Amended IN Senate April 10, 2025 Amended IN Senate March 26, 2025 Amended IN Senate March 05, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 57Introduced by Senator Padilla(Coauthors: Senators McNerney and Stern)January 08, 2025An act to add Section 740.22 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTSB 57, as amended, Padilla. Data centers: special tariff or program. Electrical corporations: tariffs.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.This bill, the Ratepayer and Technological Innovation Protection Act, would require the commission, on or before July 1, 2026, to establish or modify a special electrical corporation tariff or program, or modify an existing tariff or program, for transmission and distribution service to data centers, eligible customers, as defined, that, among other things, avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections and ensures electrical grid investments to serve a data center are fully recovered from the data center in the event that the data center ceases operations or uses less electricity than initially projected. The bill would require the commission, on or before January 1, 2030, to require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program with electricity from 100% zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid. ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the tariff. The bill would authorize the commission to require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals. The bill would authorize the commission to establish minimum requirements for zero-carbon procurement on behalf of retail sellers for eligible customers receiving the tariff.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Ratepayer and Technological Innovation Protection Act. SEC. 2. (a) The Legislature finds and declares all of the following:(1) California drives worldwide technological innovation, and that innovation is an important component of the states economy, which is the fifth largest economy in the world.(2) California supports technological innovation with a world-class university system that provides a highly skilled workforce, and research and development tax incentives and other tools to facilitate the development and expansion of the states technology economy.(3) The quickly evolving development of artificial intelligence requires large-format data centers that currently require extremely large loads of electricity and water. While that expanded energy demand can help support the larger electrical grid and ordinary ratepayers, if managed incorrectly, it could pose a serious threat to Californias climate goals and, more importantly, leave existing ratepayers saddled with the enormous costs of stranded assets built to support that industry. Furthermore, with the appropriate guardrails, the increased consumption from these large-load customers could help drive down electricity rates for existing utility customers.(4) More efficient use of existing electrical and grid assets and the sharing of fixed energy costs across a larger overall demand can lower the cost to individual customers as a result of a new data center development.(b) Given the large-scale impact to Californias electrical grid posed by the development of new technologies, coupled with the need to help support this expanding industry, it is the intent of the Legislature that the Public Utilities Commission authorize a special tariff system to protect existing ratepayers and clean energy standards, while providing faster and more efficient approval for new load interconnections to support this emerging technological revolution.SEC. 3. Section 740.22 is added to the Public Utilities Code, to read:740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.(3)Does not increase fossil fuel consumption within the state.(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.(4)(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.(5)(3) Promotes stable or reduced retail rates for electrical service.(6)(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.(8)Requires onsite battery storage that provides demand response services to the electrical grid.(9)(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.(10)(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.(c)(d) For purposes of this section, both of the following definitions apply: (1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.(2) Retail seller has the same meaning as defined in Section 399.12.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Senate April 10, 2025 Amended IN Senate March 26, 2025 Amended IN Senate March 05, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 57Introduced by Senator Padilla(Coauthors: Senators McNerney and Stern)January 08, 2025An act to add Section 740.22 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTSB 57, as amended, Padilla. Data centers: special tariff or program. Electrical corporations: tariffs.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.This bill, the Ratepayer and Technological Innovation Protection Act, would require the commission, on or before July 1, 2026, to establish or modify a special electrical corporation tariff or program, or modify an existing tariff or program, for transmission and distribution service to data centers, eligible customers, as defined, that, among other things, avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections and ensures electrical grid investments to serve a data center are fully recovered from the data center in the event that the data center ceases operations or uses less electricity than initially projected. The bill would require the commission, on or before January 1, 2030, to require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program with electricity from 100% zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid. ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the tariff. The bill would authorize the commission to require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals. The bill would authorize the commission to establish minimum requirements for zero-carbon procurement on behalf of retail sellers for eligible customers receiving the tariff.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Senate April 10, 2025 Amended IN Senate March 26, 2025 Amended IN Senate March 05, 2025
