House Bill 0076

H.B. 76 Data Center Water Transparency Amendments

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• Bill Text

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• Status

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• Hearings/Debate

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Amended

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Printer Friendly

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H.B. 76 S1

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Data Center Water Transparency Amendments

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2026 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Jill Koford

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Senate Sponsor: Scott D. Sandall

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LONG TITLE

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General Description:

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This bill addresses reporting related to water use and data centers.

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Highlighted Provisions:

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This bill:

▸

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defines terms;

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▸

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directs land use authorities to issue certain notices;

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▸

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requires certain large data centers to communicate with water providers;

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▸

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requires reporting by operators of certain data centers before construction and annually;

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▸

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addresses disclosure of the reported information;

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▸

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provides for enforcement mechanisms;

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▸

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addresses rulemaking; and

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▸

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makes technical and conforming amendments.

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Money Appropriated in this Bill:

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None

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Other Special Clauses:

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None

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Utah Code Sections Affected: AMENDS:

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73-2-25

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, as last amended by Laws of Utah 2014, Chapter 369

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ENACTS:

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73-5-8.3

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, Utah Code Annotated 1953

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Be it enacted by the Legislature of the state of Utah:

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Section 1. Section 73-2-25

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is amended to read:

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73-2-25. State engineer enforcement powers.

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(1)

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For purposes of this section, "initial order" means one of the following issued by the state engineer: (a)

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a notice of violation; or

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(b)

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a cease and desist order.

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(2)

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(a)

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Except as provided in Subsection (2)(b)

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, the state engineer may commence an enforcement action under this section if the state engineer finds that a person: (i)

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is diverting, impounding, or using water for which no water right has been established;

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(ii)

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is diverting, impounding, or using water in violation of an existing water right;

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(iii)

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violates Section 73-5-4

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;

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(iv)

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violates Section 73-5-9

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;

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(v)

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violates a written distribution order from the state engineer;

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(vi)

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violates Section 73-3-29

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;

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(vii)

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violates a notice or order regarding dam safety issued under Chapter 5a, Dam Safety

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;

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(viii)

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fails to submit a report required by Section 73-3-25

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; or

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(ix)

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engages in well drilling without a license required by Section 73-3-25

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.

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; or

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(x)

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fails to submit a report required by Section 73-5-8.3

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.

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(b)

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The state engineer may not commence an enforcement action against a person under Subsection (2)(a)(i)

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, if the person directly captures, or stores, precipitation on the surface of, or under, a parcel owned or leased by the person, including in a catch basin, storm drain pipe, swell, or pond, if the collection or storage: (i)

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is consistent with local laws and ordinances;

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(ii)

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does not interfere with an existing water right; and

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(iii)

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is designed to slow, detain, or retain storm water or protect watersheds from pollution with the intention that the precipitation: (A)

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absorbs into the ground or is released for discharge; and

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(B)

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is not put to beneficial use.

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(c)

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To commence an enforcement action under this section, the state engineer shall issue an initial order, which shall include: (i)

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a description of the violation;

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(ii)

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notice of any penalties to which a person may be subject under Section 73-2-26

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, except a person who violates Section 73-5-8.3

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is subject to the penalties in Section 73-5-8.3

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; and

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(iii)

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notice that the state engineer may treat each day's violation of the provisions listed in Subsection (2)(a)

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as a separate violation under Subsection 73-2-26(1)(d)

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or Section 73-5-8.3

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.

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(d)

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The state engineer's issuance and enforcement of an initial order is exempt from Title 63G, Chapter 4, Administrative Procedures Act

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(3)

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In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act

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, the state engineer shall make rules necessary to enforce an initial order, which shall include: (a)

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provisions consistent with this section and Section

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Sections

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73-2-26

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and 73-5-8.3

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for enforcement of the initial order if a person to whom an initial order is issued fails to respond to the order or abate the violation;

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(b)

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the right to a hearing, upon request by a person against whom an initial order is issued; and

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(c)

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provisions for timely issuance of a final order after: (i)

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the person to whom the initial order is issued fails to respond to the order or abate the violation; or

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(ii)

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a hearing held under Subsection (3)(b)

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(4)

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A person may not intervene in an enforcement action commenced under this section.

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(5)

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After issuance of a final order under rules made pursuant to

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in accordance with

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Subsection (3)(c)

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, the state engineer shall serve a copy of the final order on the person against whom the order is issued by: (a)

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personal service under Utah Rules of Civil Procedure , Rule

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5; or

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(b)

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certified mail.

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(6)

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(a)

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The state engineer's final order may be reviewed by trial de novo by the district

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court with jurisdiction

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in: (i)

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Salt Lake County; or

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(ii)

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the county where the violation occurred.

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(b)

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A person shall file a petition for judicial review of the state engineer's final order issued under this section within 20 days from the day on which the final order was served on that person.

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(7)

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The state engineer may bring suit in a court of competent

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with

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jurisdiction to enforce a final order issued under this section.

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(8)

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If the state engineer prevails in an action brought under Subsection (6)(b)

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or (7)

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, the state may recover all court costs and a reasonable attorney fee.

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Section 2. Section 73-5-8.3

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is enacted to read:

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73-5-8.3. Reporting by large data centers.

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(1)

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As used in this section:

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(a)

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"Construction activity" means a physical activity necessary to construct a large data center as may be defined by the division by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

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(b)

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"Division" means the Division of Water Rights.

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(c)

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"Land use authority" means:

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(i)

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a land use authority, as defined in Section 10-9a-103

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, of a municipality; or

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(ii)

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a land use authority, as defined in Section 17-27a-103

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, of a county.

