| 1 | | - | Amended IN Assembly April 07, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 222Introduced by Assembly Member Bauer-KahanJanuary 08, 2025An act to amend Section 25402 of, and to add Chapter 4.4 (commencing with Section 25345) to Division 15 of of, the Public Resources Code, and to add Section 451.10 451.4 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 222, as amended, Bauer-Kahan. Data centers: energy usage reporting and modeling. efficiency standards: electricity rates.Existing law, on or before January 1, 2026, and before each time thereafter that a generative artificial intelligence system or service, as defined, or a substantial modification to a generative artificial intelligence system or service, released on or after January 1, 2022, is made available to Californians for use, regardless of whether the terms of that use include compensation, requires a developer of the system or service to post on the developers internet website documentation regarding the data used to train the generative artificial intelligence system or service.This bill would require a data center that provides computing resources to a developer for the purpose of developing a covered model, as defined, to estimate developer, before using a covered model commercially or before making a covered model available for use by a third party, to calculate the total energy used to develop the covered model and to report that information to the developer, as specified. the percentage of the total energy used to develop the covered model that was generated in California. The bill would require a developer, before using the computing resources of a data center to develop a covered model, to inform the data center of the developers intent to develop a covered model. The bill would require a developer, before using a covered model or covered system commercially or making a covered model or covered system available for use by a third party, to request its energy usage data from all data centers involved in developing the covered model and to estimate and the developer to publish on its internet website the total energy used to develop the covered model, as specified. that energy usage data, as provided.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to biennially adopt an integrated energy policy report, as specified, and to make the reports accessible to state, local, and federal entities and to the general public. Existing law requires the Energy Commission to prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings, as provided.This bill would require the Energy Commission to require operators of data centers to annually report energy consumption and performance data, as specified. The bill would require the Energy Commission to include energy consumption trends for data centers in its integrated energy policy reports. The bill would require the Energy Commission Commission, on or before January 1, 2027, to adopt energy efficiency performance standards, as described, standards for data centers. The bill would require the Energy Commission to adopt regulations to implement these requirements on or before January 1, 2027. centers, as provided.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable.This bill would require the PUC to determine whether those costs and expenses in an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center are just and reasonable. The bill would require the PUC to minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 4.4 (commencing with Section 25345) is added to Division 15 of the Public Resources Code, to read: CHAPTER 4.4. Data Center Modeling and Energy-Usage Reporting25345. For purposes of this chapter, all of the following definitions apply:(a) Artificial intelligence or AI means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.(b) Computer room means a room within a building whose primary function is to house electronic equipment and that has a design information technology equipment power density exceeding 20 watts per square foot or 215 watts per square meters of conditioned floor area.(b)(c) Covered model means an AI model developed using a quantity of computing power exceeding 10^25 integer or floating-point operations.(c)Covered system means an AI system that incorporates a covered model. (d)(1)Data center means a facility that houses computing infrastructure, including graphics and central processing units, servers, storage devices, networking equipment, and associated power and cooling systems, for the primary purpose of processing, storing, or distributing electronic data.(2)Data center does not include a facility with an annual energy consumption of 10 megawatthours or less. (d) Data center means a building the primary function of which is to house one or more computer rooms with an energy demand of at least 5 megawatts.(e) Developer means a person, partnership, state or local government agency, or corporation that designs, codes, trains, or otherwise produces a covered model.(f) Information Technology Equipment includes computers, data storage, servers, and network or communication equipment located in a computer room.25345.1.A data center that provides computing resources to a developer for the purpose of developing a covered model shall do both of the following:(a)Estimate the total energy, in megawatthours, used to develop the covered model.(b)Report the estimated total energy used to develop the covered model to the developer under both of the following circumstances:(1)Upon the termination of a contract facilitating the transfer of computing resources from the data center to the developer.(2)Upon receiving a request from the developer pursuant to paragraph (1) of subdivision (b) of Section 25345.2.25345.2.(a)Before using the computing resources of a data center to develop a covered model, a developer shall inform the data center of the developers intent to develop a covered model.(b)25345.1. Before using a covered model or covered system commercially, or before making a covered model or covered system available for use by a third party, a developer shall do both of the following:(1)Request the developers energy usage data from all data centers involved in developing the covered model.(2)Estimate and publish on the developers internet website the total energy, in megawatthours, used to develop the covered model.(a) Calculate both of the following:(1) The total energy, in megawatthours, used to develop the covered model.(2) The percentage of total energy used to develop the covered model that was generated in California.(b) (1) Publish the energy usage data estimated pursuant to subdivision (a) on the developers internet website.(c)(2) Energy usage data published pursuant to subdivision (b) paragraph (1) shall be all of the following:(1)(A) Publicly available for as long as the developer continues to use the covered model or covered system, or continues to make the covered model or covered system available for use by a third party. (2)(B) Provided at no cost to a user of the developers internet website.(3)(C) Accessible and comprehensible to a natural person with ordinary cognitive abilities.25345.3.(a)(1)The commission shall require operators of data centers to annually report energy consumption and performance data to the commission.(2)Reports submitted to the commission pursuant to this subdivision shall include all of the following:(A)Total annual energy consumption, including electricity usage from grid and nongrid sources, peak factors, and load profiles.(B)Energy usage effectiveness or equivalent energy efficiency metrics.(C)The percentage of energy supplied by renewable or carbon-free resources.(D)Annual energy consumption resulting from the development of covered models.(E)Any other information deemed necessary by the commission to assess grid impacts. (3)Data centers reporting pursuant to this section shall submit data in a form and manner prescribed by the commission.(b)The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c)On or before January 1, 2027, the commission shall adopt regulations to implement this section.25345.4.(a)The commission shall adopt energy efficiency performance standards for data centers.(b)The standards adopted pursuant to this section shall do all of the following:(1)Prioritize cost effectiveness, technological feasibility, and alignment with Californias greenhouse gas emission reduction targets.(2)Consider best practices for energy usage effectiveness, energy management systems, and the use of renewable energy resources.(3)Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(c)(1)On or before January 1, 2027, the commission shall adopt regulations to implement this section.(2)In adopting regulations pursuant to this subdivision, the commission shall consult with data center operators, utilities, technical experts, and other industry stakeholders.SEC. 2. Section 25402 of the Public Resources Code is amended to read:25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability:(a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy.(2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards.