N.J.S.A. 48:3-121.2 — Definitions.

48:3-121.2 Definitions. 1. As used in P.L.2025, c.136 (C.48:3-121.2 et al.): �Accredited capacity� means the amount of capacity, measured in megawatts of unforced capacity, that an eligible project can contribute toward New Jersey�s capacity needs or bid into the base residual auction. �Base residual auction� means the same as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51). �Board� means the Board of Public Utilities. �Capacity Interconnection Rights� means the same as that term is defined in PJM�s Open Access Transmission Tariff or in any successor document. �Decision Point I� means the same as that term is defined in PJM�s Open Access Transmission Tariff or in any successor document. �Electric public utility� means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within the State. �Eligible project� means a transmission-scale energy storage system that meets the criteria for an incentive award pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.). �Energy storage� means a device that is capable of absorbing energy from the grid or from a generation resource located behind the same point of interconnection as the device; storing it for a period of time using mechanical, chemical, or thermal processes; and, thereafter, discharging the energy back to the grid or directly to an energy-using system to reduce the use of power from the grid. �Energy storage capacity� means the measure of the energy capacity in megawatt-hours of a transmission-scale energy storage system. �Energy storage program� means a program designed to encourage the growth of energy storage capacity in the State in order to strengthen storage capacity for the electric grid. �Energy storage program� includes the board�s Successor Solar Incentive Program, including the Competitive Solar Incentive Program; the program established pursuant to P.L.2025, c.136 (C.48:3-121.2 et al.); and the board�s Garden State Energy Storage Program. �Garden State Energy Storage Program� or �GSESP� means the final form of the energy storage program currently under development by the board and outlined in the board�s November 2024 straw proposal, or the program�s replacement or successor. �Generation Interconnection Agreement� means the same as that term is defined in PJM�s Open Access Transmission Tariff or in any successor document. �Incentive award� means a set of payments awarded by the board for an eligible project, which payments are conditioned upon the completion and commercial operation of the eligible project in compliance with P.L.2025, c.136 (C.48:3-121.2 et al.) and any conditions required by the board. An �incentive award� shall be a fixed series of annual payments to be issued over the 15-year award period; based on the maximum usable installed capacity of an eligible project, which is measured in dollars per megawatt, or on the energy storage capacity of an eligible project, which is measured in dollars per megawatt-hour; and paid upon commercial operation of the eligible project, unless the board provides for an alternative payment timeline. An �incentive award� is subject to any conditions imposed by the board, including, but not limited to, satisfactory up-time performance metrics. An �incentive award� may include, at the discretion of the board, a performance-based adjustment based on the availability of the eligible project or the benefits created through the commercial operation of the eligible project, provided that the board shall confirm the reliability of any proposed metrics on which to base a performance-based adjustment prior to being used in the calculation of an incentive award. �Installed capacity� means the nameplate output of an eligible project, measured in megawatts of alternating current (MW AC), that is available to the electric grid. �Interconnection Service Agreement� means the same as that term is defined in PJM�s Open Access Transmission Tariff or in any successor document. �Phase I System Impact Study� means the same as that term is defined in PJM�s Open Access Transmission Tariff or in any successor document. �PJM� means �PJM Interconnection, L.L.C.� or �PJM,� as those terms are defined in section 3 of P.L.1999, c.23 (C.48:3-51). �Readiness Deposit� means the same as that term is defined in PJM�s Open Access Transmission Tariff or in any successor document. �Subsequent tranche� means additional energy storage procurement administered pursuant to section 4 of P.L.2025, c.136 (C.48:3-121.5). �Tranche 1� means the initial procurement for the energy storage program established pursuant to section 2 of P.L.2025, c.136 (C.48:3-121.3). �Tranche 2� means the second procurement for the energy storage program established pursuant to section 2 of P.L.2025, c.136 (C.48:3-121.3). �Transmission-scale energy storage system� means an energy storage system, with an installed capacity of at least 5 MW AC, that is interconnected with the PJM Transmission Network and situated inside a Transmission Zone in New Jersey or is otherwise located in New Jersey and qualified to provide energy, capacity, or ancillary services in the wholesale markets established by PJM. �Unforced capacity� means the same as that term is defined in PJM�s Reliability Assurance Agreement or in any successor document. L.2025, c.136, s.1.

This is the verbatim text of N.J.S.A. 48:3-121.2, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.