WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · HB 76

Overview

HB 76 (Utah, 2026) titled Data Center Water Transparency Amendments seeks to increase transparency and oversight of water usage by large data centers. The bill imposes reporting, coordination, and potential enforcement requirements related to water supply, quality, and data center siting and operations. It creates a framework for state agencies to coordinate with water providers and centers on public disclosure of aggregated water-use information.

Purpose and Intent

  • Improve visibility into water use by large data centers to protect water resources.
  • Require advance communication and coordination between data center operators, water providers, and state regulatory agencies prior to construction and operation.
  • Publicly share aggregated data about data center water use and related enforcement actions.

Key Provisions and Changes

  • Coordination Requirements (effective for new large data centers):
    • Beginning January 1, 2027, data center operators must communicate with the water provider that will supply water to the facility at least 90 days, but no sooner than 360 days, before construction activities begin.
    • The amendment specifies the division, the Division of Water Quality, and the relevant water supplier as involved parties in the coordination process.
  • Data Reporting and Transparency:
    • The bill authorizes or requires coordination and data collection by the Division of Water Rights (and related agencies) to collect, verify, and publish aggregated water-use data from large data centers on a state website.
    • Operators lacking required reports may face noncompliance penalties, potentially increasing General Fund revenue by up to $10,000 per day of non-compliance starting in FY 2027 (exact aggregate impact uncertain).
  • Enforcement and Oversight:
    • State agencies (Department of Natural Resources and its divisions) would coordinate with roughly 50 data centers to ensure compliance and enforcement actions for noncompliance.
  • Local Government Involvement:
    • If a local government approves a land-use application for a large data center, that local government must notify the state.
  • Regulatory Burden:
    • The bill is expected to cause a small increase in regulatory burden for Utah residents or businesses, but likely no direct tax or fee changes.
  • Fiscal Note Highlights:
    • One-time General Fund cost of $60,000 in FY 2027 for initial coordination and reporting setup.
    • Ongoing General Fund costs of $60,000 annually beginning in FY 2027 for coordination, data collection, publication, and enforcement.
    • Minor potential revenue increase from noncompliance penalties (up to $10,000 per day), starting FY 2027, with aggregate impact not precisely estimable.

Who Would Be Affected

  • Large Data Center Operators: Subject to pre-construction coordination, data reporting requirements, and potential penalties for noncompliance.
  • State Agencies: Division of Water Rights, Division of Water Quality, and Department of Natural Resources would oversee coordination, data collection, verification, publication of aggregated data, and enforcement actions.
  • Water Providers: Regional water suppliers serving large data centers would be involved in the notification and coordination processes.
  • Local Governments: Those approving land-use applications for large data centers would need to notify the state.
  • General Public: Access to aggregated data on data-center water use through state website.

Procedural and Timeline Aspects

  • Enforcement Window: Pre-construction coordination must occur at least 90 days (but no sooner than 360 days) before construction begins, beginning January 1, 2027.
  • Reporting and Publication: Data centers’ water-use information would be collected, verified, and published in aggregated form on a state website; enforcement actions for noncompliance would be pursued if necessary.
  • Legislative History: The bill underwent amendments in the House and Senate, with a substitute (1st Sub and 3rd Sub versions) and final passage completed in March 2026. Governor signed on March 23, 2026.

Fiscal and Regulatory Impact

  • Net Effect: Small regulatory burden increase on residents and businesses; no direct tax or fee changes anticipated.
  • Annual Expenditures: $60,000 ongoing General Fund (starting FY 2027) plus $60,000 one-time cost in FY 2027 for program coordination and data activities.
  • Revenues: Potential up to $10,000 per day of noncompliance penalties; total aggregate revenue impact indeterminate.

Bottom Line

HB 76 introduces a structured framework for ensuring data-center water use is coordinated with water providers, monitored by state agencies, and publicly disclosed in aggregated form. It adds reporting requirements, pre-construction communication with water suppliers, and enforcement mechanisms, along with modest fiscal costs to the state and potential penalties for noncompliance.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.