Cuellar announces federal legislation to shield taxpayers from data center costs

U.S. Rep. Henry Cuellar introduced the proposed Ratepayer Bill of Rights Act of 2026 at a press conference in Laredo, Texas, alongside local officials including Laredo Mayor Dr. Victor Trevino and District III Councilmember Melissa Cigarroa, and state Rep. Richard Raymond. The federal legislation seeks to shield utility customers from infrastructure and resource costs associated with large data centers. Cuellar emphasized that data centers should bear the costs they create for electricity, water, wastewater capacity, and public infrastructure, not local families.

The act outlines ten key protections, including requirements for data centers to disclose projected and actual electricity and water usage, utility agreements, and infrastructure costs. It also prohibits cost-shifting to existing customers, protects community water access during emergencies, and extends protections to rural families regarding water supplies. The bill mandates public notice and meetings for projects, disclosure of financial interests by public officials, and a complaint process with enforcement by federal and state regulators.

This federal proposal aligns with Laredo's ongoing efforts to develop its own permanent regulations for data centers, following public debate over their potential demands on local resources. Mayor Trevino noted Laredo's focus on securing secondary water sources due to its limited supply and stated that data centers might be inappropriate for the community given its water scarcity. State Rep. Richard Raymond announced plans to draft state-level legislation using Cuellar's proposal as a template, potentially granting local governments greater authority over data center development and requiring data centers to provide their own electricity. Councilmember Cigarroa also suggested requiring developers to post bonds for site reclamation after data center operations cease.