New Jersey Gov. Mikie Sherrill signed the Power NJ Act (A4881) into law, establishing a procurement framework to evaluate and build at least 1,100 MW of new nuclear power. The legislation shifts financial risk away from ratepayers, mandates federal financing, and ensures that ratepayers receive net benefits before construction begins.
The Power NJ Act launches the state’s procurement process for new nuclear energy that will help New Jersey meet its growing energy needs. The bill will establish a transparent, competitive process by the NJBPU and NJEDA to evaluate proposals and ensure any project is the best investment for New Jersey ratepayers.
“The decisions we make today will determine the future we leave our kids, so we are putting New Jersey on a path to an affordable and secure energy future,” Sherrill said in a press release on Monday, July 13.
The bill passed both houses of the Legislature unanimously with strong bipartisan support. The legislation, S. 3870/A. 4528, allows the commissioner of the state’s Department of Environmental Protection to approve permits for the construction and operation of new nuclear facilities “based on safe, [Nuclear Regulatory Commission]–compliant waste storage.”
Prior to this bill, New Jersey law effectively banned such construction because the state’s Coastal Area Facility Review Act required an NRC-approved method for radioactive waste disposal that was outdated and unattainable, according to the American Nuclear Society. This created a de facto moratorium on new nuclear construction in New Jersey that has been in place since the 1970s.
“I am excited to launch our state’s process to procure new, advanced nuclear power that will provide clean, reliable energy at scale for generations to come and meet our growing energy demands – from powering our small businesses, schools, and hospitals, to strengthening grid capacity and reliability for extreme weather that is becoming unfortunately all too frequent,” Sherrill added.
This move builds upon another major piece of nuclear legislation enacted in April 2026 (A4528), which lifted New Jersey’s 50-year moratorium on new nuclear development by updating CAFRA permit and radioactive waste review requirements.
Additionally, the bill sets strong safeguards for ratepayers – including assuring that they won’t bear any costs until a project is built and supplying energy, nor be responsible for cost overruns.
“This new law is an important step toward increasing base load capacity, improving grid reliability, and ensuring our state has the energy needed to support residents, businesses, and economic growth. We look forward to working with Governor Sherrill and her administration to help build a more reliable, affordable, and resilient energy future for all New Jerseyans,” said Erick Ford, President of the New Jersey Energy Policy Coalition.
Other safeguards include:
- Requiring projects to secure federal financing, shifting the risk away from New Jersey ratepayers;
- Requiring any project to provide a net benefit to ratepayers;
- Requiring at least two separate public comment periods and a public hearing in any proposed municipality;
- Requiring NJBPU and NJEDA to take into account independent assessments by the Division of Rate Counsel to ensure ratepayers’ interests remain central at every step.
Nuclear energy currently provides over 40 percent of the state’s total energy and over 80 percent of its clean energy supply. Nuclear energy plants also provide unparalleled efficiency, with sites operating consistently at 90-95 percent capacity.
The signing comes on the heels of Sherrill’s April action lifting New Jersey’s 50-year moratorium on new nuclear development and marks the next step toward bringing new nuclear energy to the state, as part of her all-of-the-above approach to energy – and all within her first six months in office.
This major step builds on the Governor’s aggressive energy affordability agenda, including legislation signed last week to hold utility companies and data centers accountable. The Administration’s actions within these first six months will save ratepayers $1B annually, according to Synapse Energy Economics.
- Signing Executive Orders 1 and 2 on her first day in office to freeze electric rate hikes and accelerate new power generation through an all-of-the-above energy strategy.
- Successfully advocating for a price collar on PJM to help stabilize electricity costs over the next four years.
- Lifting the 50-year de facto moratorium on new nuclear power and launching a Nuclear Task Force to advance new nuclear opportunities.
- Announcing a historic expansion of the state’s Community Solar Energy Program to support up to 3,000 MW of new solar capacity.
- Approving 18 new clean energy projects, including 15 solar projects and three battery storage projects that will produce enough energy to power over 40,000 homes.
- Awarding $79 million through the New Jersey Economic Development Authority to support 10 large-scale clean energy projects.
- Rolling out the most comprehensive plan in the nation for data centers to establish guardrails that hold them accountable, while positioning New Jersey as a leader in AI innovation.
Summary of Legislation
The Power NJ Act will direct the New Jersey Board of Public Utilities (BPU), in collaboration with the New Jersey Economic Development Authority (NJEDA), to establish a program for procuring advanced nuclear energy facilities in the state. The law will establish a process to evaluate and approve projects that can help meet growing energy demands while ensuring benefits for ratepayers and maintaining system reliability.
- The bill creates a competitive framework, administered jointly by NJBPU and the NJEDA, for the State to procure at least 1,100 MW of new nuclear generation.
- Within 180 days (by March 10, 2027) – NJBPU opens request for expressions of interest. Developers have 60 days to submit proposals with regulatory, environmental, financial, and workforce information.
- Next 90 days (by June 8, 2027) – Provisional qualifications. NJBPU qualifies projects to enter the negotiation period or denies them.
- Next 12 months (by June 8, 2028) – Negotiations and stipulations. NJBPU and NJEDA negotiate with project entities including setting accurate cost estimates, price of electricity, and other terms.
- Next 90 days (before September 6, 2028) – NJBPU issues Final Board Order if project provides a net benefit to ratepayers, costs are not unreasonable or excessive in light of customers’ overall bills, and the developer has secured federal financing.
- Ratepayers pay nothing during construction. Once the plant is delivering power, suppliers purchase Reliable Capacity Credits (RCCs) at a fixed, negotiated price rather than volatile market prices.
“As we have said for years, nuclear power is a critical component for an all-of-the-above energy approach in New Jersey,” said Michelle Siekerka, President and CEO of the New Jersey Business & Industry Association. “Our businesses, particularly our manufacturers, are thirsting for affordable, reliable and abundant energy as our costs increase. We thank Governor Sherrill for taking this important step of signing the NJ Power Act to put us on the path for increasing much-needed energy generation, while including protections for ratepayers.”
Nuclear Task Force
Sherrill also announced the launch of the state’s Nuclear Task Force, which will bring together government, industry, environmental, and labor officials to explore opportunities in new nuclear endeavors. Work will be organized across five focus areas:
◩ Financing
◩ Supply chains and technology development
◩ Workforce growth and training
◩ Regulatory and permitting framework
◩ Public trust and confidence.
Sherrill toured the Salem nuclear power plant and met with IBEW workers on-site during a Unit 2 refueling outage. Salem is one of two operating nuclear plant facilities in New Jersey; the other, Hope Creek, is co-located with Salem in Hancocks Bridge, N.J.
Hope Creek is home to one 1,172-MWe boiling water reactor, while Salem holds two pressurized water reactors—the 1,146-MWe Unit 1 and the 1,139-MWe Unit 2. Together, the two facilities produce more than 40 percent of the state’s electricity.