(b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345.(B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following:(i) Be technologically feasible and cost effective.(ii) Align with Californias greenhouse gas emission reduction targets.(iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission:(i) The name of the data center.(ii) Any physical addresses associated with the operation of the data center.(iii) The internet website of the data center if the data center has a internet website.(iv) A telephone number and email address for a point of contact for the commission to communicate with the data center.(D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur.(ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors:(I) The availability of products on the market that meet the proposed standard.(II) The impact of an earlier effective date on manufacturers.(III) The health and safety benefits of an earlier effective date.(IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard.(V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date.(B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance.(3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance.(4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following:(A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard.(B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same.(C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same.(D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted.(E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code.(d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved.(e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating.(2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards.(3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs.(4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances.(5) The flexible demand appliance standards shall prioritize all of the following:(A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs.(B) Appliances with load-management technology options that are readily available.(C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application.(D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances.(E) Appliances that are interoperable or open source.(6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers.(7) For purposes of this subdivision, all of the following definitions apply:(A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent.(B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.(C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.SEC. 2.Section 451.10 is added to the Public Utilities Code, to read:451.10.SEC. 3. Section 451.4 is added to the Public Utilities Code, to read:451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 222Introduced by Assembly Member Bauer-KahanJanuary 08, 2025 An act to add Chapter 4.4 (commencing with Section 25345) to Division 15 of the Public Resources Code, and to add Section 451.10 to the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 222, as introduced, Bauer-Kahan. Data centers: energy usage reporting and modeling.Existing law, on or before January 1, 2026, and before each time thereafter that a generative artificial intelligence system or service, as defined, or a substantial modification to a generative artificial intelligence system or service, released on or after January 1, 2022, is made available to Californians for use, regardless of whether the terms of that use include compensation, requires a developer of the system or service to post on the developers internet website documentation regarding the data used to train the generative artificial intelligence system or service.This bill would require a data center that provides computing resources to a developer for the purpose of developing a covered model, as defined, to estimate the total energy used to develop the covered model and to report that information to the developer, as specified. The bill would require a developer, before using the computing resources of a data center to develop a covered model, to inform the data center of the developers intent to develop a covered model. The bill would require a developer, before using a covered model or covered system commercially or making a covered model or covered system available for use by a third party, to request its energy usage data from all data centers involved in developing the covered model and to estimate and publish on its internet website the total energy used to develop the covered model, as specified.Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to biennially adopt an integrated energy policy report, as specified, and to make the reports accessible to state, local, and federal entities and to the general public.This bill would require the Energy Commission to require operators of data centers to annually report energy consumption and performance data, as specified. The bill would require the Energy Commission to include energy consumption trends for data centers in its integrated energy policy reports. The bill would require the Energy Commission to adopt energy efficiency performance standards, as described, for data centers. The bill would require the Energy Commission to adopt regulations to implement these requirements on or before January 1, 2027.Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable.This bill would require the PUC to determine whether those costs and expenses in an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center are just and reasonable. The bill would require the PUC to minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 4.4 (commencing with Section 25345) is added to Division 15 of the Public Resources Code, to read: CHAPTER 4.4. Data Center Modeling and Energy-Usage Reporting25345. For purposes of this chapter, the following definitions apply:(a) Artificial intelligence or AI means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.(b) Covered model means an AI model developed using a quantity of computing power exceeding 10^25 integer or floating-point operations.(c) Covered system means an AI system that incorporates a covered model. (d) (1) Data center means a facility that houses computing infrastructure, including graphics and central processing units, servers, storage devices, networking equipment, and associated power and cooling systems, for the primary purpose of processing, storing, or distributing electronic data.(2) Data center does not include a facility with an annual energy consumption of 10 megawatthours or less. (e) Developer means a person, partnership, state or local government agency, or corporation that designs, codes, trains, or otherwise produces a covered model.25345.1. A data center that provides computing resources to a developer for the purpose of developing a covered model shall do both of the following:(a) Estimate the total energy, in megawatthours, used to develop the covered model.(b) Report the estimated total energy used to develop the covered model to the developer under both of the following circumstances:(1) Upon the termination of a contract facilitating the transfer of computing resources from the data center to the developer.(2) Upon receiving a request from the developer pursuant to paragraph (1) of subdivision (b) of Section 25345.2.25345.2. (a) Before using the computing resources of a data center to develop a covered model, a developer shall inform the data center of the developers intent to develop a covered model.(b) Before using a covered model or covered system commercially, or before making a covered model or covered system available for use by a third party, a developer shall do both of the following:(1) Request the developers energy usage data from all data centers involved in developing the covered model.(2) Estimate and publish on the developers internet website the total energy, in megawatthours, used to develop the covered model.(c) Energy data published pursuant to subdivision (b) shall be all of the following:(1) Publicly available for as long as the developer continues to use the covered model or covered system, or continues to make the covered model or covered system available for use by a third party. (2) Provided at no cost to a user of the developers internet website.(3) Accessible and comprehensible to a natural person with ordinary cognitive abilities.25345.3. (a) (1) The commission shall require operators of data centers to annually report energy consumption and performance data to the commission.(2) Reports submitted to the commission pursuant to this subdivision shall include all of the following:(A) Total annual energy consumption, including electricity usage from grid and nongrid sources, peak factors, and load profiles.(B) Energy usage effectiveness or equivalent energy efficiency metrics.(C) The percentage of energy supplied by renewable or carbon-free resources.(D) Annual energy consumption resulting from the development of covered models.(E) Any other information deemed necessary by the commission to assess grid impacts. (3) Data centers reporting pursuant to this section shall submit data in a form and manner prescribed by the commission.