Establishes program in EDA to support construction of new nuclear energy facilities in State.

S4383

SENATE, No. 4383

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 1, 2026

Sponsored by:

Senator� CARMEN F. AMATO, JR.

District 9 (Ocean)

Co-Sponsored by:

Senator Tiver

SYNOPSIS

���� Establishes program in EDA to support construction of
new nuclear energy facilities in State.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning nuclear energy and amending and
supplementing P.L.1974, c.80.

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

���� 1.��� Section 5 of P.L.1974,
c.80 (C.34:1B-5) is amended to read as follows:

���� 5.��� The authority shall have
the following powers:

���� a.���� To adopt bylaws for the
regulation of its affairs and the conduct of its business;

���� b.��� To adopt and have a seal
and to alter the same at pleasure;

���� c.���� To sue and be sued;

���� d.��� To acquire in the name
of the authority by purchase or otherwise, on such terms and conditions and
such manner as it may deem proper, or by the exercise of the power of eminent
domain in the manner provided by the �Eminent Domain Act of 1971,� P.L.1971, c.361
(C.20:3-1 et seq.), any lands or interests therein or other property which it
may determine is reasonably necessary for any project; provided, however, that
the authority in connection with any project shall not take by exercise of the
power of eminent domain any real property except upon consent thereto given by
resolution of the governing body of the municipality in which such real
property is located; and provided further that the authority shall be limited
in its exercise of the power of eminent domain in connection with any project
in qualifying municipalities as defined under the provisions of P.L.1978, c.14
(C.52:27D-178 et seq.), or to municipalities which had a population, according
to the latest federal decennial census, in excess of 10,000;

���� e.���� To enter into contracts
with a person upon such terms and conditions as the authority shall determine
to be reasonable, including, but not limited to, reimbursement for the
planning, designing, financing, construction, reconstruction, improvement,
equipping, furnishing, operation and maintenance of the project and to pay or
compromise any claims arising therefrom;

���� f.���� To establish and
maintain reserve and insurance funds with respect to the financing of the
project or the school facilities project and any project financed pursuant to
the �Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.);

���� g.��� To sell, convey or lease
to any person all or any portion of a project for such consideration and upon
such terms as the authority may determine to be reasonable;

���� h.��� To mortgage, pledge or
assign or otherwise encumber all or any portion of a project, or revenues,
whenever it shall find such action to be in furtherance of the purposes of
[
this act
]

P.L.1974,
c.80 (C.34:1B-1 et seq.)
, P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);

���� i.���� To grant options to
purchase or renew a lease for any of its projects on such terms as the
authority may determine to be reasonable;

���� j.���� To contract for and to
accept any gifts or grants or loans of funds or property or financial or other
aid in any form from the United States of America or any agency or
instrumentality thereof, or from the State or any agency, instrumentality or
political subdivision thereof, or from any other source and to comply, subject
to the provisions of P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001,
c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the �Municipal
Rehabilitation and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et
al.), and P.L.2007, c.137 (C.52:18A-235 et al.), with the terms and conditions
thereof;

���� k.��� In connection with any
action undertaken by the authority in the performance of its duties and any
application for assistance or commitments therefor and modifications thereof,
to require and collect such fees and charges as the authority shall determine
to be reasonable, including but not limited to fees and charges for the
authority�s administrative, organizational, insurance, operating, legal, and
other expenses;

���� l.���� To adopt, amend and
repeal regulations to carry out the provisions of P.L.1974, c.80 (C.34:1B-1 et
seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1
et al.), the �Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), and P.L.2007, c.137 (C.52:18A-235 et al.);

���� m.�� To acquire, purchase,
manage and operate, hold and dispose of real and personal property or interests
therein, take assignments of rentals and leases and make and enter into all
contracts, leases, agreements and arrangements necessary or incidental to the
performance of its duties;

���� n.��� To purchase, acquire and
take assignments of notes, mortgages and other forms of security and evidences
of indebtedness;

