New Jersey Sierra Club Celebrates the Passage of 3 Bills Making Data Centers Pay for Their Fair Share and Increase Transparency

For Immediate Release

Media Contact: Jackie Greger, Jackie.Greger@sierraclub.org

New Jersey Sierra Club Celebrates the Passage of 3 Bills Making Data Centers Pay for Their Fair Share and Increase Transparency

 

Trenton, NJ - Yesterday, the Data Center Tariff Bill, S731/A796, Data Center Reporting Bill, S3379/A4096, and the “End Data Center Tax Credits Act” S4390/A5165passed at the legislature, holding big tech companies accountable to pay their fair share and increase transparency in New Jersey. 

 

These bills are now one step closer from becoming law as it heads to Governor Sherrill’s desk.

 

In response, NJ Sierra Club Director, Anjuli Ramos-Busot, made the following statement:

 

“The Sierra Club applauds the NJ legislature for passing these landmark bills to hold big tech corporations accountable for their impacts to New Jersey families’ electric bills, and the energy demand that drains our grid.

 

Communities should not be footing the bill for large-load data centers, and S731/A796 will protect ratepayers by ensuring large-load customers pay for all their needed grid infrastructure upgrades, pay for at least 85% of their projected power requirements for 10 years, post deposits or security up front, and pay for the grid services–transmission, distribution, capacity, reliability–they lean on. This bill will also support energy efficiency and grid reliability by pushing data centers to bring their own new clean generation and storage, invest in energy efficiency, and even capture and reuse the enormous heat waste they produce. It also sets up demand-flexibility requirements and a "peak shaving" trade program–so that verified load reductions actually lower the demand forecast PJM uses to size its auction. 

 

The NJ Sierra Club supported the passage of this bill from the very beginning and heavily advocated for its strongest version. We thank Senator Burzichelli and Assemblyman Bailey for their leadership on the passage of this much needed legislation. 

 

The “End Data Center Tax Credits Act”, S4390/A5165 was also passed in both houses yesterday, essentially eliminating all remaining tax credits available for data centers under the “Next New Jersey Program.” This will help to ensure that New Jersey doesn’t pave the way and incentivize massive, irresponsible large-load facilities by cutting them a tax break while working families across New Jersey cover their bill. If the state truly seeks for data centers to contribute to the state-wide economy, this is the  necessary starting point. 

 

The data center reporting bill, S3379/A4096, is a crucial first step to provide transparency to the state about the accurate strain on our energy supply, the grid, and impacts to our water availability, inflicted by data centers and other large-load customers. This bill ensures both energy and water reporting is transparent to the public. 

 

We thank the legislature for prioritizing energy affordability and for holding large-load data centers accountable for their impacts to our environment and electric bills. We urge Governor Sherrill to continue the momentum and sign S731/A796S3379/A4096, and S4390/A5165 into law.”

 

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About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information about our work in New Jersey, visit www.sierraclub.org/new-jerse