(b) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) On or before January 1, 2027, the commission shall adopt regulations to implement this section.25345.4. (a) The commission shall adopt energy efficiency performance standards for data centers.(b) The standards adopted pursuant to this section shall do all of the following:(1) Prioritize cost effectiveness, technological feasibility, and alignment with Californias greenhouse gas emission reduction targets.(2) Consider best practices for energy usage effectiveness, energy management systems, and the use of renewable energy resources.(3) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(c) (1) On or before January 1, 2027, the commission shall adopt regulations to implement this section.(2) In adopting regulations pursuant to this subdivision, the commission shall consult with data center operators, utilities, technical experts, and other industry stakeholders.SEC. 2. Section 451.10 is added to the Public Utilities Code, to read:451.10. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 46 | | - | The people of the State of California do enact as follows:SECTION 1. Chapter 4.4 (commencing with Section 25345) is added to Division 15 of the Public Resources Code, to read: CHAPTER 4.4. Data Center Modeling and Energy-Usage Reporting25345. For purposes of this chapter, all of the following definitions apply:(a) Artificial intelligence or AI means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.(b) Computer room means a room within a building whose primary function is to house electronic equipment and that has a design information technology equipment power density exceeding 20 watts per square foot or 215 watts per square meters of conditioned floor area.(b)(c) Covered model means an AI model developed using a quantity of computing power exceeding 10^25 integer or floating-point operations.(c)Covered system means an AI system that incorporates a covered model. (d)(1)Data center means a facility that houses computing infrastructure, including graphics and central processing units, servers, storage devices, networking equipment, and associated power and cooling systems, for the primary purpose of processing, storing, or distributing electronic data.(2)Data center does not include a facility with an annual energy consumption of 10 megawatthours or less. (d) Data center means a building the primary function of which is to house one or more computer rooms with an energy demand of at least 5 megawatts.(e) Developer means a person, partnership, state or local government agency, or corporation that designs, codes, trains, or otherwise produces a covered model.(f) Information Technology Equipment includes computers, data storage, servers, and network or communication equipment located in a computer room.25345.1.A data center that provides computing resources to a developer for the purpose of developing a covered model shall do both of the following:(a)Estimate the total energy, in megawatthours, used to develop the covered model.(b)Report the estimated total energy used to develop the covered model to the developer under both of the following circumstances:(1)Upon the termination of a contract facilitating the transfer of computing resources from the data center to the developer.(2)Upon receiving a request from the developer pursuant to paragraph (1) of subdivision (b) of Section 25345.2.25345.2.(a)Before using the computing resources of a data center to develop a covered model, a developer shall inform the data center of the developers intent to develop a covered model.(b)25345.1. Before using a covered model or covered system commercially, or before making a covered model or covered system available for use by a third party, a developer shall do both of the following:(1)Request the developers energy usage data from all data centers involved in developing the covered model.(2)Estimate and publish on the developers internet website the total energy, in megawatthours, used to develop the covered model.(a) Calculate both of the following:(1) The total energy, in megawatthours, used to develop the covered model.(2) The percentage of total energy used to develop the covered model that was generated in California.(b) (1) Publish the energy usage data estimated pursuant to subdivision (a) on the developers internet website.(c)(2) Energy usage data published pursuant to subdivision (b) paragraph (1) shall be all of the following:(1)(A) Publicly available for as long as the developer continues to use the covered model or covered system, or continues to make the covered model or covered system available for use by a third party. (2)(B) Provided at no cost to a user of the developers internet website.(3)(C) Accessible and comprehensible to a natural person with ordinary cognitive abilities.25345.3.(a)(1)The commission shall require operators of data centers to annually report energy consumption and performance data to the commission.(2)Reports submitted to the commission pursuant to this subdivision shall include all of the following:(A)Total annual energy consumption, including electricity usage from grid and nongrid sources, peak factors, and load profiles.(B)Energy usage effectiveness or equivalent energy efficiency metrics.(C)The percentage of energy supplied by renewable or carbon-free resources.(D)Annual energy consumption resulting from the development of covered models.(E)Any other information deemed necessary by the commission to assess grid impacts. (3)Data centers reporting pursuant to this section shall submit data in a form and manner prescribed by the commission.(b)The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c)On or before January 1, 2027, the commission shall adopt regulations to implement this section.25345.4.(a)The commission shall adopt energy efficiency performance standards for data centers.(b)The standards adopted pursuant to this section shall do all of the following:(1)Prioritize cost effectiveness, technological feasibility, and alignment with Californias greenhouse gas emission reduction targets.(2)Consider best practices for energy usage effectiveness, energy management systems, and the use of renewable energy resources.(3)Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(c)(1)On or before January 1, 2027, the commission shall adopt regulations to implement this section.(2)In adopting regulations pursuant to this subdivision, the commission shall consult with data center operators, utilities, technical experts, and other industry stakeholders.SEC. 2. Section 25402 of the Public Resources Code is amended to read:25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability:(a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy.(2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards.(b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345.(B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following:(i) Be technologically feasible and cost effective.(ii) Align with Californias greenhouse gas emission reduction targets.(iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission:(i) The name of the data center.(ii) Any physical addresses associated with the operation of the data center.(iii) The internet website of the data center if the data center has a internet website.(iv) A telephone number and email address for a point of contact for the commission to communicate with the data center.(D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur.(ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors:(I) The availability of products on the market that meet the proposed standard.(II) The impact of an earlier effective date on manufacturers.(III) The health and safety benefits of an earlier effective date.(IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard.(V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date.(B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance.(3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance.(4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following:(A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard.(B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same.(C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same.(D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted.(E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code.(d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved.(e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating.(2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards.(3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs.(4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances.(5) The flexible demand appliance standards shall prioritize all of the following:(A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs.(B) Appliances with load-management technology options that are readily available.(C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application.(D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances.(E) Appliances that are interoperable or open source.(6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers.