California Technology Innovation and Ratepayer Protection Act.

The deadline for the commission to establish tariffs was extended from July 1, 2027 to January 1, 2028, giving utilities and data centers an additional six months.

A new section (945.3) requires the commission to establish a tariff for interconnection of participating customers seeking retail electric service at the transmission level, expanding the bill beyond distribution-level interconnection.

The commission's mandate was broadened from establishing 'separate tariffs' to establishing 'new tariffs or update existing electric rules,' and 'retail electric service' was added alongside transmission, distribution, and optional generation services.

Cost responsibility for transmission upgrades was changed from a flat assignment to the participating customer to an allocation 'based on a methodology to be determined by the commission,' and the trigger was expanded to include 'usage' in addition to interconnection.

The refund mechanism for interconnection costs was modified to require that refunds be 'based on the materialization of the participating customer's load' in addition to the existing 75 percent cap on annual net transmission revenue.

A new section (945.9) authorizes electrical corporations to submit an exceptional case filing to approve contracts with data centers seeking transmission-level interconnection for facilities obtaining retail electric service after January 1, 2027 but before the commission approves the new tariff.

The word 'comparable' was removed from the provision allowing participating customers to reduce their prefunding requirement by installing zero-emission resources behind their meter, potentially broadening what qualifies.

Demand response participation changed from mandatory ('shall participate') to optional ('may participate'), and a new applicability date was added: the transmission-level interconnection tariff only applies to data centers entering into a new interconnection agreement on or after January 1, 2027.

The bill was recodified from Chapter 14 of Division 4.1 to Article 14.7 of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, and section numbers were renumbered accordingly (e.g., 8542 became 945.2).

The minimum prefunding contract duration was reduced from 15 years to 10 years, and the early termination fee lookback period was also reduced from 15 years to 10 years.

The prefunding requirement was changed from requiring installation of new incremental zero-carbon energy resources sufficient to provide at least 50 percent of hourly energy needs and dispatchable reliability assets, to a broader requirement to prefund 'the costs of procurement necessary to serve the participating customer.'

The specific requirement that the commission establish eligibility criteria and limit interconnection components to facilities with new transmission interconnection agreements established after the rate structure was removed from subdivision (b).

The behind-the-meter offset provision was changed from allowing 'comparable energy resources' limited to zero-emission, to allowing 'comparable zero-emission resources' as determined by the load-serving entity.

The definition of 'participating customer' was simplified. Previously it had separate thresholds for interconnection components (25 MW) versus other components (commission-determined, not to exceed 25 MW). Now it is a single commission-determined minimum peak demand that shall not exceed 25 megawatts.

The definition of 'data center' was simplified, removing language about environmental control equipment maintaining proper operating conditions, and now focuses on computing infrastructure including GPUs, CPUs, servers, storage, networking, and associated power and cooling systems.

The term 'electrical corporation tariff' was replaced throughout with 'separate tariffs,' and references to 'electrical corporation, community choice aggregator, or electric service provider' were consolidated under the defined term 'load-serving entity.'

Four new Assembly coauthors were added: Members Calderon, Connolly, Harabedian, and Rogers.

The single 'electrical corporation tariff' is replaced with 'separate tariffs' covering transmission/distribution, generation, and interconnection as distinct rate components. Generation services are now described as 'optional' rather than a required part of the tariff.

Entire Section 8543 encouraging local publicly owned electric utilities to develop similar tariffs was deleted, removing all provisions that applied to municipally-owned utilities.

New Section 8544 clarifies that the chapter does not limit data centers from receiving generation services from electric service providers or community choice aggregators, provided those services meet the generation tariff requirements.

New subdivision (i) explicitly states the commission cannot regulate rates or terms of service offered by community choice aggregators or electric service providers, consistent with existing law.

'Electrical corporation' now explicitly excludes electrical cooperatives as defined in Section 2776, narrowing which utilities are subject to the bill.

New definitions added for 'Load-Serving entity' (referencing Section 380) and 'Separate tariffs.' The 'data center' definition was expanded to specifically list computing infrastructure including GPUs, CPUs, servers, storage, networking equipment, and power/cooling systems.

'Participating customer' definition simplified: the separate interconnection-specific 25 MW threshold language was removed and replaced with a single definition of 'a data center with a minimum peak demand, as determined by the commission,' still capped at 25 MW.

The prefunding requirement changed from requiring installation of new zero-carbon energy resources sufficient to provide 50 percent of hourly energy needs and dispatchable reliability assets, to requiring 'costs of procurement necessary to serve the participating customer' through a load-serving entity. Onsite generation can now reduce (not fully satisfy) the prefunding obligation.

New subdivision (d) of Section 8542 requires the generation tariff to ensure procurement supports a load-serving entity's ability to meet commission procurement requirements, clean energy targets in Sections 399.15 and 454.52, and other state clean energy policies.

Contract duration for prefunding reduced from at least 15 years to at least 10 years. Early termination fee window and minimum term also reduced from 15 years to 10 years.

