Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250SB__116899INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-18</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>1168</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator McNerney</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>McNerney</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to add Article 10.5 (commencing with Section 901) to Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, and to add Part 19.1 (commencing with Section 40220) to Division 2 of the Revenue and Taxation Code, relating to energy, and making an appropriation therefor. </ns0:Title>
<ns0:RelatingClause>energy, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Data centers: natural gas and electricity: surcharges. </ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations and electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law establishes a surcharge on all natural gas consumed in the state to fund certain low-income assistance programs, cost-effective energy efficiency and conservation activities, and public interest research and development. Under existing law, the surcharge is in addition to any other charges for natural gas sold or transported for consumption, as defined, in this state. Existing law exempts from the surcharge gas customers within the service territories of municipalities, districts, or public agencies that offer specified services or programs, as specified. Under existing law, a violation of the Public Utilities Act, or any
order, decision, rule, direction, demand, or requirement of the PUC, is a crime.</html:p>
<html:p>The Energy Resources Surcharge Law imposes a surcharge on consumers for the consumption of electricity purchased from an electric utility, which includes an electrical corporation and local publicly owned electric utility, at a rate annually fixed by the State Energy Resources Conservation and Development Commission (Energy Commission), not to exceed a surcharge rate cap of $0.0003 per kilowatthour. Existing law requires electric utilities to collect the surcharge from consumers, and requires electric utilities, and any consumers who have not had the surcharge collected by an electric utility, to file a return with specified information. Under existing law, a violation of the Energy Resources Surcharge Law is a crime.</html:p>
<html:p>This bill would impose surcharges, on and after January 1, 2027, on natural gas consumed by a data center, as defined, or a
person that consumes natural gas to produce electricity primarily for a data center, at an unspecified rate, and on electricity consumed by a data center that is purchased from an electric utility, which includes an electrical corporation and local publicly owned electric utility, at an unspecified rate. The bill would specify that the above-described surcharges apply to persons that meet specified criteria, including, among other things, that during any single month beginning January 1, 2027, the person purchased natural gas from a gas corporation, or electricity from an electric utility, that was wholly or partially consumed by a data center. The bill would require a gas corporation and electric utility to collect the applicable surcharge from each data center, except as provided. The bill would authorize a person to apply to a gas corporation or electric utility, as applicable, for an exemption from a surcharge, as specified.</html:p>
<html:p>Because certain provisions of this
bill would be part of the Public Utilities Act or implemented through a PUC action, and other provisions of the bill would be enforced pursuant to the Energy Resources Surcharge Law, the violation of which would be a crime, the bill would impose a state-mandated local program. Additionally, by imposing new duties on local publicly owned electric utilities, the bill would impose a state-mandated local program.</html:p>
<html:p>This bill would require all revenues, interest, and penalties derived from the above-described surcharges to be deposited into the Data Center Excess Energy Usage Surcharge Fund, which the bill would create in the State Treasury. The bill would continuously appropriate moneys in the fund collected from local publicly owned electric utility territory to the Energy Commission to establish a Low-Income Rate Assistance Program Account, and moneys in the fund collected from electrical corporation territory to the Public Utilities Commission to establish a Low-Income
Rate Assistance Program, as provided.</html:p>
<html:p>The bill would require the California Department of Tax and Fee Administration to administer the taxes imposed by the above-described provisions pursuant to the Fee Collection Procedures Law, the violation of which is a crime. By expanding the application of the Fee Collection Procedures Law, the bill would impose a state-mandated local program.</html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for specified reasons.</html:p>
<html:p>
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the
meaning of Section 3 of Article XIII
<html:span class="ThinSpace"/>
A of the California Constitution, and thus would require for passage the approval of
<ns0:Fraction>
<ns0:Numerator>2</ns0:Numerator>
<ns0:Denominator>3</ns0:Denominator>
</ns0:Fraction>
of the membership of each house of the Legislature.
