Establishes advanced nuclear energy program in BPU.

A1071

ASSEMBLY, No. 1071

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman� WAYNE P. DEANGELO

District 14 (Mercer and Middlesex)

Assemblyman� KEVIN P. EGAN

District 17 (Middlesex and Somerset)

SYNOPSIS

���� Establishes advanced nuclear energy program in BPU.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning nuclear energy, supplementing Title 48 of
the Revised Statutes, and amending P.L.1973, c.185 and P.L.1999, c.23.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� (New section) As used in
sections 1 through 5 of
P.L. , c. (C. )
(pending before the Legislature as this bill):

���� �Advanced nuclear development
charge� or �ANDC� means the same as the term is defined in section 12 of
P.L.1999, c.23 (C.48:3-60).

���� �Advanced nuclear energy
certificate� or �ANEC� means a certificate, issued by the board or its
designee, representing the environmental and reliability attributes of one
megawatt hour of electric generation from a qualified project.

���� �Advanced nuclear reactor� or �advanced
reactor� means a nuclear reactor with significant improvements compared to
reactors operating on December 31, 2017, including improvements such as: (1)
additional inherent safety features; (2) lower waste yields; (3) improved fuel
and material performance; (4) increased tolerance to loss of fuel cooling; (5)
enhanced reliability and improved resilience; (6) increased proliferation
resistance; (7) increased thermal efficiency; (8) reduced consumption of
cooling water and other environmental impacts; (9) the ability to integrate
into electric applications and nonelectric applications; (10) modular sizes that
allow for deployment that corresponds with the demand for electricity or
process heat; and (11) operational flexibility to respond to changes in demand
for electricity or process heat and to complement integration with intermittent
renewable energy or energy storage.

���� �Allowable cost increase�
means a construction cost for a qualified project that the board finds: (1) is
higher than the verified total construction cost estimate approved as part of
the final project approval, (2) is adequately documented, (3) was reasonably
and prudently incurred, and (4) could not have been reasonably foreseen by the
project.

���� �Basic generation service
provider� means the same as the term is defined in section 3 of P.L.1999, c.23
(C.48:3-51).

���� �Board� means the Board of
Public Utilities.

���� �Construction costs� means the
costs, as specified in a final order issued pursuant to section 4 of
P.L. , c.
(C. ) (pending
before the Legislature as this bill), inclusive of capital costs, incurred by a
qualified project prior to nuclear reactor operation. ��Construction costs� may
include, but need not be limited to, costs related to the analysis, design,
manufacture, fabrication, quality assurance, placement, erection, installation,
modification, supervision, inspection, or testing of a facility necessary for
building a qualified project, and the purchase of land for, and the building of,
a qualified project.� �Construction costs� shall not include financing costs.

���� �Distributed energy resource�
or �DER� means an electricity-producing resource, energy storage system,
bidirectional electric vehicle charger, or controllable load, including a
controllable unidirectional electric vehicle charger, that is connected to an
electric public utility�s distribution infrastructure.

���� �Electric power supplier�
means the same as the term is defined in section 3 of P.L.1999, c.23
(C.48:3-51).

���� �Electric public utility�
means the same as the term is defined in section 3 of P.L.1999, c.23
(C.48:3-51).

���� �Federal Energy Regulatory
Commission� or �FERC� means the same as the term is defined in section 3 of
P.L.1999, c.23 (C.48:3-51).

���� �Nuclear energy� means
electric energy generated by a qualified project.

���� �Nuclear reactor� means an
apparatus required to be licensed by the United States Nuclear Regulatory
Commission, other than an atomic weapon, that is designed or used to sustain
nuclear fission in a self-supporting chain reaction.

���� �PJM� means �PJM
Interconnection, L.L.C.� or �PJM,� as those terms are defined in section 3 of
P.L.1999, c.23 (C.48:3-51).

���� �Qualified project� means a
nuclear electricity generation facility of at least one advanced nuclear
reactor located in the State, connected to the electric transmission system in
the State, and approved by the board pursuant to section 4 of P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� �Small modular reactor� means
an advanced reactor that: (1) has a rated electric generating capacity of no
more than 1,000 megawatts thermal; (2) may be of modular design; and (3) is
capable of being constructed and operated either alone or in combination with
one or more similar reactors if additional reactors are or become necessary at
a single site.