���� o.��� To purchase, acquire,
attach, seize, accept or take title to any project or school facilities project
by conveyance or by foreclosure, and sell, lease, manage or operate any project
or school facilities project for a use specified in
[
this act
]

P.L.1974,
c.80 (C.34:1B-1 et seq.)
, P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);

���� p.��� To borrow money and to
issue bonds of the authority and to provide for the rights of the holders
thereof, as provided in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of
P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.);

���� q.��� To extend credit or make
loans to any person for the planning, designing, acquiring, constructing,
reconstructing, improving, equipping and furnishing of a project or school
facilities project, which credits or loans may be secured by loan and security
agreements, mortgages, leases and any other instruments, upon such terms and
conditions as the authority shall deem reasonable, including provision for the
establishment and maintenance of reserve and insurance funds, and to require
the inclusion in any mortgage, lease, contract, loan and security agreement or
other instrument, of such provisions for the construction, use, operation and
maintenance and financing of a project or school facilities project as the
authority may deem necessary or desirable;

���� r.���� To guarantee up to 90
[
%
]

percent

of the amount of a loan to a person, if the proceeds of the loan are to be
applied to the purchase and installation, in a building devoted to industrial
or commercial purposes, or in an office building, of an energy improvement
system;

���� s.���� To employ consulting
engineers, architects, attorneys, real estate counselors, appraisers, and such
other consultants and employees as may be required in the judgment of the
redevelopment utility to carry out the purposes of P.L.1974, c.80 (C.34:1B-1 et
seq.), section 6 of P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1
et al.), the �Municipal Rehabilitation and Economic Recovery Act,� P.L.2002,
c.43 (C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections
3 through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), and to fix and pay their
compensation from funds available to the redevelopment utility therefor, all
without regard to the provisions of Title 11A of the New Jersey Statutes;

���� t.���� To do and perform any
acts and things authorized by P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of
P.L.2001, c.401 (C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the
�Municipal Rehabilitation and Economic Recovery Act,� P.L.2002, c.43
(C.52:27BBB-1 et al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3
through 18 of P.L.2009, c.90 (C.52:27D-489c et al.), under, through or by means
of its own officers, agents and employees, or by contract with any person;

���� u.��� To procure insurance
against any losses in connection with its property, operations or assets in
such amounts and from such insurers as it deems desirable;

���� v.��� To do any and all things
necessary or convenient to carry out its purposes and exercise the powers given
and granted in P.L.1974, c.80 (C.34:1B-1 et seq.), section 6 of P.L.2001, c.401
(C.34:1B-4.1), P.L.2000, c.72 (C.18A:7G-1 et al.), the �Municipal Rehabilitation
and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et al.), P.L.2007,
c.137 (C.52:18A-235 et al.), and sections 3 through 18 of P.L.2009, c.90
(C.52:27D-489c et al.);

���� w.�� To construct,
reconstruct, rehabilitate, improve, alter, equip, maintain or repair or provide
for the construction, reconstruction, improvement, alteration, equipping or
maintenance or repair of any development property and lot, award and enter into
construction contracts, purchase orders and other contracts with respect
thereto, upon such terms and conditions as the authority shall determine to be
reasonable, including, but not limited to, reimbursement for the planning,
designing, financing, construction, reconstruction, improvement, equipping,
furnishing, operation and maintenance of any such development property and the
settlement of any claims arising therefrom and the establishment and
maintenance of reserve funds with respect to the financing of such development
property;

���� x.��� When authorized by the
governing body of a municipality exercising jurisdiction over an urban growth
zone, to construct, cause to be constructed or to provide financial assistance
to projects in an urban growth zone which shall be exempt from the terms and
requirements of the land use ordinances and regulations, including, but not
limited to, the master plan and zoning ordinances, of such municipality;

���� y.��� To enter into business
employment incentive agreements as provided in the �Business Employment
Incentive Program Act,� P.L.1996, c.26 (C.34:1B-124 et al.);

