Articles 7.14.26.pdf

community benefits agreements; and supporting investment in local job creation related to data center development. * While Sherrill’s Pian sets forth clear guardrails, the specific legal mandates will require further legislative action or formal regulatory rule-making. * Sherrill’s Plan follows the introduction of Bill S731/A796 earlier this year that would require New Jersey public electric utilities to develop and submit a tariff to the Board of Public Utilities (BPU) for large load data centers. e Data center developers can take proactive measures now, including actively monitoring local legislative dockets, engaging with the Public Utility Commission, optimizing water consumption, implementing community benefit agreements, and diversifying power sources. New Jersey currently houses nearly 80 data centers/2] some of which use up to 300 megawatts of energy/3) the equivalent necessary to power entire towns in the state. Since last summer, electricity costs in New Jersey have increased by almost 20% with such increases acting as the main driver of inflation in the state [4] By placing guardrails on data centers, the Sherrill Administration seeks to mitigate public concerns over electricity costs, water usage, environmental impacts, and transparency associated with data center development in the state. According to Governor Sherrill, New Jersey's Comprehensive Plan is the first comprehensive strategy regulating data centers in the nation and consists of four pillars: (1) Implementing Fair-Share Rules: Data centers would be required to pay for infrastructure upgrades needed to connect their facilities to the electrical grid and cover the cost of improvements tied to their projects. (2) Improving Transparency: Data centers would be required to report energy and water usage every six months so that the public could be informed about the impacts of large-scale data center facilities on municipalities, including those relating to the electrical grid and water resources. bttpstty nulcounfinslabitayale sneer evs -firstnation-co...7ehansive-plan-regulale- data-conters him, saurceschatapl.con GARIIG, WA OA Frage 2 of 8

(3) Developing Strong Statewide Standards for Community Benefits Agreements: State standards and resources would be used to increase the negotiating power of municipalities when it comes to addressing data center impacts, such as light, noise, and pollution, and incentivizing investment in local communities. (4) Creating Jobs Related to Local Trades: Data centers would be incentivized to invest in jobs leveraging local trades. Sherrill's Plan follows the introduction of Bill S731/A796 in the New Jersey Legislature on January 13, 2026. In its current form, the Bill would require New Jersey public electric utilities to develop and submit a tariff to the Board of Public Utilities (BPU) for large load data centers, i.e., data centers with a peak electricity demand of 100 megawatts or more. The Bill has passed the New Jersey Assembly and currently awaits Senate approval. Through her Comprehensive Plan, Governor Sherrill aims to hold data centers accountable without driving business away from the state. Whether the goals of her plan will be achieved remains to be seen. In the meantime, data centers can take proactive measures, including actively monitoring local legislative dockets, engaging with the Public Utility Commission, optimizing water consumption, implementing community benefit agreements, and diversifying power sources. Saul Ewing's Energy, Environmental, and Data Center Practices will track developments on the regulation of data centers in New Jersey and other states as they arise. Please do not hesitate to contact the authors of this alert, or your regular Saul Ewing point(s) of contact, with any questions about the substance of this alert. [1] Pinelands Alliance. Petition to the Governor of New Jersey: A Three-Year Moratorium on New Data Centers. https://engage.pinelandsalliance.org/datacentersnj [2] Nate Beck. NJ, Pa. Move For New Data Center Development Standards, Law 360 (May 27, 2026), https:/Awww.law360,com/articles/2482434/nj-pa-move-for-new-data-center-development-standards [3] Nyah Marshall. This N.J. farming town is fighting back against one of the East Coast’s largest Al data centers, bttus:/feeww. saul. com/insights/alar neve jerseys-first-nation-co... cehensive-plan-regulate-data-ceniers?ulm_sourceschatgpt.com 6/28/26, 11:45 PM Page 3 al S

SENATE, No. 3611 STATE OF NEW JERSEY 222nd LEGISLATURE INTRODUCED FEBRUARY 19, 2026 Sponsored by: Senator JOSEPH P. CRYAN District 20 (Union) SYNOPSIS Directs planning boards to submit certain data center development plans to BPU and State Planning Commission and requires State Planning Commission approval for data center development under MLUL,; excludes data centers from economic development subsidies. CURRENT VERSION OF TEXT As introduced. An Act concerning the development of data centers in the State, amending P.L.1975, c.291, and supplementing P.L.1974, ¢.80 (C.34:1B-1 et seq.). Be It Enactep by the Senate and General Assembly of the State of New Jersey: 1, Section 3.1 of P.L.1975, c.291 (C.40:55D-4) is amended to read as follows: 3.1. “Data center" means a facility in this State: (L)_whose primary services are the storage, management, and processing of digital data, including, but not limited to, artificial intelligence applications; and rvers, network equipment and appliances, telecommunications, and data storage systems, systems for monitoring and managing infrastructure performance, Internet-related equipment and services, data communications connections, environmental controls, fire protection systems and security systems and services 6/28/26, 11:40 2M hUps:fpub.ajleg state.nj.us/Bifls/2026/$4000/3611_I1 HTM2uim, sourceschatgpl.com Page fof &

