The Central Nevada Regional Water Authority (CNRWA) approved a new policy April 17 requiring data centers to disclose how much water they use and where that water comes from, a move aimed at improving transparency as the facilities expand across the state.
Board members said the policy focuses strictly on water use, not on whether data centers are good or bad. CNRWA Executive Director Jeff Fontaine said it is often unclear how much total water these facilities use, including cooling systems, energy use, and manufacturing.
Laurel Saito, Nevada water strategy director for the Nature Conservancy, suggested adding language requiring identification of water sources. Norman Frey raised concerns about unclear sourcing and possible effects on downstream users, warning that companies could buy up water rights.
Commissioner Mancebo moved to approve the policy, adding the requirement to identify water sources, and the board unanimously approved it. Members also supported sending it to counties as a template for local implementation.
Newly appointed Nevada State Engineer Joe Cacioppo provided an update on the Division of Water Resources. Cacioppo began his role March 30 after previously working as a principal civil engineer at Resource Concepts Inc. and serving on the Carson City School Board.
He said the division faces staffing shortages and a long backlog of water rights applications. The department has about 15 vacancies and more than 2,000 pending applications, which can take months to more than a year to process.
Cacioppo said his priorities include “responsible communication… more transparency and just overall efficiency.”
Legislative issues also came up, with members outlining topics likely to surface in the next session. Fontaine said the CNRWA legislative working group is focusing on issues that can realistically move forward, including finding a funding source for water rights retirement programs that currently have no funding.
He also raised concerns about potential tax impacts tied to those programs. Fontaine said there may be interest in bringing back legislation related to non‑consumptive water use, which would require permits for uses such as geothermal systems or lithium projects, even if water is returned to the source.
The board also discussed several active working groups, including the Joint Interim Standing Committee on Natural Resources, the Nevada Water Law Working Group and a governor’s office group focused on improving efficiency and reducing application backlogs. Data centers were again mentioned as a growing concern due to the demand for both water and energy.
The board addressed monitoring, management and mitigation plans, known as 3M plans, which are used to track and respond to water impacts from projects. These plans are often required by federal agencies during environmental reviews and may also be required by the State Engineer for certain water applications.
Fontaine said 3M plans are meant to address unknown impacts but should not be used to approve projects when conflicts with existing water rights are already known. Under Nevada law, projects cannot be approved if they conflict with existing water rights, even if a mitigation plan is in place.
Members also noted that 3M plans can place a burden on existing water users and often lack clear standards.
The board approved its fiscal year 2026–2027 budget, which stays mostly the same as last year. Adjustments include increases for legal services and government affairs work as members prepare for the next legislative session.
Additional updates included a report on recent water rights applications filed with the state. The board also received an update on an appeal tied to a proposed pipeline project in Utah that would move water across basins.
Members discussed how pumping and transfers related to the project could affect groundwater levels in Nevada basins, specifically areas in White Pine County.
The board also discussed a possible shift to a flat‑fee contract for administrative services, which will be considered at a future meeting.
The next CNRWA meeting is scheduled for July 24.
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