For electrical-corporation generation service, the CPUC must set a minimum peak-demand threshold for the tariff; it cannot exceed 25 MW. The tariff does not apply to publicly funded research, public safety, publicly funded national security, publicly owned, or qualifying utility facilities. Threshold and facility exemptions

Electrical corporations must set transmission and distribution tariffs requiring participating data centers to pay a reasonable share of wildfire mitigation and liability, electrification and environmental programs, and other societal costs typically collected from distribution-level customers. Share of distribution-level costs

Generation tariffs must support applicable procurement requirements and state clean-energy targets, and require data centers to contribute equitably to reliability and other generation-funded programs. Generation procurement and contributions

Generation tariffs must include a payment mechanism lasting at least 10 years to protect other customers from incremental procurement costs and stranded costs. It must include fees for failing to complete interconnection or ending service early, upfront collateral or prepayment, and minimum payments based on projected load even if actual consumption is lower. The tariff may allow reduced funding requirements proportional to behind-the-meter zero-emissions resources. Minimum-duration payment mechanism

Tariffed data centers must report expected onsite-generation investments throughout their service and cannot receive compensation for onsite generation in a way that shifts costs to other retail customers. Onsite-generation requirements

By January 1, 2028, community choice aggregators and electric service providers must adopt data-center generation tariffs, with a minimum peak-demand threshold no higher than 25 MW. Those tariffs must allocate incremental service costs to data centers rather than other rate classes, avoid increasing costs to other retail customers, and include generation-cost protections including the at-least-10-year payment mechanism. CCA and ESP tariff deadline and requirements

The act does not expand the amount of retail load eligible to participate in direct-access transactions. Direct-access limitation

A tariffed data center may reduce its generation funding requirements by installing zero-emissions resources behind the meter, with the reduction tied to the amount installed and determined by the commission (“reduce the generation funding requirements”).

The generation tariff does not apply to data centers that are publicly funded research facilities, public safety facilities, publicly funded national security facilities identified by the commission, publicly owned facilities, or specified utility facilities (“shall not apply to the following types of facilities”).

A city, county, or city and county may not approve a discretionary or ministerial permit or other entitlement for constructing a data center, or expanding one in a way that increases maximum peak water use, unless the statutory conditions are satisfied ("shall not approve" a permit).

The applicant must provide a water supply assessment for the proposed construction or expansion ("A water supply assessment").

Beginning January 1, 2028, the applicant must provide a water scarcity plan covering abnormally dry through exceptional drought conditions, including staged withdrawal reductions, nonessential-use curtailment, recycling and reuse, thermal-load reductions, and temporary load shedding when necessary ("Beginning January 1, 2028").

The applicant must provide projected water use and water-efficiency measures ("Projected water use and water efficiency measures").

The applicant must disclose workforce information, including workforce composition, job classifications, employment duration, wage ranges and benefits, and the proportions of workers residing in the project county and in California ("Disclosures regarding estimated workforce needs").

The applicant must assume the full cost of any water conveyance, treatment, storage, or distribution infrastructure improvements that the applicable water supplier determines are necessary to serve the project ("assumes responsibility for the full cost").

Even if the applicant satisfies these requirements, the local government is not required to approve the data-center permit, entitlement, or other approval ("shall not be construed to require").

For data centers entering new transmission-level interconnection agreements on or after January 1, 2027, the CPUC must establish or update electric tariffs and rules by January 1, 2028. Those tariffs must protect nonparticipating customers from stranded costs and cost shifts. (applicable data centers)

A data center applying for transmission-level interconnection must disclose whether it has applied for the same project in other utility service territories or jurisdictions, and identify each such application. (disclose each instance)

The applicable data center must pay for transmission facility upgrades and usage assigned to it under a CPUC-determined methodology; to the extent federal law allows, this includes shared grid network upgrades needed to accommodate its interconnection or increased electricity flows. (cost responsibility)

Refunds of a data center’s initial interconnection contributions are allowed only when the utility’s actual annual net revenues cover specified service and allocated costs. Refunds depend on the facility’s actual load and cannot exceed 75% of the utility’s annual net transmission revenue from that customer. (refund limits)

A data center must pay an early termination fee if it leaves the electrical system within 10 years of initial interconnection or fails to achieve adequate load ramp-up. The fee must be at least the revenue gap associated with projected demand and energy use over the minimum 10-year term. (early termination fee)