���� 2.� (New section) a.� To
facilitate the evaluation of any expression of interest and information
received pursuant to section 3 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill), and to ensure a qualified project is part
of a congruent and comprehensive nuclear energy industry and the energy
infrastructure in the State, the board, in consultation with the Department of
Environmental Protection, shall, as soon as practicable:

���� (1) conduct a comprehensive
study on the feasibility of deploying advanced reactors, including small
modular reactors, as a source of carbon-free and reliable energy in the State;

���� (2) identify barriers to the
development and deployment of advanced nuclear reactors and associated
technologies in the State;

���� (3) leverage the expertise of
institutes of higher education, the nuclear energy industry, the industrial
manufacturing sector, regulatory stakeholders, and State and federal agencies
to develop a comprehensive strategic plan to ensure the development and
deployment of advanced nuclear reactors and associated technologies in the
State;

���� (4) facilitate coordination
and communication among State programs affecting the development and deployment
of advanced nuclear reactors and associated technologies in the State; and

���� (5) pursue public outreach and
education about nuclear energy.

���� b.� The board, in consultation
with the Department of Environmental Protection, shall make recommendations to
the Governor and Legislature based on the activities carried out pursuant to
subsection a. of this section.� The recommendations shall be designed to ensure
that the State�s energy programs promote the development and use of nuclear
energy for peaceful purposes, while protecting the interest, health, and safety
of the public and the environment.

���� 3.� (New section) a.� No later
than 270 days after the effective date of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill), the board shall issue a request for
expressions of interest and information for the construction of at least one
advanced nuclear reactor to generate at least 1,100 megawatts of electric power
in the State.

���� b.� Any entity seeking to
construct an advanced nuclear reactor and qualify as a qualified project shall
submit to the board, no later than 90 days after the release of the request
pursuant to subsection a. of this section, an expression of interest and
information, which shall include, but need not be limited to, the following
information:

���� (1) a letter of intent filed
with the United States Nuclear Regulatory Commission;

���� (2) a proposed licensing
pathway under the United States Nuclear Regulatory Commission;

���� (3) proposed State and
municipal permitting pathways;

���� (4) a Regulatory Engagement
Plan prepared in accordance with United States Nuclear Regulatory Commission
guidance, which shall include:

���� (a) the company�s structure;

���� (b) the project�s structure, including
anticipated construction timeframe and completion date; and

���� (c) pre-application engagement
documents and information;

���� (5) site characteristics or an
Early Site Permit pursuant to 10 C.F.R. s.52.12 et seq., if issued;

���� (6) the proposed system design
and technology structure;

���� (7) the estimated costs of
construction and operations, including a detailed analysis of all project
components;

���� (8) the proposed financing
structure, including proposed investors and any proposed energy offtake
agreements or proposed co-located energy users;

���� (9) any proposed or
anticipated sources of construction funding, including whether the entity
proposing the project is seeking and anticipates a loan from the United States
Department of Energy�s Loan Programs Office and the percentage of total
construction costs that would be covered by the loan;

���� (10) the proposed ANEC price
structure pursuant to section 5 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill), which reflects the total revenue
requirements of the project over the proposed period on a dollars per megawatt
hour basis and the anticipated impact to ratepayers, including the anticipated
impact per month on ratepayer bills;

���� (11) the proposed amount of
ANDC funding pursuant to subsection c. of section 12 of P.L.1999, c.23
(C.48:3-60) and the anticipated impact to ratepayers, including the anticipated
impact per month on ratepayer bills;

���� (12) proposed laddered
structures for adjustments to the ANDC or ANEC to provide for sharing of
allowable cost increases of less than or equal to 20 percent of the proposed
construction cost estimate between the entity proposing the project and
ratepayers;

���� (13) an analysis of the impact
of the proposed project on jobs, wages, income, tax revenue, local and regional
economy, infrastructure development, and economic development for the State;

���� (14) a proposal for returning
to New Jersey ratepayers some or all of the revenues generated by the qualified
project from the sale of energy, capacity, or any ancillary service in PJM
during the term for which the project is eligible to receive ANECs; and

���� (15) any other information
deemed necessary by the board.

