What could Newsom enact into law around data centers?
California lawmakers are pushing for new legislation that would require data centers to pay for all increased energy costs and disclose their monthly electricity and water usage. These bills, currently on Governor Newsom's desk, aim to increase transparency and accountability to protect ratepayers and communities from negative impacts.
California lawmakers are advancing legislation designed to increase transparency and accountability for data centers, particularly concerning their energy and water consumption. The proposed bills, currently awaiting Governor Newsom's signature, aim to shift the burden of increased energy costs from ratepayers to data center operators and mandate monthly disclosure of electricity usage by existing facilities, with proposed usage required during the permitting process for new centers.
State Senator Steve Padilla is leading efforts to ensure data centers bear the full cost of their electricity demands, including any necessary grid upgrades and new transmission lines identified by entities like the California Independent Systems Operator. The California Public Advocate's Office has warned that without such measures, billions in upgrade costs could be passed on to consumers. Assembly Member Rebecca Bauer Cahan's bill specifically addresses energy reporting requirements, intending to build a more stable grid without impacting ratepayers.
The legislative push also includes efforts to require greater disclosure of water usage by data centers. While Assembly Member Josh Hoover, a Republican, expressed concerns about overregulation potentially stifling innovation, the overarching goal is to balance economic growth with community well-being. Governor Newsom has until the end of September to decide on signing or vetoing these bills.