Bill Text: NJ S4402 | 2026-2027 | Regular Session | Introduced


Bill Title: "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.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced) 2026-06-04 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S4402 Detail]

Download: New_Jersey-2026-S4402-Introduced.html

SENATE, No. 4402

STATE OF NEW JERSEY

222nd LEGISLATURE

 

INTRODUCED JUNE 4, 2026

 


 

Sponsored by:

Senator  TROY SINGLETON

District 7 (Burlington)

 

 

 

 

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.  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.

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