���� c.� An expression of interest
and information shall not result in a binding agreement, but shall be used by
the board to grant provisional qualification status to at least one proposed
advanced nuclear reactor project. �The board shall undertake an extensive and
complete evaluation of all proposed projects and provisionally qualify or deny
provisional qualification of any proposed project no more than 270 days after
receipt by the board of a complete expression of interest and information. �The
board shall grant provisional qualification status upon a determination that a
proposed advanced nuclear reactor project is reasonably likely to satisfy the
State�s energy reliability, resilience, and capacity needs at reasonable cost
to ratepayers based on a review of the information submitted pursuant to
subsection b. of this section.

���� d.� Upon granting provisional
qualification status, the board shall enter into negotiations with the
provisionally qualified project with respect to the ANEC price and schedule,
any ANDC funding, risk sharing for construction cost decreases and allowable
cost increases, and any other terms and conditions that the board deems
necessary based on the information provided in the expression of interest.� In
conducting its evaluation and negotiations, the board may request and consider
any additional information the board deems necessary for these purposes.

���� e.� The board may designate
one or more provisionally qualified projects as a qualified project if, after
reaching an agreement with the project on all relevant terms, the board finds
that the project will significantly contribute to meeting the State�s energy
reliability, resilience, and capacity needs at a reasonable cost to ratepayers
pursuant to subsection f. of this section.

���� f.� A provisionally qualified
project shall be deemed by the board to satisfy the State�s energy reliability,
resilience, and capacity needs at a reasonable cost to ratepayers, only if the
proposed project satisfies the following conditions:

���� (1) all proposed costs of the
project are necessary and justifiable, and cost estimates are found to be as
accurate and realistic as possible and therefore comprise the verified total
construction cost estimate;

���� (2) the proposed financing
mechanisms fairly balance the risks and rewards of the project between
ratepayers and shareholders, and ensure that any costs of non-performance shall
be borne by shareholders;

���� (3) the entity proposing the
project demonstrates financial integrity and sufficient access to capital to
allow for a reasonable expectation of completion of construction of the
project;

���� (4) the ANDC and ANEC funding,
including funding for any allowable cost increases up to 20 percent above the
verified total construction cost estimate, will not impose costs on New Jersey
electric customers that are unreasonable or excessive, either in isolation or
in relation to customers� bills as a whole; and

���� (5) any other requirements
specified by the board in the request for expressions of interest and
information issued pursuant to subsection a. of this section.

���� g.� In negotiating the total
amount of funding provided through the ANDC, based on the verified total
construction cost estimate, and any risk-sharing structure for allowable cost
increases of up to 20 percent above the verified total construction cost
estimate, the board shall evaluate the reasonableness of the funding based on
the verified total construction cost estimate, other sources of project funding
and financing, anticipated project revenues, the anticipated construction phase
duration, and the cost to New Jersey electric customers. �The total amount of
funding provided through the ANDC to a qualified project for construction costs
not exceeding the verified total construction cost estimate shall be no more
than 5 percent of the verified total construction cost estimate approved by the
board in the final agreement made pursuant to section 4 of
P.L. , c.
(C. ) (pending
before the Legislature as this bill).

���� (1) If a qualified project, or
any other existing nuclear reactor in New Jersey owned in whole, or in part, by
the same entities as the project or their parent companies, has an agreement to
sell electricity to a co-located energy user or other end user via a direct
power purchase agreement, the verified total construction cost estimate shall
be reduced in proportion to the percentage of the project�s electricity output
contracted to be sold to the co-located energy user or other end user.

���� (2) If a qualified project, or
any other existing nuclear reactor in New Jersey owned in whole, or in part, by
the same entities as the project or their parent companies, enters into an
agreement to sell electricity to a co-located energy user or other end user via
a direct power purchase agreement during construction or after construction is
complete, the qualified project shall reimburse New Jersey ratepayers for any
funding provided in excess of the amount that would have been allowed pursuant
to paragraph (1) of this subsection.