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(d)

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"Large data center" means a facility that:

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(i)

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houses a group of networked server computers in one physical location to disseminate, manage, and store data and information as the primary service of the facility;

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(ii)

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consists of one or more buildings that in total equals or exceeds 10,000 square feet;

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(iii)

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includes facilities and infrastructure for:

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(A)

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environmental control, cooling, and security required to deliver the desired service with respect to a specific facility; or

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(B)

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generation by the operator of the large data center of energy to power a specific facility delivering the desired service;

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(iv)

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is owned or leased by:

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(A)

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the operator of the data center facility; or

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(B)

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a person under common ownership, as defined in Section 59-7-101

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, of the operator of the data center facility; and

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(v)

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is located on one or more parcels of land that are owned or leased by:

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(A)

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the operator of the data center facility; or

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(B)

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a person under common ownership, as defined in Section 59-7-101

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, of the operator of the data center facility.

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(e)

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"Municipality" means the same as that term is defined in Section 10-1-104

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.

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(f)

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"Operator of the large data center" means the owner or operator of the large data center, or other person who has comparable rights of use over a large data center, including any person responsible for allocating space for external use of information technology and network telecommunications equipment within a large data center.

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(g)

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"Water provider" means:

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(i)

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a retail water supplier, as defined in Section 19-4-102

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; or

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(ii)

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a water conservancy district formed under Title 17B, Chapter 2a, Part 10, Water Conservancy District Act.

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(2)

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Before a land use authority of a municipality or county approves a land use application for a large data center, the land use authority shall notify the following by mail or email:

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(a)

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the division;

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(b)

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the Division of Water Quality; and

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(c)

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the relevant water supplier, if any.

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(3)

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Beginning January 1, 2027, at least

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180

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90

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days, but no sooner than 360 days, before the operator of the large data center facility begins construction activities related to a large data center, the operator of the large data center shall:

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(a)

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communicate with the water provider that will provide water to the large data center facility to demonstrate from where the large data center facility anticipates obtaining the water used; and

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(b)

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report to the division:

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(i)

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the municipality and county in which the large data center will be located;

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(ii)

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the organization of the planned large data center as a single operator enterprise or managed data center, colocated facility, or a container or modular data center;

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(iii)

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the projected amount of water that the large data center will divert annually;

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(iv)

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how the projected amount of water used will be used;

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(v)

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the projected annual discharges by type and amount;

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(vi)

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how discharges will be treated, if applicable;

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(vii)

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whether and, if so, the extent to which discharge temperature will be adjusted; and

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(viii)

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whether and, if so, the extent to which the large data center will engage in water reuse or activities to replace water used by the large data center.

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(4)

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(a)

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Subject to Subsection (4)(b)

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, after a large data center begins operation, the operator of the large data center shall report to the division:

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(i)

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updates, if any, to the information reported under Subsection (3)

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;

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(ii)

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efforts made to reduce water consumption over the past calendar year;

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(iii)

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a comparison of:

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(A)

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projected water use for the calendar year previous to the year being reported on;

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(B)

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actual use for the calendar year being reported on; and

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(C)

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projected water use for the next calendar year;

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(iv)

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efforts to protect the environment and public from polluted water in the previous calendar year; and

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(v)

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other information required by the division by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

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(b)

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Beginning January 1, 2027, an operator of a large data center shall report to the division the information required by Subsection (4)(a)

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:

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(i)

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annually by no later than March 1; and

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(ii)

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for the previous calendar year.

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(5)

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(a)

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The division shall publish water use data for each large data center that is reported by a large data center under Subsection (3)(b)

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or (4)(a)

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on the division's public website by no later than July 1 for the previous calendar year, and not in the aggregate.

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(b)

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Notwithstanding Subsection (5)(a)

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, the division shall treat information as proprietary information that may not be disclosed as a protected record under Subsection 63G-2-305(2)

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if:

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(i)

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the operator of the large data center complies with Section 63G-2-309

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; and

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(ii)

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the information is reported to the division under:

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(A)

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Subsections (3)(b)(iv)

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through (viii)

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;

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(B)

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Subsection (4)(b)(i)

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, to the extent that it is not water use data;

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(C)

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Subsection (4)(a)(ii)

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or (iv)

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; or

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(D)

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Subsection (4)(a)(v)

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, if at the time the division requires the information by rule, the division provides that the division will treat the information as a protected record in accordance with this Subsection (5)(b)

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.

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(c)

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The division shall annually disclose by no later than July 1 aggregated and anonymized data based on the information that is a protected record described in Subsection (5)(b)

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:

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(i)

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on the division's public website; and

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(ii)

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to each municipality or county in which is located a large data center required to report under this section.

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(d)

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Notwithstanding the other provisions of this Subsection (5)

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, the division shall provide non-proprietary information from a report under Subsection (3)

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or (4)

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to the Division of Water Quality and the relevant water provider, if any.

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(6)

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(a)

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The division may enforce the reporting requirements in accordance with this Subsection (6)

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.

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(b)

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If the operator of a large data center fails to submit a report required under Subsection (3)

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or (4)

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or submits an incomplete report, the division shall notify the operator of the large data center of the failure or incompleteness.

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(c)

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If the operator of the large data center fails to submit a complete report after receipt of notice under Subsection (6)(b)

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, the division shall impose a fine in accordance with Section 73-2-25

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of up to $10,000 for each day the operator of the large data center fails to comply with this Subsection (6)

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.

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(d)

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The division shall deposit money collected under this Subsection (6)

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into the General Fund.

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Section 3. Effective Date.

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This bill takes effect on May 6, 2026

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.

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