Committee backs bill to fund and procure transmission‑scale energy storage; advocates urge distributed storage inclusion

The Appropriations Committee reported Assembly Bill 5,269 on May 15, 2025, a proposal to authorize the Board of Public Utilities to procure and incentivize transmission‑scale energy storage. Proponents said targeted procurement could address resource adequacy, reduce upward pressure on electric rates, and speed construction of large storage projects.

Supporters included industry trade groups and storage developers who told the committee large, transmission‑connected storage projects provide economies of scale and can be deployed as capacity resources more quickly than some generation alternatives. "These are the most cost‑effective projects," Jupiter Power counsel Ben Guiano said, adding that competitive procurement would drive down costs and that funding would come from the existing Clean Energy Fund and Societal Benefits Charge (SBC).

Other witnesses pressed for protections and a parallel pathway for behind‑the‑meter distributed storage. The Mid‑Atlantic Solar and Storage Industries Association and others said distributed (behind‑the‑meter) storage can be deployed faster, provide community backup power and deliver capacity benefits without long interconnection waits — and that the bill should not crowd out that segment of the market.

Business and industry groups raised fiscal concerns about the bill's minimum funding level and the SBC as the revenue source. The New Jersey Business & Industry Association asked for more analysis on the $60 million minimum and for legislative oversight of any decision to increase SBC collections. Environmental and clean‑energy advocates urged the committee to move quickly to create incentives while noting federal tax incentives are time‑sensitive.

After testimony the committee reported the bill. Committee members asked for additional stakeholder discussion on distributed storage and on SBC budgeting and potential impacts on other clean‑energy programs.