California strengthens water security legislation

The need for a stronger water strategy in California

California, like many of its neighbouring states, has been suffering from long-term drought while experiencing growing demand from residential, commercial, and industrial users. 

According to statistics from the US government’s Drought Monitor website, while no areas are in ‘absolute’ drought, as of October 2025, 39 per cent of the state is experiencing between moderate and extreme drought conditions, compared to just over 14 per cent on the same date in 2024. The monitor estimates that 22.5 million residents live in areas experiencing drought. 

California is the fourth-largest economy in the world. However, it faces tough water supply challenges. These are exacerbated by recurring periods of drought and the over-reliance on imports and water taken from the Colorado River, which faces scarcity issues and uncertainty surrounding extraction rights. 

The US government has given the seven Colorado River Basin states, which include California, several deadlines to agree on new sharing rights. With reservoir levels falling and demand increasing along the river’s length, extraction rights are almost certain to be reduced, leaving the state to find new and alternative water sources. 

 

Updating the five-year water plan

California updates and adopts a new Water Plan every five years. With the uncertainty over Colorado River rights, continued drought, and increasing demand, Senator Anna Caballero authored Senate Bill (SB) 72 to help the state keep pace with the challenges it faces. 

Senate Bill 72 requires the state’s Department of Water Resources (DWR) to set long-term water targets, including: within 15 years, having ‘additional water, water conservation, or water storage capacity’ that totals 2.9bn gallons.

 

We finally have a modernised strategy signed into law that will further protect California’s future generations - Caballero

 

In authoring the bill, Caballero said that it establishes long-term water supply targets and mandates a comprehensive approach that addresses climate change, equity and economic resilience. Governor Newsom, in his signing message, stated that the DWR would have to ‘analyse current and future water needs trends’ when updating California's water plan.

Both chambers of the state’s legislature passed the bill unanimously.

“I am pleased that Governor Newsom understood the importance of SB 72 and chose to agree with the unanimous legislative support in his signing of the bill,” Caballero told the media in the US. “California residents, businesses, and the environment statewide will reap the benefits of SB 72 as we finally have a modernised strategy signed into law that will further protect California’s future generations and ensure a reliable and long-term water supply for all.”

 

Additional Senate Bills that strengthen water security

SB72 was not the only bill signed into law by Governor Newsom. Other bills included:

Senate Bill 31: to help the state deal with worsening droughts and the effects of climate change by increasing the use of recycled water. The bill relaxes certain rules to allow parks to use more reclaimed water and ensure homeowners’ associations don’t have to lay new pipes if they want to use it.

Assembly Bill 1466 permits courts, in disputes over groundwater, to enter judgments separately for well owners that pump small quantities of water. It is hoped that this will enhance California's groundwater sustainability efforts and protect ‘small family farmers that face expensive litigation’.

Senate Bill 394: to combat theft of water by enabling local agencies to crack down on those who steal from fire hydrants with increased fines and new enforcement powers. The bill was supported by Las Virgenes Municipal Water District, which suffered an estimated loss of 45 million gallons of water in recent years following theft from hydrants.

 

The data centre conundrum

Newsom decided to veto legislation that would have forced data centre operators to report on how much water they use. If passed into law, the bill would have required an estimate of water use to be presented and accepted before a license was granted for the construction of new data centres. 

Water use in data centres has come under increasing scrutiny as the number and size of facilities continue to grow and because many are located in water-scarce areas where they compete for dwindling resources against other users, including residential and agricultural.

 

I am reluctant to impose rigid reporting requirements about operational details on this sector - Newsom

 

California Assembly member Diane Papan had introduced the bill at the start of the year. In deciding not to sign the legislation into law, Newsom responded to Papen by stating: “While I appreciate the author's intent, I am reluctant to impose rigid reporting requirements about operational details on this sector without understanding the full impact on businesses and the consumers of their technology.”

According to Papan, the bill would have given the Department of Water Resources the authority to classify data centres into tiers based on factors influencing their water use and to establish appropriate standards for each tier.