In one of her first actions after taking office on Jan. 20, 2026, Gov. Mikie Sherrill issued an Executive Order (EO) intended to accelerate the deployment of Battery Energy Storage Systems (BESS). EO No. 2 directed the New Jersey Board of Public Utilities (BPU) to accelerate the development of transmission-scale battery storage through the BPU’s Garden State Energy Storage Program (the Program). But less than three days later, her EO No. 7 directed all administrative agencies to delay finalization of administrative rules for 90 days. This leaves the proposed rules for the Program published by the BPU in August 2025 potentially in limbo.

Background

In 2018, former Gov. Murphy signed the New Jersey Clean Energy Act (the Act), one provision of which directed the BPU to develop a program to deploy 2,000 megawatts of battery storage by 2030. The Act outlined codified targets for energy storage capacity of 600 MW by 2021 and 2000 MW by 2030 with the issuance of EO No. 28 (P.L. 2018, c.17). Efforts in this area largely stalled over the next six years while the BPU focused its efforts on other goals in the Act, including deployment of solar and off-shore wind facilities.

In 2024, the BPU formed a working group to consider how best to move towards the Act’s goal. In June 2025, the BPU announced its intention to begin a program called the Garden State Energy Storage Program (formerly known as the New Jersey Storage Incentive Program).  Two months later, the BPU published proposed rules to implement the Program. Comments were due in October, and the BPU was expected to act in early 2026. Therefore, the BPU announced in June that it was prepared to receive proposals in August for Phase I of the Program for a minimum of 250 MW of storage and to make awards by October. However, no awards have yet been made. Phase 2 was expected to launch in 2026, but presumably only after the proposed rules were finalized.

EO No. 2

EO No. 2 provides:

BPU shall accelerate the development of transmission-scale battery storage through the Garden State Energy Storage Program, which is described in BPU’s Order of June 18, 2025, by:

1. within 45 days, initiating a solicitation as part of Tranche 2 of the Program;
2. and within 90 days, launching Phase 2 of Program and thereafter establishing a specific tranche, or portion, of capacity for electric distribution utility to develop to support interconnection of distributed energy resources and grid stability.

In sum, the order requires the BPU to speed up the rollout of large-scale battery storage through its program. It directs BPU to quickly launch the next application round and then move into Phase 2, including setting aside battery capacity that utilities can develop to support renewable energy connections and maintain grid reliability.

EO No. 7

On the heels of EO No. 2, EO No. 7 states:

• No agency shall propose or adopt any rule, except as provided in the Order, for a period of 90 days;
• No later than Feb. 2, 2026, the head of any State agency that has proposed any rule shall transmit to the Governor a memorandum or notification identifying the rules proposed by the agency whose non-adoption will:
  • adversely impact public health, safety, welfare, or security;
  • obstruct or impair essential operations or functions of the State Agency in question;
  • adversely impact compliance with any court order or statutory deadline; or
  • prejudice the State of New Jersey with respect to the receipt of monies or financial assistance from the federal government…

In sum, Executive Order No. 7 temporarily pauses state agencies from adopting new rules for 90 days. During that time, agency heads must notify the Governor if any delayed rules would harm public health or safety, disrupt essential agency operations, violate legal deadlines, or put federal funding at risk.

Best Efforts for BESS?

Notwithstanding the commitment to BESS reflected in EO No. 2, the issuance of EO No. 7 portends a delay in the Program proposed by the BPU. Even if the potential impediment raised by EO No. 7 is resolved, BESS projects can face many regulatory hurdles, such as:

• Local land use ordinances:
  • Depending on the local zoning, the BESS facility may be permitted use (not typical) or conditional use (more common). If the use is not mentioned at all for the zone in question, a use variance may be required, which involves a higher burden of proof and a super-majority vote of the relevant board.
  • Regardless of use, there are likely to be setback and height restrictions that may require additional variances.
  • Noise has been an issue for several projects, often due to public input. (Applicants are required to give notice to property owners located within 200 feet of any of the property’s boundaries);
• Other local agencies, such as local environmental commissions, shade tree commissions, and fire protection officials;
• County Planning Boards may also have jurisdiction, especially in connection with any concerns about soil disturbance and stormwater run-off;
• The NJDEP’s input on issues such as flood plains, wetlands, stream encroachment, and other site-specific concerns;
• Developments on “brownfields” raise additional issues and will often involve other DEP offices;
• Facilities in the vicinity of the coastline may be subject to review under New Jersey's; Coastal Area Facility Review Act (CAFRA), N.J.S.A. 13:19-1 et seq.
• Another widespread area in New Jersey that is subject to special development rules is the land known as the Pinelands, which are protected by the Pinelands Protection Act, N.J.S.A. 13:18A-1 et seq.

In sum, even if the goals of EO No. 2 are not slowed by EO No. 7, many hurdles still face the deployment of BESS in New Jersey. Getting to 2,000 megawatts of storage by 2030 will require a significant first step in 2026.