Modifies definition of Class I renewable energy to include nuclear fission; provides CBT tax credit for production of clean baseload power.

A4366

ASSEMBLY, No. 4366

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Modifies definition of Class I renewable energy to
include nuclear fission; provides CBT tax credit for production of clean
baseload power.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning the production of electric energy, amending
P.L.1999, c.23 and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

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

���� 1.��� Section 3 of P.L.1999,
c.23 (C.48:3-51) is amended to read as follows:

���� 3.��� As used in P.L.1999,
c.23 (C.48:3-49 et al.):

���� �Assignee� means a person to
which an electric public utility or another assignee assigns, sells, or
transfers, other than as security, all or a portion of its right to or interest
in bondable transition property.� Except as specifically provided in P.L.1999,
c.23 (C.48:3-49 et al.), an assignee shall not be subject to the public utility
requirements of Title 48 or any rules or regulations adopted pursuant thereto.

���� �Base load electric power
generation facility� means an electric power generation facility intended to be
operated at a greater than 50 percent capacity factor including, but not
limited to, a combined cycle power facility and a combined heat and power facility.

���� �Base residual auction� means
the auction conducted by PJM, as part of PJM�s reliability pricing model, three
years prior to the start of the delivery year to secure electrical capacity as
necessary to satisfy the capacity requirements for that delivery year.

���� �Basic gas supply service�
means gas supply service that is provided to any customer that has not chosen
an alternative gas supplier, whether or not the customer has received offers as
to competitive supply options, including, but not limited to, any customer that
cannot obtain such service for any reason, including non-payment for services.�
Basic gas supply service is not a competitive service and shall be fully
regulated by the board.

���� �Basic generation service� or
�BGS� means electric generation service that is provided, to any customer that
has not chosen an alternative electric power supplier, whether or not the
customer has received offers for competitive supply options, including, but not
limited to, any customer that cannot obtain such service from an electric power
supplier for any reason, including non-payment for services.� Basic generation
service is not a competitive service and shall be fully regulated by the board.

���� �Basic generation service
provider� or �provider� means a provider of basic generation service.

���� �Basic generation service
transition costs� means the amount by which the payments by an electric public
utility for the procurement of power for basic generation service and related
ancillary and administrative costs exceeds the net revenues from the basic
generation service charge established by the board pursuant to section 9 of
P.L.1999, c.23 (C.48:3-57) during the transition period, together with interest
on the balance at the board-approved rate, that is reflected in a deferred
balance account approved by the board in an order addressing the electric
public utility�s unbundled rates, stranded costs, and restructuring filings
pursuant to P.L.1999, c.23 (C.48:3-49 et al.).� Basic generation service
transition costs shall include, but are not limited to, costs of purchases from
the spot market, bilateral contracts, contracts with non-utility generators,
parting contracts with the purchaser of the electric public utility�s divested
generation assets, short-term advance purchases, and financial instruments such
as hedging, forward contracts, and options.� Basic generation service
transition costs shall also include the payments by an electric public utility
pursuant to a competitive procurement process for basic generation service
supply during the transition period, and costs of any such process used to
procure the basic generation service supply.

���� �Board� means the New Jersey
Board of Public Utilities or any successor agency.

���� �Bondable stranded costs�
means any stranded costs or basic generation service transition costs of an
electric public utility approved by the board for recovery pursuant to the
provisions of P.L.1999, c.23 (C.48:3-49 et al.), together with, as approved by
the board: (1) the cost of retiring existing debt or equity capital of the
electric public utility, including accrued interest, premium and other fees,
costs, and charges relating thereto, with the proceeds of the financing of
bondable transition property; (2) if requested by an electric public utility in
its application for a bondable stranded costs rate order, federal, State, and
local tax liabilities associated with stranded costs recovery, basic generation
service transition cost recovery, or the transfer or financing of the property,
or both, including taxes, whose recovery period is modified by the effect of a
stranded costs recovery order, a bondable stranded costs rate order, or both;
and (3) the costs incurred to issue, service, or refinance transition bonds,
including interest, acquisition, or redemption premium, and other financing
costs, whether paid upon issuance or over the life of the transition bonds,
including, but not limited to, credit enhancements, service charges,
overcollateralization, interest rate cap, swap or collar, yield maintenance,
maturity guarantee or other hedging agreements, equity investments, operating
costs, and other related fees, costs, and charges, or to assign, sell, or
otherwise transfer bondable transition property.

���� �Bondable stranded costs rate
order� means one or more irrevocable written orders issued by the board
pursuant to P.L.1999, c.23 (C.48:3-49 et al.) which determines the amount of
bondable stranded costs and the initial amount of transition bond charges authorized
to be imposed to recover the bondable stranded costs, including the costs to be
financed from the proceeds of the transition bonds, as well as on-going costs
associated with servicing and credit enhancing the transition bonds, and
provides the electric public utility specific authority to issue or cause to be
issued, directly or indirectly, transition bonds through a financing entity and
related matters as provided in P.L.1999, c.23 (C.48:3-49 et al.), which order
shall become effective immediately upon the written consent of the related
electric public utility to the order as provided in P.L.1999, c.23 (C.48:3-49
et al.).

