The construction of nuclear power plants in New Jersey has the green light, following the signing of legislation this week that lifts a 40-year de facto moratorium banning new projects.
The move aims to increase base-load electric supply to meet rising demand — particularly from AI data centers — and to reduce escalating consumer energy costs.
Sherrill said more power plants are needed to bring down electricity prices, calling the former permit requirements “an outdated standard that cannot be met.”
“For costs to come down, we need more energy supply,” Sherrill said in a statement. “New Jersey is well-positioned to be a leader in next-generation nuclear energy to help bring that supply, and we are open for business.”
Legislation S3870/A4528 amends the Coastal Area Facility and Review Act (CAFRA), which had prohibited the state’s Department of Environmental Protection from issuing new permits for nuclear power plants unless the federal government established a permanent nuclear radioactive waste disposal site.
Sherrill signed the bill at the Salem Nuclear Power Plant in Lower Alloways Creek Township. She was joined by PSEG President Ralph LaRossa, PSEG Nuclear President Charles McFeaters, Senator Paul Sarlo, Assemblyman Wayne DeAngelo, Assemblyman Cody Miller, Assemblyman Jerry Walker, and IBEW Local 94 Business Manager Adam Neuman.
“Expanding the energy supply is one of the more impactful steps we can take to help bring utility costs under control,” said Senate President Nicholas Scutari. “As energy expenses increase and the demand for affordable electricity grows, it’s important that we have all options on the table. Nuclear power is a clean, reliable source of power that can improve energy security and affordability.”
The bill was sponsored by PSEG to increase energy supply, lower consumer energy costs, and meet growing demand from data centers and AI. It also establishes a Nuclear Task Force to support new development.
State of Emergency
As soon as she took office in January, Sherrill declared a state of emergency on utility costs, calling the 33% increase over two years an affordability crisis. The action aimed to freeze rate hikes, increase battery storage, and fast-track solar and nuclear energy projects.
The new law is one of two aimed at tackling rising electricity rates. The governor also seeks to expand natural gas plants and nuclear power plants.
“By lifting outdated barriers and bringing together leaders across government, industry, and labor, we’re setting the stage for our state to pursue new advanced nuclear power. This will help New Jersey secure a stronger, cleaner, more affordable, and reliable energy future, while keeping the state at the forefront of innovation, job creation, and economic growth,” Sherrill said.
Nuclear Power Use in NJ
The state has two nuclear plants in operation, powering an estimated 3.5 million homes: Salem, which opened in 1977, and Hope Creek, which opened in 1986, both in Lower Alloways Creek in Salem County. Those plants provide 40% of the state’s electricity and 80% of its carbon-free energy, according to PSEG.
The state’s first nuclear plant and the nation’s oldest was Exelon’s Oyster Creek in Lacey Township. Opened in 1969 and licensed to operate until April 9, 2029, it shuttered in 2018, primarily due to the high costs of maintaining the old facility and complying with new environmental laws.
According to new mandates at that time to safeguard marine life in Barnegat Bay, Exelon was directed to construct new water-cooling towers, but instead decided to close.
“I look forward to working with Governor Sherrill as we continue to tackle New Jersey’s energy crisis, and am excited that we are moving closer to building more nuclear generation in our State because it has proven to be a stable and reliable carbon-neutral energy source that will help us bridge the gap between what we generate and use,” said Assemblyman Wayne DeAngelo.
According to a 2020 analysis by the economic consulting firm Brattle Group, the state’s nuclear plants save consumers more than $400 million a year compared with alternative electricity sources and help diversify the state’s power supply.
Nuclear power plants also provide efficiency with minimal land use. Salem and Hope Creek consistently operate at 90-95% capacity, and the sites total 740 acres combined.
The Coastal Area Facility Review Act (CAFRA)
Before Sherrill signed new legislation, CAFRA blocked new permits for the construction and operation of new nuclear energy facilities by requiring an approved method by the Nuclear Regulatory Commission (NRC) for radioactive waste disposal, an outdated standard that cannot be met.
This legislation resolves the issue by allowing the DEP Commissioner to approve permits based on safe, NRC-compliant waste storage. By recognizing storage methods with a 100 percent safety record in the U.S., this bill clears the path for new nuclear energy development in the state.
Nuclear Task Force
With the moratorium lifted, the newly formed Nuclear Task Force (see initial list of members below), established under Executive Order 2, will begin its work of advancing the state’s pursuit of new nuclear energy, according to the state.
“Amid a historic rise in energy costs, I am proud to support legislation that will help lower costs for New Jerseyans while advancing safe, innovative ways to generate clean energy,” said Senator Cory Booker. “Nuclear power can play a critical role in keeping energy affordable, and this bill will allow our state to utilize this energy source by updating the permitting framework to safely build and maintain new nuclear facilities.”
It will convene leaders from government, industry, the environment, and labor to explore opportunities, organizing its work across five focus areas: Financing, Supply Chains and Technology Development, Workforce Growth and Training, Regulatory and Permitting Framework, and Public Trust and Confidence.
The Task Force’s goal is to ensure that New Jersey is ready to capture the benefits of new nuclear power, while maintaining the highest standards of public safety and transparency.
“Our regional power grid is under strain from surging demand and limited new supply,” said New Jersey Business & Industry President & CEO Michele Siekerka. “Expanding nuclear power is part of a long-term, comprehensive solution for closing the gap between supply and demand that has driven up utility costs for businesses and residents.”
Members of the task force include:
- Elizabeth Noll, Senior Strategist for Energy, Office of the Governor, Co-Chair
- President Christine Guhl-Sadovy, President of the New Jersey Board of Public Utilities, Co-Chair
- Colin Emerle, Senior Counsel, Office of the Governor, Counsel to Task Force
- Commissioner Ed Potosnak, Department of Environmental Protection
- Evan Weiss, CEO, Economic Development Authority
- General Yvonne Mays, Department of Military Affairs
- Aaron Binder, State Treasurer
- Charles McFeaters, President and Chief Nuclear Officer, PSEG Nuclear
- Patrick O’Brien, Director of Government Affairs and Communications, Holtec
- Michele Siekerka, President and CEO, NJBIA
- Joseph Egan, New Jersey State Electrical Workers Construction Division Association President
- Mike Hellstrom, Vice President and Eastern Region Manager, LIUNA
- Marion Abdou, Former Commissioner at the New Jersey Board of Public Utilities
- Dr. Matthew McKinzie, Senior Director, Data & Policy Analysis, Natural Resources Defense Council
“Time and again during her first month in office, Governor Sherrill has taken bold steps to expand power generation in New Jersey. This bill removes the red tape and says New Jersey is open for business for nuclear energy, and IBEW applauds the governor’s continued leadership because we know more power means lower bills for New Jersey residents,” said Joseph Egan, New Jersey State Electrical Workers Construction Division Association President.
