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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:ActionDate>2025-09-10</ns0:ActionDate>
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<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-15</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Papan</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Papan</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add Sections 16000.4 and 16100.4 to the Business and Professions Code, and to add Section 10609.35 to the Water Code, relating to water. </ns0:Title>
<ns0:RelatingClause>water</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Water resources: data centers.</ns0:Subject>
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<ns0:DigestText>
<html:p>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.</html:p>
<html:p>This bill would require a person who owns or operates a data center, prior to applying to a city or a county for an initial business license, equivalent instrument, or permit, to provide its water supplier, under penalty of perjury, an estimate of the expected water use. When applying to a city or county for an initial business license, the bill would require a person who owns or operates a data center to self-certify, under penalty of perjury, on the application that the person has provided its water supplier an estimate of the expected water use. When applying to a city or county for a renewal of a business license, equivalent
instrument, or permit, the bill would require a person who owns or operates a data center to self-certify, under penalty of perjury, on the application, that they have provided the data center’s water supplier with 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 authorize the
Department of Water Resources, as part of any efficiency standard adopted under a specified provision of law, to identify different tiers of data centers, based on factors affecting water consumption, and appropriate standards for each data tier. The bill would define terms for purposes of these provisions.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_D3479EBF-F391-4BE6-85BD-E7887B7CE8F0">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
It is the intent of the Legislature that data centers are considered commercial, industrial, and institutional users under the state’s “Making Conservation a California Way of Life” regulation (Article 1 (commencing with Section 965) of Chapter 3.5 of Division 3 of Title 23 of the California Code of Regulations), consistent with the urban water use objectives under Chapter 9 (commencing with Section 10609) of Part 2.55 of Division 6 of the Water Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Legislature finds and declares that the growth of data center operations has created increasing demand for water and energy resources, which may have implications for statewide sustainability goals. The Department of Water Resources possesses the technical expertise, planning capacity, and regulatory experience necessary to evaluate and develop efficiency standards that balance operational reliability with resource conservation.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
It is the intent of the Legislature to encourage the department to examine, in consultation with relevant stakeholders, potential efficiency measures for data centers that align with California’s environmental, economic, and infrastructure objectives. The Legislature further finds that such exploration should include consideration of water use efficiency, energy demand management, and the
integration of emerging technologies, while respecting the operational requirements and economic realities of the sector.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_0A7184F8-4F03-4E30-A6F3-394F9518D2A4">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 16000.4 is added to the
<ns0:DocName>Business and Professions Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_5BE11ECA-2890-44CE-85D2-8FD7CDB66A77">
<ns0:Num>16000.4.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, “data center” means a room, or portion of a room, in a building used primarily to house information technology equipment that serves a total information technology equipment load greater than 10 kilowatts and 20 watts per square foot of conditioned floor area.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “water supplier” means either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Urban water supplier,” as defined by Section 10617 of the Water Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Community water system,” as
defined by Section 116275 of the Health and Safety Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Prior to applying to a city for an initial business license, equivalent instrument, or permit, a person who owns or operates a data center shall provide its water supplier, under penalty of perjury, an estimate of the expected water use.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When applying to a city for an initial business license, equivalent instrument, or permit, a person who owns or operates a data center shall self-certify, under penalty of perjury, on the application, that they have provided its water supplier an estimate of the expected water use.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
When applying to a city for a renewal of a business license, equivalent instrument, or permit, a person who owns or
operates a data center shall self-certify, under penalty of perjury, on the renewal application, that they have provided the data center’s water supplier with a report of annual water use.
</html:p>
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<ns0:BillSection id="id_A3D582F2-F062-4A7F-A023-040370BAC04F">
<ns0:Num>SEC. 3.</ns0:Num>
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Section 16100.4 is added to the
<ns0:DocName>Business and Professions Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_EB4004A5-66CB-4842-BA6A-7C4012A668C7">
<ns0:Num>16100.4.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, “data center” means a room, or portion of a room, in a building used primarily to house information technology equipment that serves a total information technology equipment load greater than 10 kilowatts and 20 watts per square foot of conditioned floor area.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “water supplier” means either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Urban water supplier,” as defined by Section 10617 of the Water Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Community water system,” as defined by Section 116275 of the Health and
Safety Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Prior to applying to a county for an initial business license, equivalent instrument, or permit, a person who owns or operates a data center shall provide its water supplier, under penalty of perjury, an estimate of the expected water use.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When applying to a county for an initial business license, equivalent instrument, or permit, a person who owns or operates a data center shall self-certify, under penalty of perjury, on the application, that they have provided its water supplier an estimate of the expected water use.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
When applying to a county for a renewal of a business license, equivalent instrument, or permit, a person who owns or operates a data center shall
self-certify, under penalty of perjury, on the renewal application, that they have provided the data center’s water supplier with a report of annual water use.
</html:p>
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</ns0:LawSection>
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<ns0:BillSection id="id_D6ADB92F-DC9A-4308-9B9F-115638326ED1">
<ns0:Num>SEC. 4.</ns0:Num>
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Section 10609.35 is added to the
<ns0:DocName>Water Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_9C98D75F-DC1B-43DF-81B7-827D041F23EC">
<ns0:Num>10609.35.</ns0:Num>
<ns0:LawSectionVersion id="id_D5EDF407-A089-4A85-9098-0CAA6775A162">
<ns0:Content>
<html:p>As part of adopting any efficiency standard pursuant to this chapter, the department may identify different tiers of data centers, as defined in Sections 16000.4 and 16100.4 of the Business and Professions Code, based on factors affecting water consumption, and appropriate standards for each data center tier.</html:p>
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</ns0:LawSection>
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<ns0:BillSection id="id_D65D5FD5-17BE-432E-AC7A-AB15DAE0461F">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that water conservation is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 2 and 3 of this act adding Sections 16000.4 and 16100.4 to the Business and Professions Code apply to all cities, including charter cities.</html:p>
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<ns0:BillSection id="id_3E7E8F69-5257-4C2F-9253-10E94D801B5C">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California
Constitution.
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