���� �Bondable transition property�
means the property consisting of the irrevocable right to charge, collect, and
receive, and be paid from collections of, transition bond charges in the amount
necessary to provide for the full recovery of bondable stranded costs which are
determined to be recoverable in a bondable stranded costs rate order, all
rights of the related electric public utility under the bondable stranded costs
rate order including, without limitation, all rights to obtain periodic
adjustments of the related transition bond charges pursuant to subsection b. of
section 15 of P.L.1999, c.23 (C.48:3-64), and all revenues, collections,
payments, money, and proceeds arising under, or with respect to, all of the
foregoing.

���� �British thermal unit� or
�Btu� means the amount of heat required to increase the temperature of one
pound of water by one degree Fahrenheit.

���� �Broker� means a duly licensed
electric power supplier that assumes the contractual and legal responsibility
for the sale of electric generation service, transmission, or other services to
end-use retail customers, but does not take title to any of the power sold, or
a duly licensed gas supplier that assumes the contractual and legal obligation
to provide gas supply service to end-use retail customers, but does not take
title to the gas.

���� �Brownfield� means any former
or current commercial or industrial site that is currently vacant or
underutilized and on which there has been, or there is suspected to have been,
a discharge of a contaminant.

���� �Buydown� means an arrangement
or arrangements involving the buyer and seller in a given power purchase
contract and, in some cases third parties, for consideration to be given by the
buyer in order to effectuate a reduction in the pricing, or the restructuring
of other terms to reduce the overall cost of the power contract, for the
remaining succeeding period of the purchased power arrangement or arrangements.

���� �Buyout� means an arrangement
or arrangements involving the buyer and seller in a given power purchase
contract and, in some cases third parties, for consideration to be given by the
buyer in order to effectuate a termination of such power purchase contract.

���� �Class I renewable energy�
means electric energy produced from solar technologies, photovoltaic
technologies, wind energy, fuel cells, geothermal technologies, wave or tidal
action, small scale hydropower facilities with a capacity of three megawatts or
less and put into service after the effective date of P.L.2012, c.24, methane
gas from landfills, methane gas from a biomass facility provided that the
biomass is cultivated and harvested in a sustainable manner,
[
or
]
methane gas
from a composting or anaerobic or aerobic digestion facility that converts food
waste or other organic waste to energy
, or nuclear fission
.

���� �Class II renewable energy�
means electric energy produced at a hydropower facility with a capacity of
greater than three megawatts, but less than 30 megawatts, or a resource
recovery facility, provided that the facility is located where retail competition
is permitted and provided further that the Commissioner of Environmental
Protection has determined that the facility meets the highest environmental
standards and minimizes any impacts to the environment and local communities.�
Class II renewable energy shall not include electric energy produced at a
hydropower facility with a capacity of greater than 30 megawatts on or after
the effective date of P.L.2015, c.51.

���� �Co-generation� means the
sequential production of electricity and steam or other forms of useful energy
used for industrial or commercial heating and cooling purposes.

���� �Combined cycle power
facility� means a generation facility that combines two or more thermodynamic
cycles, by producing electric power via the combustion of fuel and then routing
the resulting waste heat by-product to a conventional boiler or to a heat recovery
steam generator for use by a steam turbine to produce electric power, thereby
increasing the overall efficiency of the generating facility.

���� �Combined heat and power
facility� or �co-generation facility� means a generation facility which
produces electric energy and steam or other forms of useful energy such as
heat, which are used for industrial or commercial heating or cooling purposes.�
A combined heat and power facility or co-generation facility shall not be
considered a public utility.

���� �Competitive service� means
any service offered by an electric public utility or a gas public utility that
the board determines to be competitive pursuant to section 8 or section 10 of
P.L.1999, c.23 (C.48:3-56 or C.48:3-58) or that is not regulated by the board.

���� �Commercial and industrial
energy pricing class customer� or �CIEP class customer� means that group of
non-residential customers with high peak demand, as determined by periodic
board order, which either is eligible or which would be eligible, as determined
by periodic board order, to receive funds from the Retail Margin Fund
established pursuant to section 9 of P.L.1999, c.23 (C.48:3-57) and for which
basic generation service is hourly-priced.

���� �Comprehensive resource
analysis� means an analysis including, but not limited to, an assessment of
existing market barriers to the implementation of energy efficiency and
renewable technologies that are not or cannot be delivered to customers through
a competitive marketplace.

���� �Community solar facility�
means a solar electric power generation facility participating in the Community
Solar Energy Pilot Program or the Community Solar Energy Program developed by
the board pursuant to section 5 of P.L.2018, c.17 (C.48:3-87.11).

���� �Connected to the distribution
system� means, for a solar electric power generation facility, that the
facility is: (1) connected to a net metering customer�s side of a meter,
regardless of the voltage at which that customer connects to the electric grid;
(2) an on-site generation facility; (3) qualified for net metering aggregation
as provided pursuant to paragraph (4) of subsection e. of section 38 of
P.L.1999, c.23 (C.48:3-87); (4) owned or operated by an electric public utility
and approved by the board pursuant to section 13 of P.L.2007, c.340
(C.48:3-98.1); (5) directly connected to the electric grid at 69 kilovolts or
less, regardless of how an electric public utility classifies that portion of
its electric grid, and is designated as �connected to the distribution system�
by the board pursuant to subsections q. through s. of section 38 of P.L.1999,
c.23 (C.48:3-87); or (6) is certified by the board, in consultation with the
Department of Environmental Protection, as being located on a brownfield, on an
area of historic fill, or on a properly closed sanitary landfill facility.� Any
solar electric power generation facility, other than that of a net metering
customer on the customer�s side of the meter, connected above 69 kilovolts
shall not be considered connected to the distribution system.