(7) For purposes of this subdivision, all of the following definitions apply:(A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent.(B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.(C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.SEC. 2.Section 451.10 is added to the Public Utilities Code, to read:451.10.SEC. 3. Section 451.4 is added to the Public Utilities Code, to read:451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 46 | + | The people of the State of California do enact as follows:SECTION 1. Chapter 4.4 (commencing with Section 25345) is added to Division 15 of the Public Resources Code, to read: CHAPTER 4.4. Data Center Modeling and Energy-Usage Reporting25345. For purposes of this chapter, the following definitions apply:(a) Artificial intelligence or AI means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.(b) Covered model means an AI model developed using a quantity of computing power exceeding 10^25 integer or floating-point operations.(c) Covered system means an AI system that incorporates a covered model. (d) (1) Data center means a facility that houses computing infrastructure, including graphics and central processing units, servers, storage devices, networking equipment, and associated power and cooling systems, for the primary purpose of processing, storing, or distributing electronic data.(2) Data center does not include a facility with an annual energy consumption of 10 megawatthours or less. (e) Developer means a person, partnership, state or local government agency, or corporation that designs, codes, trains, or otherwise produces a covered model.25345.1. A data center that provides computing resources to a developer for the purpose of developing a covered model shall do both of the following:(a) Estimate the total energy, in megawatthours, used to develop the covered model.(b) Report the estimated total energy used to develop the covered model to the developer under both of the following circumstances:(1) Upon the termination of a contract facilitating the transfer of computing resources from the data center to the developer.(2) Upon receiving a request from the developer pursuant to paragraph (1) of subdivision (b) of Section 25345.2.25345.2. (a) Before using the computing resources of a data center to develop a covered model, a developer shall inform the data center of the developers intent to develop a covered model.(b) Before using a covered model or covered system commercially, or before making a covered model or covered system available for use by a third party, a developer shall do both of the following:(1) Request the developers energy usage data from all data centers involved in developing the covered model.(2) Estimate and publish on the developers internet website the total energy, in megawatthours, used to develop the covered model.(c) Energy data published pursuant to subdivision (b) shall be all of the following:(1) Publicly available for as long as the developer continues to use the covered model or covered system, or continues to make the covered model or covered system available for use by a third party. (2) Provided at no cost to a user of the developers internet website.(3) Accessible and comprehensible to a natural person with ordinary cognitive abilities.25345.3. (a) (1) The commission shall require operators of data centers to annually report energy consumption and performance data to the commission.(2) Reports submitted to the commission pursuant to this subdivision shall include all of the following:(A) Total annual energy consumption, including electricity usage from grid and nongrid sources, peak factors, and load profiles.(B) Energy usage effectiveness or equivalent energy efficiency metrics.(C) The percentage of energy supplied by renewable or carbon-free resources.(D) Annual energy consumption resulting from the development of covered models.(E) Any other information deemed necessary by the commission to assess grid impacts. (3) Data centers reporting pursuant to this section shall submit data in a form and manner prescribed by the commission.(b) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) On or before January 1, 2027, the commission shall adopt regulations to implement this section.25345.4. (a) The commission shall adopt energy efficiency performance standards for data centers.(b) The standards adopted pursuant to this section shall do all of the following:(1) Prioritize cost effectiveness, technological feasibility, and alignment with Californias greenhouse gas emission reduction targets.(2) Consider best practices for energy usage effectiveness, energy management systems, and the use of renewable energy resources.(3) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(c) (1) On or before January 1, 2027, the commission shall adopt regulations to implement this section.(2) In adopting regulations pursuant to this subdivision, the commission shall consult with data center operators, utilities, technical experts, and other industry stakeholders.SEC. 2. Section 451.10 is added to the Public Utilities Code, to read:451.10. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 102 | | - | A data center that provides computing resources to a developer for the purpose of developing a covered model shall do both of the following: |
|---|
| 103 | | - | |
|---|
| 104 | | - | |
|---|
| 105 | | - | |
|---|
| 106 | | - | (a)Estimate the total energy, in megawatthours, used to develop the covered model. |
|---|
| 107 | | - | |
|---|
| 108 | | - | |
|---|
| 109 | | - | |
|---|
| 110 | | - | (b)Report the estimated total energy used to develop the covered model to the developer under both of the following circumstances: |
|---|
| 111 | | - | |
|---|
| 112 | | - | |
|---|
| 113 | | - | |
|---|
| 114 | | - | (1)Upon the termination of a contract facilitating the transfer of computing resources from the data center to the developer. |
|---|
| 115 | | - | |
|---|
| 116 | | - | |
|---|
| 117 | | - | |
|---|
| 118 | | - | (2)Upon receiving a request from the developer pursuant to paragraph (1) of subdivision (b) of Section 25345.2. |
|---|
| 119 | | - | |
|---|
| 120 | | - | |
|---|
| 121 | | - | |
|---|
| 122 | | - | |
|---|
| 123 | | - | |
|---|
| 124 | | - | (a)Before using the computing resources of a data center to develop a covered model, a developer shall inform the data center of the developers intent to develop a covered model. |
|---|
| 125 | | - | |
|---|
| 126 | | - | |
|---|
| 127 | | - | |
|---|
| 128 | | - | (b) |
|---|
| 129 | | - | |
|---|
| 130 | | - | |
|---|
| 131 | | - | |
|---|
| 132 | | - | 25345.1. Before using a covered model or covered system commercially, or before making a covered model or covered system available for use by a third party, a developer shall do both of the following:(1)Request the developers energy usage data from all data centers involved in developing the covered model.(2)Estimate and publish on the developers internet website the total energy, in megawatthours, used to develop the covered model.(a) Calculate both of the following:(1) The total energy, in megawatthours, used to develop the covered model.(2) The percentage of total energy used to develop the covered model that was generated in California.(b) (1) Publish the energy usage data estimated pursuant to subdivision (a) on the developers internet website.(c)(2) Energy usage data published pursuant to subdivision (b) paragraph (1) shall be all of the following:(1)(A) Publicly available for as long as the developer continues to use the covered model or covered system, or continues to make the covered model or covered system available for use by a third party. (2)(B) Provided at no cost to a user of the developers internet website.(3)(C) Accessible and comprehensible to a natural person with ordinary cognitive abilities. |
|---|
| 133 | | - | |
|---|
| 134 | | - | |
|---|
| 135 | | - | |
|---|
| 136 | | - | 25345.1. Before using a covered model or covered system commercially, or before making a covered model or covered system available for use by a third party, a developer shall do both of the following: |
|---|
| 137 | | - | |
|---|
| 138 | | - | (1)Request the developers energy usage data from all data centers involved in developing the covered model. |
|---|
| 139 | | - | |
|---|
| 140 | | - | |
|---|
| 141 | | - | |
|---|
| 142 | | - | (2)Estimate and publish on the developers internet website the total energy, in megawatthours, used to develop the covered model. |
|---|
| 143 | | - | |
|---|
| 144 | | - | |
|---|
| 145 | | - | |
|---|
| 146 | | - | (a) Calculate both of the following: |
|---|
| 147 | | - | |
|---|
| 148 | | - | (1) The total energy, in megawatthours, used to develop the covered model. |
|---|
| 149 | | - | |
|---|
| 150 | | - | (2) The percentage of total energy used to develop the covered model that was generated in California. |
|---|
| 151 | | - | |
|---|
| 152 | | - | (b) (1) Publish the energy usage data estimated pursuant to subdivision (a) on the developers internet website. |
|---|
| 153 | | - | |
|---|
| 154 | | - | (c) |
|---|
| 155 | | - | |
|---|
| 156 | | - | |
|---|
| 157 | | - | |
