"Responsible Data Center Development and Resource Protection Act"; establishes Statewide framework concerning siting, land use approval, energy sourcing, water use, and environmental impacts of large load data center development.

A5294

ASSEMBLY, No. 5294

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 18, 2026

Sponsored by:

Assemblyman� WILLIAM F. MOEN, JR.

District 5 (Camden and Gloucester)

SYNOPSIS

���� "Responsible Data Center Development and
Resource Protection Act"; establishes Statewide framework concerning
siting, land use approval, energy sourcing, water use, and environmental
impacts of large load data center development.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the development of large load data
centers, supplementing various parts of the statutory law, and amending
P.L.1975, c.291.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill) shall be
known, and may be referred to, as the "Responsible Data Center Development
and Resource Protection Act."

���� 2.��� (New section)� The
Legislature finds and declares that:

���� a.���� Large load data centers
are rapidly increasing electricity and water demand nationwide and in this
State.

���� b.��� PJM Interconnection, the
regional transmission organization that services the northeast, and the State�s
public utilities have warned that accelerated load growth may contribute to
higher capacity and infrastructure costs.

���� c.���� Data centers can
provide economic benefits when responsibly located and operated.

���� d.��� The State has a
compelling interest in protecting utility ratepayers, safe drinking water
supplies, environmentally-sensitive lands, overburdened communities, and
electric grid reliability.

���� e.���� Therefore, it is the
obligation of the Legislature to encourage large load data center development
primarily in areas already serviced by appropriate infrastructure and on lands
designated as brownfields or located in industrial corridors.

���� 3.��� (New section)� As used
in P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill):

���� "Authority" means
the New Jersey Economic Development Authority created by section 4 of P.L.1974,
c.80 (C.34:1B-4).

���� "Board" means the
New Jersey Board of Public Utilities or a successor agency.

���� "Commission" means
the State Planning Commission established pursuant to section 2 of P.L.1985,
c.398 (C.52:18A-197).

���� "Department" means
the Department of Environmental Protection.

���� "Impact statement"
means a data center resource impact statement as described pursuant to
subsection a. of section 4 of P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� "Large load data center"
or "data center" means a facility that:� (1) primarily stores,
manages, and processes digital data; (2) is used to house computer and network
systems, including associated components such as servers, network equipment and
appliances, telecommunications, data storage systems, systems for monitoring
and managing infrastructure performance, Internet-related equipment and
services, data communications connections, environmental controls, fire
protection systems, and security systems and services; and (3) has, or is
projected to have, peak electrical load of at least 25 megawatts.

���� "Program" means the
Responsible Data Center Certification Program established pursuant to section 5
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� 4.��� (New section)� a.�
Notwithstanding any provision of law, rule, regulation, or ordinance to the
contrary, and prior to a developer submitting an application to a municipality
for preliminary site plan or subdivision approval for a large load data center
pursuant to section 34 of P.L.1975, c.291 (C.40:55D-46) or section 36 of
P.L.1975, c.291 (C.40:55D-48), the developer shall submit to the State Planning
Commission a data center resource impact statement concerning the location and
projected impact of the data center.� The commission shall transmit the impact
statement to the New Jersey Board of Public Utilities, the Department of
Environmental Protection, the New Jersey Economic Development Authority, and
the proposed host municipality for their review.� The commission, board,
department, and authority shall enter into a memorandum of understanding to
provide for the efficient review and consideration of impact statements.� The
impact statement shall include, but not be limited to:

���� (1)�� projected annual and
peak electricity demand;

���� (2)�� projected electricity
transmission and distribution infrastructure upgrades;

���� (3)�� a plan for alternative
electricity generation, as provided in subsection b. of this section;

���� (4)�� peak load mitigation
strategies;

���� (5)�� demand response
capability;

���� (6)�� a plan for electricity
storage integration;

���� (7)�� projected daily and peak
water usage;

���� (8)�� proposed cooling
technology systems;

���� (9)�� projected wastewater
discharge impacts;

���� (10) a drought contingency
plan;

���� (11) recycled-water
utilization analysis;

���� (12) a greenhouse gas
emissions profile;

���� (13) noise pollution impact;

���� (14) flood and stormwater
impact and mitigation measures;

���� (15) cumulative environmental
impacts across the municipality and county where the data center development is
to be located and the State as a whole;

���� (16) projected impact on
traffic volume surrounding the data center development;

���� (17) projected impact on sewer
and wastewater infrastructure;

���� (18) local and State tax
revenues and expenditures anticipated from the data center development; and

���� (19) labor and workforce
projections.