���� �Contaminated site or
landfill� means: (1) any currently contaminated portion of a property on which
industrial or commercial operations were conducted and a discharge occurred,
and its associated disturbed areas, where �discharge� means the same as the term
is defined in section 23 of P.L.1993, c.139 (C.58:10B-1); or (2) a properly
closed sanitary landfill facility and its associated disturbed areas.

���� �Customer� means any person
that is an end user and is connected to any part of the transmission and
distribution system within an electric public utility�s service territory or a
gas public utility�s service territory within this State.

���� �Customer account service�
means metering, billing, or such other administrative activity associated with
maintaining a customer account.

���� �Delivery year� or �DY� means
the 12-month period from June 1st through May 31st, numbered according to the
calendar year in which it ends.

���� �Demand side management� means
the management of customer demand for energy service through the implementation
of cost-effective energy efficiency technologies, including, but not limited
to, installed conservation, load management, and energy efficiency measures on
and in the residential, commercial, industrial, institutional, and governmental
premises and facilities in this State.

���� �Electric generation service�
means the provision of retail electric energy and capacity which is generated
off-site from the location at which the consumption of such electric energy and
capacity is metered for retail billing purposes, including agreements and
arrangements related thereto.

���� �Electric power generator�
means an entity that proposes to construct, own, lease, or operate, or
currently owns, leases, or operates, an electric power production facility that
will sell or does sell at least 90 percent of its output, either directly or
through a marketer, to a customer or customers located at sites that are not on
or contiguous to the site on which the facility will be located or is located.�
The designation of an entity as an electric power generator for the purposes of
P.L.1999, c.23 (C.48:3-49 et al.) shall not, in and of itself, affect the
entity�s status as an exempt wholesale generator under the Public Utility
Holding Company Act of 1935, 15 U.S.C. s.79 et seq., or its successor act.

���� �Electric power supplier�
means a person or entity that is duly licensed pursuant to the provisions of
P.L.1999, c.23 (C.48:3-49 et al.) to offer and to assume the contractual and
legal responsibility to provide electric generation service to retail customers,
and includes load serving entities, marketers, and brokers that offer or
provide electric generation service to retail customers.� The term excludes an
electric public utility that provides electric generation service only as a
basic generation service pursuant to section 9 of P.L.1999, c.23 (C.48:3-57).

���� �Electric public utility�
means a public utility, as that term is defined in R.S.48:2-13, that transmits
and distributes electricity to end users within this State.

���� �Electric related service�
means a service that is directly related to the consumption of electricity by
an end user, including, but not limited to, the installation of demand side
management measures at the end user�s premises, the maintenance, repair, or
replacement of appliances, lighting, motors, or other energy-consuming devices
at the end user�s premises, and the provision of energy consumption measurement
and billing services.

���� �Electronic signature� means
an electronic sound, symbol, or process, attached to, or logically associated
with, a contract or other record, and executed or adopted by a person with the
intent to sign the record.

���� �Eligible generator� means a
developer of a base load or mid-merit electric power generation facility
including, but not limited to, an on-site generation facility that qualifies as
a capacity resource under PJM criteria and that commences construction after
the effective date of P.L.2011, c.9 (C.48:3-98.2 et al.).

���� �Energy agent� means a person
that is duly registered pursuant to the provisions of P.L.1999, c.23 (C.48:3-49
et al.), that arranges the sale of retail electricity or electric related
services, or retail gas supply or gas related services, between government
aggregators or private aggregators and electric power suppliers or gas
suppliers, but does not take title to the electric or gas sold.

���� �Energy consumer� means a
business or residential consumer of electric generation service or gas supply
service located within the territorial jurisdiction of a government aggregator.

���� �Energy efficiency portfolio
standard� means a requirement to procure a specified amount of energy
efficiency or demand side management resources as a means of managing and
reducing energy usage and demand by customers.

���� �Energy year� or �EY� means
the 12-month period from June 1st through May 31st, numbered according to the
calendar year in which it ends.

���� �Existing business
relationship� means a relationship formed by a voluntary two-way communication
between an electric power supplier, gas supplier, broker, energy agent,
marketer, private aggregator, sales representative, or telemarketer and a
customer, regardless of an exchange of consideration, on the basis of an
inquiry, application, purchase, or transaction initiated by the customer
regarding products or services offered by the electric power supplier, gas
supplier, broker, energy agent, marketer, private aggregator, sales
representative, or telemarketer; however, a consumer�s use of electric
generation service or gas supply service through the consumer�s electric public
utility or gas public utility shall not constitute or establish an existing
business relationship for the purpose of P.L.2013, c.263.

���� �Farmland� means land actively
devoted to agricultural or horticultural use that is valued, assessed, and
taxed pursuant to the �Farmland Assessment Act of 1964,� P.L.1964, c.48
(C.54:4-23.1 et seq.).

���� �Federal Energy Regulatory
Commission� or �FERC� means the federal agency established pursuant to 42
U.S.C. s.7171 et seq. to regulate the interstate transmission of electricity,
natural gas, and oil.

���� �Final remediation document�
shall have the same meaning as provided in section 3 of P.L.1976, c.141
(C.58:10-23.11b).

