Requires study of ocean energy potential; directs BPU to establish wave and tidal energy generation goals and take other action to establish NJ as nationwide leader in ocean energy.

S4129

SENATE, No. 4129

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� ANDREW ZWICKER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Senator� JOHN F. MCKEON

District 27 (Essex and Passaic)

SYNOPSIS

���� Requires study of ocean energy potential; directs BPU
to establish wave and tidal energy generation goals and take other action to
establish NJ as nationwide leader in ocean energy.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning
the study and promotion of wave and
tidal energy, and supplementing Title 48 of the Revised Statutes.

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

���� 1.��� The Legislature finds
and declares the following:

���� a.���� Ocean energy represents
the third largest source of renewable energy and the largest source of
underutilized renewable energy.� Ocean energy primarily comes in two forms:�
(1) wave energy, harnessed by waves; and (2) tidal energy, harnessed by tides.

���� b.��� The State, through
Executive Order No. 28 of 2018 and the 2019 Energy Master Plan, prepared
pursuant to Executive Order No. 28 of 2018 and section 12 of P.L.1977, c.146
(C.52:27F-14), has established an ambitious goal of providing 100 percent clean
energy in the State by 2050, with at least 50 percent of the State�s
electricity supply to be derived from renewable energy by 2030.

���� c.���� Executive Order No. 28
of 2018 and the 2019 Energy Master Plan each highlight and promote the need for
the State to increase its development and use of renewable energy technologies,
facilities, and resources, with efforts and goals directed towards solar and
wind energy.� To expand and enhance both Executive Order No. 28 of 2018 and the
2019 Energy Master Plan, provisions specifically highlighting and promoting the
need for, and benefits of, developing and using untapped ocean energy,
including wave energy, tidal energy, or both, in the State, as a means to
achieve the State�s clean energy goals, should also be included.

���� d.��� In order to achieve the
State�s clean energy goals with the least cost and greatest benefit to
consumers, it is critical that the State not only promote and facilitate
investments in wind and solar energy technologies, infrastructure, and
facilities, but also promote and facilitate concurrent investments in new wave
and tidal energy technologies, infrastructure, and facilities, so that the
State can begin to make full use of the ocean�s inexhaustible and untapped
sources of clean energy and, thereby, bolster and expand its renewable energy
portfolio.

���� e.���� The generation of
energy from ocean forces is a new and emerging field, and, going forward, the
availability of effective and efficient technology and technological
innovations will be essential to ensuring that ocean energy can be generated at
the lowest cost to consumers and in sufficient amounts to meet the State�s
energy needs.� By promoting and facilitating growth in the emerging wave and
tidal energy sectors and incorporating ambitious, but achievable, wave and
tidal energy generation goals into the State�s Energy Master Plan, New Jersey
can position itself as a nationwide leader in ocean energy, while facilitating
the development of high quality jobs and technological advancements in this
burgeoning industry.

���� f.���� Based on the foregoing,
it is both reasonable and necessary, and in the public interest, for the State
to enact legislation requiring:� (1) a comprehensive study of the potential
associated with the adoption and use of wave and tidal energy in New Jersey;
(2) the amendment of the State�s Energy Master Plan to incorporate the use of
wave and tidal energy as an integral component of the State�s clean energy
planning and goals; and (3) the taking of additional steps, as may be necessary
to position New Jersey as a leader in these emerging clean ocean energy
sectors.

���� 2.��� a.� Within 30 days after
the effective date of this act, the Board of Public Utilities and the
Department of Environmental Protection shall commence a comprehensive,
collaborative study to evaluate the feasibility and benefits of using wave and
tidal energy as forms of clean energy in the State.� The study shall include an
evaluation of:

���� (1)�� the actual and potential
impacts associated with the increased use of wave and tidal energy in the
State, including, but not limited to, the impacts to labor markets, energy
prices, air quality and greenhouse gas emissions, ocean ecosystems and water
quality, grid transmission, PJM grid operation, grid reliability, and grid
security;

���� (2)�� the feasibility and
desirability of establishing a renewable energy credit program, like the solar
renewable energy credit (SREC) program established pursuant to section 38 of
P.L.1999, c.23 (C.48:3-87), the SREC-II program established pursuant to P.L.2021,
c.169 (C.48:3-114 et seq.), and the offshore wind renewable energy certificate
(OREC) program established pursuant to section 38 of P.L.1999, c.23
(C.48:3-87), by which Wave Renewable Energy Credits (WRECs) can be used to
encourage the development and successful deployment of wave or tidal energy
technologies, infrastructure, and facilities in the State;