The refund base for interconnection cost contributions was narrowed from 'annual net revenue received by the electrical corporation' to 'annual net transmission revenue received by the electrical corporation,' potentially reducing the amount available for annual refunds.

The standalone 'large load customer' definition (transmission-level service with at least 75 MW peak demand, excluding fossil-to-renewable switchers and transportation electrification) is deleted. All references to 'large load customer' are replaced with 'participating customer,' which already had its own threshold of 25 MW for interconnection components.

A new paragraph (2) is added to the 'data center' definition, explicitly excluding publicly funded research facilities, public safety facilities, national security facilities, publicly owned facilities, and other utility facilities including assets of facilities-based telecommunications providers. This narrows which facilities qualify as data centers subject to the tariff.

The requirement for each participating customer to install onsite zero-carbon energy storage with at least four hours of capacity at no less than 50 percent of forecasted peak demand (dispatchable by the electrical corporation or ISO) is entirely removed from the tariff criteria.

The separate requirement for participating customers to participate in existing demand response programs authorized by the commission (including through third-party aggregators) is removed. Only the requirement to participate in a new demand response program remains.

In Section 8543 (local publicly owned electric utilities), references to 'large load customer' are replaced with just 'customer,' broadening the cost-shifting protection so it applies to all customers subject to the local utility tariff, not just large load customers.

References to 'establish or modify' a rate structure are simplified to just 'establish,' and various cross-reference language is cleaned up (e.g., 'the an electrical corporation tariff' corrected to 'an electrical corporation tariff').

New definition of 'data center' as a facility primarily containing electronic equipment used to process, store, and transmit digital information, which may be free-standing or within a larger structure.

New definition of 'facility' as physical property, plant, building, structure, source, or stationary equipment on contiguous or adjacent properties under common ownership or control.

New definition of 'unbundled customer' as a customer receiving generation from a different entity than the one providing transmission and distribution services.

Terminology changed throughout from 'nonparticipating ratepayers' to 'nonparticipating customers,' narrowing the protected class to those actually receiving service rather than all ratepayers.

The 'participating customer' definition is restructured into a two-tier system: for interconnection components, it means a data center with at least 25 MW peak demand (lower than the prior 75 MW large load threshold); for other tariff components, the commission sets a minimum not to exceed 25 MW based on material impact on costs.

New exclusions from 'participating customer' status: publicly funded research facilities, public safety facilities, national security facilities, publicly owned facilities, and utility facilities including facilities-based telecommunications provider assets.

The commission must now establish or modify a 'rate structure that includes an electrical corporation tariff' rather than simply establishing or modifying an electrical corporation tariff, broadening the regulatory framework.

Interconnection components of the tariff now only apply to facilities for which a new transmission interconnection agreement is established after the rate structure is created (or a later date specified by the commission), excluding existing interconnections.

New requirement that for unbundled customers, charges in the generation component of their bill must be assessed separately from charges in the transmission and distribution components.

Demand response participation requirement changed from 'existing demand response programs' to 'a new demand response program authorized by the commission' that must not result in net costs to nonparticipating customers and must support load shifting, reliability, resource adequacy, and greenhouse gas emission reduction objectives.

Refund provision for interconnection cost contributions now explicitly states that the 75 percent annual cap 'may delay the timing of the full recovery of refunds by the participating customer.'

New prefunding requirement: participating customers must prefund a contract of at least 15 years through an electrical corporation, community choice aggregator, or electric service provider for installation of new incremental zero-carbon energy resources sufficient to provide at least 50 percent of the customer's hourly energy needs and dispatchable reliability assets. Customers may alternatively install comparable behind-the-meter zero-emission resources.

New Section 8542(e) clarifies that the chapter does not modify the limits on direct transactions established pursuant to Section 365.1 of the Public Utilities Code.

Section 8542(c)(1) now limits the assignment of unique wholesale energy costs (including ancillary and reliability services costs) to only customers taking generation services from the electrical corporation, rather than applying to all participating customers.

Section 8542(c)(5) was changed to require participation in 'existing demand response programs authorized by the commission' (rather than any program), added that participation through third-party aggregators is permitted, and added that onsite generation used to meet demand response requirements must be limited to zero emission resources.

A new Section 8542(c)(6) requires each participating customer to certify to the commission that its facility meets the requirements of Public Resources Code Sections 25545.3.3(a)-(b) and 25545.3.5(a)-(e), notwithstanding the definition of 'covered project' in Section 25545.3.

A new subsection (c) was added to Section 8543, requiring each participating ratepayer at a local publicly owned electric utility to certify that its facility meets the same Public Resources Code environmental standards (Sections 25545.3.3(a)-(b) and 25545.3.5(a)-(e)).

A new cap was added in Section 8542(c)(3)(C): annual refunds of interconnection cost contributions shall not exceed 75 percent of the annual net revenue received by the electrical corporation from the participating customer.

The risk/benefit evaluation and cost-shift prevention requirements in Section 8542(b)(2) and (b)(3) were expanded to cover 'nonparticipating ratepayers, customers' rather than only 'nonparticipating ratepayers,' broadening the class of protected parties.