���� �Financing entity� means an
electric public utility, a special purpose entity, or any other assignee of
bondable transition property, which issues transition bonds.� Except as
specifically provided in P.L.1999, c.23 (C.48:3-49 et al.), a financing entity
which is not itself an electric public utility shall not be subject to the
public utility requirements of Title 48 of the Revised Statutes or any rules or
regulations adopted pursuant thereto.

���� �Gas public utility� means a
public utility, as that term is defined in R.S.48:2-13, that distributes gas to
end users within this State.

���� �Gas related service� means a
service that is directly related to the consumption of gas by an end user,
including, but not limited to, the installation of demand side management
measures at the end user�s premises, the maintenance, repair or replacement of
appliances or other energy-consuming devices at the end user�s premises, and
the provision of energy consumption measurement and billing services.

���� �Gas supplier� means a person
that is duly licensed pursuant to the provisions of P.L.1999, c.23 (C.48:3-49
et al.) to offer and assume the contractual and legal obligation to provide gas
supply service to retail customers, and includes, but is not limited to,
marketers and brokers. A non-public utility affiliate of a public utility
holding company may be a gas supplier, but a gas public utility or any
subsidiary of a gas utility is not a gas supplier.� In the event that a gas
public utility is not part of a holding company legal structure, a related
competitive business segment of that gas public utility may be a gas supplier,
provided that related competitive business segment is structurally separated
from the gas public utility, and provided that the interactions between the gas
public utility and the related competitive business segment are subject to the
affiliate relations standards adopted by the board pursuant to subsection k. of
section 10 of P.L.1999, c.23 (C.48:3-58).

���� �Gas supply service� means the
provision to customers of the retail commodity of gas, but does not include any
regulated distribution service.

���� �Government aggregator� means
any government entity subject to the requirements of the �Local Public
Contracts Law,� P.L.1971, c.198 (C.40A:11-1 et seq.), the �Public School
Contracts Law,� N.J.S.18A:18A-1 et seq., or the �County College Contracts Law,�
P.L.1982, c.189 (C.18A:64A-25.1 et seq.), that enters into a written contract
with a licensed electric power supplier or a licensed gas supplier for: (1) the
provision of electric generation service, electric related service, gas supply
service, or gas related service for its own use or the use of other government
aggregators; or (2) if a municipal or county government, the provision of
electric generation service or gas supply service on behalf of business or
residential customers within its territorial jurisdiction.

���� �Government energy aggregation
program� means a program and procedure pursuant to which a government
aggregator enters into a written contract for the provision of electric
generation service or gas supply service on behalf of business or residential
customers within its territorial jurisdiction.

���� �Governmental entity� means
any federal, state, municipal, local, or other governmental department,
commission, board, agency, court, authority, or instrumentality having
competent jurisdiction.

���� �Green Acres program� means
the program for the acquisition of lands for recreation and conservation
purposes pursuant to P.L.1961, c.45 (C.13:8A-1 et seq.), P.L.1971, c.419
(C.13:8A-19 et seq.), P.L.1975, c.155 (C.13:8A-35 et seq.), any Green Acres
bond act, P.L.1999, c.152 (C.13:8C-1 et seq.), and P.L.2016, c.12 (C.13:8C-43
et seq.).

���� �Greenhouse gas emissions
portfolio standard� means a requirement that addresses or limits the amount of
carbon dioxide emissions indirectly resulting from the use of electricity as
applied to any electric power suppliers and basic generation service providers
of electricity.

���� �Grid supply solar facility�
means a solar electric power generation facility that sells electricity at
wholesale and is connected to the State�s electric distribution or transmission
systems.� �Grid supply solar facility� does not include: (1) a net metered
solar facility; (2) an on-site generation facility; (3) a facility
participating in net metering aggregation pursuant to section 38 of P.L.1999,
c.23 (C.48:3-87); (4) a facility participating in remote net metering; or (5) a
community solar facility.

���� �Historic fill� means
generally large volumes of non-indigenous material, no matter what date they
were emplaced on the site, used to raise the topographic elevation of a site,
which were contaminated prior to emplacement and are in no way connected with
the operations at the location of emplacement and which include, but are not
limited to, construction debris, dredge spoils, incinerator residue, demolition
debris, fly ash, and non-hazardous solid waste.� �Historic fill� shall not
include any material which is substantially chromate chemical production waste
or any other chemical production waste or waste from processing of metal or
mineral ores, residues, slags, or tailings.

���� �Incremental auction� means an
auction conducted by PJM, as part of PJM�s reliability pricing model, prior to
the start of the delivery year to secure electric capacity as necessary to
satisfy the capacity requirements for that delivery year, that is not otherwise
provided for in the base residual auction.

���� �Leakage� means an increase in
greenhouse gas emissions related to generation sources located outside of the
State that are not subject to a state, interstate, or regional greenhouse gas
emissions cap or standard that applies to generation sources located within the
State.

���� �Locational deliverability
area� or �LDA� means one or more of the zones within the PJM region which are
used to evaluate area transmission constraints and reliability issues including
electric public utility company zones, sub-zones, and combinations of zones.

���� �Long-term capacity agreement
pilot program� or �LCAPP� means a pilot program established by the board that
includes participation by eligible generators, to seek offers for
financially-settled standard offer capacity agreements with eligible generators
pursuant to the provisions of P.L.2011, c.9 (C.48:3-98.2 et al.).