���� (3)�� the feasibility and
desirability of using alternative means and methods, other than renewable
energy credits, such as public-private partnerships, financial investments, or
university involvement, to encourage and incentivize the development of wave
and tidal energy technologies, infrastructure, and facilities, as well as the
creation of private sector wave and tidal energy jobs, in the State and
otherwise facilitate the establishment of New Jersey a national leader in the
growing wave and tidal energy sectors; and

���� (4)�� the factors that should
be considered, and determinations that should be made, by the board, when
soliciting and approving proposals for wave and tidal energy projects in the
State, including, at a minimum, the evaluation of existing wave and tidal projects
around the globe that produce technical data, and the determination that each
proposed project in the State will result in a positive net economic and
environmental benefit to the State.

���� b.��� The board and department
shall authorize individuals and entities to engage in pilot wave and tidal
energy projects in the State, as provided by subsection a. of section 3 of this
act, with associated data to be included in the study conducted pursuant to
subsection a. of this section and in the report produced pursuant to subsection
d. of this section.

���� c.���� In conducting the wave
and tidal energy study pursuant to subsection a. of this section, the board and
department shall cooperatively engage in a robust stakeholder engagement
process, which process shall include consultation with, and the solicitation of
testimony and information from:� professionals, businesses, organizations, and
agencies having particular experience or expertise in the wave and tidal energy
sectors; marine biologists, oceanographers, environmental scientists, and other
members of appropriate scientific fields; representatives of the commercial and
recreational fishing industries; members of the public; and other relevant and
interested parties.

���� d.��� Not more than three
months after the effective date of this act, the President of the Board of
Public Utilities and the Commissioner of Environmental Protection shall
cooperatively prepare and submit a written report to the Governor and, pursuant
to section 2 of P.L.1991, c.164 (C.52:14-19.2), to the Legislature, identifying
the findings from the study conducted pursuant to subsection a. of this
section, including any findings and relevant data associated with pilot
projects undertaken pursuant to subsection b. of this section, and providing
recommendations for legislative, executive, and other actions that can be taken
to facilitate, encourage, and promote the development and increased use of wave
and tidal energy technologies, infrastructure, and facilities in the State.� At
a minimum, the report shall:

���� (1)�� include a strategic plan
for the deployment of wave and tidal energy technologies, infrastructure, and
facilities in the State, which shall identify, at a minimum, specific wave
energy generation goals, tidal energy generation goals, or both, in megawatts
(MW), that the State should endeavor to meet by 2030, 2040, and 2050, in order
to ensure the timely and effective deployment of wave and tidal energy
technologies and the sufficient incorporation of wave and tidal energy into the
State�s energy portfolio;

���� (2)�� identify the procedures
and standards that will be used by the board in soliciting and approving
proposals for wave and tidal energy projects in the State; and

���� (3)�� describe the renewable
energy financial incentives, if any, and any other alternative means and
methods, that should or will be used by the board and the department to:� (a)
facilitate the development of wave and tidal energy technologies,
infrastructure, and facilities in the State; (b) promote technological
innovation in the wave and tidal energy sectors; (c) ensure the achievement of
the goals established pursuant to paragraph (1) of this subsection; and (d)
otherwise establish New Jersey as a nationwide leader in the wave and tidal
energy sectors.

���� e.���� The Energy Master Plan
Committee, in its adoption of the first update of the Energy Master Plan,
pursuant to section 12 of P.L.1977, c.146 (C.52:27F-14), following the
effective date of this act, shall incorporate, into the Energy Master Plan,
information regarding the wave and tidal energy strategic plan that has been
developed pursuant to paragraph (1) of subsection d. of this section, and, to
the extent practicable, the wave and tidal energy generation goals recommended
by the strategic plan.

����

���� 3.��� a.� Pilot project data
shall be included in the wave and tidal energy study completed, and in the wave
and tidal energy report produced, pursuant to section 2 of this act.� The Board
of Public Utilities shall solicit and approve applications for, and take other
appropriate action to facilitate, the implementation of pilot wave and tidal
energy projects, in the State, for these purposes.