���� h.� (1) In negotiating the
ANEC price schedule for the project, the board shall consider the return of
revenues to New Jersey ratepayers� from the qualified project�s sale of energy,
capacity, or any ancillary service in PJM during the term of the ANEC, as well
as any risk-sharing structure for construction cost decreases and allowable
cost increases of up to 20 percent above the verified total construction cost
estimate, and shall evaluate its reasonableness based on:

���� (a) the projected electrical
output and anticipated market prices over the anticipated life of the project,
including a forecast of electricity revenues from the sale of energy to the
grid derived from the project and capacity, as well as revenues anticipated by
the sale of ANECs, air emission credits or offsets, or any tradable
environmental attributes created by the project;

���� (b) the verified total
construction cost estimate of the project;

���� (c) other sources of project
funding and financing; and

���� (d) the cost to New Jersey
electric customers.

���� (2) The board may consult
with, and, if the board deems appropriate, rely on the findings of, other State
entities with relevant expertise when carrying out an evaluation pursuant to
this subsection.

���� 4.� (New section) a.� If the
board and a provisionally qualified project entity reach an agreement, all key
terms and conditions shall be memorialized in a final board order designating
the project as a qualified project.� The final board order shall not be subject
to change except with the consent of the board and the qualified project
entity. Key terms to be specified in the final board order shall include, but
need not be limited to:

���� (1) the commercial operation
date of the qualified project;

���� (2) the verified project
construction cost estimate;

���� (3) the value and payment
schedule for ANECs, including the portion of revenues generated by the
qualified project from the sale of energy, capacity, or any ancillary service
in PJM during the term of the ANEC to be returned to New Jersey ratepayers;

���� (4) critical project
development milestones and the consequences for failing to meet the milestones;

���� (5) any ANDC funding to be
provided to the project and the schedule for disbursements of the funding;

���� (6) provisions for the
treatment of construction cost decreases or allowable cost increases; and

���� (7) project reporting
requirements.

���� b.� Any final agreement issued
by the board pursuant to this section shall, at a minimum, include conditions
to ensure the following:

���� (1) no ANEC shall be paid
until electricity is produced by the qualified project and transmitted to the
electric grid;

���� (2) the qualified project
shall result in a net increase of nuclear energy transmitted to the grid in the
State equivalent to greater than 80 percent of the output of the advanced
reactors associated with the project when accounting for, if applicable, any
agreement to sell electricity to a co-located energy user or to an end user via
a direct power purchase agreement under any condition described in subsection g.
of section 3 of P.L. , c.
(C. ) (pending
before the Legislature as this bill);

���� (3) the qualified project
entity will reimburse the board and the State for all reasonable costs incurred
for review of the project by the board, including, but not limited to,
consulting services, oversight, inspections, and audits;

���� (4) the qualified project
entity will undertake all reasonable wildlife protection efforts necessary to
sustain the natural population of wildlife present in the areas surrounding the
nuclear energy generation facility; and

���� (5) the qualified project
entity will undertake community engagement and public education about nuclear
energy for the duration of operations and will support the board in its efforts
pursuant to paragraph (5) subsection a. of section 2 of
P.L. , c. (C. )
(pending before the Legislature as this bill).

���� c.� In addition to the
cost-sharing structure determined pursuant to subsection g. of section 3 of
P.L. , c.
(C. ) (pending
before the Legislature as this bill), for allowable cost increases of greater
than 20 percent of the verified total construction cost estimate, the
qualified� project entity may petition the board for a further adjustment to
the ANDC or ANEC, which the board may grant, in its discretion, upon a
determination that the increase is necessary for the project�s continued
financial viability and will not impose an unreasonable burden on ratepayers.

���� d.� A qualified project entity
shall not be required to pass along to ratepayers tax credits or other
governmental benefits that are greater than projected due to higher than
anticipated costs of construction. A qualified project entity shall pass along
to ratepayers 50 percent, or other percentage agreed to by the board and the
qualified project entity, of any new tax credits or governmental benefits that
were not anticipated in the final board order.

