Requires data centers to submit construction phase water usage plan to DEP.

2026-2027 Regular Session Introduced by Heather Simmons

Data centers must submit a DEP-approved construction-phase water usage plan detailing sources, volumes, efficiency measures, and contingency plans.

Summary of Bill A 5397 (Session 222) – New Jersey

Purpose and intent

A 5397 requires data centers to submit a construction-phase water usage plan to the New Jersey Department of Environmental Protection (DEP).

The bill aims to promote water stewardship and water-resource planning during the construction phase of data center projects, ensuring that water use is anticipated, monitored, and regulated.

Key provisions and changes

Scope: Applies to data centers undergoing construction in New Jersey. (Exact definitions of what constitutes a "data center" and the thresholds for applicability are typically specified in the bill’s text.)

Construction-phase water usage plan:

Data center developers must prepare a water usage plan detailing projected water needs during construction.
Plans must cover sources of water, volumes anticipated, methods for water efficiency, and strategies to minimize waste.

Submission and review:

Plans must be submitted to the New Jersey Department of Environmental Protection (DEP) for review and approval prior to or during construction.
DEP review may assess adequacy of water supply, conservation measures, potential environmental impacts, and compliance with applicable state laws and regulations.

Content requirements (expected elements, based on typical similar measures):

Estimated total water demand during construction.
Plans for source identification (municipal supply, recycled/reused water, on-site treatment, etc.).
Water-use efficiency strategies (low-flow fixtures, leak detection, scheduling to reduce peak demand).
Measures to mitigate effects on local water resources and ecosystems.
Contingency plans for water shortages or drought conditions.

Compliance and enforcement:

Possible conditions or stipulations tied to DEP approval.
Mechanisms for reporting, monitoring, and potential penalties for non-compliance (e.g., fines or project delays, as provided by the bill’s enforcement framework).

Who would be affected

Primary affected entity: Data center developers and operators planning construction in New Jersey.

Regulatory involvement: New Jersey DEP would gain a formal role in reviewing and approving construction-phase water usage plans.

Broader stakeholders: Local communities and water resources may benefit from more predictable and managed water use during construction, reducing the risk of overuse or environmental impact.

Procedural and timeline considerations

Approval timeline: The bill would establish a timeline for DEP review and approval of the construction-phase water usage plan (specific days or response windows would be in the text).

Pre-construction requirements: Likely requires plan submission before or during early construction phases, potentially before certain permits are final.

Ongoing compliance: May include reporting requirements to DEP during construction and during any subsequent environmental compliance audits.

Additional notes

Sponsor: Co-sponsor Heather Simmons.

The bill’s exact definitions, thresholds, and enforcement details would be specified in the statutory text. For precise language, local amendments, and any fiscal impact statements, reviewing the bill’s official text and fiscal notes is recommended.