Sen. Steve Padilla outlines legislation on data centers
California State Senator Steve Padilla introduced two bills (SB 866 and SB 887) aimed at requiring large-scale data centers to cover their own costs and adhere to strict environmental standards, preventing existing residents and businesses from bearing additional expenses or environmental burdens. These bills gained support from local officials and residents in Imperial County, who expressed concerns about the impact of proposed data centers on their community. The legislation seeks to ensure data centers use clean energy and are transparent about their environmental impacts.
California State Senator Steve Padilla championed two bills during a town hall meeting in El Centro on June 18, expressing strong opposition to proposed data centers that may negatively impact communities.
Senator Padilla outlined Senate Bill 866, the California Technology Innovation and Ratepayer Protection Act, which would mandate the California Public Utilities Commission to establish a special tariff for large-load electricity users, typically those with a peak demand of at least 75 MW. This ensures that data centers pay for the additional costs they incur, preventing existing households and businesses from facing higher utility bills. He emphasized the bill's bipartisan support, calling it "common sense" legislation.
He also described SB 887, a companion bill focused on the construction and powering of large AI data centers. This legislation would encourage data centers to be paired with clean-energy infrastructure and would impose higher environmental standards, requiring developers to procure power from renewable sources and be transparent about their environmental impacts and mitigation strategies. Padilla stressed that data center proposals would not be processed in secret or granted exemptions from California's environmental laws.
Imperial Valley resident Kristian Salgado and Imperial Mayor Ida Obeso-Martinez praised Padilla's proposed legislation, highlighting its necessity for Imperial County and its role in giving communities a voice in decisions affecting air quality. Conversely, proponents of industrial businesses, including data centers, argue that increasing regulatory constraints in California lead companies to relocate to more affordable states, citing a report from the Public Policy Institute of California that indicates a significant outflow of companies from the state.