���� b.��� The developer of a large
load data center shall demonstrate, pursuant to the requirement of paragraph
(3) of subsection a. of this section, that the data center shall support
alternative electricity generation sufficient to offset a substantial portion of
the projected annual and peak electricity demand, as determined by the board.�
The plan may include, but not be limited to:

���� (1)�� solar electricity
generation;

���� (2)�� offshore wind contracts;

���� (3)�� battery storage;

���� (4)�� geothermal generation;

���� (5)�� nuclear-supported clean
energy contracts;

���� (6)�� proof of a clean power
purchase agreement;

���� (7)�� demand response
strategies; or

���� (8)�� a planned microgrid.

���� c.���� Renewable energy
certificates shall not singularly serve as proof of alternative electricity
generation pursuant to subsection b. of this section.

���� d.��� The commission shall
prioritize consideration of an impact statement that demonstrates the proposed
large load data center shall be sited in:

���� (1)�� an area designated as a
brownfield pursuant to the "Brownfield and Contaminated Site Remediation
Act," P.L.1997, c.278 (C.58:10B-1.1 et seq.);

���� (2)�� an area determined to be
in need of redevelopment pursuant to the "Local Redevelopment and Housing
Law", P.L.1992, c.79 (C.40A:12A-1 et seq.);

���� (3)�� an existing industrial
corridor;

���� (4)�� a former office park;

���� (5)�� a site adjacent to major
electricity transmission infrastructure; or

���� (6)�� a location with existing
sufficient sewer or water service capacity.

���� e.���� The commission, in
consultation with the department, shall review with heightened scrutiny the
environmental impacts of a data center development proposed in:

���� (1)�� open space preserved
under local, State, or federal law;

���� (2)�� wetlands;

���� (3)�� forested areas;

���� (4)�� the pinelands area, as
described in section 10 of P.L.1979, c.111 (C.13:18A-11);

���� (5)�� the Highlands Region as
described in section 7 of P.L.2004, c.120 (C.13:20-7);

���� (5)�� flood-prone areas; or

���� (6)�� overburdened
communities.

���� 5.��� (New section)� a.� The
State Planning Commission, in consultation with the New Jersey Board of Public
Utilities, the Department of Environmental Protection, and the New Jersey
Economic Development Authority, shall establish a voluntary Responsible Data Center
Certification Program.� The purpose of the program shall be to incentivize a
large load data center developer who submits an impact statement to the
commission, board, department, and authority to meet enhanced data center
development standards.� The commission, in consultation with the board,
department, and authority, shall develop a set of enhanced data center
development standards, which may include:

���� (1)�� additional clean energy
procurement;

���� (2)�� low-water cooling
systems;

���� (3)�� brownfield
redevelopment;

���� (4)�� beneficial labor
standards;

���� (5)�� community benefit
agreements; and

���� (6)�� greater emissions
reductions.

���� b.��� A data center developer
that qualifies for the program, as determined by the commission, shall, upon
the commission�s approval of the Data Center Resource Impact Statement, be
recommended to receive:

���� (1)�� expedited permitted
coordination among the data center�s host municipality, the board, and the
department, as applicable;

���� (2)�� accelerated State agency
review timelines; and

���� (3)�� potential redevelopment
incentives.

���� 6.��� (New section)� The State
Planning Commission, in consultation with the Board of Public Utilities,
Department of Environmental Protection, and New Jersey Economic Development
Authority, shall review each submitted impact statement within 60 days from the
date of submission and may approve or deny the impact statement.� If the
commission does not issue an approval or denial within 60 days, the commission
shall be deemed to have granted approval.

