New Jersey is positioning itself to compete for next-generation nuclear investment. Appearing at the Salem Nuclear Power Plant, Gov. Mikie Sherrill signed bipartisan legislation (Senate Bill 3870/Assembly Bill 4528) that dismantles a decades-old barrier to new nuclear development. State leaders say the move could reshape the energy landscape, boost in-state generation and, ultimately, help rein in rising utility costs.

The April 8 bill signing marks a defining early milestone for the Sherrill administration, which has made energy affordability and expanding supply central pillars of its economic agenda. By lifting what had functioned as a de facto moratorium on nuclear construction, the state is positioning itself to pursue new nuclear technologies at a time when demand for reliable, carbon-free power is surging.

“For costs to come down, we need more energy supply. 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,” said Sherrill.

The legislation updates the state’s Coastal Area Facility Review Act, allowing the New Jersey Department of Environmental Protection to approve permits for nuclear energy generation facilities if proposed waste storage and disposal methods meet safety standards set by the Nuclear Regulatory Commission. Previously, outdated statutory language required an approved disposal method that effectively made new projects impossible to permit.

By modernizing that framework, officials say the state can now begin seriously evaluating new nuclear opportunities. The effort will be guided by a newly established Nuclear Task Force.

The signing took place at Salem, underscoring the importance of nuclear power to New Jersey’s current energy mix. Together with the nearby Hope Creek Nuclear Generating Station, the facilities generate more than 40% of the state’s electricity and roughly 80% of its carbon-free power, while supporting thousands of jobs and anchoring the regional economy.

Just the beginning

Sherrill emphasized that the legislation is just the beginning of a broader, coordinated effort. “By lifting outdated barriers and bringing together leaders across government, industry and labor, we’re setting the stage for our state to pursue new advanced nuclear power.”

Central to that effort is the Nuclear Task Force, established under Executive Order 2, which will serve as the state’s primary vehicle for shaping how – and where – new nuclear development could occur. The group brings together a broad cross-section of stakeholders across government, utilities, labor, business and environmental policy, reflecting the complexity of launching new nuclear projects in today’s regulatory and economic environment.

The task force will organize its work across five key areas: financing; supply chains and technology development; workforce growth and training; regulatory and permitting frameworks; and public trust and confidence — all critical components in determining whether New Jersey can successfully deploy next-generation nuclear technologies at scale.

In agreement

The legislation has drawn bipartisan support — a reflection of the growing urgency around energy affordability and reliability. “Expanding the energy supply is one of the more impactful steps we can take to help bring utility costs under control,” said Sen. Paul Sarlo, D-36th District, a prime bill sponsor. “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.”

Republican lawmakers echoed that sentiment. “I’m proud to have co-sponsored this commonsense legislation to update DEP permitting so we can responsibly pursue nuclear projects that increase our energy output and help control rising costs,” said Sen. Declan O’Scanlon, R-13th District, a bill co-sponsor. “New Jersey already depends heavily on nuclear power, and this action ends the state’s de facto moratorium on building new nuclear power plants to expand reliable in-state generation and lower energy costs.”

‘Surging demand … limited new supply’

Business leaders say the move is long overdue as the state confronts a widening gap between supply and demand. “Our regional power grid is under strain from surging demand and limited new supply,” said New Jersey Business & Industry Association President and 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.”

“Today’s action by Gov. Mikie Sherrill to lift New Jersey’s de facto moratorium on new nuclear energy development and modernize outdated regulations is a decisive step toward a stronger, more resilient energy future,” said Michael Egenton, executive vice president, Government Relations, New Jersey Chamber of Commerce. “By removing unnecessary red tape while maintaining rigorous safety standards, this legislation opens the door to reliable, large-scale, emissions-free power that will help stabilize and ultimately lower energy costs for residents and businesses.

“Just as importantly, it positions New Jersey to meet the growing energy demands of a rapidly evolving economy — one increasingly driven by advanced manufacturing, data infrastructure, and the expansion of technologies that depend on consistent, affordable electricity.”

