Data centers: water use disclosures.

Entire Section 2 (adding Water Code Section 10609.13) was deleted. This section required DWR, in coordination with the State Water Resources Control Board, to develop a definition and estimate of annual water consumption for CII water users qualifying as large consumptive-use facilities, including data centers, by June 30, 2028.

The detailed 'water use assessment' definition was removed. It had required applicants to provide a description of the data center, a detailed accounting of expected water intake (daily, monthly, and 12-month), an explanation of each direct water use with quality requirements and consumptive volumes, and a cooling alternatives analysis comparing the proposed method to alternatives including closed-loop cooling.

The requirement for applicants to provide 'all water resource plans, water usage reports, supporting documentation, and any approvals issued by a state or local agency related to the plans or applications' was removed from the list of required disclosures.

Infrastructure cost determination authority changed from 'the Department of Water Resources or the applicable water supplier' to only 'the applicable water supplier,' removing DWR from that role.

A severability clause was added (new paragraph (3) of subdivision (b)) stating that if the infrastructure cost provision is held invalid, that invalidity shall not affect other provisions or applications of the section.

The definitions subsection was simplified from two defined terms ('water scarcity plan' and 'water use assessment') to a single definition ('water scarcity plan').

New paragraph (3) in Section 65964.7(b) states that nothing in the section requires a local agency to approve a data center permit or entitlement solely because the applicant satisfied all the water-related conditions. This preserves local government discretion to deny projects for other reasons.

The water supply assessment requirement in Section 65964.7(b)(1)(A) was changed from 'if applicable' to 'for the construction or expansion,' making it a firm requirement tied to the project rather than a conditional one.

Section 10609.13(a) now requires the Department of Water Resources to develop both a definition and an estimate of annual water consumption (not just recommend a classification system), broadening the scope of the state's analytical obligation.

The CII classification now applies to 'large consumptive-use facilities, including data centers and similar water consumption patterns,' expanding coverage beyond data centers to other facilities with comparable water use profiles.

CII outdoor irrigation water use served through a dedicated irrigation meter is explicitly excluded from the definition and estimate of annual water consumption, preventing landscape irrigation from inflating data center water use figures.

The bill text was reformatted from a printed legislative document style (with line numbers, page headers/footers, and fixed-width indentation) into a web page layout with navigation elements (home, accessibility, FAQ, feedback, sitemap, login), a quick search box, and a version history selector. No statutory language was changed.

Removed the requirement that water scarcity plans be implemented under 25-, 50-, and 100-year drought scenarios. Plans must still address abnormally dry through exceptional drought years as defined by the U.S. Drought Monitor, but no longer need to map those to specific return-period scenarios.

Removed the requirement in water use assessments to make 'a distinction between withdrawals and deliveries.' The assessment now only requires reporting of 'water withdrawals' as a line item under expected water intake.

Removed 'commissioning or' from the list of operations that must be explained in the direct water use section of a water use assessment. Only 'maintenance operations' remains listed alongside cooling, humidification, potable/sanitary, and fire suppression uses.

Fixed a drafting error in the disclosure requirements: changed 'any approval issues approvals issued by a state or local agency' to 'any approvals issued by a state or local agency.'

Renumbered conditions in Section 65964.7(b): the full-cost infrastructure responsibility condition was renumbered from (3) to (2), with an empty (3) left in its place. All three substantive conditions (document submission, overdrafted basin prohibition, and cost responsibility) remain intact.

Removed the condition that data center construction or expansion cannot be located within a groundwater basin designated as critically overdrafted by the Department of Water Resources. The Assembly version included a waiver provision allowing exceptions for projects that did not pose disproportionate risk to environmental justice communities, but the entire prohibition is now gone.

Changed the water use disclosure requirement from 'projected and actual water use and water efficiency measures' to only 'projected water use and water efficiency measures,' eliminating the obligation for applicants to report their actual water consumption data.

Clarified the water supply assessment language to specify it is 'for the construction or expansion,' though the amendment text appears somewhat garbled in the markup.

The bill no longer amends Water Code Section 13500 (Water Recycling Law). The prior version included a nonsubstantive amendment to that section, which has been entirely deleted along with its related digest language.

Specific deadlines were inserted: the Department of Water Resources must recommend a CII water use classification for large consumptive use facilities (including data centers) no later than June 30, 2028, and the State Water Resources Control Board must adopt it no later than December 31, 2029.

The definition of 'water scarcity plan' now requires measures to be implemented under specific drought year categories: abnormally dry year, moderate drought year, severe drought year, extreme drought year, and exceptional drought year, as defined by the United States Drought Monitor. Previously it only referenced 25-, 50-, and 100-year drought scenarios.

The permit approval trigger in Section 1(b) now reads 'maximum peak water use' instead of 'maximum peak use,' making explicit that the threshold refers to water consumption.

The water use assessment's direct water use list in subsection (C) now reads 'including, but not limited to' rather than a closed list, allowing local agencies to require disclosure of additional water uses beyond cooling, humidification, potable/sanitary, fire suppression, and commissioning/maintenance.

The cost-of-service study requirement was clarified to specify it must be 'completed by the applicable water provider' within the last five years, rather than simply 'completed within the last five years.'

Subsection (B)(iv) of the water use assessment was changed from 'A distinction between withdrawals and deliveries' to simply 'Water withdrawals,' narrowing the required disclosure.

Added Section 65964.7 to the Government Code, which prohibits any city, county, or city and county from approving a discretionary or ministerial permit for data center construction or expansion that increases maximum peak use unless specific conditions are met. This applies statewide including charter cities.

Added a legislative finding that water conservation is a matter of statewide concern rather than a municipal affair, making the new provisions applicable to all cities including charter cities.

Data center applicants must provide a water supply assessment, a detailed water use assessment (including cooling alternatives analysis, indirect water use from energy production, and a cost-of-service study), projected and actual water use data, and workforce disclosures covering composition, wages, job classifications, and local residency proportions.

A water scarcity plan addressing 25-, 50-, and 100-year drought scenarios (including staged withdrawal reductions, nonessential use curtailment, recycling, thermal load reductions, and temporary load shedding) is required beginning January 1, 2028.

Data centers cannot be built or expanded within boundaries of a groundwater basin designated as critically overdrafted by the Department of Water Resources, though the department may waive this if a comprehensive assessment shows no disproportionate risk to environmental justice communities.

Applicants must assume full cost of any required water conveyance, treatment or storage, or distribution infrastructure improvements necessary to serve the project, as determined by DWR or the applicable water supplier.

Fiscal notes changed from 'Fiscal committee: no' and 'State-mandated local program: no' to 'yes' for both, reflecting that the bill now imposes state-mandated local programs with fiscal impact. No state reimbursement is required because local agencies can levy sufficient fees.

Added Section 10609.13 to the Water Code requiring DWR to recommend and the State Water Resources Control Board to adopt a CII water use classification system specifically for large consumptive use facilities including data centers, separate from other CII classifications. Implementation dates are left blank.