���� b.��� Acting in accordance
with the recommendations set forth in the report produced pursuant to section 2
of this act, the Board of Public Utilities shall:�

���� (1)�� solicit and approve
applications for, and take appropriate action to facilitate, through the use of
renewable energy credits or other financial or non-financial incentives, the
continuation of pilot projects commenced under this act, and the initiation of
new wave and tidal energy projects that will result in a positive net economic
and environmental benefit to the State;

���� (2)�� promote, and take
appropriate action to facilitate, the creation of private sector jobs in the
wave and tidal energy sectors;

���� (3)�� promote, and take
appropriate action to facilitate, the stabilization of energy costs, the
enhancement of grid security and reliability, and the enhancement of
environmental quality, through the increased use of wave and tidal energy;

���� (4)�� engage in an ongoing
public education and awareness campaign, and take other appropriate action,
both in order to highlight the importance of wave and tidal energy as new
components of the State�s clean energy plans and in order to promote the
increased harnessing and use of ocean energy, the advancement of wave and tidal
energy technologies, and the increased construction and development of new wave
and tidal energy infrastructure and facilities in the State, as a means to
enhance energy grid reliability and security, meet the State�s clean energy
goals, enhance environmental quality, and develop a high quality,
next-generation job market in wave and tidal energy; and

���� (5)�� take other appropriate
actions, as may be necessary to establish New Jersey as a nationwide leader in
the emerging wave and tidal energy sectors.

���� c.���� In implementing the
provisions of this section, the board shall coordinate with the Bureau of Ocean
Energy Management in the United States Department of the Interior to facilitate
the leasing or permitting of offshore areas, under federal jurisdiction, for
wave or tidal energy projects, and shall coordinate with the Department of
Environmental Protection to facilitate the leasing or permitting of coastal or
onshore areas, under State jurisdiction, for such purposes.

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

STATEMENT

���� This bill would require a
study of the ocean�s energy potential in the State, and it would further
provide for the State�s clean energy plans and goals to be updated to
incorporate new goals related to the generation of wave and tidal energy, which
are both forms of clean energy that are derived from untapped and inexhaustible
ocean resources.

���� Specifically, the bill would
require the Board of Public Utilities (BPU) and the Department of Environmental
Protection (DEP), within 30 days after the bill�s effective date, to commence a
comprehensive, collaborative study to evaluate the feasibility and benefits of
using wave and tidal energy as forms of clean energy in the State.� The BPU and
DEP would be required, in conducting the study, to:� (1) evaluate various
factors related to the increased use of wave and tidal energy in the State; and
(2) authorize individuals and entities to engage in pilot wave and tidal energy
projects in the State.

���� Not more than three months
after the bill�s effective date, the President of the BPU and the DEP
Commissioner would be required to cooperatively prepare and submit a written
report, to the Governor and the Legislature, identifying the findings from the
wave and tidal energy study, and providing recommendations for legislative,
executive, and other actions that can be taken to facilitate, encourage, and
promote the development and increased use of wave and tidal energy
technologies, infrastructure, and facilities in the State.� Among other things,
the report would be required to include a strategic plan for the deployment of
wave and tidal energy technologies, infrastructure, and facilities in the
State, which strategic plan is to identify, at a minimum, specific wave energy
generation goals, tidal energy generation goals, or both, in megawatts (MW),
that the State should endeavor to meet by 2030, 2040, and 2050, in order to
ensure the timely and effective deployment of wave and tidal energy
technologies and the sufficient incorporation of wave and tidal energy into the
State�s energy portfolio.

���� The bill would require the
Energy Master Plan Committee, in its adoption of the first update of the
State�s Energy Master Plan following the bill�s effective date, to incorporate,
into the Energy Master Plan, information regarding the wave and tidal energy
strategic plan developed under the bill, and, to the extent practicable, the
wave and tidal energy generation goals recommended by the strategic plan.

���� The bill would require the BPU
to solicit and approve applications for, and to take appropriate action to
facilitate, the initiation of pilot wave and tidal energy projects in the State
as part of the wave and tidal energy study conducted under the bill, with data
from the pilot projects to be included in the study, as well as in the report
that is prepared pursuant to the bill.� The bill would further require the BPU,
acting in accordance with the recommendations set forth in the report, to
solicit and approve applications for, and to take other appropriate action to
facilitate, through the use of renewable energy credits or other financial or
non-financial incentives, the continuation of pilot projects commenced under
the study, as well as the initiation of new wave and tidal energy projects that
will result in a positive net economic and environmental benefit to the State.�
The BPU would further be required to take certain other affirmative agency
actions to facilitate the development of the wave and tidal energy sectors in
this State.�

���� The BPU would be required to
coordinate with the Bureau of Ocean Energy Management in the U.S. Department of
the Interior to facilitate the leasing or permitting of offshore areas, under
federal jurisdiction, for wave or tidal energy projects, and it would be
required to coordinate with the DEP to facilitate the leasing or permitting of
coastal or onshore areas, under State jurisdiction, for such purposes.