Gov. Sherrill signs bill to begin nuclear procurement in N.J.

On July 13, New Jersey Gov. Mikie Sherrill signed the Power NJ Act, a bill that directs the state's Board of Public Utilities (BPU), in collaboration with the state's Economic Development Authority, to establish an "advanced nuclear energy procurement program."

The context: On Sherrill's first day in office (January 20 of this year), she signed two executive orders aiming to tackle what she called a "state of emergency on utility costs." Those orders formally declared that state of emergency and aimed to freeze rate hikes and pave the way for the buildout of new generation capacity. Among other efforts, the second of the two orders established a state Nuclear Task Force charged with coordinating "the efforts of Executive Branch departments and agencies to formulate and implement a strategy for the development of new nuclear generation facilities" in the state.

This new Nuclear Task Force was immediately presented with one significant roadblock: At the time of its creation, state law precluded New Jersey's Department of Environmental Protection (DEP) from approving permits for the construction and operation of new nuclear facilities unless a Nuclear Regulatory Commission-approved waste disposal pathway was available. Because such a pathway does not exist, this requirement could not be met, and as such, no new plants could acquire needed permits.

This effective moratorium was ended in April, when Sherrill signed legislation allowing DEP to approve permits for new nuclear facilities "based on safe, NRC-compliant waste storage." At that time, she also announced the formal launch of the Nuclear Task Force-now able to feasibly work toward its stated purpose-and laid out five areas of focus for the group: financing, supply chains and technology development, workforce growth and training, regulatory and permitting framework, and public trust and confidence.

Since then, momentum has steadily grown as the state's plans continue to develop. Multiple news outlets have reported that officials have lookedat a site near the co-located Hope Creek and Salem nuclear power plants, and the Power NJ Act progressed through unanimous votes in the state assembly and senate.

The act: This new piece of legislation lays out much of the scope, pace, and shape of New Jersey's plans for new nuclear development. It calls for the BPU to, within 180 days, issue a request for expressions of interest for the construction of "affordable" advanced nuclear projects in the state.

After analyzing the proposals, the BPU may provide provisional qualification to one or more of the projects. The BPU will then enter into negotiations with any involved companies whose projects received provisional qualification on the details of cost, target commercial operation date, siting, and more.

The amount of capacity that the state aims to procure as part of the new program remains undefined. The act does call for the establishment of a Reliable Capacity Certificate program that will financially support at least 1,100 megawatts of new capacity; however, it also explicitly states that this figure "shall not constitute a commitment by the state to procure any specific quantity of generation."

Quotable: According to the New Jersey Monitor, Sherrill said about the act, "Ratepayers won't pay a dime until the project is built, and they'll never be on the hook for construction cost overruns," adding that "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 an affordability crisis."