���� �Market transition charge�
means a charge imposed pursuant to section 13 of P.L.1999, c.23 (C.48:3-61) by
an electric public utility, at a level determined by the board, on the electric
public utility customers for a limited duration transition period to recover
stranded costs created as a result of the introduction of electric power supply
competition pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.).

���� �Marketer� means a duly
licensed electric power supplier that takes title to electric energy and
capacity, transmission, and other services from electric power generators and
other wholesale suppliers and then assumes the contractual and legal obligation
to provide electric generation service, and may include transmission and other
services, to an end-use retail customer or customers, or a duly licensed gas
supplier that takes title to gas and then assumes the contractual and legal
obligation to provide gas supply service to an end-use customer or customers.

���� �Mid-merit electric power
generation facility� means a generation facility that operates at a capacity
factor between baseload generation facilities and peaker generation facilities.

���� �Net metered solar facility�
means a solar electric power generation facility participating in the net
metering program developed by the board pursuant to subsection e. of section 38
of P.L.1999, c.23 (C.48:3-87) or in a substantially similar program operated by
a utility owned or operated by a local government unit.

���� �Net metering aggregation�
means a procedure for calculating the combination of the annual energy usage
for all facilities owned by a single customer where such customer is a State
entity, school district, county, county agency, county authority, municipality,
municipal agency, or municipal authority, and which are served by a solar
electric power generating facility as provided pursuant to paragraph (4) of
subsection e. of section 38 of P.L.1999, c.23 (C.48:3-87).

���� �Net proceeds� means proceeds
less transaction and other related costs as determined by the board.

���� �Net revenues� means revenues
less related expenses, including applicable taxes, as determined by the board.

���� �Offshore wind energy� means
electric energy produced by a qualified offshore wind project.

���� �Offshore wind renewable
energy certificate� or �OREC� means a certificate, issued by the board or its
designee, representing the environmental attributes of one megawatt hour of
electric generation from a qualified offshore wind project.

���� �Off-site end use thermal
energy services customer� means an end use customer that purchases thermal
energy services from an on-site generation facility, combined heat and power
facility, or co-generation facility, and that is located on property that is
separated from the property on which the on-site generation facility, combined
heat and power facility, or co-generation facility is located by more than one
easement, public thoroughfare, or transportation or utility-owned right-of-way.

���� �On-site generation facility�
means a generation facility, including, but not limited to, a generation
facility that produces Class I or Class II renewable energy, and equipment and
services appurtenant to electric sales by such facility to the end use customer
located on the property or on property contiguous to the property on which the
end user is located.� An on-site generation facility shall not be considered a
public utility.� The property of the end use customer and the property on which
the on-site generation facility is located shall be considered contiguous if
they are geographically located next to each other, but may be otherwise
separated by an easement, public thoroughfare, transportation or utility-owned
right-of-way, or if the end use customer is purchasing thermal energy services
produced by the on-site generation facility, for use for heating or cooling, or
both, regardless of whether the customer is located on property that is
separated from the property on which the on-site generation facility is located
by more than one easement, public thoroughfare, or transportation or
utility-owned right-of-way.

���� �Open access offshore wind
transmission facility� means an open access transmission facility, located
either in the Atlantic Ocean or offshore, used to facilitate the collection of
offshore wind energy or its delivery to the electronic transmission system in
this State.

���� �Person� means an individual,
partnership, corporation, association, trust, limited liability company,
governmental entity, or other legal entity.

���� �PJM Interconnection, L.L.C.�
or �PJM� means the privately-held, limited liability corporation that serves as
a FERC-approved Regional Transmission Organization, or its successor, that
manages the regional, high-voltage electricity grid serving all or parts of 13
states including New Jersey and the District of Columbia, operates the regional
competitive wholesale electric market, manages the regional transmission
planning process, and establishes systems and rules to ensure that the regional
and in-State energy markets operate fairly and efficiently.

���� �Preliminary assessment� shall
have the same meaning as provided in section 3 of P.L.1976, c.141
(C.58:10-23.11b).

���� �Preserved farmland� means
land on which a development easement was conveyed to, or retained by, the State
Agriculture Development Committee, a county agriculture development board, or a
qualifying tax exempt nonprofit organization pursuant to the provisions of
section 24 of P.L.1983, c.32 (C.4:1C-31), section 5 of P.L.1988, c.4
(C.4:1C-31.1), section 1 of P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999,
c.180 (C.4:1C-43.1), sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37
through C.13:8C-40), or any other State law enacted for farmland preservation
purposes.

���� �Private aggregator� means a
non-government aggregator that is a duly-organized business or non-profit
organization authorized to do business in this State that enters into a
contract with a duly licensed electric power supplier for the purchase of electric
energy and capacity, or with a duly licensed gas supplier for the purchase of
gas supply service, on behalf of multiple end-use customers by combining the
loads of those customers.

���� �Properly closed sanitary
landfill facility� means a sanitary landfill facility, or a portion of a
sanitary landfill facility, for which performance is complete with respect to
all activities associated with the design, installation, purchase, or construction
of all measures, structures, or equipment required by the Department of
Environmental Protection, pursuant to law, in order to prevent, minimize, or
monitor pollution or health hazards resulting from a sanitary landfill facility
subsequent to the termination of operations at any portion thereof, including,
but not necessarily limited to, the placement of earthen or vegetative cover,
and the installation of methane gas vents or monitors and leachate monitoring
wells or collection systems at the site of any sanitary landfill facility.