���� e.� If the board and a
provisionally qualified project entity do not reach an agreement within 12
months from the date of provisional qualification, the provisional
qualification shall expire and the project shall no longer be considered a
provisionally qualified project, except if the board and the provisionally
qualified project entity both agree to extend the time to reach agreement.

���� f.� Notwithstanding the limits
and thresholds established in R.S.52:25-23 and the circulars issued pursuant
thereto by the Division of Purchase and Property in the Department of Treasury
and any agency-specific threshold applicable to the board, the board may use
the procedures allowed by R.S.52:25-23 and established by the Director of the
Division of Purchase and Property in Circular No. 26-02-DPP to procure without
advertising the services of a consultant to assist the board with its duties
under this section, except that the board shall not use a sole source for this
procurement. �A procurement pursuant to this subsection shall not be counted
against the board�s delegated procurement authority threshold.

���� 5.� (New section) a.� No later
than 18 months after the designation of any qualified project pursuant to section
4 of
P.L. , c. (C. )
(pending before the Legislature as this bill), the board shall establish, by
board order, an Advanced Nuclear Energy Certificate program to require that a
percentage of the kilowatt hours sold in this State by each electric power
supplier and each basic generation service provider be from nuclear energy.�
The ANEC program shall be designed to support at least 1,100 megawatts of
electric generation from qualified projects.� The percentage of kilowatt hours
of energy that is required to be from nuclear energy shall reflect the
projected ANEC production of each qualified project designated by the board
pursuant to section 4 of P.L. , c.
(C. ) (pending
before the Legislature as this bill) for a period to be agreed upon by the
board and qualified project beginning from the commercial operation start date
of the qualified project.�

���� b.� (1) A qualified project
shall be eligible to receive ANECs for each kilowatt hour of electricity
generated and sold through competitive wholesale markets in the PJM region. A
qualified project shall not be eligible to receive ANECs for electricity sold
to a co-located energy user or via a direct power purchase agreement with an
end user.

���� (2) If an existing nuclear
reactor in New Jersey that is owned in whole, or in part, by the same entities
as the project or their parent companies, enters into an agreement to sell
electricity to a co-located energy user or to an end user via a direct power
purchase agreement after the designation of the qualified� project, the
electricity generated by the qualified advanced nuclear reactor that is
eligible to receive ANECs shall be reduced by the number of kilowatt hours of
electricity generated by the other reactor that is sold to the end user.

���� c.� An electric power supplier
or basic generation service provider shall comply with the ANEC program
established pursuant to this section through the purchase of ANECs at a price
and for the time period required by the board.

���� d.� Revenues generated by a
qualified project from the sale of energy, capacity, or any ancillary service
in PJM during the term for which the project is eligible to receive ANECs shall
be returned to New Jersey ratepayers as specified in the final board order
entered pursuant to subsection a. of section 4 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill). �This subsection shall not apply to
revenues generated from the direct sale of energy to an end user that
contributed to the funding or financing of construction of the project and
whose purchase of power from the project was contemplated in the board order
designating the project as a qualified project.

���� 6.� Section 11 of P.L.1973,
c.185 (C.13:19-11) is amended to read as follows:

���� 11.� Notwithstanding the
applicant�s compliance with the criteria listed in section 10 of P.L.1973,
c.185 (C.13:19-10), if the commissioner finds that the proposed development
would violate or tend to violate the purpose and intent of
[
this act
]

P.L.1973,
c.185 (C.13:19-1 et seq.)
as specified in section 2 of P.L.1973, c.185
(C.13:19-2), or that the proposed development would materially contribute to an
already serious and unacceptable level of environmental degradation or resource
exhaustion, the commissioner may deny the permit application, or the
commissioner may issue a permit subject to such conditions as the commissioner
finds reasonably necessary to promote the public health, safety and welfare, to
protect public and private property, wildlife and marine fisheries, and to
preserve, protect and enhance the natural environment.�
[
The
construction and operation of a nuclear electricity generating facility shall,
however, not be approved by the commissioner unless the commissioner finds that
the proposed method for disposal of radioactive waste material to be produced
or generated by the facility will be safe, conforms to standards established by
the Nuclear Regulatory Commission and will effectively remove danger to life
and the environment from such waste material.
]
�

(cf: P.L.1993, c.190, s.12)

���� 7.� Section 12 of P.L.1999,
c.23 (C.48:3-60) is amended to read as follows:

���� 12. a. Simultaneously with the
starting date for the implementation of retail choice as determined by the
board pursuant to subsection a. of section 5 of P.L.1999, c.23 (C.48:3-53), the
board shall permit each electric public utility and gas public utility to
recover some or all of the following costs through a societal benefits charge
that shall be collected as a non-bypassable charge imposed on all electric
public utility customers and gas public utility customers, as appropriate:

���� (1) the costs for the social
programs for which rate recovery was approved by the board prior to April 30,
1997.� For the purpose of establishing initial unbundled rates pursuant to
section 4 of P.L.1999, c.23 (C.48:3-52), the societal benefits charge shall be
set to recover the same level of social program costs as is being collected in
the bundled rates of the electric public utility on the effective date of
P.L.1999, c.23 (C.48:3-49 et al.).� The board may subsequently order, pursuant
to its rules and regulations, an increase or decrease in the societal benefits
charge to reflect changes in the costs to the utility of administering existing
social programs.� Nothing in P.L.1999, c.23 (C.48:3-49 et al.) shall be
construed to abolish or change any social program required by statute or board
order or rule or regulation to be provided by an electric public utility.� Any
such social program shall continue to be provided by the utility until
otherwise provided by law, unless the board determines that it is no longer
appropriate for the electric public utility to provide the program, or the
board chooses to modify the program;

���� (2) nuclear plant
decommissioning costs;

���� (3) the costs of demand side
management programs that were approved by the board pursuant to its demand side
management regulations prior to April 30, 1997.� For the purpose of
establishing initial unbundled rates pursuant to section 4 of P.L.1999, c.23 (C.48:3-52),
the societal benefits charge shall be set to recover the same level of demand
side management program costs as is being collected in the bundled rates of the
electric public utility on the effective date of P.L.1999, c.23 (C.48:3-49 et
al.).� Within four months of the effective date of P.L.1999, c.23 (C.48:3-49 et
al.), and every four years thereafter, the board shall initiate a proceeding
and cause to be undertaken a comprehensive resource analysis of energy
programs, and within eight months of initiating such proceeding and after
notice, provision of the opportunity for public comment, and public hearing,
the board, in consultation with the Department of Environmental Protection,
shall determine the appropriate level of funding for energy efficiency, light,
medium, and heavy-duty plug-in electric vehicles, including school buses, and
associated plug-in electric vehicle charging infrastructure, energy storage,
and Class I renewable energy programs that provide environmental benefits above
and beyond those provided by standard offer or similar programs in effect as of
the effective date of P.L.1999, c.23 (C.48:3-49 et al.); provided that the
funding for such programs be no less than 50 percent of the total Statewide
amount being collected in electric and gas public utility rates for demand side
management programs on the effective date of P.L.1999, c.23 (C.48:3-49 et al.)
for an initial period of four years from the issuance of the first
comprehensive resource analysis following the effective date of P.L.1999, c.23
(C.48:3-49 et al.), and provided that 25 percent of this amount shall be used
to provide funding for Class I renewable energy projects in the State.� In each
of the following fifth through eighth years, the Statewide funding for such programs
shall be no less than 50 percent of the total Statewide amount being collected
in electric and gas public utility rates for demand side management programs on
the effective date of P.L.1999, c.23 (C.48:3-49 et al.), except that as
additional funds are made available as a result of the expiration of past
standard offer or similar commitments, the minimum amount of funding for such
programs shall increase by an additional amount equal to 50 percent of the
additional funds made available, until the minimum amount of funding dedicated
to such programs reaches $140,000,000 total.� After the eighth year the board
shall make a determination as to the appropriate level of funding for these
programs.� Such programs shall include a program to provide financial incentives
for the installation of Class I renewable energy projects in the State, and the
board, in consultation with the Department of Environmental Protection, shall
determine the level and total amount of such incentives as well as the
renewable technologies eligible for such incentives which shall include, at a
minimum, photovoltaic, wind, and fuel cells.� The board shall simultaneously
determine, as a result of the comprehensive resource analysis, the programs to
be funded by the societal benefits charge, the level of cost recovery and
performance incentives for old and new programs and whether the recovery of
demand side management programs� costs currently approved by the board may be
reduced or extended over a longer period of time.� The board shall make these
determinations taking into consideration existing market barriers and
environmental benefits, with the objective of transforming markets, capturing
lost opportunities, making energy services more affordable for low income
customers and eliminating subsidies for programs that can be delivered in the
marketplace without electric public utility and gas public utility customer
funding.� In addition to the determinations above, the board shall allocate
sufficient funding from the societal benefits charge to cover the remaining
cost of fully funding incentive awards issued for transmission-scale energy
storage systems that are eligible projects pursuant to P.L.2025, c.136
(C.48:3-121.2 et al.), after accounting for funding allocated to this purpose
from other sources;