���� 7.��� (New section)� a.� As
used in this section:

���� "Community benefit
agreement" means a legally binding contract applicable to a specific
project that requires the developer and its contractors to provide quantifiable
benefits to the host community.� A "community benefit agreement" may
include:

���� (1)�� local hiring
requirements or targeted workforce participation goals;

���� (2)�� wage and benefits
standards consistent with State law;

���� (3)�� utilization of local
businesses and minority- or women-owned enterprises;

���� (4)�� workforce training,
apprenticeship, or career pathway programs;

���� (5)�� community infrastructure
investments;

���� (6)�� environmental mitigation
or resiliency investments; and

���� (7)�� other negotiated
community commitments.

���� b.��� The developer of a large
load data center, as defined in section 3 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill), receiving an economic
development subsidy, including but not limited to tax credits, grants,
abatements, or other financial assistance provided by or through the State, a
political subdivision, or the New Jersey Economic Development Authority, may be
required by the entity offering the incentive, as a condition of accepting the
subsidy, to enter into a community benefits agreement.

���� c.���� Political subdivisions
of the State shall retain the authority to require, negotiate, and enforce a
community benefit agreement consistent with State law.

���� d.��� The New Jersey Economic
Development Authority may condition eligibility for State-administered economic
development incentives or certification programs for large load data center
development on execution and compliance with a community benefit agreement.

���� 8.��� (New section)� a.� The
New Jersey Board of Public Utilities shall create, maintain, and update, as
appropriate, a public online portal, in the form of an Internet website, which
shall provide certain information on each large load data center in this State,
as defined in section 3 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill).� The information provided on the Internet website
shall include, but not be limited to, each data center�s:

���� (1)�� name, owner or operator,
address, general function or purpose, and the month and year the data center
began operation;

���� (2)�� aggregate electricity
use in kilowatt hours;

���� (3)�� water consumption in
cubic meters that includes all water volumes that enter the data center;

���� (4)�� the time, duration, and
levels of peak electricity demand;

���� (5)�� total direct greenhouse
gas emissions;

���� (6)�� alternative electricity
generation use in kilowatt hours, if applicable;

���� (7)�� the total cost of any
improvements to the State�s electric distribution and transmission system
necessary for the data center�s interconnection, if applicable; and

���� (8)�� compliance status with
any applicable board regulations.

���� b.��� No later than one year
after the effective date of this section, and annually thereafter, the owner or
operator of a data center in this State shall submit a report to the Board of
Public Utilities containing the information required in subsection a. of this
section.

���� c.���� Nothing in this section
shall be construed to supersede applicable trade secret laws.

���� 9.��� (New section)� a.� As
used in this section:

���� "Electric public utility"
or "utility" means the same as that term is defined in section 3 of
P.L.1999, c.23 (C.48:3-51).

���� "Local utility"
means any utilities authority created pursuant to the "municipal and
county utilities authorities law," P.L.1957, c.183 (C.40:14B-1 et seq.);
or any utility, authority, commission, special district or other corporate
entity not regulated by the Board of Regulatory Commissioners under Title 48 of
the Revised Statutes that provides electricity service to a municipality or the
residents thereof.

���� "Rural electric
cooperative" means a rural electric cooperative, as defined in section 2
of P.L.2017, c.297 (C.48:24-2).

���� b.��� Notwithstanding any law,
rule, regulation, or order to the contrary, after the effective date of P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill), an electric
public utility, local utility, or rural electric cooperative shall not recover
through any component of the rates charged to the electric public utility�s
residential or commercial customers, any costs related to data center
infrastructure, including, but not limited to:�

���� (1)�� distribution and
transmission costs;

���� (2)�� stranded infrastructure
costs; and

���� (3)�� any related costs
identified by the board.

���� c.���� Nothing in this section
shall preclude the use of a community benefit agreement, pursuant to section 6
of P.L. , c. (C. ) (pending
before the Legislature as this bill), to ensure that municipalities are not
adversely impacted by infrastructure demands associate with subsidized data
center development projects.

