Data centers bill passes Assembly days before session ends
A new California bill, Assembly Bill 1577, passed the Assembly and is now on Governor Newsom's desk. The bill mandates that data center operators submit detailed information about their energy consumption to the California Energy Commission and local permitting agencies. This legislation aims to increase transparency regarding data center energy usage amidst concerns about grid reliability and economic impact.
Assembly Bill 1577, authored by Assemblymember Rebecca Bauer-Kahan (D-San Ramon), passed the California Assembly by a vote of 48-11 and now proceeds to Governor Gavin Newsom's desk. The bill mandates that data center operators in California submit information regarding their energy consumption, including anticipated on-site electrical generation and load, and power usage effectiveness, to the California Energy Commission and local permitting agencies. Bauer-Kahan emphasized the bill's aim for transparency in data center energy use to ensure the state's electrical grid can meet demand.
Opponents, including Assemblymembers David Tangipa (R-Fresno) and Carl DeMaio (R-San Diego), argued against further regulation, citing concerns that it could impede economic progress and modernization. Assemblymember Esmeralda Soria (D-Fresno) highlighted the need for responsible development that benefits impoverished communities. The legislation comes amid reports from the Union of Concerned Scientists and the Legislative Analyst's Office, which warn of potential grid unreliability, slowed clean energy transition, and increased costs for taxpayers due to rising data center electricity demand, projected to jump from 2% to 9% of peak demand by 2040.