���� (4) manufactured gas plant
remediation costs, which shall be determined initially in a manner consistent
with mechanisms in the remediation adjustment clauses for the electric public
utility and gas public utility adopted by the board; and

���� (5) the cost, of consumer
education, as determined by the board, which shall be in an amount that,
together with the consumer education surcharge imposed on electric power
supplier license fees pursuant to subsection h. of section 29 of P.L.1999, c.23
(C.48:3-78) and the consumer education surcharge imposed on gas supplier
license fees pursuant to subsection g. of section 30 of P.L.1999, c.23
(C.48:3-79), shall be sufficient to fund the consumer education program
established pursuant to section 36 of P.L.1999, c.23 (C.48:3-85).�

���� b.��� There is established in
the Board of Public Utilities a nonlapsing fund to be known as the �Universal
Service Fund.�� The board shall determine: the level of funding and the
appropriate administration of the fund; the purposes and programs to be funded
with monies from the fund; which social programs shall be provided by an
electric public utility as part of the provision of its regulated services
which provide a public benefit; whether the funds appropriated to fund the
�Lifeline Credit Program� established pursuant to P.L.1979, c.197 (C.48:2-29.15
et seq.), the �Tenants� Lifeline Assistance Program� established pursuant to
P.L.1981, c.210 (C.48:2-29.30 et seq.), the funds received pursuant to the Low
Income Home Energy Assistance Program established pursuant to 42 U.S.C. s.8621
et seq., and funds collected by electric and gas public utilities, as
authorized by the board, to offset uncollectible electricity and natural gas
bills should be deposited in the fund; and whether new charges should be
imposed to fund new or expanded social programs.

����
c.� Upon designating a
qualified advanced nuclear reactor project pursuant to section 4 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill), the board shall establish, by board order,
a non-bypassable charge to be known as the advanced nuclear development charge,
or ANDC, which shall be imposed on all electric utility customers.� The board
shall determine the amount of the charge necessary to provide the agreed-upon
funding for costs not exceeding the verified total construction cost estimate
and any allowable cost increases approved by the board pursuant to subsection
g. of section 3 and subsection c. of section 4 of P.L. , c. (C. )
(pending before the Legislature as this bill), and shall establish, and adjust
from time to time as necessary, the amount that each electric public utility is
required to collect accordingly. �The board shall require each electric public
utility to begin assessing the charge on all customer bills no later than 180
days after the designation of a qualified advanced nuclear reactor project, or
other date specified by the board. �Monies collected through the ANDC shall be
deposited in the �Advanced Nuclear Development Fund� for the purposes described
in subsection d. of this section.

����
d.� There is established in
the Board of Public Utilities a nonlapsing fund to be known as the �Advanced Nuclear
Development Fund.� The monies in the fund shall be used to support the
development of one or more qualified advanced nuclear reactor projects by
providing funding for: �(1) a portion of costs incurred for the construction of
the project; and (2) a portion of the project�s allowable cost increases
determined by the board to be reasonable and prudent and pursuant to the
cost-sharing structure described at subsection g. of section 3 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill).� The level of funding to be provided to a
qualified advanced nuclear reactor project shall be established by the board in
any order designating a qualified advanced nuclear reactor project pursuant to section
4 of P.L. , c.
(C. ) (pending
before the Legislature as this bill). �The level of funding to be provided to
the qualified advanced nuclear reactor project for allowable cost increases
greater than 20 percent above the verified total construction cost estimate may
be increased pursuant to subsection c. of section 4 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill).