���� 10.� (New section)� a.� As
used in this section �large load data center� means the same as the term is
defined in section 3 of P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� b.��� The Department of
Environmental Protection shall establish a permit system, pursuant to the
provisions of this section and P.L.1981, c.262 (C.58:1A-1 et seq.), to provide
for the issuance of permits for diversions of more than 100,000 gallons per day
of waters for use by large load data centers.

���� c.���� The permit system
developed pursuant to this section shall include water-efficiency standards and
cooling system standards applicable to large load data centers.� The cooling
system standards shall, at a minimum, include preferences for:

���� (1)�� free cooling systems, in
which cold outside air is used directly to cool down computing components;

���� (2)�� the productive use of
excess heat for other purposes, including thermal energy networks;

���� (3)�� closed-loop cooling
systems;

���� (4)�� hybrid cooling systems;

���� (5)�� air-cooled systems; and

���� (6)�� recycled water systems;

���� d.��� The department may deny
or condition a permit issued pursuant to this section whenever it determines
that the applicable water diversion would impair the reliability of the water
supply, impose undue stress upon an aquifer, or exacerbate drought conditions.

���� e.���� As part of a permit
issued pursuant to this section, the owner or operator of a data center shall
develop, and adhere to, protocols that provide for the emergency conservation
of water by the data center during declared drought conditions.

���� f.���� Notwithstanding the
provisions of this section, a large load data center shall submit a water
resource impact assessment, the details of which shall be determined by the
department, to the department regardless of the number of gallons of water a
data center uses per day.

���� 11.� Section 3.1 of P.L.1975,
c.291 (C.40:55D-4) is amended to read as follows:

���� 3.1.
"Data
center" means a large load data center, as defined pursuant to this
section.

���� "Days" means
calendar days.

���� "Density" means the
permitted number of dwelling units per gross area of land that is the subject
of an application for development, including noncontiguous land, if authorized
by municipal ordinance or by a planned development.

���� "Developer" means
the legal or beneficial owner or owners of a lot or of any land proposed to be
included in a proposed development, including the holder of an option or
contract to purchase, or other person having an enforceable proprietary interest
in such land.

���� "Development" means
the division of a parcel of land into two or more parcels, the construction,
reconstruction, conversion, structural alteration, relocation or enlargement of
any building or other structure, or of any mining excavation or landfill, and
any use or change in the use of any building or other structure, or land or
extension of use of land, for which permission may be required pursuant to
P.L.1975, c.291 (C.40:55D-1 et seq.).

���� "Development
potential" means the maximum number of dwelling units or square feet of
nonresidential floor area that may be constructed on a specified lot or in a
specified zone under the master plan and land use regulations in effect on the
date of the adoption of the development transfer ordinance or on the date of
the adoption of the ordinance authorizing noncontiguous cluster, and in
accordance with recognized environmental constraints.

���� "Development
regulation" means a zoning ordinance, subdivision ordinance, site plan
ordinance, official map ordinance or other municipal regulation of the use and
development of land, or amendment thereto adopted and filed pursuant to
P.L.1975, c.291 (C.40:55D-1 et seq.).

���� "Development
restriction" means an agricultural restriction, a conservation
restriction, or a historic preservation restriction.

���� "Development
transfer" or "development potential transfer" means the
conveyance of development potential, or the permission for development, from
one or more lots to one or more other lots by deed, easement, or other means as
authorized by ordinance.

���� "Development transfer
bank" means a development transfer bank established pursuant to section 22
of P.L.2004, c.2 (C.40:55D-158) or the State TDR Bank.

���� "Drainage" means the
removal of surface water or groundwater from land by drains, grading or other
means and includes control of runoff during and after construction or
development to minimize erosion and sedimentation, to assure the adequacy of
existing and proposed culverts and bridges, to induce water recharge into the
ground where practical, to lessen nonpoint pollution, to maintain the integrity
of stream channels for their biological functions as well as for drainage, and
the means necessary for water supply preservation or prevention or alleviation
of flooding.

