NJ legislators approve bills on data centers, voting rights and more.
New Jersey legislators approved three significant bills aimed at regulating data centers within the state. These measures include halving data center tax credits, mandating special electricity rates and curtailment for large consumers, and requiring semi-annual water and energy usage reports. The legislation seeks to address concerns over the industry's growing footprint and energy demands.
New Jersey legislators passed a package of bills, including three measures specifically targeting data centers, as they raced to summer recess. Governor Mikie Sherrill is expected to sign these bills into law.
One bill, the "End Data Center Tax Credits Act," will cut the annual tax credit available under the Next New Jersey Program by half, reducing it from $500 million to $250 million. The freed-up capacity will be redirected to other programs, although one existing project that received $250 million in tax credits will not be affected. NJ Sierra Club Director Anjuli Ramos-Busot supported this bill, viewing it as a crucial step for data centers to contribute to the state's economy.
A second bill addresses electricity costs by requiring the Board of Public Utilities (BPU) to develop special rates and standards for large data centers within 12 months. New data center customers would be required to guarantee payment for at least 85% of their requested electricity for 10 years, and during grid emergencies, they would be prioritized for curtailment over residential customers. This bill also mandates annual performance reports to the BPU and incentivizes data centers to bring their own clean power or storage online. Environmental activists, including Eric Miller of Evergreen, praised the efforts to slow rising energy bills and ensure data centers bear the costs of their energy demand.
The third bill mandates data center owners to submit semi-annual water and energy usage reports to the BPU for three years, with the information to be publicly posted online. These reports must detail water sources, total and peak daily water input, total energy consumption, on-site power supplies, and utility service agreements.
Additionally, lawmakers unanimously approved the "Power NJ Act," which orders the BPU to procure and subsidize at least one new nuclear power plant for 40 years. This measure, also prompted by data centers' high energy demands, faced opposition from environmental advocates and the Division of Rate Counsel due to potential long timelines and significant increases to ratepayers' monthly utility bills, estimated between $7.80 and $22.43.