"Days" means calendar days. "Density" means the permitted number of dwelling units per gross area of land that is the subject of an application for development, including noncontiguous land, if authorized by municipal ordinance or by a planned development. "Developer" means the legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land. "Development" means the division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any building or other structure, or of any mining excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to P.L.1975, c.291 (C.40:55D-1 et seq.). "Development potential" means the maximum number of dwelling units or square feet of nonresidential floor area that may be constructed on a specified lot or in a specified zone under the master plan and land use regulations in effect on the date of the adoption of the development transfer ordinance or on the date of the adoption of the ordinance authorizing noncontiguous cluster, and in accordance with recognized environmental constraints. "Development regulation" means a zoning ordinance, subdivision ordinance, site plan ordinance, official map ordinance or other municipal regulation of the use and development of land, or amendment thereto adopted and filed pursuant to P.L.1975, ¢.291 (C.40:55D-1 et seq.). "Development restriction" means an agricultural restriction, a conservation restriction, or a historic preservation restriction. "Development transfer" or “development potential transfer" means the conveyance of development potential, or the permission for development, from one or more lots to one or more other lots by deed, easement, or other means as authorized by ordinance. "Development transfer bank" means a development transfer bank established pursuant to section 22 of P.L.2004, c.2 (C.40:55D-158) or the State TDR Bank. "Drainage" means the removal of surface water or groundwater from land by drains, grading or other means and includes control of runoff during and after construction or

5D-158) or the State TDR Bank. "Drainage" means the removal of surface water or groundwater from land by drains, grading or other means and includes control of runoff during and after construction or development to minimize erosion and sedimentation, to assure the adequacy of existing and proposed culverts and bridges, to induce water recharge into the ground where practical, to lessen nonpoint pollution, to maintain the integrity of stream channels for their biological functions as well as for drainage, and the means necessary for water supply preservation or prevention or alleviation of flooding. "Electric vehicle supply equipment" or “electric vehicle service equipment" or "EVSE" means the equipment, including the cables, cords, conductors, connectors, couplers, enclosures, attachment plugs, power outlets, power electronics, transformer, switchgear, switches and blips: fipeb oiled. ntate nj.us/ills/2026/S4000/364L EH TM2utm_sourcesehataptcom 26, 1840 PR Page 2 of B

controls, network interfaces, and point of sale equipment and associated apparatus designed and used for the purpose of transferring energy from the electric supply system to a plug-in electric vehicle. "EVSE" may deliver either alternating current or, consistent with fast charging equipment standards, direct current electricity. "EVSE" is synonymous with “electric vehicle charging station." “Environmental commission" means a municipal advisory body created pursuant to P.L.1968, 0.245 (C.40:56A-1 et seq.). "Erosion" means the detachment and movement of soil or rock fragments by water, wind, ice and gravity. "Final approval" means the official action of the planning board taken on a preliminarily approved major subdivision or site plan, after all conditions, engineering plans and other requirements have been completed or fulfilled and the required improvements have been installed or guarantees properly posted for their completion, or approval conditioned upon the posting of such guarantees. "Floor area ratio" means the sum of the area of all floors of buildings or structures compared to the total area of land that is the subject of an application for development, including noncontiguous land, if authorized by municipal ordinance or by a planned development. "General ‘development plan" means a comprehensive plan for the development of a planned development, as provided in section 4 of P.L.1987, ¢.129 (C.40:55D-45,2). "Governing body" means the chief legislative body of the municipality. In municipalities having a board of public works, "governing body" means such board. "Historic district" means one or more historic sites and intervening or surrounding property significantly affecting or affected by the quality and character of the historic site or sites. "Historic preservation restriction" means a “historic preservation restriction" as defined in section 2 of P.L.1979, ¢.378 (C.13:8B-2). "Historic site" means any real property, man-made structure, natural object or configuration or any portion or group of the foregoing of historical, archeological, cultural, scenic or architectural significance. "Inherently beneficial use" means a use which is universally considered of value to the community because it fundamentally serves the public good and promotes the general welfare. Such a use includes, but is not limited to, a hospital, school, child care

rsally considered of value to the community because it fundamentally serves the public good and promotes the general welfare. Such a use includes, but is not limited to, a hospital, school, child care center, group home, or a wind, solar or photovoltaic energy facility or structure. "Instrument" means the easement, credit, or other deed restriction used to record a development transfer. "Interested party" means: (a) in a criminal or quasi-criminal proceeding, any citizen of the State of New Jersey; and (b) in the case of a civil proceeding in any court or in an administrative hitps: {pub ajleg.state.nj.is/Bills/2026/S4000/361f_I.HTM2uim_source=chatgpl.com 6/28/26, 1840 PM Page 301 B