���� "Electric vehicle supply
equipment" or "electric vehicle service equipment" or
"EVSE" means the equipment, including the cables, cords, conductors,
connectors, couplers, enclosures, attachment plugs, power outlets, power electronics,
transformer, switchgear, switches and controls, network interfaces, and point
of sale equipment and associated apparatus designed and used for the purpose of
transferring energy from the electric supply system to a plug-in electric
vehicle. "EVSE" may deliver either alternating current or,
consistent with fast charging equipment standards, direct current
electricity. "EVSE" is synonymous with "electric vehicle
charging station."

���� "Environmental
commission" means a municipal advisory body created pursuant to P.L.1968,
c.245 (C.40:56A-1 et seq.).

���� "Erosion" means the
detachment and movement of soil or rock fragments by water, wind, ice and
gravity.

���� "Final approval"
means the official action of the planning board taken on a preliminarily
approved major subdivision or site plan, after all conditions, engineering
plans and other requirements have been completed or fulfilled and the required improvements
have been installed or guarantees properly posted for their completion, or
approval conditioned upon the posting of such guarantees.

���� "Floor area ratio"
means the sum of the area of all floors of buildings or structures compared to
the total area of land that is the subject of an application for development,
including noncontiguous land, if authorized by municipal ordinance or by a
planned development.

���� "General development
plan" means a comprehensive plan for the development of a planned
development, as provided in section 4 of P.L.1987, c.129 (C.40:55D-45.2).

���� "Governing body"
means the chief legislative body of the municipality. In municipalities
having a board of public works, "governing body" means such board.

���� "Historic district"
means one or more historic sites and intervening or surrounding property
significantly affecting or affected by the quality and character of the
historic site or sites.

���� "Historic preservation
restriction" means a "historic preservation restriction" as
defined in section 2 of P.L.1979, c.378 (C.13:8B-2).

���� "Historic site"
means any real property, man-made structure, natural object or configuration or
any portion or group of the foregoing of historical, archeological, cultural,
scenic or architectural significance.

���� "Inherently beneficial
use" means a use which is universally considered of value to the community
because it fundamentally serves the public good and promotes the general
welfare. Such a use includes, but is not limited to, a hospital, school,
child care center, group home, or a wind, solar or photovoltaic energy facility
or structure.

���� "Instrument" means
the easement, credit, or other deed restriction used to record a development
transfer.

���� "Interested party"
means: (a) in a criminal or quasi-criminal proceeding, any citizen of the State
of New Jersey; and (b) in the case of a civil proceeding in any court or in an
administrative proceeding before a municipal agency, any person, whether
residing within or without the municipality, whose right to use, acquire, or
enjoy property is or may be affected by any action taken under P.L.1975, c.291
(C.40:55D-1 et seq.), or whose rights to use, acquire, or enjoy property under
P.L.1975, c.291 (C.40:55D-1 et seq.), or under any other law of this State or
of the United States have been denied, violated or infringed by an action or a
failure to act under P.L.1975, c.291 (C.40:55D-1 et seq.).

���� "Land" includes
improvements and fixtures on, above or below the surface.

����
"Large load data
center" means a facility that:� (1) primarily stores, manages, and
processes digital data; (2) is used to house computer and network systems,
including associated components such as servers, network equipment and
appliances, telecommunications, data storage systems, systems for monitoring
and managing infrastructure performance, Internet-related equipment and
services, data communications connections, environmental controls, fire
protection systems, and security systems and services; and (3) has, or is
projected to have, peak electrical load of at least 25 megawatts.

���� "Local utility"
means any sewerage authority created pursuant to the "sewerage authorities
law," P.L.1946, c.138 (C.40:14A-1 et seq.); any utilities authority
created pursuant to the "municipal and county utilities authorities law,"
P.L.1957, c.183 (C.40:14B-1 et seq.); or any utility, authority, commission,
special district or other corporate entity not regulated by the Board of
Regulatory Commissioners under Title 48 of the Revised Statutes that provides
gas, electricity, heat, power, water or sewer service to a municipality or the
residents thereof.

���� "Lot" means a
designated parcel, tract or area of land established by a plat or otherwise, as
permitted by law and to be used, developed or built upon as a unit.