Amended IN Senate April 10, 2025
Amended IN Senate March 26, 2025
Amended IN Senate March 05, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 57
Introduced by Senator Padilla(Coauthors: Senators McNerney and Stern)January 08, 2025
Introduced by Senator Padilla(Coauthors: Senators McNerney and Stern)
January 08, 2025
An act to add Section 740.22 to the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 57, as amended, Padilla. Data centers: special tariff or program. Electrical corporations: tariffs.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.This bill, the Ratepayer and Technological Innovation Protection Act, would require the commission, on or before July 1, 2026, to establish or modify a special electrical corporation tariff or program, or modify an existing tariff or program, for transmission and distribution service to data centers, eligible customers, as defined, that, among other things, avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections and ensures electrical grid investments to serve a data center are fully recovered from the data center in the event that the data center ceases operations or uses less electricity than initially projected. The bill would require the commission, on or before January 1, 2030, to require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program with electricity from 100% zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid. ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the tariff. The bill would authorize the commission to require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals. The bill would authorize the commission to establish minimum requirements for zero-carbon procurement on behalf of retail sellers for eligible customers receiving the tariff.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the this bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill, the Ratepayer and Technological Innovation Protection Act, would require the commission, on or before July 1, 2026, to establish or modify a special electrical corporation tariff or program, or modify an existing tariff or program, for transmission and distribution service to data centers, eligible customers, as defined, that, among other things, avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections and ensures electrical grid investments to serve a data center are fully recovered from the data center in the event that the data center ceases operations or uses less electricity than initially projected. The bill would require the commission, on or before January 1, 2030, to require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program with electricity from 100% zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid. ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the tariff. The bill would authorize the commission to require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals. The bill would authorize the commission to establish minimum requirements for zero-carbon procurement on behalf of retail sellers for eligible customers receiving the tariff.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the this bills requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Ratepayer and Technological Innovation Protection Act. SEC. 2. (a) The Legislature finds and declares all of the following:(1) California drives worldwide technological innovation, and that innovation is an important component of the states economy, which is the fifth largest economy in the world.(2) California supports technological innovation with a world-class university system that provides a highly skilled workforce, and research and development tax incentives and other tools to facilitate the development and expansion of the states technology economy.(3) The quickly evolving development of artificial intelligence requires large-format data centers that currently require extremely large loads of electricity and water. While that expanded energy demand can help support the larger electrical grid and ordinary ratepayers, if managed incorrectly, it could pose a serious threat to Californias climate goals and, more importantly, leave existing ratepayers saddled with the enormous costs of stranded assets built to support that industry. Furthermore, with the appropriate guardrails, the increased consumption from these large-load customers could help drive down electricity rates for existing utility customers.(4) More efficient use of existing electrical and grid assets and the sharing of fixed energy costs across a larger overall demand can lower the cost to individual customers as a result of a new data center development.(b) Given the large-scale impact to Californias electrical grid posed by the development of new technologies, coupled with the need to help support this expanding industry, it is the intent of the Legislature that the Public Utilities Commission authorize a special tariff system to protect existing ratepayers and clean energy standards, while providing faster and more efficient approval for new load interconnections to support this emerging technological revolution.SEC. 3. Section 740.22 is added to the Public Utilities Code, to read:740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.(3)Does not increase fossil fuel consumption within the state.(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.(4)(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.(5)(3) Promotes stable or reduced retail rates for electrical service.(6)(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.(8)Requires onsite battery storage that provides demand response services to the electrical grid.(9)(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.(10)(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.(c)(d) For purposes of this section, both of the following definitions apply: (1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.(2) Retail seller has the same meaning as defined in Section 399.12.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Ratepayer and Technological Innovation Protection Act.
SECTION 1. This act shall be known, and may be cited, as the Ratepayer and Technological Innovation Protection Act.
SECTION 1. This act shall be known, and may be cited, as the Ratepayer and Technological Innovation Protection Act.