proceeding before a municipal agency, any person, whether residing within or without the municipality, whose right to use, acquire, or enjoy property is or may be affected by any action taken under P.L.1975, ¢.291 (C.40:55D-1 et seq.), or whose rights to use, acquire, or enjoy property under P.L.1975, ¢.291 (C.40:55D-1 et seq.), or under any other law of this State or of the United States have been denied, violated or infringed by an action or a failure to act under P.L.1975, c.291 (C.40:55D-1 et seq.). "Land" includes improvements and fixtures on, above or below the surface. "Local utility" means any sewerage authority created pursuant to the "sewerage authorities law," P.L.1946, ¢.138 (C.40:14A-1 et seq.); any utilities authority created pursuant to the "municipal and county utilities authorities law,” P.L.1957, c.183 (C.40:14B-1 et seq.); or any utility, authority, commission, special district or other corporate entity not regulated by the Board of Regulatory Commissioners under Title 48 of the Revised Statutes that provides gas, electricity, heat, power, water or sewer service to a municipality or the residents thereof. "Lot" means a designated parcel, tract or area of land established by a plat or otherwise, as permitted by law and to be used, developed or built upon as a unit. (cf: P.L.2021, ¢,171, s.5) 2. Section 34 of P.L.1975, c.291 (C.40:55D-46) is amended to read as follows: 34. a. An ordinance requiring site plan review and approval shall require that the developer submit to the administrative officer a site plan and [such] any other information as is reasonably necessary to make an informed decision as to whether the requirements necessary for preliminary site plan approval have been met. The site plan and any engineering documents to be submitted shall be required in tentative form for discussion purposes for preliminary approval. If any architectural plans are required to be submitted for site plan approval, the preliminary plans and elevations shall be sufficient. b. If the planning board required any substantial amendment in the layout of improvements proposed by the developer that have been the subject of a hearing, an amended application for development shall be submitted and proceeded upon, as in the case of the original application for development. The planning board shall, if the proposed development complies with the

d application for development shall be submitted and proceeded upon, as in the case of the original application for development. The planning board shall, if the proposed development complies with the ordinance and [this act] P.L.1975, ¢.291 (C.40:55D-1 et seq.), grant preliminary site plan approval. c. Upon the submission to the administrative officer of a complete application for a site plan which involves 10 acres of land or less, and 10 dwelling units or less, the planning board shall grant or deny preliminary approval within 45 days of the date of [such] the submission or within [such] a further time as may be consented to by the developer. Upon the submission of a complete application for a site plan which involves more than [0 acres, or more than 10 dwelling units, the planning board shall grant or deny preliminary approval within 95 days of the date of [such] the hiips:{/pub.niteg.state.nj.us/Bills/2026/54000/261 11. HTM 2utm_source=chatept.com 6/28/26, 1140 PM Page dal a

submission or within [such] a further time as may be consented to by the developer. Otherwise, the planning board shall be deemed to have granted preliminary approval of the site plan. dA plannin: ena haces comic appeal ion fora ste plan for fhe deselopicnl of a data center shal! submit the site plan an her information received from th the State Planning Commission and_the re of Public ut ities, for review pursuant to subsection c, of section 38 of P.L.1975,_¢,291 (C.40:55D-50),_the cost of which shall be determined by municipality and charged to the developer, (cf; P.L.1984, ¢.20, s.8) 3. Section 36 of P.L.1975, ¢.291 (C.40:55D-48) is amended to read as follows: 36, a. An ordinance requiring subdivision approval by the planning board shall require that the developer submit to the administrative officer a plat and [such] any other information as is reasonably necessary to make an informed decision as to whether the requirements necessary for preliminary approval have been met; provided that minor subdivisions pursuant to section 35 of [this act] P.L.1975, ¢.29] (C.40:55D-47) shall not be subject to this section. The plat and any other engineering documents to be submitted shall be required in tentative form for discussion purposes for preliminary approval. b. If the planning board required any substantial amendment in the layout of improvements proposed by the developer that have been the subject of a hearing, an amended application shall be submitted and proceeded upon, as in the case of the original application for development. The planning board shall, if the proposed subdivision complies with the ordinance and [this act] P.L.1975, ¢.291 (C.40:55D-1 et seq), grant preliminary approval to the subdivision. c. Upon the submission to the administrative officer of a complete application for a subdivision of 10 or fewer lots, the planning board shall grant or deny preliminary approval within 45 days of the date of [such] the submission or within [such] a further time as may be consented to by the developer. Upon the submission of a complete application for a subdivision of more than 10 lots, the planning board shall grant or deny preliminary approval within 95 days of the date of [such] the submission or within [such] a further time as may be consented to by the developer. Otherwise, the planning board shall be deemed to have granted preliminary approval