Regional stakeholders, particularly in South Jersey, emphasized the economic importance of nuclear facilities. “As our state works to lower utility costs and strengthen energy independence, nuclear power must be a central part of that solution,” said Christina Renna, president and CEO, Chamber of Commerce Southern New Jersey. “By removing outdated regulatory barriers, this legislation creates the conditions necessary for responsible nuclear expansion, adding the desperately needed energy generation capacity our grid requires while continuing to support one of South Jersey’s most vital industries.”

Creating jobs

Labor leaders also pointed to the job creation potential tied to future nuclear development.

“We need to explore all options so we can arrive at the best solutions. Members of LIUNA are proud to build and maintain New Jersey energy infrastructure, and we are eager to work collaboratively to help improve in-state generation, lower costs, and in the process create good-paying union jobs,” said Mike Hellstrom, LIUNA vice president and eastern regional manager.

The announcement was held at PSEG’s Salem and Hope Creek nuclear generating station in Lower Alloways Creek. The utility – a key operator of New Jersey’s existing nuclear fleet –highlighted both the urgency and long-term opportunity tied to expanding nuclear capacity in the state.

“Since taking office, Gov. Sherrill continues to take action to show that New Jersey is open for business. By removing outdated barriers and creating a clear path for modern nuclear technologies, the governor is ensuring that New Jersey can meet growing energy needs with reliable, 24/7, carbon-free power that supports economic growth for decades to come,” PSEG said in an April 8 statement.

“New Jersey currently imports nearly half of its electricity, leaving our residents and businesses increasingly exposed to regional supply constraints, volatile costs, and the impacts of a rapidly changing grid. With energy demand rising and supply tightening, expanding instate nuclear generation is essential to maintaining reliability, predictability and our long-term energy independence.”

‘Hub for nuclear innovation’

PSEG also cited the state’s existing strengths – including its skilled workforce and established nuclear infrastructure – as key advantages in competing for future projects.

“Under the governor’s leadership, New Jersey has a unique opportunity to become a hub for nuclear innovation. The state already benefits from a highly skilled nuclear workforce of more than 1,600 professionals, with several thousand additional jobs supported indirectly. Coupled with New Jersey’s strong education system and deep pipeline of technical and skilled-trades talent, these assets position our state to lead the next era of energy.

Under the new framework, officials say New Jersey can begin exploring advanced nuclear technologies that promise improved safety, efficiency and cost-effectiveness compared with previous generations of reactors. Those efforts will unfold alongside the state’s broader “all of the above” energy strategy, which includes solar expansion, grid modernization and other initiatives aimed at boosting supply. 

The issue is clear

For Sherrill, the move is about tackling a straightforward problem: demand is rising, costs matter and the state needs more power — fast, but done correctly. “But by doing these two things in parallel – cutting 50-year-old red tape and recruiting experts to ensure we’re only moving forward in a safe, measured way – we’re setting our state up to make the most of its potential,” she said. “Because when it comes to our future, I will always consider every possibility to lower costs, to expand opportunity, to build a government that delivers for the people and the businesses it’s meant to serve.

“That’s what we’re doing here.”

As demand continues to climb and pressure mounts on the regional grid, state leaders say the legislation positions New Jersey to take a more proactive role in shaping its energy future — one that prioritizes reliability, affordability and long-term economic growth.

“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, D-22nd District, a prime sponsor of the nuclear legislation. “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.”

Partnership is key

During the bill signing, PSEG President and CEO Ralph LaRossa made clear that partnership will be key to turning ambition into reality.

“As far as PSEG, we’re open for business. Big plants like this – we’re going to need a lot of partnership to make something like this happen. We’re going to go out banging on doors and try to find as many partners as we can have,” he said.

The utility reinforced that message in a statement, adding: “This is an exciting time for the future of nuclear power in New Jersey. Working across public and private organizations, together with our labor partners, New Jersey can demonstrate what the future of nuclear energy looks like — and ensure that future is built right here at home.”