A participating customer must certify that its facility meets specified requirements in sections of the Public Resources Code. (facility certification)

For an unbundled customer, charges generally included in the generation component of its consolidated bill must instead be assessed as a separate line item. (separate line item)

Before the CPUC approves the transmission-level interconnection tariff, a utility seeking a contract with a data center that will obtain retail service after January 1, 2027, may need to submit an exceptional-case filing for approval; the contract must comply with the act. (exceptional case filing)

By January 1, 2028, the commission must establish or update electric tariffs and rules for participating customers’ interconnection and retail electric, transmission, distribution, and generation services. The rules must assess effects on nonparticipating customers and prevent cost shifts or stranded costs. Establish new tariffs or update existing electric rules

The commission must establish a transmission-level interconnection tariff for participating customers. It must allow a customer to receive a partial refund of initial interconnection contributions, based on its actual load and only when the utility’s net revenues cover specified costs; refunds are capped at 75% of annual net transmission revenue, so full recovery may be delayed. receive refunds of a portion

The commission must require utilities to publish and update maps identifying locations where participating customers can interconnect without significant, costly, and time-consuming transmission upgrades. publish and update maps

Participating customers may join a commission-authorized demand-response program supporting load shifting, reliability, resource adequacy, and emissions-reduction objectives, provided it creates no net costs for nonparticipating customers. may participate in a new demand response program

Before the commission approves the transmission-level interconnection tariff, a utility may seek approval of a contract with a data center seeking transmission-level interconnection for retail service after January 1, 2027. The contract must comply with the act. submit an exceptional case filing

CEQA applies to entitlements for data center development and operation, and public-agency projects furthering a data center are ineligible for categorical exemptions. The categorical-exemption restriction does not cover specified facilities, including publicly funded research, public safety, publicly funded national security, publicly owned, utility, or independent higher-education research facilities. CEQA applies to data center entitlements and specified facilities are excluded.

For a data center to qualify for environmental leadership project streamlining, its applicant must pay the full interconnection cost in advance, as determined by the CPUC or a local publicly owned utility. The applicant pays in advance the full cost of interconnection.

For that streamlining eligibility, the applicant must commit to fully paying grid investments, including new generating capacity, and the commitment must provide for an early termination fee if the data center closes before those costs are recovered. An enforceable commitment to fully pay all electrical grid investments.

A data center seeking environmental leadership project certification must not increase fossil fuel consumption within California. Does not increase fossil fuel consumption within the state.

For environmental leadership project eligibility, a data center must provide zero-carbon energy storage with at least four hours of capacity at 100% of its forecast peak demand, and use onsite zero-carbon storage for grid demand response. At least four hours of capacity at 100 percent of forecasted peak demand.

A data center seeking that certification must rely on zero-carbon generation located behind the meter to the maximum extent feasible. Relies on zero-carbon generation located behind the meter.

For environmental leadership project eligibility, the data center must use recycled water and water-efficient technology or waterless cooling. Uses recycled water and water-efficient technology or waterless cooling systems.

A data center seeking certification must rely on 100% zero-carbon electricity resources for hourly energy needs within five years of starting operations; 75% of those resources must be newly developed. Within five years of initial operations, of which 75 percent shall be newly developed.

Environmental leadership project certification also requires meeting statutory disadvantaged-community and covered-project labor requirements. Meet the requirements of subdivision (c) of Section 21189.82 and meet the specified labor requirements.

To qualify for environmental leadership project certification, the applicant must enter an enforceable community benefits agreement and engage nearby affected communities to identify their priorities. Engage with nearby affected communities.

Greenhouse-gas impacts of a data center certified as an environmental leadership project must be quantified and mitigated under a prescribed priority: project-level reductions first, then local reductions, local offsets, and finally regional-benefit offsets if earlier measures cannot fully mitigate impacts. The mitigation of the impacts.

A data center project may be certified by the Governor as an environmental leadership development project, making it eligible for CEQA streamlining, if the lead agency certifies that it meets the measure’s requirements. These include paying interconnection costs in advance and covering grid investments, avoiding increased in-state fossil-fuel use, providing zero-carbon storage and electricity, using water-efficient or recycled-water systems, entering community-benefits agreements, and meeting specified labor and disadvantaged-community requirements. The data center project conditions