### SECTION 1.
SEC. 2. (a) The Legislature finds and declares all of the following:(1) California drives worldwide technological innovation, and that innovation is an important component of the states economy, which is the fifth largest economy in the world.(2) California supports technological innovation with a world-class university system that provides a highly skilled workforce, and research and development tax incentives and other tools to facilitate the development and expansion of the states technology economy.(3) The quickly evolving development of artificial intelligence requires large-format data centers that currently require extremely large loads of electricity and water. While that expanded energy demand can help support the larger electrical grid and ordinary ratepayers, if managed incorrectly, it could pose a serious threat to Californias climate goals and, more importantly, leave existing ratepayers saddled with the enormous costs of stranded assets built to support that industry. Furthermore, with the appropriate guardrails, the increased consumption from these large-load customers could help drive down electricity rates for existing utility customers.(4) More efficient use of existing electrical and grid assets and the sharing of fixed energy costs across a larger overall demand can lower the cost to individual customers as a result of a new data center development.(b) Given the large-scale impact to Californias electrical grid posed by the development of new technologies, coupled with the need to help support this expanding industry, it is the intent of the Legislature that the Public Utilities Commission authorize a special tariff system to protect existing ratepayers and clean energy standards, while providing faster and more efficient approval for new load interconnections to support this emerging technological revolution.
SEC. 2. (a) The Legislature finds and declares all of the following:(1) California drives worldwide technological innovation, and that innovation is an important component of the states economy, which is the fifth largest economy in the world.(2) California supports technological innovation with a world-class university system that provides a highly skilled workforce, and research and development tax incentives and other tools to facilitate the development and expansion of the states technology economy.(3) The quickly evolving development of artificial intelligence requires large-format data centers that currently require extremely large loads of electricity and water. While that expanded energy demand can help support the larger electrical grid and ordinary ratepayers, if managed incorrectly, it could pose a serious threat to Californias climate goals and, more importantly, leave existing ratepayers saddled with the enormous costs of stranded assets built to support that industry. Furthermore, with the appropriate guardrails, the increased consumption from these large-load customers could help drive down electricity rates for existing utility customers.(4) More efficient use of existing electrical and grid assets and the sharing of fixed energy costs across a larger overall demand can lower the cost to individual customers as a result of a new data center development.(b) Given the large-scale impact to Californias electrical grid posed by the development of new technologies, coupled with the need to help support this expanding industry, it is the intent of the Legislature that the Public Utilities Commission authorize a special tariff system to protect existing ratepayers and clean energy standards, while providing faster and more efficient approval for new load interconnections to support this emerging technological revolution.
SEC. 2. (a) The Legislature finds and declares all of the following:
### SEC. 2.
(1) California drives worldwide technological innovation, and that innovation is an important component of the states economy, which is the fifth largest economy in the world.
(2) California supports technological innovation with a world-class university system that provides a highly skilled workforce, and research and development tax incentives and other tools to facilitate the development and expansion of the states technology economy.
(3) The quickly evolving development of artificial intelligence requires large-format data centers that currently require extremely large loads of electricity and water. While that expanded energy demand can help support the larger electrical grid and ordinary ratepayers, if managed incorrectly, it could pose a serious threat to Californias climate goals and, more importantly, leave existing ratepayers saddled with the enormous costs of stranded assets built to support that industry. Furthermore, with the appropriate guardrails, the increased consumption from these large-load customers could help drive down electricity rates for existing utility customers.
(4) More efficient use of existing electrical and grid assets and the sharing of fixed energy costs across a larger overall demand can lower the cost to individual customers as a result of a new data center development.
(b) Given the large-scale impact to Californias electrical grid posed by the development of new technologies, coupled with the need to help support this expanding industry, it is the intent of the Legislature that the Public Utilities Commission authorize a special tariff system to protect existing ratepayers and clean energy standards, while providing faster and more efficient approval for new load interconnections to support this emerging technological revolution.
