Data centers: energy usage reporting and efficiency standards: electricity rates.

Assembly Member Bauer-Kahan's data center and artificial intelligence energy regulation proposal establishes new reporting requirements and efficiency standards for California's technology infrastructure. The legislation requires developers of large AI models to publicly disclose their total energy consumption and the percentage sourced from California, both during development and ongoing operations.

The bill directs the State Energy Commission to adopt comprehensive efficiency standards for data centers by January 2027. These standards must incorporate load management capabilities, align with state greenhouse gas reduction targets, and enable participation in demand response programs. Data centers must report key operational details to the Commission, including facility locations and contact information, while the Commission will track sector-wide energy consumption trends in its integrated policy reports.

For electrical utilities seeking to recover costs related to new data center construction or major alterations, the Public Utilities Commission must evaluate whether expenses are justified and reasonable. The Commission is specifically directed to minimize shifting these costs to ratepayers who do not directly benefit from the facilities. This builds on existing utility rate-setting authority while adding protections for general consumers.

The legislation defines key terms and thresholds, including AI systems that use more than 10^25 computing operations and data centers with energy demand exceeding 5 megawatts. Annual reporting requirements begin in February 2027, with energy usage data required to remain publicly accessible and comprehensible to average readers at no cost.