����
e.� The �Advanced Nuclear Development
Fund� shall be administered by the board and shall be credited with:

����
(1) monies received from
the ANDC pursuant to subsection c. of this section;

����
(2) such monies as are
appropriated by the Legislature for this purpose; and

����
(3) any return on
investment of monies deposited in the fund.

����
f.� The board shall
disburse the monies collected in the �Advanced Nuclear Development Fund� to the
qualified advanced nuclear reactor project entity based on the construction
milestone and payment schedule agreed to and specified in the board�s order
issued pursuant to section 4 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill). �The disbursement of funds shall be
directed by the board upon submission of documentation satisfactory to the
board of costs incurred and construction progress, and a determination by the
board that such costs were prudently incurred. �Submissions shall include proof
of actual expenditures and any other information the board deems necessary to
verify eligibility for disbursement of funds. �The board shall not disburse
monies for any qualified advanced nuclear reactor project until the project has
been issued a construction permit, combined construction permit and operating
license, or Limited Work Authorization by the United States Nuclear Regulatory
Commission.

����
g.� When all disbursements
to any qualified advanced nuclear reactors have been made pursuant to
subsection f. of this section, or if the designation of the qualified advanced
nuclear reactor has been terminated by the board, the board shall direct each
electric public utility to immediately cease collecting the ANDC.

����
h.� As used in this
section:

����
�Advanced nuclear
development charge� or �ANDC� means a charge imposed by an electric public
utility at a level determined by the board, pursuant to the provisions of subsections
c. through g. of this section.

����
�Qualified advanced nuclear
reactor project,� means the same as the term �qualified project� is defined in
section 1 of P.L. , c. (C. )
(pending before the Legislature as this bill).

(cf: P.L.2025, c.136, s.7)

���� 8.� The board may establish
such rules and regulations as it deems necessary to implement the provisions of
P.L. , c. (C. )
(pending before the Legislature as this bill). �Any rules established by the
board pursuant to this section shall be effective as regulations immediately
upon filing with the Office of Administrative Law and shall be effective for a
period not to exceed 18 months, and may, thereafter, be amended, adopted or
readopted by the board in accordance with the provisions of the �Administrative
Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et 32 seq.).

���� 9.� This act shall take effect
immediately.

STATEMENT

���� This bill would establish, in
the Board of Public Utilities (BPU), a program to incentivize the development
of advanced nuclear reactors in the State.

���� Under the advanced nuclear
program established by the bill, the BPU would issue a request for expressions
of interest and information for the construction of at least one advanced
nuclear reactor to generate at least 1,100 megawatts of electric power in the
State.� The bill would establish certain conditions that are required to be met
in order for the BPU to approve an advanced nuclear reactor project, including
that the project will significantly contribute to meeting the State�s energy
reliability, resilience, and capacity needs at a reasonable cost to ratepayers.�
If approved, a qualified advanced nuclear reactor project would be authorized
to receive financial support through an advanced nuclear development charge
(ANDC) and advanced nuclear energy certificates (ANECs).� Under the ANDC, a
qualified advanced nuclear reactor project would be eligible to receive funding
for a negotiated percentage of construction costs through a non-bypassable
charge which would be imposed on all electric utility customers and deposited
into a fund to be known as the Advanced Nuclear Development Fund.� Under the
ANEC program, a certain percentage of the electric power sold in the State
would be required to be from advanced nuclear reactors, and electric utilities
would satisfy this requirement by purchasing a certain number of ANECs each
year.�

���� Finally, the bill would amend
the �Coastal Area Facility Review Act� (CAFRA), P.L.1973, c.185 (C.13:19-1 et
seq.), to remove the requirement for the Commissioner of Environmental
Protection to determine that a nuclear energy generation facility�s method for the
disposal of radioactive waste material is safe, conforms to the United States Nuclear
Regulatory Commission standards, and removes danger to life and the environment,
prior to being issued a CAFRA permit.