SEC. 3. Section 740.22 is added to the Public Utilities Code, to read:740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.(3)Does not increase fossil fuel consumption within the state.(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.(4)(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.(5)(3) Promotes stable or reduced retail rates for electrical service.(6)(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.(8)Requires onsite battery storage that provides demand response services to the electrical grid.(9)(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.(10)(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.(c)(d) For purposes of this section, both of the following definitions apply: (1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.(2) Retail seller has the same meaning as defined in Section 399.12.
SEC. 3. Section 740.22 is added to the Public Utilities Code, to read:
### SEC. 3.
740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.(3)Does not increase fossil fuel consumption within the state.(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.(4)(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.(5)(3) Promotes stable or reduced retail rates for electrical service.(6)(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.(8)Requires onsite battery storage that provides demand response services to the electrical grid.(9)(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.(10)(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.(c)(d) For purposes of this section, both of the following definitions apply: (1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.(2) Retail seller has the same meaning as defined in Section 399.12.
740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.(3)Does not increase fossil fuel consumption within the state.(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.(4)(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.(5)(3) Promotes stable or reduced retail rates for electrical service.(6)(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.(8)Requires onsite battery storage that provides demand response services to the electrical grid.(9)(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.(10)(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.(c)(d) For purposes of this section, both of the following definitions apply: (1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.(2) Retail seller has the same meaning as defined in Section 399.12.
740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.(3)Does not increase fossil fuel consumption within the state.(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.(4)(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.(5)(3) Promotes stable or reduced retail rates for electrical service.(6)(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.(8)Requires onsite battery storage that provides demand response services to the electrical grid.(9)(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.(10)(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.(c)(d) For purposes of this section, both of the following definitions apply: (1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.(2) Retail seller has the same meaning as defined in Section 399.12.
740.22. (a) On or before July 1, 2026, the commission shall establish or modify a special electrical corporation tariff or program, or modify and existing tariff or program, for transmission and distribution service to data centers that eligible customers that, at minimum, does all of the following:
(1)Avoids nonparticipating customers, such as existing residential, small business, and agricultural ratepayers, bearing cost shifts, such as the costs of interconnecting facilities or loads that fall short of initial projections.
(2)Assists each electrical corporation with fulfilling its obligation to serve its customers at just and reasonable rates.
(3)Does not increase fossil fuel consumption within the state.
(1) Ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the special electrical corporation tariff.
(4)
(2) Meets the states climate change goals by reducing the emissions of greenhouse gases associated with electrical generation.
(5)
(3) Promotes stable or reduced retail rates for electrical service.
(6)
(4) Contributes to the safe and reliable operation of the electrical grid, including by providing predictable electrical supply, voltage support, lower line losses, and congestion relief.
(7)Permits qualified data centers to use a reasonable percentage of behind-the-meter electricity that is generated as zero carbon, and requires backup generation that includes energy storage.
(8)Requires onsite battery storage that provides demand response services to the electrical grid.
(9)
(5) Ensures electrical grid investments to serve a data center an eligible customer are fully recovered from the data center eligible customer in the event that the data center eligible customer ceases operations or uses less electricity than initially projected.
(10)
(6) For data centers eligible customers taking transmission-level delivery service, collects a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs, and other societal cost obligations typically included in distribution rates.
(b)On or before January 1, 2030, the commission shall require all retail sellers subject to its jurisdiction to serve any data center subject to the tariff or program established or modified pursuant to this section with electricity from 100 percent zero-carbon resources in a manner that does not result in resource shuffling and does not increase carbon emissions elsewhere in the western grid.
(b) The commission may require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals, as determined by the commission.
(c) The commission may establish minimum requirements for zero-carbon procurement on behalf of a retail seller for an eligible customer receiving the special electrical corporation tariff.
(c)
(d) For purposes of this section, both of the following definitions apply:
(1)Data center means a large-scale energy consumer connecting at a transmission level voltage of at least 50 kilovolts that requires uninterruptible electricity housing servers and related data center equipment and software whose primary services are the storage, management, processing, and distribution of data.
(1) Eligible customer means a customer connecting transmission-level service of at least 50 kilovolts and with an estimated demand of at least 50 megawatts.
(2) Retail seller has the same meaning as defined in Section 399.12.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 4.