|---|
| 158 | | - | (2) Energy usage data published pursuant to subdivision (b) paragraph (1) shall be all of the following: |
|---|
| 159 | | - | |
|---|
| 160 | | - | (1) |
|---|
| 161 | | - | |
|---|
| 162 | | - | |
|---|
| 163 | | - | |
|---|
| 164 | | - | (A) Publicly available for as long as the developer continues to use the covered model or covered system, or continues to make the covered model or covered system available for use by a third party. |
|---|
| 165 | | - | |
|---|
| 166 | | - | (2) |
|---|
| 167 | | - | |
|---|
| 168 | | - | |
|---|
| 169 | | - | |
|---|
| 170 | | - | (B) Provided at no cost to a user of the developers internet website. |
|---|
| 171 | | - | |
|---|
| 172 | | - | (3) |
|---|
| 173 | | - | |
|---|
| 174 | | - | |
|---|
| 175 | | - | |
|---|
| 176 | | - | (C) Accessible and comprehensible to a natural person with ordinary cognitive abilities. |
|---|
| 177 | | - | |
|---|
| 178 | | - | |
|---|
| 179 | | - | |
|---|
| 180 | | - | (a)(1)The commission shall require operators of data centers to annually report energy consumption and performance data to the commission. |
|---|
| 181 | | - | |
|---|
| 182 | | - | |
|---|
| 183 | | - | |
|---|
| 184 | | - | (2)Reports submitted to the commission pursuant to this subdivision shall include all of the following: |
|---|
| 185 | | - | |
|---|
| 186 | | - | |
|---|
| 187 | | - | |
|---|
| 188 | | - | (A)Total annual energy consumption, including electricity usage from grid and nongrid sources, peak factors, and load profiles. |
|---|
| 189 | | - | |
|---|
| 190 | | - | |
|---|
| 191 | | - | |
|---|
| 192 | | - | (B)Energy usage effectiveness or equivalent energy efficiency metrics. |
|---|
| 193 | | - | |
|---|
| 194 | | - | |
|---|
| 195 | | - | |
|---|
| 196 | | - | (C)The percentage of energy supplied by renewable or carbon-free resources. |
|---|
| 197 | | - | |
|---|
| 198 | | - | |
|---|
| 199 | | - | |
|---|
| 200 | | - | (D)Annual energy consumption resulting from the development of covered models. |
|---|
| 201 | | - | |
|---|
| 202 | | - | |
|---|
| 203 | | - | |
|---|
| 204 | | - | (E)Any other information deemed necessary by the commission to assess grid impacts. |
|---|
| 205 | | - | |
|---|
| 206 | | - | |
|---|
| 207 | | - | |
|---|
| 208 | | - | (3)Data centers reporting pursuant to this section shall submit data in a form and manner prescribed by the commission. |
|---|
| 209 | | - | |
|---|
| 210 | | - | |
|---|
| 211 | | - | |
|---|
| 212 | | - | (b)The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302. |
|---|
| 213 | | - | |
|---|
| 214 | | - | |
|---|
| 215 | | - | |
|---|
| 216 | | - | (c)On or before January 1, 2027, the commission shall adopt regulations to implement this section. |
|---|
| 217 | | - | |
|---|
| 218 | | - | |
|---|
| 219 | | - | |
|---|
| 220 | | - | |
|---|
| 221 | | - | |
|---|
| 222 | | - | (a)The commission shall adopt energy efficiency performance standards for data centers. |
|---|
| 223 | | - | |
|---|
| 224 | | - | |
|---|
| 225 | | - | |
|---|
| 226 | | - | (b)The standards adopted pursuant to this section shall do all of the following: |
|---|
| 227 | | - | |
|---|
| 228 | | - | |
|---|
| 229 | | - | |
|---|
| 230 | | - | (1)Prioritize cost effectiveness, technological feasibility, and alignment with Californias greenhouse gas emission reduction targets. |
|---|
| 231 | | - | |
|---|
| 232 | | - | |
|---|
| 233 | | - | |
|---|
| 234 | | - | (2)Consider best practices for energy usage effectiveness, energy management systems, and the use of renewable energy resources. |
|---|
| 235 | | - | |
|---|
| 236 | | - | |
|---|
| 237 | | - | |
|---|
| 238 | | - | (3)Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs. |
|---|
| 239 | | - | |
|---|
| 240 | | - | |
|---|
| 241 | | - | |
|---|
| 242 | | - | (c)(1)On or before January 1, 2027, the commission shall adopt regulations to implement this section. |
|---|
| 243 | | - | |
|---|
| 244 | | - | |
|---|
| 245 | | - | |
|---|
| 246 | | - | (2)In adopting regulations pursuant to this subdivision, the commission shall consult with data center operators, utilities, technical experts, and other industry stakeholders. |
|---|
| 247 | | - | |
|---|
| 248 | | - | |
|---|
| 249 | | - | |
|---|
| 250 | | - | SEC. 2. Section 25402 of the Public Resources Code is amended to read:25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability:(a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy.(2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards.(b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345.(B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following:(i) Be technologically feasible and cost effective.(ii) Align with Californias greenhouse gas emission reduction targets.(iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission:(i) The name of the data center.(ii) Any physical addresses associated with the operation of the data center.(iii) The internet website of the data center if the data center has a internet website.(iv) A telephone number and email address for a point of contact for the commission to communicate with the data center.(D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur.(ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors:(I) The availability of products on the market that meet the proposed standard.(II) The impact of an earlier effective date on manufacturers.(III) The health and safety benefits of an earlier effective date.(IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard.(V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date.(B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance.(3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance.(4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following:(A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard.(B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same.(C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same.(D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted.(E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code.(d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved.(e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating.(2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards.(3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs.(4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances.(5) The flexible demand appliance standards shall prioritize all of the following:(A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs.(B) Appliances with load-management technology options that are readily available.(C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application.(D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances.(E) Appliances that are interoperable or open source.(6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers.(7) For purposes of this subdivision, all of the following definitions apply:(A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent.(B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.(C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code. |
|---|
| 251 | | - | |
|---|
| 252 | | - | SEC. 2. Section 25402 of the Public Resources Code is amended to read: |
|---|
| 253 | | - | |
|---|
| 254 | | - | ### SEC. 2. |
|---|
| 255 | | - | |
|---|
| 256 | | - | 25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability:(a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy.(2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards.(b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345.(B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following:(i) Be technologically feasible and cost effective.(ii) Align with Californias greenhouse gas emission reduction targets.(iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission:(i) The name of the data center.(ii) Any physical addresses associated with the operation of the data center.(iii) The internet website of the data center if the data center has a internet website.(iv) A telephone number and email address for a point of contact for the commission to communicate with the data center.(D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur.(ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors:(I) The availability of products on the market that meet the proposed standard.(II) The impact of an earlier effective date on manufacturers.(III) The health and safety benefits of an earlier effective date.(IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard.(V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date.(B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance.(3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance.(4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following:(A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard.(B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same.(C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same.(D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted.(E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code.(d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved.(e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating.(2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards.(3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs.(4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances.(5) The flexible demand appliance standards shall prioritize all of the following:(A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs.(B) Appliances with load-management technology options that are readily available.(C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application.(D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances.(E) Appliances that are interoperable or open source.(6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers.(7) For purposes of this subdivision, all of the following definitions apply:(A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent.(B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.(C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code. |