���� z.���� To enter into
agreements or contracts, execute instruments, and do and perform all acts or
things necessary, convenient or desirable for the purposes of the redevelopment
utility to carry out any power expressly provided pursuant to P.L.1974, c.80
(C.34:1B-1 et seq.), P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137
(C.52:18A-235 et al.), including, but not limited to, entering into contracts
with the State Treasurer, the Commissioner of Education, districts, the New
Jersey Schools Development Authority, and any other entity which may be
required in order to carry out the provisions of P.L.2000, c.72 (C.18A:7G-1 et
al.), P.L.2007, c.137 (C.52:18A-235 et al.), and sections 3 through 18 of
P.L.2009, c.90 (C.52:27D-489c et al.);

���� aa.�� (Deleted by amendment,
P.L.2007, c.137);

���� bb.� To make and contract to
make loans to local units to finance the cost of school facilities projects and
to acquire and contract to acquire bonds, notes or other obligations issued or
to be issued by local units to evidence the loans, all in accordance with the
provisions of P.L.2000, c.72 (C.18A:7G-1 et al.), and P.L.2007, c.137
(C.52:18A-235 et al.);

���� cc.�� Subject to any agreement
with holders of its bonds issued to finance a project or school facilities
project, obtain as security or to provide liquidity for payment of all or any
part of the principal of and interest and premium on the bonds of the authority
or for the purchase upon tender or otherwise of the bonds, lines of credit,
letters of credit, reimbursement agreements, interest rate exchange agreements,
currency exchange agreements, interest rate floors or caps, options, puts or
calls to hedge payment, currency, rate, spread or similar exposure or similar
agreements, float agreements, forward agreements, insurance contract, surety
bond, commitment to purchase or sell bonds, purchase or sale agreement, or
commitments or other contracts or agreements, and other security agreements or
instruments in any amounts and upon any terms as the authority may determine
and pay any fees and expenses required in connection therewith;

���� dd.� To charge to and collect
from local units, the State and any other person, any fees and charges in
connection with the authority�s actions undertaken with respect to school
facilities projects, including, but not limited to, fees and charges for the
authority�s administrative, organization, insurance, operating and other
expenses incident to the financing of school facilities projects;

���� ee.�� To make loans to
refinance solid waste facility bonds through the issuance of bonds or other
obligations and the execution of any agreements with counties or public
authorities to effect the refunding or rescheduling of solid waste facility
bonds, or otherwise provide for the payment of all or a portion of any series
of solid waste facility bonds.� Any county or public authority refunding or
rescheduling its solid waste facility bonds pursuant to this subsection shall
provide for the payment of not less than fifty percent of the aggregate debt
service for the refunded or rescheduled debt of the particular county or public
authority for the duration of the loan; except that, whenever the solid waste
facility bonds to be refinanced were issued by a public authority and the
county solid waste facility was utilized as a regional county solid waste
facility, as designated in the respective adopted district solid waste
management plans of the participating counties as approved by the department
prior to November 10, 1997, and the utilization of the facility was established
pursuant to tonnage obligations set forth in their respective interdistrict
agreements, the public authority refunding or rescheduling its solid waste
facility bonds pursuant to this subsection shall provide for the payment of a
percentage of the aggregate debt service for the refunded or rescheduled debt
of the public authority not to exceed the percentage of the specified tonnage
obligation of the host county for the duration of the loan.� Whenever the solid
waste facility bonds are the obligation of a public authority, the relevant
county shall execute a deficiency agreement with the authority, which shall
provide that the county pledges to cover any shortfall and to pay deficiencies
in scheduled repayment obligations of the public authority.� All costs
associated with the issuance of bonds pursuant to this subsection may be paid
by the authority from the proceeds of these bonds.� Any county or public
authority is hereby authorized to enter into any agreement with the authority
necessary, desirable or convenient to effectuate the provisions of this
subsection.

