My thoughts exactly. I reads a lot like they are trying to minimize the state's power to regulate AI. I'm not sure that's such a good thing. Regulation is one of the only ways that we can manage the ``bads'' that come with any new technology. In the US, we've never been very good at regulating new technologies before industry stakeholders entrench themselves in the lobbying circuit.

Well they do define compelling government interest to include

> "Compelling government interest " means a government interest of the highest order in protecting the public that cannot be achieved through less restrictive means. This includes but is not limited to: (a) ensuring that a critical infrastructure facility controlled by an artificial intelligence system develops a risk management policy; (b) addressing conduct that deceives or defrauds the public; (c) protecting individuals, especially minors, from harm by a person who distributes deepfakes and other harmful synthetic content with actual knowledge of the nature of that material; and (d) taking actions that prevent or abate common law nuisances created by physical datacenter infrastructure.

D seems to address that potentially.

Proactively shielding themselves from the eventual, justified, realization that spiking a population's price of water and electricity such that they cannot use them IS an externality just as bad as polluting the water supply.

Yeah, I have relatives in Ashburn VA with over 200 data centers running and it's practically uninhabitable /s