|---|
| 257 | | - | |
|---|
| 258 | | - | 25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability:(a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy.(2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards.(b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345.(B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following:(i) Be technologically feasible and cost effective.(ii) Align with Californias greenhouse gas emission reduction targets.(iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission:(i) The name of the data center.(ii) Any physical addresses associated with the operation of the data center.(iii) The internet website of the data center if the data center has a internet website.(iv) A telephone number and email address for a point of contact for the commission to communicate with the data center.(D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur.(ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors:(I) The availability of products on the market that meet the proposed standard.(II) The impact of an earlier effective date on manufacturers.(III) The health and safety benefits of an earlier effective date.(IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard.(V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date.(B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance.(3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance.(4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following:(A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard.(B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same.(C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same.(D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted.(E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code.(d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved.(e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating.(2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards.(3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs.(4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances.(5) The flexible demand appliance standards shall prioritize all of the following:(A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs.(B) Appliances with load-management technology options that are readily available.(C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application.(D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances.(E) Appliances that are interoperable or open source.(6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers.(7) For purposes of this subdivision, all of the following definitions apply:(A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent.(B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.(C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code. |
|---|
| 259 | | - | |
|---|
| 260 | | - | 25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability:(a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy.(2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards.(b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code).(2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345.(B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following:(i) Be technologically feasible and cost effective.(ii) Align with Californias greenhouse gas emission reduction targets.(iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs.(C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission:(i) The name of the data center.(ii) Any physical addresses associated with the operation of the data center.(iii) The internet website of the data center if the data center has a internet website.(iv) A telephone number and email address for a point of contact for the commission to communicate with the data center.(D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302.(c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur.(ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors:(I) The availability of products on the market that meet the proposed standard.(II) The impact of an earlier effective date on manufacturers.(III) The health and safety benefits of an earlier effective date.(IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard.(V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date.(B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings.(C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs.(2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance.(3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance.(4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following:(A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard.(B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same.(C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same.(D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted.(E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code.(d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved.(e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating.(2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards.(3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs.(4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances.(5) The flexible demand appliance standards shall prioritize all of the following:(A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs.(B) Appliances with load-management technology options that are readily available.(C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application.(D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances.(E) Appliances that are interoperable or open source.(6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers.(7) For purposes of this subdivision, all of the following definitions apply:(A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent.(B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code.(C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code. |
|---|
| 261 | | - | |
|---|
| 262 | | - | |
|---|
| 263 | | - | |
|---|
| 264 | | - | 25402. The commission shall, after one or more public hearings, do all of the following to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, and to manage energy loads to help maintain electrical grid reliability: |
|---|
| 265 | | - | |
|---|
| 266 | | - | (a) (1) Prescribe, by regulation, lighting, insulation, climate control system, and other building design and construction standards that increase efficiency in the use of energy and water for new residential and new nonresidential buildings. The commission shall periodically update the standards and adopt any revision that, in its judgment, it deems necessary. Six months after the commission certifies an energy conservation manual pursuant to subdivision (c) of Section 25402.1, a city, county, city and county, or state agency shall not issue a permit for a building unless the building satisfies the standards prescribed by the commission pursuant to this subdivision or subdivision (b) that are in effect on the date an application for a building permit is filed. Water efficiency standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. |
|---|
| 267 | | - | |
|---|
| 268 | | - | (2) Before adopting a water efficiency standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from water efficiency standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code). |
|---|
| 269 | | - | |
|---|
| 270 | | - | (3) Water efficiency standards and water conservation design standards adopted pursuant to this subdivision and subdivision (b) shall be consistent with the legislative findings of this division to ensure and maintain a reliable supply of electrical energy and be equivalent to or superior to the performance, safety, and protection of life, health, and general welfare standards contained in Title 24 of the California Code of Regulations. The commission shall consult with the members of the coordinating council as established in Section 18926 of the Health and Safety Code in the development of these standards. |
|---|
| 271 | | - | |
|---|
