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A4881 2R FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 4881
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 6, 2026
SUMMARY
Synopsis:
"Power NJ Act"; establishes advanced nuclear
energy procurement program in BPU.�
Type of Impact:
Annual increase in State and local expenditures.�
Agencies Affected:
Board of Public Utilities; New Jersey Economic Development
Authority; Division of Rate Counsel in the Department of the Treasury;
Department of Environmental Protection; local government units.�
Office of
Legislative Services Estimate
Fiscal Impact
Annual
State Expenditure Increase
Indeterminate
Local Expenditure Increase
Indeterminate
�
The Office of Legislative Services (OLS) concludes that the bill
may result in an indeterminate increase in administrative expenses for the
Board of Public Utilities and the New Jersey Economic Development Authority,
which are required by the bill to implement an advanced nuclear energy
procurement program. �The OLS notes that the bill provides a mechanism for the
qualified project entity to reimburse the board and the authority for
reasonable project review costs, including consulting fees.� However, the bill
does not expressly provide reimbursement for all State activities related to
program creation.�
�
The bill also requires electric power suppliers and basic
generation service providers to purchase Reliable Capacity Certificates (RCCs)
from qualified projects.� Accordingly, the OLS estimates a potential increase
in State and local expenditures attributable to increased electricity supply
costs because of these RCC obligations, which increased costs will be paid by
electric customers, including the State and local government units.
�
The bill also requires the board, the authority, and a
provisionally qualified project entity to enter into a stipulation, which
stipulation may provide for the return of certain revenues generated by an
advanced nuclear energy project to ratepayers, which may reduce the net cost to
ratepayers, including to the State and local government units.� However, the
extent of any offset is unknown.
BILL DESCRIPTION
����� This bill, to be known as the Powering Opportunity,
Workforce, and Energy Reliability for New Jersey Act or the Power NJ Act,
directs the Board of Public Utilities, in collaboration with the New Jersey
Economic Development Authority, to establish a program to procure advanced
nuclear energy facilities in the State.�
����� The bill requires the board to solicit expressions of
interest for advanced nuclear energy projects and establishes a process for
evaluating, negotiating, approving, and supporting qualified projects through
the issuance of Reliable Capacity Certificates (RCCs).
����� The bill authorizes the board and the authority to
negotiate project terms, including construction cost estimates, project
milestones, revenue-sharing provisions, and RCC pricing structures.� Under the
bill, electric power suppliers and basic generation service providers are
required to purchase RCCs generated by qualified projects.� The bill further
provides for certain project revenues to be returned to ratepayers.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.�
OFFICE OF LEGISLATIVE SERVICES
����� The OLS concludes that the bill may result in an
indeterminate increase in administrative expenses for the Board of Public
Utilities and the New Jersey Economic Development Authority, which are required
by the bill to implement an advanced nuclear energy procurement program.�
����� The OLS notes that the bill provides a mechanism for
the qualified project entity to reimburse the board and the authority for
reasonable project review costs, including consulting fees.� This provision may
offset, to some extent, the State administrative cost associated with reviewing
individual projects.� However, the bill does not expressly provide
reimbursement for all State activities related to program creation, rulemaking,
Division of Rate Counsel participation, Department of Environmental Protection
consultation, or general oversight.�
����� The bill also requires electric power suppliers and
basic generation service providers to purchase Reliable Capacity Certificates
(RCCs) from qualified projects.� Accordingly, the OLS estimates a potential
increase in State and local expenditures attributable to increased electricity
supply costs because of these RCC obligations, which increased costs will be
paid by electric customers, including the State and local government units.�
The amount of these costs cannot be estimated until the board approves a project
and establishes the RCC price, payment schedule, term, and annual obligation.�
The bill also requires the board, the authority, and a provisionally qualified
project entity to enter into a stipulation, which may result in the return of
certain revenues to ratepayers, including revenues from the sale of energy,
capacity, and ancillary services in PJM, revenues generated by certain direct
power purchase agreements, and other market revenues.� This return may reduce
the net cost to ratepayers, including to the State and local government units, but
the extent of any offset is unknown.
����� The OLS notes that the bill may potentially result in
State and local revenue increases due to increased economic activity if an
advanced nuclear energy project is developed and becomes operational in the
State.
Section:
Authorities, Utilities, Transportation and
Communications
Analyst:
Michael D. Walker Jr.
Associate Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).