BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☐ No ☒
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Adopt Recommended Positions on Federal Legislation: S. 3732 (Gallego) - Water Security and Drought Resilience Act; S. 4213 (Durbin) - Data Center Water and Energy Transparency Act of 2026; And Other Legislation That May Require Consideration by the Board.
End
RECOMMENDATION: Recommendation
A. Adopt a Position of “Support” on S. 3732 (Gallego) - Water Security and Drought Resilience Act; and
B. Adopt a Position of “Support” on S. 4213 (Durbin) - Data Center Water and Energy Transparency Act of 2026.
Body
SUMMARY:
A. S. 3732 (Gallego) - Water Security and Drought Resilience Act
Recommendation: Support
Priority Recommendation: 2
This bipartisan bill would authorize several programs at the Bureau of Reclamation that fund certain eligible water storage projects. These include:
• Small Storage Program: Authorized under the Bipartisan Infrastructure Law, this program funds water storage projects with a capacity between 200 and 30,000 acre-feet. The bill would reauthorize the program through 2031.
• Natural Water Release and Retention Grants: The bill would authorize grants for projects that increase water availability through aquifer recharge, floodplain retention, or other means in a way that utilizes the natural environment or mimics natural ecosystems. The bill would authorize $15 million per year each of fiscal years 2027 through 2031.
• WIIN Act Section 4007 Storage: The bill would authorize the use of funding from Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act for eligible storage projects authorized under the Bipartisan Infrastructure Law.
Status:
The bill was introduced in the Senate on January 29, 2026, and it was referred to the Committee on Natural Resources. Senator Alex Padilla (CA) is an original cosponsor.
Importance to Santa Clara Valley Water District (Valley Water):
Our region has experienced more extreme weather in recent years, threatening the long-term reliability of water supplies for Santa Clara County. To ensure long-term water supply reliability, Valley Water is pursuing an all-of-the-above approach that includes investment in storage, water recycling, and conservation. This bill would reauthorize important programs to fund water storage that Valley Water could potentially access to support its projects.
Pros:
• Reauthorizes several programs to fund eligible water storage projects.
Cons:
• Only extends the authority for the various storage programs. Congress would still need to provide funding through the annual appropriations process.
B. S. 4213 (Durbin) - Data Center Water and Energy Transparency Act of 2026
Recommendation: Support
Priority Recommendation: 3
This bill would require data center operators (of a certain size) to submit annually to each state in which they operate a report that describes monthly energy and water usage, as well as projected energy and water use, and proposals for reducing that usage in future years. A state may also assess fees on data center operators for the purposes of carrying out this act. If a state does not have a program to collect this data, each data center operator must submit this information to the Administrator of the Environmental Protection Agency and the Secretaries of the Departments of Energy and Agriculture. All of this data would be made available to local government entities upon request.
Status:
The bill was introduced in the Senate on March 25, 2026, and it was referred to the Committee on Energy and Natural Resources.
Importance to Valley Water:
The rapid expansion of data centers throughout California and across the nation raises serious concerns over the centers’ water and energy usage. Availability of data on this usage, however, remains elusive. Estimates of water consumption vary widely, and developers often decline to disclose usage, citing proprietary concerns. With the growing number of data centers in Silicon Valley and throughout our region, it is imperative that these centers document their usage to ensure Valley Water is able to plan for long-term water supply reliability and infrastructure capacity. This bill would help increase that transparency.
Pros:
• This bill would help ensure that data centers remain transparent in their impacts on water usage and energy consumption. The public and local elected officials could use this data to inform local decision-making on these issues.
Cons:
• None identified at this time.
ENVIRONMENTAL JUSTICE IMPACT:
There are no direct Environmental Justice impacts associated with this item, as the Board’s position does not enact the legislation discussed above.
FINANCIAL IMPACT:
There is no financial impact associated with this item.
CEQA:
The recommended action does not constitute a project under CEQA because it does not have the potential for resulting in direct or reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS:
None.
UNCLASSIFIED MANAGER: Manager
Marta Lugo, 408-630-2237