���� The authority shall not issue
bonds or other obligations to effect the refunding or rescheduling of solid
waste facility bonds after December 31, 2002.� The authority may refund its own
bonds issued for the purposes herein at any time;

���� ff.�� To pool loans for any
local government units that are refunding bonds and do and perform any and all
acts or things necessary, convenient or desirable for the purpose of the
authority to achieve more favorable interest rates and terms for those local
governmental units;

���� gg.� To finance projects
approved by the board, provide staff support to the board, oversee and monitor
progress on the part of the board in carrying out the revitalization, economic
development and restoration projects authorized pursuant to the �Municipal Rehabilitation
and Economic Recovery Act,� P.L.2002, c.43 (C.52:27BBB-1 et al.) and otherwise
fulfilling its responsibilities pursuant thereto;

���� hh.� To offer financial
assistance to qualified film production companies as provided in the �New
Jersey Film Production Assistance Act,� P.L.2003, c.182 (C.34:1B-178 et al.);

���� ii.��� To finance or develop
private or public parking facilities or structures, which may include the use
of solar photovoltaic equipment, in municipalities qualified to receive State
aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et seq.) and municipalities
that contain areas designated pursuant to P.L.1985, c.398 (C.52:18A-196 et al.)
as Planning Area 1 (Metropolitan), Planning Area 2 (Suburban), or a town
center, and to provide appropriate assistance, including but not limited to,
extensions of credit, loans, and guarantees, to municipalities qualified to
receive State aid pursuant to the provisions of P.L.1978, c.14 (C.52:27D-178 et
seq.) and municipalities that contain areas designated pursuant to P.L.1985,
c.398 (C.52:18A-196 et seq.) as Planning Area 1 (Metropolitan), Planning Area 2
(Suburban), or a town center, and their agencies and instrumentalities or to
private entities whose projects are located in those municipalities, in order
to facilitate the financing and development of parking facilities or structures
in such municipalities.� The authority may serve as the issuing agent of bonds
to finance the undertaking of a project for the purposes of this subsection;

���� jj.��� To make grants for the
planning, designing, acquiring, constructing, reconstructing, improving,
equipping, and furnishing of a project, including, but not limited to, grants
for working capital and meeting payroll requirements, upon such terms and
conditions as the authority shall deem reasonable, during periods of emergency
declared by the Governor and for the duration of economic disruptions due to
the emergency;

���� kk.� To purchase and lease
real property at a nominal rate when it would result in a net economic benefit
to the State, enhance access to employment and investment for underserved
populations, or increase investment and employment in high-growth technology sectors;
and

���� ll.��� To make investments of
capital, not to exceed $10,000,000 per project, in New Jersey film-lease
partner facilities, as that term is defined in section 1 of P.L.2018, c.56
(C.54:10A-5.39b) and subsection a. of section 2 of P.L.2018, c.56
(C.54A:4-12b), subject to commercially reasonable and customary terms and
conditions as determined by the authority and the New Jersey film-lease partner
facility.

����
mm.� To establish a 10-year
program to site, finance, and construct new nuclear energy facilities in the
State pursuant to section 2 of P.L. ,
c.
(C. ) (pending
before the Legislature as this bill).

(cf:� P.L.2023, c.97, s.2)

���� 2.� (New section) a.� The
authority shall establish a 10-year program for the purpose of providing
low-cost, long-term financial support for the construction of new nuclear
energy facilities with an expected operational life of at least 60 years in the
State.

���� b.� In establishing the
program, the authority shall:

���� (1) establish fast-track procedures
for the issuance of construction, environmental, or other permits and
approvals, or the renewal of existing permits or approvals, as applicable, for
new nuclear energy facilities.� The Department of Environmental Protection, the
Department of Community Affairs, and any other State agency identified by the
authority shall implement, through rules and regulations adopted pursuant to
the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), as
necessary, the procedures established by the authority pursuant to this
paragraph;

���� (2) enter into partnership
agreements with the United States Department of Energy and the Nuclear
Regulatory Commission to facilitate the licensing of new nuclear energy
facilities;

���� (3) develop incentives for
private-sector participation and investment in nuclear energy projects in the
State; and

���� (4) develop a financing
framework combining federal credits, long-term power purchase agreements, and State-backed
bonds to minimize the costs of the program for ratepayers.

