million yearly into a dedicated Energy Storage Fund until all award periods end. Money comes from utility societal benefits charges and other sources, including federal funds. All electric and gas utility customers pay this charge and cannot opt out. The fund is limited to this law’s awards and Garden State Energy Storage Program incentives. Starting July 1, 2027, the board must set aside enough fund money to fully pay this law’s awards. Utility-charge funding must cover remaining award costs after other allocated funding is counted; the law sets no household cost amount.

Storage developers get long-term incentive awards

New Jersey’s Board of Public Utilities must approve storage awards covering at least 1,000 megawatts by June 30, 2026. This includes at least 350 megawatts by December 31, 2025. Eligible projects must be at least 5 megawatts, meet PJM grid-connection milestones, and qualify for its wholesale markets. Developers must show site control, permit plans, financial strength, and safety compliance, and pay an application fee. Projects generally cannot receive other state storage incentives, except through allowed Garden State Energy Storage Program integration. Awards provide fixed annual payments for 15 years, generally starting at commercial operation. Projects must target operation by December 31, 2030, unless the board grants an exception. The board can require security up to $100,000 per megawatt, capped at $10 million per project portfolio. Missed performance requirements can reduce payments; missed deadlines can lead to revoked awards and retained security. Further award rounds are optional, with award amounts reviewed against market conditions or set through competition.

Sponsors & Cosponsors

Sponsors

  • David Bailey Jr.

    Democratic • House

  • John J. Burzichelli

    Democratic • Senate

  • Wayne P. DeAngelo

    Democratic • House

  • Kevin P. Egan

    Democratic • House

  • Bob Smith

    Democratic • Senate

Cosponsors

  • Mitchelle Drulis

    Democratic • House

  • Roy Freiman

    Democratic • House

  • Linda R. Greenstein

    Democratic • Senate

  • Dan Hutchison

    Democratic • House

  • Robert J. Karabinchak

    Democratic • House

  • Tennille R. McCoy

    Democratic • House

  • Cody D. Miller

    Democratic • House

  • Ramirez, Jessica

    Affiliation unavailable

  • Heather Simmons

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 210 • No: 96

House vote • 6/30/2025

3RDG FINAL PASSAGE

Yes: 55 • No: 22 • Other: 2

Senate vote • 6/30/2025

3RDG FINAL PASSAGE

Yes: 26 • No: 12

Senate vote • 6/30/2025

AMEND

Yes: 23 • No: 14

Senate vote • 6/30/2025

RECONSIDER

Yes: 27 • No: 11

Senate vote • 6/30/2025

3RDG FINAL PASSAGE

Yes: 25 • No: 14

House vote • 6/30/2025

CONCUR IN SA

Yes: 54 • No: 23 • Other: 1

Actions Timeline

  1. Approved by Governor — P.L.2025, c.136.

    8/22/2025Governor

  2. Passed Assembly, PBH — (54-23-1)

    6/30/2025House

  3. Received in Assembly, 2RAC

    6/30/2025House

  4. Passed Senate — (25-14)

    6/30/2025Senate

  5. Substituted for S4289 (SCS)

    6/30/2025Senate

  6. SA, 2nd Reading in Senate — (23-14) (Smith)

    6/30/2025Senate

  7. RCON/V — (27-11) (Smith)

    6/30/2025Senate

  8. Passed Senate — (26-12)

    6/30/2025Senate

  9. Substituted for S4289 (SCS)

    6/30/2025Senate

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

    6/30/2025Senate

  11. Passed Assembly — (55-22-2)

    6/30/2025House

  12. AS, 2nd Reading in Assembly — (Carter) (Voice)

    5/22/2025House

  13. Reported, 2nd Reading in Assembly

    5/15/2025House

  14. REP/ACA, Referred to Assembly Appropriations Committee

    3/20/2025House

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

    2/10/2025House

Bill Text

  • Version PL2025

    10/3/2025

    HTMLPDF

  • Version AL2025

    9/16/2025

    HTMLPDF

  • 7/7/25; 1R AS

    7/7/2025

    HTMLPDF

  • Assembly 5/22/25 AS

    7/1/2025

    HTMLPDF

  • Senate 6/30/25 1R AS

    7/1/2025

    HTMLPDF

  • Senate 6/30/25 AS

    7/1/2025

    HTMLPDF

  • Assembly Appropriations Substitute (5/15/25 1R)

    5/16/2025

    HTMLPDF

  • Assembly Telecommunications and Utilities (3/20/25 1R)

    3/21/2025

    HTMLPDF

  • Assembly Telecommunications and Utilities Substitute (3/20/25)

    3/21/2025

    HTMLPDF

  • As Introduced

    2/11/2025

    HTMLPDF

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