Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
“Clean Energy AI Incentivization Act”; directs BPU to incentivize artificial intelligence centers to bring their own self-sufficient, clean energy.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning artificial intelligence data centers and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the “Clean Energy AI Incentivization Act.”
2. As used in this act:
“AI data center” means the same as defined in section 2 of P.L.2024, c.49 (C.34:1B-395).
“Board” means the Board of Public Utilities.
3. The board shall establish a program to incentivize, including through tax credits, the construction of AI data centers that meet the standards for responsible infrastructure development established pursuant to section 4 of this act.
4. a. The board shall establish a set of responsible infrastructure development standards applicable to AI data centers. The standards shall include:
(1) provisions requiring the owners or operators of AI data centers to construct the energy generation facilities to meet, or otherwise be responsible for, the energy generation needs of the data center;
(2) transparency and community engagement standards that are designed to effectively inform local residents about the owners and nature of an AI data center project;
(3) requirements for AI data center projects to hire and train local workers, and to enter into community benefit agreements that fund important local priorities and support the municipalities that host them;
(4) requirements for AI data centers to include fuel cells or other energy storage methods that allow the data center to continue functioning without drawing power from the grid during emergency situations; and
(5) any other standards deemed by the board to be in the public interest.
b. No later than six months after the effective date of this section, the board shall publish and maintain the responsible infrastructure development standards developed pursuant to this section on a webpage on the board’s Internet website, in a manner that is accessible to Internet search engines.
c. The owner or operator of an existing or proposed AI data center may apply to the board, in a form and manner determined by the board, for certification that the AI data center meets the standards established pursuant to this section. The board shall publish and maintain a list of each data center certified pursuant to this section on a webpage on the board’s Internet website, in a manner that is accessible to Internet search engines.
5. The Board of Public Utilities shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.
6. This act shall take effect immediately.
STATEMENT
This bill, to be known as the “Clean Energy AI Incentivization Act,” would direct the Board of Public Utilities (BPU) to establish a set of responsible infrastructure development standards applicable to artificial intelligence (AI) data centers. The bill would also direct the BPU to establish a program to incentivize, including through tax credits, the construction of AI data centers that meet the standards.
The bill would require certain minimum provisions to be incorporated into the standards, including a requirement that the owners or operators of AI data centers construct the energy generation facilities to meet, or otherwise be responsible for, the energy generation needs of the data center. The standards would also require AI data centers to include energy storage methods that allow the data center to continue functioning without drawing power from the grid during emergency situation. Under the bill, these energy storage methods would include fuel cells, an energy storage method that allows for fast and easy deployment, creates employment opportunities for New Jersey residents, involves no distribution charges, and can provide clean power with limited byproducts.
The BPU would be required to publish and maintain the standards on its website. The bill would also require the BPU to develop a method by which to certify existing or proposed data centers that meet the standards. The bill would require the BPU to publish a list of the certified data centers on its website.