Newsom targets data center costs, resource usage with bevy of bills

The governor signed legislation intended to stop Californians from seeing higher utility bills, along with transparency and environmental safeguards.SACRAMENTO, Calif. (CN) — California Governor Gavin Newsom on Monday pointedly attacked President Donald Trump’s enthusiasm about data centers as he signed bills aimed at regulating the price and environmental impact of the controversial facilities.The seven bills, all written by Democratic lawmakers, touch on electricity, water and land use, along with transparency — aspects of data centers that opponents have decried for months.Newsom said in a statement: “While the Trump administration moves toward deregulation, communities are left to deal with the consequences — higher electricity demand, grid constraints, water use and pollution. Today we are once again laying the groundwork for a stronger approach, because we know that we don’t have to sell out Californians or sacrifice our well-being to innovate and succeed.”Trump has pushed back on bipartisan public concern and touted possibilities for growth, saying communities that refuse data centers could become “backwards and poor” and urging them to “let data reign.”The physical structures that house equipment needed for artificial intelligence and other technologies have generated heated public debate as the midterm elections approach.The California Energy Commission has indicated data center energy use is rising. Projections show massive growth over the next 10 years that could necessitate major infrastructure improvements.Authors of a bill analysis said data centers have high or continuous energy demands with little flexibility, leading to constant pressure on energy transmission and distribution.Some bills signed by Newsom target the possibility that data centers will drive up utility costs.Senate Bill 886, called the California Technology Innovation and Ratepayer Protection Act, requires the state Public Utilities Commission to update its rules, ensuring the costs for providing energy to data centers isn’t shifted to other customers. The bill was cowritten by Democratic state Senators Steve Padilla, of San Diego, and Jerry McNerney, of Pleasanton.Senate Bill 1168, also by McNerney, requires the commission to survey any excessive use of energy by data centers and ensure it doesn’t lead to rate increases.“Californians’ utility bills are already among the highest in the nation, and the rapid growth of data centers is threatening to send rates through the roof,” McNerney said in a statement. “SB 1168 helps ensure that data centers absorb the costs of their excessive energy use, not California ratepayers.”Newsom signed another bill by Padilla — Senate Bill 887, which subjects data center projects to the California Environmental Quality Act. A judge recently halted what would be the largest project in the state, determining the nearly 1 million-square-foot Imperial Valley Data Center project needed to be analyzed as a whole under the requirements in the act.Assembly Bill 2383 — by Assemblymember Rick Chavez Zbur, a West Hollywood Democrat — requires the Public Utlities Commission to create new pricing schedules for data centers.A handful of the bills focus on publicizing information about energy and water use, as the Environmental Protection Agency has proposed scaling back a federal requirement that states notify the public and seek comment before issuing air pollution permits for data centers and other industrial facilities.Assembly Bill 1577 — written by Assemblymember Rebecca Bauer-Kahan, an Orinda Democrat — requires data centers to report their energy usage to the California Energy Commission. The commission in turn will include that information in annual public reports.Data centers must provide similar information to local governments when seeking approval to build a center.Assembly Bill 2469 — written by Assemblymember Diane Papan, a San Mateo Democrat — requires data centers to give local agencies a water supply assessment and water scarcity plan before a new or expansion of a data center receives approval. The centers also must bear all costs of any water infrastructure updates needed.Also by Papan, Assembly Bill 2619 makes data center developers hand over water use information to water suppliers and local governments before they receive or renew a business license.“This bill ensures that local governments and water suppliers have the information they need to plan for new development without compromising water reliability for residents, agriculture, and businesses,” Papan said in a bill analysis.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads