Data centers: waste heat energy.

Assembly Member Papan's legislation expands California's Climate Catalyst Revolving Loan Fund Program to include projects that capture and convert waste heat from data centers. The bill designates the State Energy Resources Conservation and Development Commission as the consulting agency for this new category of eligible projects under the program administered by the California Infrastructure and Economic Development Bank (I-Bank).

When evaluating multiple applications for data center waste heat projects, the Energy Commission must prioritize funding based on alignment with state policy objectives and financial considerations. The legislation adds this new project category to the existing program framework, which requires adoption of a climate catalyst financing plan and maintains separate accounts within the revolving fund for each project type.

The measure preserves the program's core requirements, including public posting of financing plans, board approval processes, and the July 1, 2025 deadline for project funding authorization. By expanding eligible uses of the Climate Catalyst Revolving Loan Fund, the bill makes an appropriation while building upon the established structure for project evaluation and fund management.