Two data center-related California bills head to Gov. Newsom's desk
Two data center-related bills, AB 2383 and SB 886, have passed the California legislature and are now awaiting Governor Newsom's signature. These bills aim to establish special rate structures for large data centers and create new permitting and transparency rules to prevent cost shifting to regular customers and address water concerns.
California lawmakers have passed Assembly Bill 2383 and Senate Bill 886, both related to data center development, sending them to Governor Gavin Newsom for his signature or veto by the end of September. The legislation directs the California Public Utilities Commission to establish a special rate structure for large data centers and introduces new permitting and transparency requirements.
Proponents, such as Sen. Ben Allen (D-Santa Monica), argue the measures strike a balance between supporting industry growth and protecting ratepayers and water systems. Conversely, Sen. Suzette Valladares (R-Santa Clarita) expressed concerns that the bills go beyond mere disclosure, creating additional permitting hurdles that could deter AI investments and job creation in California. Governor Newsom has indicated he will address the bills once they reach his desk.