A1064

An Act establishing “Community Power Storage Program” and supplementing Title 48 of the Revised Statutes.

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

1. a. As used in this section:

“Board” means the Board of Public Utilities.

“Electric public utility” means the same as the term is defined in section 3 of P.L.1999, c.23 (C.48:3-51).

“Energy storage project” means any technology capable of converting electrical energy to some form of stored energy for reconversion to electrical energy at a later time and that is connected to the State’s electric distribution and transmission systems.

b. No later than 210 days after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the Board of Public Utilities shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a "Community Power Storage Program" to permit customers of an electric public utility to participate in an energy storage project that is located remotely from their properties but is within their electric public utility service territory to allow for a credit to the customer's utility bill that is greater than or equal to the electricity discharged to the electric distribution and transmission system that is attributed to the customer's participation in the energy storage project.

c. The rules and regulations to be developed by the board shall establish, at a minimum:

(1) a capacity limit for individual energy storage projects to a maximum of five megawatts per project;

(2) a goal for the conditional registration of 250 megawatts of energy storage projects prior to June 1, 2026 and an additional 250 megawatts per year thereafter for a total program goal of 2,000 megawatts of energy storage projects. The board shall accept and approve registrations pursuant to this paragraph until the earlier of December 31, 2034 or such time as the 2,000 megawatts of energy storage projects are completely registered.

(3) geographic limitations for energy storage projects and participating customers, prioritizing projects in urban areas and existing unoccupied industrial sites in the State;

(4) a minimum number of participating customers for each energy storage project;

(5) the value of the credit on each participating customer's bill;

(6) the provision of access to energy storage projects for low- and moderate-income customers;

(7) standards to ensure the ability of residential and commercial customers to participate in energy storage projects, including residential customers in multifamily housing;

(8) standards for connection to the distribution and transmission system of an electric public utility; and

(9) provisions to minimize impacts to the distribution and transmission system of an electric public utility.

d. The board shall make available on its Internet website information concerning energy storage projects that are seeking participants.

e. The board shall establish standards and an application process for owners of energy storage projects who wish to be included in the Community Power Storage Program. The standards for the Community Power Storage Program shall include, but need not be limited to, a verification process to ensure that the energy storage projects are discharging an amount of energy that is greater than or equal to the amount of energy that is being credited to its participating customer's electric utility bills pursuant to this section, and consumer protection measures. Projects approved by the board shall have at least two participating customers.

f. Subject to review by the board, an electric public utility shall be entitled to full and timely cost recovery for all costs incurred in implementation and compliance with this section.

g. The board shall prepare and submit an annual report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), on the effectiveness of the pilot program and make recommendations to amend, extend, or make permanent the program.

2. This act shall take effect immediately.

STATEMENT

This bill establishes the “Community Power Storage Program.” Specifically, the Community Power Storage Program is intended to permit customers of an electric public utility to participate in an energy storage project that is located remotely from their properties but is within their electric public utility service territory to allow for a credit to the customer's utility bill greater than or equal to the electricity discharged to the electric distribution and transmission system that is attributed to the customer's participation in the energy storage project.

The bill provides the Board of Public Utilities (board) the authority to establish rules and regulations in order to effectuate certain requirements set forth in the bill. The bill also requires the board to make available on its Internet website information on energy storage projects whose owners are seeking participants. Under the bill, the board is required establish certain standards and an application process for owners of energy storage projects who wish to be included in the Community Energy Storage Program. Finally, the bill allows an electric public utility, subject to review by the board, to recover the all costs incurred in the implementation and compliance with the bill.