A 5188 New Jersey General Assembly · 2026-2027 Regular Session

"Advanced Grid Technologies Act"; requires State oversight of supplemental projects and establishes expedited review for projects utilizing advanced transmission technologies.*

This bill, known as the Advanced Grid Technologies Act, requires electric public utilities in New Jersey to obtain a certificate from the Board of Public Utilities before building supplemental transmission projects. It establishes a new oversight process for these projects, which are currently less regulated than other regional grid upgrades, and mandates that the state consider advanced technologies like high-performance conductors and smart grid software. The legislation also creates an expedited review timeline for projects that utilize these modern tools to improve grid efficiency and reliability. By bringing these specific construction plans under state supervision, the bill aims to ensure that utility investments align with consumer interests and public needs.
Bill status signed all 5 stages cleared
Introduction
Jun 2026
Committee Review
Jun 2026
General Assembly Passage
Jun 2026
Senate Passage
Jun 2026
Signed into Law
Jul 2026
Introduced Jun 1, 2026 Signed Jul 7, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Reprint · 12 edits
MAJOR
The First Reprint of A5188 makes substantial changes to New Jersey's Advanced Grid Technologies Act, most notably removing the entire cost recovery and deployment incentive framework (former Section 7), narrowing the board's review authority by explicitly prohibiting siting reviews and environmental impact considerations in both expedited and standard processes, lowering the evidentiary standard from 'substantial evidence' to 'preponderance of the evidence,' extending the expedited review deadline from 90 to 120 days, and tightening federal preemption language. These changes collectively shift the bill toward a more limited state role in transmission planning while removing the financial incentive mechanisms that would have encouraged utilities to adopt advanced grid technologies.
Scope change
The bill's scope was narrowed in multiple ways: the board's review authority is now explicitly limited to enumerated criteria with no siting or environmental review; the definition of covered projects is tighter (requiring M-3 process connection and excluding routine maintenance); the reliability factor in the standard review focuses on the utility's own system rather than the broader bulk power system; and the financial incentive framework that would have driven adoption of advanced technologies was removed entirely. Federal preemption boundaries were also drawn more explicitly.
FISCAL

Entire Section 7 was struck, eliminating the board's authority to establish cost recovery and deployment incentive mechanisms including shared-savings arrangements (where utilities retain a percentage of verified net benefits from ATT/ADT deployment) and performance-based incentives tied to measurable metrics like congestion reduction and capacity gains.

The provision prohibiting utilities from recovering third-party analysis costs through customer rates (Section 4(a)(3)) was removed, and the application fee for the standard review process was made explicitly recoverable through rates (Section 4(a)(5)).

SCOPE

New subsections 5(d) and 6(d) explicitly prohibit the board from conducting siting reviews or considering environmental impacts in its certificate determinations under both the expedited (Section 5) and standard (Section 6) review processes, confining the board's review to only the enumerated criteria.

Section 6(b)(2) changed the reliability and resilience factor from enhancing 'the bulk power system, considering any reliability determination from PJM' to enhancing 'the utility's transmission or distribution system,' narrowing the scope of what the board considers from a regional perspective to the individual utility's own infrastructure.

Federal preemption language in Section 9(e) was expanded to explicitly include 'determinations made pursuant to federal law by NERC, FERC, PJM, or the Secretary of Energy' and added that the board's consideration shall not constitute 'the exercise of planning authority over electric transmission facilities.' The reference to FERC Order No. 1920 was replaced with a broader reference to the Federal Power Act and FERC orders generally.

REQUIREMENT

The evidentiary standard for demonstrating that ADTs address distribution-system needs was lowered from 'substantial evidence' to 'the preponderance of the evidence' in both Section 5(a)(1) and Section 6(b)(5), making it easier for utilities to meet the threshold.

Sections 5(a)(3) and 6(a)(3) now require that, with respect to distribution capital spending, the financing be aligned with the most recent approved distribution capital structure, adding a new financial consistency requirement.

TIMELINE

The deadline for the board to issue its order under the expedited review process (Section 5) was extended from 90 days to 120 days after submission of a completed application, though the 30-day extension option remains.

DEFINITION

The definition of 'supplemental transmission project' was narrowed by adding 'pursuant to PJM's Attachment M-3 process' as a qualifier and adding an exclusion for projects undertaken solely for routine maintenance of an existing transmission line. The definition of 'advanced power flow control technology' was narrowed from any software or hardware that balances overloaded lines to specifically 'power electronic-based devices' that change power flow without altering generator dispatch or network topology.

A new definition for 'NERC' (North American Electric Reliability Corporation) was added, and the grid performance benchmarks section now includes an explicit statement that it shall not conflict with federally-established benchmarks including NERC Reliability Standards or affect FERC's jurisdiction over transmission planning.

The definition of 'cost-effective' was expanded to include 'reductions in energy or capacity prices, and reliability and resilience improvements' as additional benefits that can justify project costs.

ENFORCEMENT

The restriction that the board's determination of which review process applies 'shall not be subject to interlocutory appeal' was removed from Section 4(b), potentially allowing parties to appeal that procedural determination before a final certificate decision.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
10
Key actions
3
Committee
4
Jun 30, 2026
Upper · Passed
Passed Senate (Passed Both Houses) (25-15)
upper
Jun 30, 2026
Lower · Passed
Passed by the Assembly (56-22-0)
lower
Jun 28, 2026
Lower · Passed
Reported out of Assembly Committee, 2nd Reading
lower
Jun 23, 2026
Committee
Reported out of Asm. Comm. with Amendments, and Referred to Assembly Budget Committee
lower
Jun 23, 2026
Committee
Transferred to Assembly State and Local Government Committee
lower
Jun 4, 2026
Committee
Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee
lower
Jun 1, 2026
Introduced
Introduced, Referred to Assembly Telecommunications and Utilities Committee
lower
4 primary · 3 co-sponsors

Sponsors