Requires data centers to submit water supply emergency contingency plan to DEP.

2026-2027 Regular Session Introduced by Heather Simmons

Data centers must submit DEP-approved water supply emergency plans outlining sources, conservation, and contingency actions to ensure operations during shortages.

Summary of Bill A 5396 (Session 222) — New Jersey

Purpose and intent

The bill requires data centers to submit a water supply emergency contingency plan to the New Jersey Department of Environmental Protection (DEP).

Its overarching goal is to ensure data centers have prepared, enforceable procedures to address water supply disruptions or emergencies, thereby protecting critical data infrastructure and public resources during droughts or other water shortages.

Key provisions and changes

Scope of covered entities: Data centers operating within New Jersey would be mandated to develop and submit a water supply emergency contingency plan. The bill sets expectations for planning rather than direct operational mandates during normal conditions.

Plan content requirements: The contingency plan must outline:

Water supply sources and dependencies for data center operations.
Procedures for maintaining critical operations during water supply disruptions.
Communication protocols with DEP and other relevant agencies.
Measures to minimize water use and to implement conservation practices during an emergency.
Contingency actions, including alternative water supply options and turnaround timelines.

Submission and review: Plans must be submitted to DEP for review and approval. DEP may establish standards, templates, or guidelines to streamline submission and ensure consistency across facilities.

Compliance and updates: Data centers would be required to keep plans current, with periodic updates or upon significant operational or water-supply changes. DEP may impose renewal or reporting requirements to confirm continued readiness.

Enforcement and penalties: The bill may authorize DEP to take corrective actions for noncompliance, including potential penalties or fines, though specific enforcement mechanisms would be defined in the statute or implementing rules.

Who would be affected

Primary: Data centers and facilities that store, process, or manage large volumes of digital data within New Jersey.

Regulated entity interactions: DEP would have oversight responsibility, including plan review, approval, and enforcement.

Potential indirect effects: Data center operators may need to coordinate with local water utilities, state emergency management officials, and neighboring communities regarding water use during capacity shortfalls.

Procedural and timeline aspects

Sponsorship: Co-sponsored by Heather Simmons.

Regulatory timeline: The bill would initiate a process whereby data centers prepare contingency plans, submit them to DEP, and receive approval. DEP may establish deadlines, review periods, and renewal timelines via implementing rules or statutory language.

Implementation considerations: New or updated regulations could require phased compliance, especially for larger data centers or multi-site operations, with potential transitional periods.

Potential impact

Enhances resilience of critical digital infrastructure against water shortages.

Improves coordination between data centers and state environmental agencies during emergencies.

Encourages proactive water-use management and conservation among energy- and water-intensive facilities.

Could impose additional compliance costs and administrative requirements on data center operators, especially for plan development, submission, and ongoing updates.

If you’d like, I can tailor this summary to focus on a particular audience (policy makers, industry stakeholders, or the general public) or compare it with related NJ DEP emergency planning requirements.