New Jersey Assembly Bill A5881

New Jersey 2024-2025 Regular Session

• Introduced: 6/24/25
• Refer: 6/24/25

Caption

Establishes "Community Power Storage Program."

Impact

The bill mandates the Board of Public Utilities to adopt rules governing the implementation of the Community Power Storage Program, including establishing capacity limits, registration goals, and ensuring equitable access. A target of 250 megawatts of energy storage capacity is set to be registered by June 2026, with a total of 2,000 megawatts planned in subsequent years. This program seeks to incentivize the development of energy storage technology and integrate it into the state's electric infrastructure, potentially enhancing renewable energy utilization and reliability.

Summary

Assembly Bill A5881 establishes the 'Community Power Storage Program' in New Jersey, aimed at allowing customers of electric public utilities to participate in energy storage projects located remotely. These projects would provide utility bill credits to customers based on the amount of energy discharged to the electric grid, thus enabling customers to benefit from renewable energy sources without needing to install on-site storage solutions. The bill is introduced with the intention of increasing access to energy storage, particularly for low- and moderate-income customers.

Contention

Debate surrounding A5881 centers on concerns over how the program will be funded and its long-term viability. Critics argue that relying on electric utilities for cost recovery might lead to increased utility rates for all customers, particularly impacting those who do not participate in the program. Moreover, there are discussions on the program potentially favoring urban areas at the expense of rural communities, leading to disparities in energy access and equity among different geographic regions. Stakeholders are particularly focused on ensuring that the benefits of the program are distributed fairly across socio-economic lines.