���� �Public utility holding
company� means: (1) any company that, directly or indirectly, owns, controls,
or holds with power to vote, 10 percent or more of the outstanding voting
securities of an electric public utility or a gas public utility or of a company
which is a public utility holding company by virtue of this definition, unless
the Securities and Exchange Commission, or its successor, by order declares
such company not to be a public utility holding company under the Public
Utility Holding Company Act of 1935, 15 U.S.C. s.79 et seq., or its successor;
or (2) any person that the Securities and Exchange Commission, or its
successor, determines, after notice and opportunity for hearing, directly or
indirectly, to exercise, either alone or pursuant to an arrangement or
understanding with one or more other persons, such a controlling influence over
the management or policies of an electric public utility or a gas public
utility or public utility holding company as to make it necessary or
appropriate in the public interest or for the protection of investors or
consumers that such person be subject to the obligations, duties, and
liabilities imposed in the Public Utility Holding Company Act of 1935, 15
U.S.C. s.79 et seq., or its successor act.

���� �Qualified offshore wind
project� means a wind turbine electricity generation facility in the Atlantic
Ocean and connected to the electric transmission system in this State, and
includes the associated transmission-related interconnection facilities and equipment,
and approved by the board pursuant to section 3 of P.L.2010, c.57
(C.48:3-87.1).

���� �Registration program� means
an administrative process developed by the board pursuant to subsection u. of
section 38 of P.L.1999, c.23 (C.48:3-87) that requires all owners of solar
electric power generation facilities connected to the distribution system that
intend to generate SRECs, to file with the board documents detailing the size,
location, interconnection plan, land use, and other project information as
required by the board.

���� �Regulatory asset� means an
asset recorded on the books of an electric public utility or gas public utility
pursuant to the Statement of Financial Accounting Standards, No. 71, entitled
�Accounting for the Effects of Certain Types of Regulation,� or any successor
standard and as deemed recoverable by the board.

���� �Related competitive business
segment of an electric public utility or gas public utility� means any business
venture of an electric public utility or gas public utility including, but not
limited to, functionally separate business units, joint ventures, and
partnerships, that offers to provide or provides competitive services.

���� �Related competitive business
segment of a public utility holding company� means any business venture of a
public utility holding company, including, but not limited to, functionally
separate business units, joint ventures, and partnerships and subsidiaries,
that offers to provide or provides competitive services, but does not include
any related competitive business segments of an electric public utility or gas
public utility.

���� �Reliability pricing model� or
�RPM� means PJM�s capacity-market model, and its successors, that secures
capacity on behalf of electric load serving entities to satisfy load
obligations not satisfied through the output of electric generation facilities
owned by those entities, or otherwise secured by those entities through
bilateral contracts.

���� �Renewable energy certificate�
or �REC� means a certificate representing the environmental benefits or
attributes of one megawatt-hour of generation from a generating facility that
produces Class I or Class II renewable energy, but shall not include a solar
renewable energy certificate or an offshore wind renewable energy certificate.

���� �Resource clearing price� or
�RCP� means the clearing price established for the applicable locational
deliverability area by the base residual auction or incremental auction, as
determined by the optimization algorithm for each auction, conducted by PJM as
part of PJM�s reliability pricing model.

���� �Resource recovery facility�
means a solid waste facility constructed and operated for the incineration of
solid waste for energy production and the recovery of metals and other
materials for reuse, which the Department of Environmental Protection has determined
to be in compliance with current environmental standards, including, but not
limited to, all applicable requirements of the federal �Clean Air Act� (42
U.S.C. s.7401 et seq.).

���� �Restructuring related costs�
means reasonably incurred costs directly related to the restructuring of the
electric power industry, including the closure, sale, functional separation,
and divestiture of generation and other competitive utility assets by a public
utility, or the provision of competitive services as those costs are determined
by the board, and which are not stranded costs as defined in P.L.1999, c.23
(C.48:3-49 et al.) but may include, but not be limited to, investments in
management information systems, and which shall include expenses related to
employees affected by restructuring which result in efficiencies and which
result in benefits to ratepayers, such as training or retraining at the level
equivalent to one year�s training at a vocational or technical school or county
community college, the provision of severance pay of two weeks of base pay for
each year of full-time employment, and a maximum of 24 months� continued health
care coverage.� Except as to expenses related to employees affected by
restructuring, �restructuring related costs� shall not include going forward
costs.

���� �Retail choice� means the
ability of retail customers to shop for electric generation or gas supply
service from electric power or gas suppliers, or opt to receive basic
generation service or basic gas service, and the ability of an electric power
or gas supplier to offer electric generation service or gas supply service to
retail customers, consistent with the provisions of P.L.1999, c.23 (C.48:3-49
et al.).

���� �Retail margin� means an
amount, reflecting differences in prices that electric power suppliers and
electric public utilities may charge in providing electric generation service
and basic generation service, respectively, to retail customers, excluding residential
customers, which the board may authorize to be charged to categories of basic
generation service customers of electric public utilities in this State, other
than residential customers, under the board�s continuing regulation of basic
generation service pursuant to sections 3 and 9 of P.L.1999, c.23 (C.48:3-51
and 48:3-57), for the purpose of promoting a competitive retail market for the
supply of electricity.

���� �Sales representative� means a
person employed by, acting on behalf of, or as an independent contractor for,
an electric power supplier, gas supplier, broker, energy agent, marketer, or
private aggregator who, by any means, solicits a potential residential customer
for the provision of electric generation service or gas supply service.