(cf: P.L.2021, c.171, s.5)

���� 12.� Section 34 of P.L.1975,
c.291 (C.40:55D-46) is amended to read as follows:

����
34.
� a. �An ordinance
requiring site plan review and approval shall require that the developer submit
to the administrative officer a site plan and
[
such
]

any
other
information as is reasonably necessary to make an informed decision as to
whether the requirements necessary for preliminary site plan approval have been
met. �The site plan and any engineering documents to be submitted shall be
required in tentative form for discussion purposes for preliminary approval. �If
any architectural plans are required to be submitted for site plan approval,
the preliminary plans and elevations shall be sufficient.�
An application
for preliminary site plan approval for a large load data center shall not be
deemed complete unless the application includes a data center resource impact
statement approved by the State Planning Commission pursuant to section 6 of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).

���� b.��� If the planning board
required any substantial amendment in the layout of improvements proposed by
the developer that have been the subject of a hearing, an amended application
for development shall be submitted and proceeded upon, as in the case of the original
application for development. The planning board shall, if the proposed
development complies with the ordinance and
[
this act
]

P.L.1975,
c.291 (C.40:55D-1 et seq.)
, grant preliminary site plan approval.

���� c.���� Upon the submission to
the administrative officer of a complete application for a site plan which
involves 10 acres of land or less, and 10 dwelling units or less, the planning
board shall grant or deny preliminary approval within 45 days of the date of
[
such
]

the
submission
or within
[
such
]

a
further
time as may be consented to by the developer. Upon the submission of a
complete application for a site plan which involves more than 10 acres, or more
than 10 dwelling units, the planning board shall grant or deny preliminary
approval within 95 days of the date of
[
such
]

the
submission
or within
[
such
]

a
further
time as may be consented to by the developer. Otherwise, the planning board
shall be deemed to have granted preliminary approval of the site plan.

����
d.��� A planning board
shall not grant preliminary site plan approval of a site plan for the
development of a large load data center unless the State Planning Commission
has granted approval of the data center resource impact statement pursuant to
section 6 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill).

(cf: P.L.1984, c.20, s.8)

���� 13.� Section 36 of P.L.1975,
c.291 (C.40:55D-48) is amended to read as follows:

����
36.
� a.� An ordinance
requiring subdivision approval by the planning board shall require that the
developer submit to the administrative officer a plat and
[
such
]

any
other
information as is reasonably necessary to make an informed decision as to
whether the requirements necessary for preliminary approval have been met;
provided that minor subdivisions pursuant to section 35 of
[
this act
]

P.L.1975,
c.291 (C.40:55D-47)
shall not be subject to this section. �The plat
and any other engineering documents to be submitted shall be required in
tentative form for discussion purposes for preliminary approval.�
An
application for subdivision approval that includes the development of a large
load data center shall not be deemed complete unless the application includes a
data center resource impact statement approved by the State Planning Commission
pursuant to section 6 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill).

���� b.��� If the planning board
required any substantial amendment in the layout of improvements proposed by
the developer that have been the subject of a hearing, an amended application
shall be submitted and proceeded upon, as in the case of the original application
for development. �The planning board shall, if the proposed subdivision
complies with the ordinance and
[
this
act
]

P.L.1975,
c.291 (C.40:55D-1 et seq.)
, grant preliminary approval to the subdivision.

���� c.���� Upon the submission to
the administrative officer of a complete application for a subdivision of 10 or
fewer lots, the planning board shall grant or deny preliminary approval within
45 days of the date of
[
such
]

the
submission
or within
[
such
]

a
further
time as may be consented to by the developer. �Upon the submission of a
complete application for a subdivision of more than 10 lots, the planning board
shall grant or deny preliminary approval within 95 days of the date of
[
such
]

the
submission
or within
[
such
]

a
further
time as may be consented to by the developer. �Otherwise, the planning board
shall be deemed to have granted preliminary approval to the subdivision.

����
d.��� A planning board
shall not grant subdivision approval of a subdivision that includes the
development of a large load data center unless the State Planning Commission
has granted approval of the data center resource impact statement pursuant to
section 6 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill).

