Existing law authorizes the legislative body of an incorporated city and the county board of supervisors to license businesses carried on within their respective jurisdictions and to set license fees, as specified.
This bill would require a person who owns or operates a data center, as defined, to provide, when applying to a city or a county for an initial business license, equivalent instrument, or permit, under penalty of perjury, on the application, an estimate of the expected water use. The bill would require a person who owns or operates a data center to provide, when applying to a city or county for a renewal of a business license, equivalent instrument, or permit, under penalty of perjury, on the application, a report of the annual water use. By expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would require a city or county to require a data center operating within its jurisdiction, as a condition for obtaining or renewing a business license, to meet efficiency standards, as determined by the local jurisdiction, as provided. By imposing additional duties on cities and counties, the bill would impose a state-mandated local program.
Existing law establishes the State Energy Resources Conservation and Development Commission with various responsibilities with respect to developing and implementing the state's energy policies. Existing law establishes the Department of Water Resources within the Natural Resources Agency and prescribes the powers and responsibilities of the department.
This bill would require the department and the commission to develop guidelines and best practices to maximize the use of natural resources to address the developing and emerging needs of technology in California that are consistent with urban water use objectives, as provided, and specified federal law.
Existing law requires a public entity, as defined, to conduct a water usage demand analysis, as defined, prior to completing, or as part of, a cost-of-service analysis conducted to set fees and charges for water service that are consistent with applicable law. Existing law requires a public entity to identify, within the water usage demand analysis, the costs of water service for the highest users, as defined, incurred by the public entity, and the average annual volume of water delivered to high water users.
This bill would require a public entity to additionally identify, within the above-described water usage demand analysis, the average volume of water delivered to data centers. By requiring a higher level of service of public entities, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for specified reasons.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Statutes affected:
03/24/25 - Amended Assembly: 390.1 WAT, 390.1 WAT
04/10/25 - Amended Assembly: 390.1 WAT