���� �Sanitary landfill facility�
shall have the same meaning as provided in section 3 of P.L.1970, c.39
(C.13:1E-3).

���� �School district� means a
local or regional school district established pursuant to chapter 8 or chapter
13 of Title 18A of the New Jersey Statutes, a county special services school
district established pursuant to article 8 of chapter 46 of Title 18A of the
New Jersey Statutes, a county vocational school district established pursuant
to article 3 of chapter 54 of Title 18A of the New Jersey Statutes, and a
district under full State intervention pursuant to P.L.1987, c.399 (C.18A:7A-34
et al.).

���� �Shopping credit� means an
amount deducted from the bill of an electric public utility customer to reflect
the fact that the customer has switched to an electric power supplier and no
longer takes basic generation service from the electric public utility.

���� �Site investigation� shall
have the same meaning as provided in section 3 of P.L.1976, c.141
(C.58:10-23.11b).

���� �Small scale hydropower
facility� means a facility located within this State that is connected to the
distribution system, and that meets the requirements of, and has been certified
by, a nationally recognized low-impact hydropower organization that has established
low-impact hydropower certification criteria applicable to: (1) river flows;
(2) water quality; (3) fish passage and protection; (4) watershed protection;
(5) threatened and endangered species protection; (6) cultural resource
protection; (7) recreation; and (8) facilities recommended for removal.

���� �Social program� means a
program implemented with board approval to provide assistance to a group of
disadvantaged customers, to provide protection to consumers, or to accomplish a
particular societal goal, and includes, but is not limited to, the winter
moratorium program, utility practices concerning �bad debt� customers, low
income assistance, deferred payment plans, weatherization programs, and late
payment and deposit policies, but does not include any demand side management
program or any environmental requirements or controls.

���� �Societal benefits charge�
means a charge imposed by an electric public utility, at a level determined by
the board, pursuant to, and in accordance with, section 12 of P.L.1999, c.23
(C.48:3-60).

���� �Solar alternative compliance
payment� or �SACP� means a payment of a certain dollar amount per megawatt hour
(MWh) which an electric power supplier or provider may submit to the board in
order to comply with the solar electric generation requirements under section
38 of P.L.1999, c.23 (C.48:3-87).

���� �Solar renewable energy
certificate� or �SREC� means a certificate issued by the board or its designee,
representing one megawatt hour (MWh) of solar energy that is generated by a
facility connected to the distribution system in this State and has value based
upon, and driven by, the energy market.

���� �Solar renewable energy
certificate II� or �SREC-II� means a transferable certificate, issued by the
board or its designee pursuant to P.L.2021, c.169 (C.48:3-114 et al.), which is
capable of counting towards the renewable energy portfolio standards of an
electric power supplier or basic generation service provider in the State
pursuant to section 38 of P.L.1999, c.23 (C.48:3-87).

���� �SREC-II program� means the
program established pursuant to section 2 of P.L.2021, c.169 (C.48:3-115) to
distribute SREC-IIs.

���� �SREC-II value per
megawatt-hour� means the value, in dollars-per-megawatt-hour, assigned by the
board to each solar electric power generation facility eligible to receive
SREC-IIs, which is paid to the facility and which represents the environmental
attributes of the facility.

���� �Standard offer capacity
agreement� or �SOCA� means a financially-settled transaction agreement,
approved by board order, that provides for eligible generators to receive
payments from the electric public utilities for a defined amount of electric
capacity for a term to be determined by the board but not to exceed 15 years,
and for such payments to be a fully non-bypassable charge, with such an order,
once issued, being irrevocable.

���� �Standard offer capacity
price� or �SOCP� means the capacity price that is fixed for the term of the
SOCA and which is the price to be received by eligible generators under a
board-approved SOCA.

���� �State entity� means a
department, agency, or office of State government, a State university or
college, or an authority created by the State.

���� �Stranded cost� means the
amount by which the net cost of an electric public utility�s electric
generating assets or electric power purchase commitments, as determined by the
board consistent with the provisions of P.L.1999, c.23 (C.48:3-49 et al.), exceeds
the market value of those assets or contractual commitments in a competitive
supply marketplace and the costs of buydowns or buyouts of power purchase
contracts.

���� �Stranded costs recovery
order� means each order issued by the board in accordance with subsection c. of
section 13 of P.L.1999, c.23 (C.48:3-61) which sets forth the amount of
stranded costs, if any, the board has determined an electric public utility is
eligible to recover and collect in accordance with the standards set forth in
section 13 of P.L.1999, c.23 (C.48:3-61) and the recovery mechanisms therefor.

���� �Telemarketer� shall have the
same meaning as set forth in section 2 of P.L.2003, c.76 (C.56:8-120).

���� �Telemarketing sales call�
means a telephone call made by a telemarketer to a potential residential
customer as part of a plan, program, or campaign to encourage the customer to
change the customer�s electric power supplier or gas supplier.� A telephone call
made to an existing customer of an electric power supplier, gas supplier,
broker, energy agent, marketer, private aggregator, or sales representative,
for the sole purpose of collecting on accounts or following up on contractual
obligations, shall not be deemed a telemarketing sales call.� A telephone call
made in response to an express written request of a customer shall not be
deemed a telemarketing sales call.

