Gov. Mikie Sherrill on July 13 signed bipartisan legislation creating an advanced nuclear energy procurement program aimed at meeting New Jersey’s future energy needs and positioning the state as a national leader in reliable, zero-carbon nuclear power.
The legislation, known as the Power New Jersey Act, was strongly supported by the New Jersey Business & Industry Association. It establishes a competitive process for new nuclear energy projects designed to support the state’s energy goals, protect ratepayers and create thousands of well-paying jobs.
“This is how we don’t kick the can down the road, and we make sure in 10 years we’re not still facing a power generation problem or affordability crisis,” Sherrill said at the bill-signing event at the Statehouse, titled “Nuclear Power Generation for Generations.”
Sherrill said the law would allow new nuclear projects capable of powering hundreds of thousands of homes. She emphasized that the program is not a subsidy, but a structure to purchase nuclear energy at a fair price while protecting ratepayers.
NJBIA President and CEO Michele Siekerka joined the governor, business leaders and lawmakers for the signing of A-4881, sponsored by Assemblyman Wayne DeAngelo, Senator John Burzichelli and other legislators.
Siekerka said nuclear power remains a critical part of an “all-of-the-above” approach to New Jersey’s energy future. She said businesses, particularly manufacturers, depend on affordable, reliable and abundant energy to create jobs, support communities and sustain the economy.
Sherrill said a “nuclear renaissance” is emerging nationwide through new partnerships and the potential availability of billions of dollars in federal funding. She noted that New Jersey has one of only six sites pre-approved for new nuclear development in the United States.
Land adjacent to the Salem Nuclear Power Plant and Hope Creek Nuclear Generating Station in Lower Alloways Creek has long been designated by the U.S. Nuclear Regulatory Commission as a potential site for an additional reactor.
Building a large conventional nuclear power reactor in New Jersey is estimated to take at least 10 years and cost about $24 billion. Federal financing programs may guarantee or finance up to 80 percent of a project’s cost.
The Power New Jersey Act takes effect immediately. The Board of Public Utilities is expected to issue its first request for expressions of interest from potential nuclear project developers within 180 days.
The law includes a detailed project selection process with public hearings, economic and environmental impact analyses, and opportunities for public comment. It also includes safeguards requiring projects to secure federal financing, demonstrate a net benefit to ratepayers, and ensure ratepayers do not bear costs until a project is built and supplying energy. Ratepayers also would not be responsible for cost overruns.
Additional protections require at least two public comment periods and a public hearing in any proposed municipality. The New Jersey Board of Public Utilities and the New Jersey Economic Development Authority must also consider independent assessments by the Division of Rate Counsel to keep ratepayer interests central throughout the process.
Burzichelli said the bill “sends a message across the country that New Jersey is open for business in this area.”
At the signing event, Sherrill also outlined immediate and long-term steps to address rising electric rates. She said she had previously ordered a freeze on rate hikes and had taken steps to increase long-term power generation by approving 18 solar and battery storage projects and ending the 50-year moratorium on new nuclear power.