| 272 | | - | (b) (1) Prescribe, by regulation, energy and water conservation design standards for new residential and new nonresidential buildings. The standards shall be performance standards and shall be promulgated in terms of energy consumption per gross square foot of floorspace, but may also include devices, systems, and techniques required to conserve energy and water. The commission shall periodically review the standards and adopt any revision that, in its judgment, it deems necessary. A building that satisfies the standards prescribed pursuant to this subdivision need not comply with the standards prescribed pursuant to subdivision (a). Water conservation design standards adopted pursuant to this subdivision shall be demonstrated by the commission to be necessary to save energy. Before adopting a water conservation design standard for residential buildings, the Department of Housing and Community Development and the commission shall issue a joint finding whether the standard (A) is equivalent or superior in performance, in safety, and for the protection of life, health, and general welfare to standards in Title 24 of the California Code of Regulations, and (B) does not unreasonably or unnecessarily impact the ability of Californians to purchase or rent affordable housing, as determined by taking account of the overall benefit derived from the water conservation design standards. This subdivision does not in any way reduce the authority of the Department of Housing and Community Development to adopt standards and regulations pursuant to the State Housing Law (Part 1.5 (commencing with Section 17910) of Division 13 of the Health and Safety Code). |
|---|
| 273 | | - | |
|---|
| 274 | | - | (2) To increase public participation and improve the efficacy of the standards adopted pursuant to subdivision (a) and this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings. |
|---|
| 275 | | - | |
|---|
| 276 | | - | (3) The standards adopted or revised pursuant to subdivision (a) and this subdivision shall be cost effective when taken in their entirety and when amortized over the economic life of the structure compared with historic practice. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost of complying with the standard. The commission shall consider other relevant factors, as required by Sections 18930 and 18935 of the Health and Safety Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs. |
|---|
| 277 | | - | |
|---|
| 278 | | - | (4) (A) For purposes of this paragraph, data center has the same meaning as defined in Section 25345. |
|---|
| 279 | | - | |
|---|
| 280 | | - | (B) On or before January 1, 2027, the commission shall adopt efficiency standards for data centers that do all of the following: |
|---|
| 281 | | - | |
|---|
| 282 | | - | (i) Be technologically feasible and cost effective. |
|---|
| 283 | | - | |
|---|
| 284 | | - | (ii) Align with Californias greenhouse gas emission reduction targets. |
|---|
| 285 | | - | |
|---|
| 286 | | - | (iii) Require new data centers and substantial alterations to existing data centers to incorporate load-management and load-shifting capabilities, including the ability to participate in demand response programs. |
|---|
| 287 | | - | |
|---|
| 288 | | - | (C) Before initially operating as a data center and following any change that materially affects the correctness of information previously provided to the commission, a data center shall report all of the following information to the commission: |
|---|
| 289 | | - | |
|---|
| 290 | | - | (i) The name of the data center. |
|---|
| 291 | | - | |
|---|
| 292 | | - | (ii) Any physical addresses associated with the operation of the data center. |
|---|
| 293 | | - | |
|---|
| 294 | | - | (iii) The internet website of the data center if the data center has a internet website. |
|---|
| 295 | | - | |
|---|
| 296 | | - | (iv) A telephone number and email address for a point of contact for the commission to communicate with the data center. |
|---|
| 297 | | - | |
|---|
| 298 | | - | (D) The commission shall include energy consumption trends for data centers in its integrated energy policy report prepared pursuant to Section 25302. |
|---|
| 299 | | - | |
|---|
| 300 | | - | (c) (1) (A) (i) Prescribe, by regulation, standards for minimum levels of operating efficiency, based on a reasonable use pattern, and may prescribe other cost-effective measures, including incentive programs, fleet averaging, energy and water consumption labeling not preempted by federal labeling law, and consumer education programs, to promote the use of energy- and water-efficient appliances whose use, as determined by the commission, requires a significant amount of energy or water on a statewide basis. The minimum levels of operating efficiency shall be based on feasible and attainable efficiencies or feasible improved efficiencies that will reduce the energy or water consumption growth rates. The standards for minimum levels of operating efficiency shall become effective no sooner than one year after the date of adoption or revision, unless the commission adopts a finding of good cause in which case the standards may become effective sooner than one year after the date of adoption or revision. A new appliance manufactured on or after the effective date of the standards or other cost-effective measures shall not be sold or offered for sale in the state, unless it is certified by the manufacturer of the appliance to be in compliance with the standards or other cost-effective measures. The standards or other cost-effective measures shall be drawn so that they do not result in any added total costs for consumers over the designed life of the appliances concerned. Sold or offered for sale in the state means any sale of or offer to sell an appliance for end use in the state, regardless of the sellers physical location, and includes, without limitation, internet, telephone, and mail order transactions. For purposes of this section, the Uniform Commercial CodeSales (Division 2 (commencing with Section 2101) of the Commercial Code) does not define sold or offered for sale or determine where sales or offers for sale occur. |
|---|
| 301 | | - | |
|---|
| 302 | | - | (ii) In making a finding of good cause for purposes of a standard becoming effective sooner than one year after the date of adoption or revision pursuant to clause (i), the commission shall consider, among other things, the following factors: |
|---|
| 303 | | - | |
|---|
| 304 | | - | (I) The availability of products on the market that meet the proposed standard. |
|---|
| 305 | | - | |
|---|
| 306 | | - | (II) The impact of an earlier effective date on manufacturers. |
|---|
| 307 | | - | |
|---|
| 308 | | - | (III) The health and safety benefits of an earlier effective date. |
|---|
| 309 | | - | |
|---|
| 310 | | - | (IV) The impact on innovation resulting from a one-year delay between the date of adoption or revision and the effective date of the standard. |
|---|
| 311 | | - | |
|---|
| 312 | | - | (V) The concerns raised by comments, provided to the commission pursuant to subparagraph (B), for an earlier effective date. |
|---|
| 313 | | - | |
|---|
| 314 | | - | (B) To increase public participation and improve the efficacy of the standards adopted pursuant to this subdivision, the commission shall, before publication of the notice of proposed action required by Section 18935 of the Health and Safety Code, involve parties who would be subject to the proposed regulations in public meetings regarding the proposed regulations. All potential affected parties shall be provided advance notice of these meetings and given an opportunity to provide written or oral comments. During these public meetings, the commission shall receive and take into consideration input from all parties concerning the parties design recommendations, cost considerations, and other factors that would affect consumers and California businesses of the proposed standard. The commission shall take into consideration before the start of the notice of proposed action any input provided during these public meetings. |
|---|
| 315 | | - | |
|---|
| 316 | | - | (C) The standards adopted or revised pursuant to this subdivision shall not result in any added total costs for consumers over the designed life of the appliances concerned. When determining cost-effectiveness, the commission shall consider the value of the water or energy saved, the impact on product efficacy for the consumer, and the life-cycle cost to the consumer of complying with the standard. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and any alternative approaches and their associated costs. |
|---|
| 317 | | - | |
|---|
| 318 | | - | (2) A new appliance, except for a plumbing fitting, regulated under paragraph (1), that is manufactured on or after July 1, 1984, shall not be sold, or offered for sale, in the state, unless the date of the manufacture is permanently displayed in an accessible place on that appliance. |
|---|
| 319 | | - | |
|---|
| 320 | | - | (3) During the period of five years after the commission has adopted a standard for a particular appliance under paragraph (1), an increase or decrease in the minimum level of operating efficiency required by the standard for that appliance shall not become effective, unless the commission adopts other cost-effective measures for that appliance. |