���� �Thermal efficiency� means the
useful electric energy output of a facility, plus the useful thermal energy
output of the facility, expressed as a percentage of the total energy input to
the facility.

���� �Transition bond charge� means
a charge, expressed as an amount per kilowatt hour, that is authorized by and
imposed on electric public utility ratepayers pursuant to a bondable stranded
costs rate order, as modified at any time pursuant to the provisions of
P.L.1999, c.23 (C.48:3-49 et al.).

���� �Transition bonds� means
bonds, notes, certificates of participation, beneficial interest, or other
evidences of indebtedness or ownership issued pursuant to an indenture,
contract, or other agreement of an electric public utility or a financing
entity, the proceeds of which are used, directly or indirectly, to recover,
finance or refinance bondable stranded costs and which are, directly or
indirectly, secured by or payable from bondable transition property. References
in P.L.1999, c.23 (C.48:3-49 et al.) to principal, interest, and acquisition or
redemption premium with respect to transition bonds which are issued in the
form of certificates of participation or beneficial interest or other evidences
of ownership shall refer to the comparable payments on such securities.

���� �Transition period� means the
period from August 1, 1999 through July 31, 2003.

���� �Transmission and distribution
system� means, with respect to an electric public utility, any facility or
equipment that is used for the transmission, distribution, or delivery of
electricity to the customers of the electric public utility including, but not
limited to, the land, structures, meters, lines, switches, and all other
appurtenances thereof and thereto, owned or controlled by the electric public
utility within this State.

���� �Universal service� means any
service approved by the board with the purpose of assisting low-income
residential customers in obtaining or retaining electric generation or delivery
service.

���� �Unsolicited advertisement�
means any advertising claims of the commercial availability or quality of
services provided by an electric power supplier, gas supplier, broker, energy
agent, marketer, private aggregator, sales representative, or telemarketer
which is transmitted to a potential customer without that customer�s prior
express invitation or permission.

(cf: P.L.2021, c.169, s.9)

���� 2.� (New section) a.� As used
in this section:

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

���� �Clean baseload energy� means
any form of electric energy production which is able to reliably produce energy
continuously and at a constant rate, without emitting greenhouse gases as a
direct byproduct of generation.� �Clean baseload energy� includes, but is not
limited to, nuclear fission.

���� �Director� means Director of
the Division of Taxation in the Department of the Treasury.

���� b.� A taxpayer that is the
owner or operator of a facility that produces clean baseload energy shall be
allowed a credit against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5), in an amount equal to $1,000 for each gigawatt hour of
clean baseload energy produced by the taxpayer, provided that the expenditures
are certified by the board pursuant to this section.

���� c.� (1)� To qualify for the
tax credit allowed pursuant to this section, the taxpayer shall file an
application for a certification from the board.� The board may require the
submission of any additional information the board deems necessary to make a
certification, including, but not limited to, generation data and facility
permit information.� The certification shall specify the amount of clean
baseload energy produced by the taxpayer and the amount of the credit available
to the taxpayer.�

���� (2) The board shall have 90
days from the date of receipt of a complete application to make a determination
as to the issuance of a certification.

���� (3) Upon certification, the board
shall submit a copy thereof to the taxpayer and the director.� In filing a tax
return that includes a claim for the credit allowed pursuant to this section,
the taxpayer shall include a copy of the certification.

���� d.� The first privilege period
in which a taxpayer may use a credit allowed under this section is the
privilege period for which the taxpayer�s application made and filed for a
certification from the board is granted.

���� e.� The amount of any unused
credit may be carried forward, if necessary, for use in each of the seven
privilege periods following the privilege period for which the credit is
allowed.

���� f.� The order of priority of
the application of the credit allowed pursuant to this section and any other
credits allowed by law shall be as prescribed by the director.� The amount of
the credit applied under this section against the tax imposed pursuant to section
5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any
other credits allowed against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5), shall not exceed 50 percent of the tax liability
otherwise due and shall not reduce the tax liability to an amount less than the
statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).

���� g.� A credit shall not be
allowed pursuant to this section for the production of clean baseload energy
which is included in the calculation of any other credit allowed against the
tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5).

���� h.� The Department of the
Treasury may adopt, in accordance with the �Administrative Procedure Act,�
P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary to
implement the provisions of this section.

���� 3.� Section 1 of this act
shall take effect immediately.� Section 2 of this act shall take effect
immediately and apply to tax years beginning on and after January 1 next
following enactment.

STATEMENT

���� This bill would modify the
definition of �Class I renewable energy� in the �Energy Discount and Energy
Competition Act,� P.L.1999, c.23 (C.48:3-49 et al.), to include energy produced
through nuclear fission.� The bill would also provide a Corporation Business
Tax (CBT) tax credit for the production of clean baseload energy.

���� The bill defines �clean
baseload energy� as any form of electric energy production which is able to
reliably produce energy continuously and at a constant rate, without emitting greenhouse
gases as a byproduct, including nuclear fission.� The amount of the tax credit
would be set at $1,000 per gigawatt hour of clean baseload energy produced.

���� The intent of this bill is to
support existing nuclear power stations in the State and to incentivize the new
generation assets using nuclear fission by recognizing fission as a clean Class
I renewable energy source and by incentivizing production through a targeted
tax credit.� Nuclear power has the potential to be a transformational
technology for the State, as it is the only currently viable form of
electricity production that is able to reliably produce power, at scale,
without greenhouse gas emissions.