A3966: Requires DEP to conduct study of short and long term effects of water use by large-scale data…

A3966 1R [First Reprint] ASSEMBLY, No. 3966 STATE OF NEW JERSEY 222nd LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION Sponsored by: Assemblyman ROBERT J. KARABINCHAK District 18 (Middlesex) Assemblyman  RAVI S. BHALLA District 32 (Hudson) Assemblywoman  ALIXON COLLAZOS-GILL District 27 (Essex and Passaic) Co-Sponsored by: Assemblymen Scharfenberger and Sampson SYNOPSIS Requires DEP to conduct study of short and long term effects of water use by large-scale data centers. CURRENT VERSION OF TEXT As reported by the Assembly Environment and Solid Waste Committee on March 16,  2026, with amendments. An Act requiring DEP to conduct an evaluation of the effects of water use by large-scale data centers. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1.    As used in this act: “Artificial intelligence” or “AI” means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. “Board” means the Board of Public Utilities. 1 [“Data center” means a facility primarily used for the storage, management, and processing of digital or artificial intelligence data.  “Data center” includes facilities that house computer and network systems, including servers, network equipment and appliances, telecommunications, storage systems, monitoring systems, Internet-related equipment and services, data communications connections, environmental controls, fire protection systems, and security systems and services.] 1 “Department” means the Department of Environmental Protection. 1 “Large-scale data center” means a facility primarily used for the storage, management, and processing of digital or artificial intelligence data that meets or exceeds thresholds established by the department, in consultation with the board, based on factors including, but not limited to, water use, electric demand, physical size, cooling capacity, computing capacity, or other indicators of substantial resource consumption.  “Large-scale data center” includes facilities that house computer and network systems, including servers, network equipment and appliances, telecommunications, storage systems, monitoring systems, Internet-related equipment and services, data communications connections, environmental controls, fire protection systems, and security systems and services. 1 2.    a.  No later than one year after the effective date of this act, the department shall conduct an evaluation of the effects of water use by large-scale data centers on drinking water systems, wastewater systems, and the environment.  The evaluation shall include, but not be limited to, the following information: (1)  the short-term effects of water use by large-scale data centers, measured over the preceding three years; (2)  the long-term effects of water use by large-scale data centers, measured over the preceding seven years; (3)  the anticipated effects of water use by large-scale data centers that may be constructed in the future, as distinct from existing large-scale data centers; (4)  any efforts undertaken by the department or by large-scale data center operators to reduce the use of water by large-scale data centers; (5)  how the use of water by large-scale data centers has impacted overall State water use and costs; (6)  how the use of water by large-scale data centers has affected the operational efficiency, cooling requirements, or uptime of the data center due to water constraints; (7)  the direct or indirect costs associated with the use of water by large-scale data centers, including impacts on public water systems, ratepayers, or infrastructure upgrades required to meet demand; (8)  an analysis of any feasible water use reduction strategies which could be implemented by any large-scale data centers operated in the State; and (9)  any other information which the department determines to be necessary to produce a comprehensive study. b. 1 In conducting the evaluation required pursuant to subsection a. of this section, the department may: (1)  require the owner or operator of a large-scale data center, public water system, wastewater utility, sewerage authority, or other relevant entity to submit such information as the department deems necessary, including, but not limited to, information related to: (a)  total annual and monthly water use; (b)  peak seasonal demand; (c)  the sources of water used and the percentage obtained from each source; (d)  whether the water used is potable, reclaimed, or other non-potable water; (e)  cooling technology or cooling method employed; (f)  material operational changes affecting water consumption; and (g)  any significant water reuse, recycling, or conservation practices; (2)  rely on permit records, utility records, estimates, and any other reasonably available information, if historical data is unavailable, incomplete, or inconsistent; and (3)  consult and coordinate with the board and utilize any relevant data reported to the board pursuant to State law. c. 1 No later than fifteen months after the effective date of this act, the department shall submit a written report, to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, concerning the findings of the evaluation conducted pursuant to subsection a. of this section.  The report may include, at the discretion of the Commissioner of Environmental Protection, recommendations for legislation to improve the laws of this State concerning the use of water by large-scale data centers. 3.    This act shall take effect immediately and shall expire upon submission of the written report to the Governor and the Legislature pursuant to section 2 of this act.