New Jersey Governor Signs Legislation for Data Center Water, Energy Reporting; Issues CBA Guidance
New Jersey Governor Mikie Sherrill signed legislation requiring data centers to report their water and energy usage, enhancing transparency on resource demands. Concurrently, new statewide guidance for municipalities on Community Benefit Agreements (CBAs) was issued, empowering local communities to negotiate with developers and secure investments. These actions are part of a comprehensive plan to hold data centers accountable and ensure fair contributions to the state.
New Jersey Governor Mikie Sherrill has signed comprehensive legislation and issued new statewide guidance as part of her four-pillar data center plan, aiming to increase accountability and empower local communities. The recently signed S3379/A4096 mandates that data center owners and operators submit semiannual reports to the New Jersey Board of Public Utilities (NJBPU), detailing their water and energy consumption, including peak daily water use and on-site power supplies. This measure seeks to enhance transparency regarding data centers' demands on the state's resources.
Concurrently, Governor Sherrill announced new guidance from the Department of Community Affairs (DCA) on Community Benefit Agreements (CBAs). Distributed to municipalities via a Local Finance Notice, this guidance provides tools for localities to negotiate effectively with data center developers. It outlines how municipalities can use CBAs to mitigate project impacts, share in economic benefits, and secure investments for public infrastructure, blight remediation, schools, and workforce development, while also detailing state labor standards.
The Economic Development Authority (EDA), NJBPU, and DEP have established online resources and technical assistance teams to support communities in implementing these new frameworks. State legislators, including Speaker Craig J. Coughlin, Senate Majority Leader M. Teresa Ruiz, and Assemblyman Venezia, emphasized the importance of transparency for managing New Jersey's energy affordability and environmental resources. South Brunswick Mayor Charlie Carley praised the plan for giving communities a "real say" and enabling them to hold data centers accountable. Advocates, such as New Jersey Citizen Action Executive Director Dena Mottola Jaborska and New Jersey LCV Interim Executive Director Allison McLeod, lauded the measures for protecting ratepayers and the environment.
Ultimately, the plan's pillars focus on requiring data centers to pay their fair share for energy, be transparent about resource usage, make meaningful community investments, and bring union jobs.