AB2469 - Data centers: water use disclosures.

Enrolled September 04, 2026 Passed IN Senate August 30, 2026 Passed IN Assembly August 31, 2026 Amended IN Senate August 27, 2026 Amended IN Senate August 13, 2026 Amended IN Senate July 02, 2026 Amended IN Senate June 15, 2026 Amended IN Assembly May 22, 2026 Amended IN Assembly April 08, 2026 Amended IN Assembly March 16, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2469 Introduced by Assembly Member Papan February 20, 2026 An act to add Section 65964.7 to the Government Code, relating to water. LEGISLATIVE COUNSEL'S DIGEST AB 2469, Papan. Data centers: water use disclosures. The Planning and Zoning Law authorizes the legislative body of any county or city to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, businesses, residences, and open space, as specified. This bill would prohibit a city, county, or city and county from approving a discretionary or ministerial permit or other entitlement that would result in the construction, or an expansion that increases the maximum peak water use, of a data center unless specified conditions are satisfied, including, among others, that the applicant provides the city, county, or city and county prescribed information. The bill would include in this prescribed information a water scarcity plan and a water supply assessment, each as provided. The bill would also include in the specified conditions that the applicant assumes responsibility for the full cost of any required water conveyance, treatment or storage, or distribution infrastructure improvements necessary to serve the project, as determined by the applicable water supplier. The bill would provide that this provision is severable. By expanding the duties of local agencies to administer these provisions, this 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 no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 65964.7 is added to the Government Code, to read: 65964.7. (a) For purposes of this section, “water scarcity plan” means a report that includes measures to be implemented during an abnormally dry year, a moderate drought year, a severe drought year, an extreme drought year, and an exceptional drought year, as defined by the United States drought monitor, including staged withdrawal reductions, nonessential use curtailment, recycling and reuse, thermal load reductions, and temporary load shedding where necessary. (b) Notwithstanding any other law, a city, county, or city and county shall not approve a discretionary or ministerial permit or other entitlement that would result in the construction, or expansion that increases the maximum peak water use, of a data center unless all of the following conditions are satisfied: (1) The applicant has provided the city, county, or city and county with all of the following: (A) A water supply assessment, as described in Part 2.10 (commencing with Section 10910) of Division 6 of the Water Code, for the construction or expansion. (B) Beginning January 1, 2028, a water scarcity plan, as defined in subdivision (a). (C) Projected water use and water efficiency measures. (D) Disclosures regarding estimated workforce needs associated with the project, including all of the following: (i) Workforce composition. (ii) Job classifications. (iii) Employment duration. (iv) Wage ranges and benefits. (v) The proportion of the workforce residing within the county in which the project is located. (vi) The proportion of the workforce residing within the state. (2) The applicant assumes responsibility for the full cost of any required water conveyance, treatment or storage, or distribution infrastructure improvements necessary to serve the project, as determined by the applicable water supplier. (3) Nothing in this section shall be construed to require a city, county, or city and county to approve a permit, entitlement, or other approval for the construction or expansion of a data center solely because the applicant has satisfied the requirements of this subdivision. (c) Paragraph (2) of subdivision (b) is severable. If paragraph (2) of subdivision (b) or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 2. 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, Section 1 of this act adding Section 65964.7 to the Government Code applies to all cities, including charter cities. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.