|---|
| 321 | | - | |
|---|
| 322 | | - | (4) Neither the commission nor any other state agency shall take any action to decrease any standard adopted under this subdivision on or before June 30, 1985, prescribing minimum levels of operating efficiency or other energy conservation measures for any appliance, unless the commission finds by a four-fifths vote that a decrease is of benefit to ratepayers, and that there is significant evidence of changed circumstances. At least one year before the adoption or amendment of a standard for an appliance, the commission shall notify the Legislature of its intent, and the justification to adopt or amend a standard for the appliance. Notwithstanding paragraph (3) and this paragraph, the commission may do any of the following: |
|---|
| 323 | | - | |
|---|
| 324 | | - | (A) Increase the minimum level of operating efficiency in an existing standard up to the level of the National Voluntary Consensus Standards 90, adopted by the American Society of Heating, Refrigerating and Air-Conditioning Engineers or, for appliances not covered by that standard, up to the level established in a similar nationwide consensus standard. |
|---|
| 325 | | - | |
|---|
| 326 | | - | (B) Change the measure or rating of efficiency of any standard, if the minimum level of operating efficiency remains substantially the same. |
|---|
| 327 | | - | |
|---|
| 328 | | - | (C) Adjust the minimum level of operating efficiency in an existing standard to reflect changes in test procedures that the standards require manufacturers to use in certifying compliance, if the minimum level of operating efficiency remains substantially the same. |
|---|
| 329 | | - | |
|---|
| 330 | | - | (D) Readopt a standard preempted, enjoined, or otherwise found legally defective by an administrative agency or a lower court, if final legal action determines that the standard is valid and if the standard that is readopted is not more stringent than the standard that was found to be defective or preempted. |
|---|
| 331 | | - | |
|---|
| 332 | | - | (E) Adopt or amend any existing or new standard at any level of operating efficiency, if the Governor has declared an energy emergency as described in Section 8558 of the Government Code. |
|---|
| 333 | | - | |
|---|
| 334 | | - | (d) Recommend minimum standards of efficiency for the operation of a new facility at a particular site that are technically and economically feasible. A site and related facility shall not be certified pursuant to Chapter 6 (commencing with Section 25500), unless the applicant certifies that standards recommended by the commission have been considered, which certification shall include a statement specifying the extent to which conformance with the recommended standards will be achieved. |
|---|
| 335 | | - | |
|---|
| 336 | | - | (e) (1) Adopt, by regulation, and periodically update, standards for appliances to facilitate the deployment of flexible demand technologies. These regulations may include labeling provisions to promote the use of appliances with flexible demand capabilities. The flexible demand appliance standards shall be based on feasible and attainable efficiencies or feasible improvements that will enable appliance operations to be scheduled, shifted, or curtailed to enhance grid reliability, reduce emissions of greenhouse gases associated with electricity generation, or both enhancement and reduction. The standards shall become effective no sooner than one year after the date of their adoption or updating. |
|---|
| 337 | | - | |
|---|
| 338 | | - | (2) In adopting the flexible demand appliance standards, the commission shall consider the National Institute of Standards and Technologys reliability and cybersecurity protocols, or other cybersecurity protocols that are equally or more protective, and shall adopt, at a minimum, the North American Electric Reliability Corporations Critical Infrastructure Protection standards. |
|---|
| 339 | | - | |
|---|
| 340 | | - | (3) The flexible demand appliance standards shall be cost effective. When determining cost-effectiveness, solely for purposes of this subdivision, the commission may consider, as appropriate, the cost of flexible demand appliances compared to nonflexible demand appliances, the value of increased or decreased emissions of greenhouse gases associated with the timing of an appliances use, the life-cycle cost to the consumer from using a product that complies with the standard, and the life-cycle costs and benefits to consumers, including the ability to conserve energy and better align consumer and electric system demand. The commission shall consider other relevant factors, as required by Sections 11346.5 and 11357 of the Government Code, including, but not limited to, the impact on housing costs, the total statewide costs and benefits of the standard over its lifetime, the economic impact on California businesses, and alternative approaches and their associated costs. |
|---|
| 341 | | - | |
|---|
| 342 | | - | (4) The commission shall consult with the Public Utilities Commission, load-serving entities, and local publicly owned electric utilities to better align the flexible demand appliance standards with demand response programs administered by the state and load-serving entities and local publicly owned electric utilities and to incentivize the deployment of flexible demand appliances. |
|---|
| 343 | | - | |
|---|
| 344 | | - | (5) The flexible demand appliance standards shall prioritize all of the following: |
|---|
| 345 | | - | |
|---|
| 346 | | - | (A) Appliances that can more conveniently have their electrical demand controlled by load-management technology and third-party load-management programs. |
|---|
| 347 | | - | |
|---|
| 348 | | - | (B) Appliances with load-management technology options that are readily available. |
|---|
| 349 | | - | |
|---|
| 350 | | - | (C) Appliances that have a user-friendly interface and follow a straightforward setup and connection process, such as remote setup by means of an internet website or application. |
|---|
| 351 | | - | |
|---|
| 352 | | - | (D) Appliances with load-management technology options that follow simple standards for third-party direct operation of the appliances. |
|---|
| 353 | | - | |
|---|
| 354 | | - | (E) Appliances that are interoperable or open source. |
|---|
| 355 | | - | |
|---|
| 356 | | - | (6) On or before January 1, 2021, and as necessary thereafter, the commission shall include as part of each integrated energy policy report adopted pursuant to Chapter 4 (commencing with Section 25300) a description of any actions it has taken pursuant to this subdivision and the flexible demand appliance standards cost to consumers. |
|---|
| 357 | | - | |
|---|
| 358 | | - | (7) For purposes of this subdivision, all of the following definitions apply: |
|---|
| 359 | | - | |
|---|
| 360 | | - | (A) Flexible demand means the capability to schedule, shift, or curtail the electrical demand of a load-serving entitys customer or a local publicly owned electric utilitys customer through direct action by the customer or through action by a third party, the load-serving entity, or a grid balancing authority, with the customers consent. |
|---|
| 361 | | - | |
|---|
| 362 | | - | (B) Load-serving entity has the same meaning as defined in Section 380 of the Public Utilities Code. |
|---|
| 363 | | - | |
|---|
| 364 | | - | (C) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code. |
|---|
| 365 | | - | |
|---|
| 366 | | - | |
|---|
| 367 | | - | |
|---|
| 368 | | - | |
|---|
| 369 | | - | |
|---|
| 370 | | - | SEC. 3. Section 451.4 is added to the Public Utilities Code, to read:451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 371 | | - | |
|---|
| 372 | | - | SEC. 3. Section 451.4 is added to the Public Utilities Code, to read: |
|---|
| 373 | | - | |
|---|
| 374 | | - | ### SEC. 3. |
|---|
| 375 | | - | |
|---|
| 376 | | - | 451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 377 | | - | |
|---|
| 378 | | - | 451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 379 | | - | |
|---|
| 380 | | - | 451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code.(b) In an application by an electrical corporation to recover costs and expenses arising from, or incurred as a result of, the construction of a new data center or a substantial alteration to an existing data center, the commission shall determine whether those costs and expenses are just and reasonable in accordance with Section 451.(c) In determining whether costs and expenses are just and reasonable pursuant to subdivision (b), the commission shall minimize the shifting of costs attributable to the construction or alteration of the data center to ratepayers who do not directly benefit from the data center. |
|---|
| 381 | | - | |
|---|
| 382 | | - | |
|---|
| 383 | | - | |
|---|
| 384 | | - | 451.4. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code. |
|---|
| 174 | + | 451.10. (a) For purposes of this section, data center has the same meaning as defined in Section 25345 of the Public Resources Code. |
|---|