Assemblyman Rick Zbur explains possible data center regulations he helped write | CA Politics 360
California lawmakers are working to regulate data centers, which consume significant water and electricity, to ensure they benefit the state’s economy without harming public resources. Assemblyman Rick Zbur authored bills proposing new electricity rate structures and requirements for long-term power contracts, which now await Governor Newsom's approval.
California lawmakers are advancing legislation to regulate data centers across the state, aiming to balance economic benefits with environmental protection. Governor Gavin Newsom is expected to provide more details on these efforts soon, as several bills, co-authored by Assemblyman Rick Zbur, D-Los Angeles, await his signature.
Zbur's proposed regulations include requiring the California Public Utilities Commission (CPUC) to establish a special electricity rate structure for large data centers. This measure intends to prevent the high power costs of these facilities from shifting onto residential ratepayers. Additionally, the legislation would mandate data centers to secure long-term power purchase contracts, cover costs related to wildfires, and contribute to grid upgrades, which Zbur believes will ultimately lower electric rates for average Californians.
The CPUC is tasked with implementing these new regulations, a process Zbur estimates could take approximately one year. He highlighted that the legislature has provided specific guidelines, including requirements for ten-year contracts and a new tariff system designed to protect small businesses and homeowners from increased costs. Zbur also acknowledged community concerns about data center development, emphasizing the need for state-level oversight to ensure public protection, noting that banning data centers in certain areas might only displace them.
Beyond electricity and water usage, Zbur connected the regulations to the rapid evolution of artificial intelligence (AI), stressing the importance of proactive planning to protect the public from potential harms. He mentioned that Assembly members Rebecca Bauer-Kahan and Cottie Petrie-Norris are leading related efforts, including gathering more data on the industry and addressing privacy concerns associated with AI. Zbur concluded by emphasizing California's leadership role in this fast-moving regulatory challenge, anticipating further legislative action in upcoming cycles.