New Jersey S 4561: "Grid Reliability Protection Act"; prohibits State agencies from decommissioning electric generation facilities in State under certain circumstances.

Bill Text

(Sponsorship Updated As Of: 6/5/2025)
SENATE, No. 4561
STATE OF NEW JERSEY
221st LEGISLATURE

INTRODUCED JUNE 2, 2025

Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
Senator MICHAEL L. TESTA, JR.
District 1 (Atlantic, Cape May and Cumberland)

Co-Sponsored by:
Senator Henry

SYNOPSIS
“Grid Reliability Protection Act”; prohibits State agencies from
decommissioning electric generation facilities in State under certain
circumstances.

CURRENT VERSION OF TEXT
As introduced.

S4561 A.M.BUCCO, TESTA
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AN ACT concerning the decommissioning of electric generation 1
facilities in the State and supplementing Title 48 of the Revised 2
Statutes. 3
4
BE IT ENACTED by the Senate and General Assembly of the State 5
of New Jersey: 6
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1. This act shall be known and may be cited as the “Grid 8
Reliability Protection Act.” 9
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2. The Legislature finds and declares that: 11
a. Ensuring the reliability, affordability, and adequacy of New 12
Jersey’s electrical grid is a fundamental responsibility of the State, 13
especially as energy demand rises and older generation resources 14
face pressure to retire; 15
b. The regional transmission organization, PJM Interconnection, 16
L.L.C., has issued repeated warnings that the accelerated retirement 17
of generation facilities may outpace the addition of new generation 18
sources, putting grid reliability at risk; 19
c. New Jersey no longer has coal-fired electric generation and 20
now relies heavily on natural gas and nuclear energy to provide 21
reliable, around the clock electricity, particularly during periods of 22
peak demand or limited renewable output; and 23
d. Premature closure of power plants without fully built and 24
tested replacement generation sources poses unacceptable risks, 25
including, but not limited to: grid system strain during weather 26
events or outages, increased costs to ratepayers through reliance on 27
expensive imports, and greater risk of blackouts and brownouts that 28
endanger public health and economic activity. 29
e. The Legislature therefore determines that it is appropriate and 30
in the public interest to ensure electric generation facilities in the 31
State are not erroneously decommissioned by State agencies and to 32
protect current electrical generation facilities in the State. 33
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3. a. As used in this section: 35
“Board” means the Board of Public Utilities. 36
“Covered facility” means any electric generation facility in the 37
State that is connected to the electric grid serving New Jersey. 38
“PJM” or “PJM Interconnection” means the same term as 39
defined by section 3 of P.L.1999, c.23 (C.48:3-51). 40
“State agency” means any State department, division, agency, 41
commission, or authority. 42
b. No State agency shall mandate, incentivize, or otherwise 43
compel the retirement, decommissioning, or shutdown of a covered 44
facility, unless: 45
(1) PJM Interconnection certifies, in writing, that the facility’s 46
deactivation will not negatively impact regional grid reliability, 47
capacity adequacy, or energy market prices; and 48

S4561 A.M.BUCCO, TESTA
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(2) the Board conducts a public rate impact analysis showing that 1
the deactivation will not materially increase costs to ratepayers. 2
c. Except as otherwise provided by subsection b of this section, 3
a covered facility may be deactivated without PJM certification 4
only if the facility’s operator or a State agency determines, in 5
writing, that continued operation of the facility poses an immediate 6
threat to public health or safety, due to: 7
(1) structural damage or mechanical failure that cannot be 8
mitigated; or 9
(2) hazardous environmental or radiological conditions that make 10
the continued operation of the facility impossible to operate in 11
accordance with federal or State public health and safety 12
regulations. 13
d. At least 12 months prior to a proposed deactivation of a 14
covered facility, the owner or operator the facility shall provide the 15
public notice of the deactivation and file a letter of intent with the 16
Board. The public notice shall include the date of the proposed 17
deactivation, a PJM certification noting the deactivation will not 18
negatively impact regional grid reliability, capacity adequacy, or 19
energy market prices and a rate impact analysis conducted by the 20
Board. 21
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4. This act shall take effect immediately. 23
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STATEMENT 26
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This bill, to be known as the “Grid Reliability Protection Act,” 28
would prohibit State agencies from mandating the retirement of 29
electric generation facilities in the State under certain 30
circumstances. 31
Under the bill, a State agency is prohibited from mandating, 32
incentivizing, or otherwise compelling any electric generation 33
facility in the State connected to the State’s electrical grid from 34
deactivating unless: (1) PJM Interconnection certifies, in writing, 35
that the facility’s deactivation will not negatively impact regional 36
grid reliability, capaci