(cf: P.L.1984, c.20, s.9)

���� 14.� (New section)� a.� The
State Planning Commission, in consultation with the New Jersey Board of Public
Utilities, Department of Environmental Protection, and New Jersey Economic
Development Authority, shall promulgate, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and
regulations to effectuate the purposes of P.L. , c. (C. ) (pending
before the Legislature as this bill).

���� b.��� The rules and
regulations promulgated pursuant to this section shall incorporate provisions
recommended by the board that:

���� (1)�� establish the percentage
of alternative electricity generation needed to offset a substantial portion of
the projected annual and peak electricity demand to meet the standards of
subsection b. of section 4 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill); and

���� (2)�� establish an allocation
methodology for distributing the costs an electric public utility may incur
from the increased electrical demand of a large load data center.

���� 15.� This act shall take
effect immediately.

STATEMENT

���� This bill, entitled the "Responsible
Data Center Development and Resource Protection Act," establishes
Statewide framework concerning siting, land use approval, energy sourcing,
water use, and environmental impacts of a large load data center.�
Specifically, this bill requires a developer of a large load data center, as
defined in the bill, prior to applying for preliminary site plan or subdivision
approval pursuant to the "Municipal Land Use Law," to submit to the
State Planning Commission (commission), the New Jersey Board of Public
Utilities (BPU), the Department of Environmental Protection (DEP), the New
Jersey Economic Development Authority (EDA), and the proposed host
municipality, a Data Center Resource Impact Statement (impact statement)
concerning the location and projected impact of the data center.� The impact
statement is to include, but not be limited to, certain electricity, water use,
environmental impact, and economic development information as enumerated in the
bill.

���� In the impact statement, the
developer of a large load data center is to demonstrate that the data center
can support alternative electricity generation sufficient to offset a
substantial portion of the projected annual and peak electricity demand, as determined
by the BPU.�

���� The commission is to
prioritize consideration of an impact statement that demonstrates the proposed
large load data center is to be sited in certain appropriate areas, as
enumerated in the bill.� The commission, in consultation with the DEP, is to
review with heightened scrutiny the environmental impacts of a data center
development proposed in certain environmentally-sensitive areas, as� enumerated
in the bill.

���� The bill provides that the
commission, in consultation with the BPU, DEP, and EDA, is to establish a
voluntary Responsible Data Center Certification Program (program).� The purpose
of the program is to incentivize a large load data center developer to meet
enhanced data center development standards, as enumerated in the bill.� A data
center developer that qualifies for the program, as determined by the
commission, is to, upon the commission�s approval of the impact statement, be
recommended to receive certain expedited treatment.

���� The bill provides that the
commission, in consultation with the BPU, DEP, and EDA, is to review the impact
statement for approval or denial within 60 days from the date of submission.�
If the commission does not issue an approval or denial within 60 days, the
commission is to be deemed to have granted approval.

���� The bill provides that the
developer of a large load data center receiving an economic development subsidy
may be required, as a condition of the subsidy, to enter into a community benefits
agreement, as specified in the bill.� The EDA may condition eligibility for
State-administered economic development incentives or certification programs
for large load data center development on execution and compliance with a
community benefit agreement.

���� The bill requires the BPU to
establish and maintain, a public-facing online portal, which is to provide
certain information on each large load data center in this State.� The bill
also prohibits an electric public utility, local utility, or rural electric
cooperative from recovering through any component of the rates charged to the
electric public utility�s residential or commercial customers, any costs
related to data center infrastructure.

���� The bill further requires the
DEP to establish a permit system to provide for the issuance of permits for
diversions of more than 100,000 gallons per day of waters for use by large load
data centers, as specified in the bill.� The bill provides that a large load
data center is to submit a water resource impact assessment to the DEP
regardless of how many gallons of water the data center uses per day.

���� The bill prohibits
municipalities from approving an application for preliminary site plan approval
of a large load data center or subdivision involving the development of a large
load data center unless the application includes an approved impact statement
from the commission.