California Legislature Sends Environmental Bills, Including Data Center Regulations, to Governor Newsom
California legislators have passed several environmental bills, including measures specifically targeting data center water and electricity consumption, which are now awaiting Governor Gavin Newsom's action. These bills aim to address environmental concerns and ensure fair costs for California ratepayers, with the governor facing a September 30 deadline to act on the legislation.
California's Legislature has advanced a series of environmental bills to Governor Gavin Newsom, including several measures targeting data centers, with a deadline of September 30 for his action. Among these, Senate Bill 954, authored by state Sen. Catherine Blakespear (D-Encinitas), seeks to repeal an exemption from the California Environmental Quality Act (CEQA) for certain manufacturing plants, requiring more rigorous review, including public hearings, for projects seeking such exemptions. The original exemption was part of changes approved in 2025 that have drawn criticism for enabling the stalling of developments.
A key focus of the new legislation is the environmental impact of data centers, which are facing bipartisan scrutiny nationwide. Assembly Bill 2469, by Assemblymember Diane Papan (D-San Mateo), would prohibit cities and counties from expanding existing data centers or building new ones unless operators submit plans for water preservation during droughts. A related measure, AB 2619, also by Assemblymember Papan, would compel operators to provide water usage estimates under penalty of criminal prosecution.
Furthermore, Assembly Bill 2383, introduced by Assemblymember Rick Zbur (D-Los Angeles), mandates that data center operators pay utilities a tariff based on their electricity demands. This aims to prevent California ratepayers from bearing the full cost of powering these facilities. Another bill, Assembly Bill 2313, from Assemblymember Marc Berman (D-Menlo Park), would require the California Public Utilities Commission to create a program offering monetary incentives for customers to switch from gas to electric service lines, addressing indoor air pollution concerns.