New Jersey opens door to new nuclear power projects after 40-year ban

Sherrill forms task force to study future projects

Gov. Mikie Sherrill on Wednesday signed legislation ending New Jersey’s decadeslong moratorium on new nuclear power plant construction and announced the launch of a state Nuclear Task Force, moves administration officials say are aimed at expanding electricity supply and lowering energy costs.

Sherrill made the announcement during a visit to the Salem Nuclear Power Plant in Salem County, where she was joined by state lawmakers, PSEG executives, and union labor leaders.

The newly signed measure, S-3870/A-4528, removes a key permitting obstacle that had effectively blocked new nuclear development in New Jersey for roughly 40 years.

Under the previous law, the Coastal Area Facility Review Act, or CAFRA, new nuclear facilities could not receive permits unless the Nuclear Regulatory Commission had approved a permanent method for radioactive waste disposal, a standard state officials said was impossible to meet under current federal rules.

The new law allows the state Department of Environmental Protection commissioner to approve permits based on NRC-compliant waste storage methods already in use nationwide.

Administration officials said the change clears the way for potential new advanced nuclear projects in the state.

“For costs to come down, we need more energy supply,” Sherrill said in a statement. “New Jersey is well-positioned to be a leader in next-generation nuclear energy.”

Sherrill signed Executive Order 2 her first day in office. declaring a state of emergency regarding high utility costs. The order called for accelerating the development of new, in-state power generation by expanding solar, battery storage, and nuclear power projects. Her new Nuclear Task Force will explore how the state could expand nuclear generation.

The panel will include representatives from government, industry, labor, and environmental groups, and will focus on financing, supply chains, workforce development, permitting, and public confidence.

The move comes as New Jersey faces growing concerns over electricity demand and rising utility costs, driven in part by population growth, electrification goals, and increased demand from large-scale data centers.

Supporters of the legislation argue nuclear power offers a carbon-free and reliable source of baseload electricity that can help stabilize prices and support the state’s clean energy goals.

Together, the Salem and Hope Creek nuclear plants currently generate more than 40% of New Jersey’s electricity and roughly 80% of its pollution-free power, according to the governor’s office.

State officials also cited a 2020 Brattle Group analysis that found the plants save consumers more than $400 million annually compared with alternative electricity sources.

Senate President Nicholas Scutari said expanding supply is critical as costs continue to rise.

“As energy expenses increase and the demand for affordable electricity grows, it’s important that we have all options on the table,” he said.