���� c.� Before making any loan,
loan guarantee, or other form of financial assistance for an eligible project
pursuant to this section, the authority, in consultation with the Department of
Banking and Insurance and the Board of Public Utilities, shall develop and
adopt standards to govern the administration of the program through rules,
policies, and procedures that specify borrower eligibility, terms and
conditions of support, and other relevant criteria, standards, or procedures.�

���� d.� As part of the program,
the authority shall establish, administer, and maintain a �New Jersey Nuclear
Energy Incentive Fund� in a trust account, separate and apart from other
funds.� The authority shall hold, manage, and, through the Division of
Investment in the Department of the Treasury, invest and reinvest monies in the
fund and credit all income earned thereon to the fund in the same manner as
provided by law for the investment of pension and retirement funds administered
by the State. �The fund shall be credited with:

���� (1) any State revenues that
may be appropriated to the fund;

���� (2) any federal funds that may
be used for the purposes specified in this section;

���� (3) charitable gifts, grants,
and contributions, as well as loans, from individuals, corporations, university
endowments, and philanthropic foundations;

���� (4) any additional monies made
available by the authority for the purposes of the fund;

���� (5) any additional monies
received by the authority from any public or private sources for the purposes
of the fund;

���� (6) earnings and interest
derived from financing eligible projects; and

���� (7) interest on monies
deposited in the fund.

���� e.� Monies in the �New Jersey
Nuclear Energy Incentive Fund� established pursuant to subsection d. of this
section may be used to:�

���� (a) provide a loan, loan
guarantee, or other form of financial assistance for an eligible project;

���� (b) pay for operating
expenses, including administrative expenses, and capital costs incurred by the
authority in connection with operation of the fund; or

���� (c) provide grants, make
direct or equity investments, establish contracts, or take other actions which
support the construction of new nuclear energy facilities in the State.

���� f.� The authority may enter
into contracts with private sources to raise capital for the purposes of the
program.

���� g.� The authority may assess
reasonable fees for its financing activities to cover its reasonable costs and
expenses, as determined by the authority.

���� h.� The authority shall make
information regarding the rates, terms, and conditions for all of its financing
support transactions in connection with the program available to the public for
inspection, including formal annual reviews by a private auditor, and provide
details thereon to the public on the authority�s Internet website; provided
that public disclosure shall be restricted for patentable ideas, trade secrets,
and proprietary or confidential commercial or financial information, the
disclosure of which may cause commercial harm to a nongovernmental recipient of
financing support from the authority, and for other information exempt from
public records disclosure pursuant to law.

���� 3.� The New Jersey Economic
Development Authority shall, in accordance with the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and
regulations as necessary to implement this act.

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

STATEMENT

���� This bill would establish a
10-year program in the New Jersey Economic Development Authority (EDA) to
support the construction of new nuclear reactors in the State.

���� The bill would stipulate that
the reactors should have an expected operation life of at least 60 years.� The
bill would also require that the EDA: (1) establish fast-track procedures for
the issuance of construction, environmental, or other permits and approvals, or
the renewal of existing permits or approvals, as applicable, for new nuclear
energy facilities, which State agencies would be required to implement, under
the bill; (2) enter into partnership agreements with the United States
Department of Energy and the Nuclear Regulatory Commission to facilitate the
licensing of new nuclear energy facilities; (3) develop incentives for
private-sector participation and investment in nuclear energy projects in the
State; and (4) develop a financing framework combining federal credits,
long-term power purchase agreements, and State-backed bonds to minimize the
costs of the program for ratepayers.