</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_246DF943-9D1D-44D4-8BB2-11A3AE953654">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Data centers’ energy use is rapidly increasing across the nation. In California, the Independent System Operator expects energy use to grow by 2.3 gigawatts by 2030. The Pacific Gas and Electric Company alone had about 2,300 megawatts of applications for data center capacity in 2024.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Demands for energy by data centers are growing at the same time as energy prices for Californians are also growing at an unprecedented rate due to factors such as wildfire risk, extreme heat, and the state’s transition to clean energy.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The California Alternative
Rates for Energy (CARE) program and the Family Electric Rate Assistance (FERA) program in California help over 1,400,000 Californians afford their electricity bills. These programs are currently subsidized by all ratepayers.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
In order to facilitate data center growth in California while simultaneously retaining reasonable electricity and natural gas rates for all Californians, it is critical to ensure that data centers are contributing back to rate stabilization for all, and particularly for low-income customers.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_31FBEF4C-0286-46D0-A90F-C9F3C902FCC0">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:PUC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'10.5.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 901">
Article 10.5 (commencing with Section 901) is added to Chapter 4 of Part 1 of Division 1 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading type="ARTICLE" id="id_152E6AEC-7E7C-4263-BAC3-1AC3996A5715">
<ns0:Num>10.5.</ns0:Num>
<ns0:LawHeadingVersion id="id_4AB8B9E8-3F9B-4662-A5C0-D6D1BBF75366">
<ns0:LawHeadingText>Data Center Excess Natural Gas Usage Surcharge Law</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_2F48CA24-38F1-41DD-9BC4-67D651CEA09E">
<ns0:Num>901.</ns0:Num>
<ns0:LawSectionVersion id="id_D85BB330-3174-418C-9622-540E0FAFEECC">
<ns0:Content>
<html:p>This part shall be known, and may be cited, as the Data Center Excess Natural Gas Usage Surcharge Law.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_0F034A17-9292-4A23-A470-4B301B039F2F">
<ns0:Num>902.</ns0:Num>
<ns0:LawSectionVersion id="id_C9081349-D1E8-4B0A-A8A7-518AEA0F9DBF">
<ns0:Content>
<html:p>For purposes of the surcharge imposed by this article, Article 10 (commencing with Section 890) shall apply, except as otherwise provided, including that references to “State Board of Equalization” are replaced by “California Department of Tax and Fee Administration.”</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_18FAB0B9-86AD-44FE-91DA-51EDA4D95749">
<ns0:Num>903.</ns0:Num>
<ns0:LawSectionVersion id="id_7CB02D35-17DF-413B-8502-8F3F51BC9437">
<ns0:Content>
<html:p>For purposes of this article, both of the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Data center” means a facility that primarily contains electronic equipment used to process, store, and transmit digital information, which may be either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A freestanding structure.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A facility within a larger structure that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Department” means the California Department of Tax and Fee Administration.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_EF70E772-3996-41C6-943E-E8F19939381E">
<ns0:Num>904.</ns0:Num>
<ns0:LawSectionVersion id="id_250C201D-B951-4EC5-A3E2-DE5E18C70399">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On and after January 1, 2027, a surcharge is hereby imposed on all natural gas consumed by a data center in this state, or a person that consumes natural gas to produce electricity primarily for a data center, at a rate of $____ per therm.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Except as specified in Section 898, a public utility gas corporation shall collect the surcharge imposed pursuant to subdivision (a) from any data center consuming natural gas in this state that, or person that consumes natural gas to produce electricity primarily for a data center in this state who, receives gas service from the public utility gas corporation. The duty to collect the surcharge shall commence with the beginning of the first regular billing period applicable to that data center or person
that starts on or after January 1, 2027.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Except as specified in Section 898, every data center or person consuming natural gas in this state that has been transported by an interstate pipeline shall be liable for the surcharge imposed pursuant to subdivision (a). The duty to remit the surcharge shall commence on January 1, 2027.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The surcharge imposed pursuant to subdivision (a) shall be in addition to any other charges for natural gas sold or transported for consumption in this state. The surcharge imposed pursuant to this article shall be identified as a separate line item on the bill of a data center provided by a public utility gas corporation.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The surcharge imposed pursuant to subdivision (a) shall apply to persons who meet all of the following criteria:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
During any single month, beginning January 1, 2027, the person purchased natural gas from a public utility gas corporation that was wholly or partially consumed by a data center.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The person’s consumption of natural gas in the current or previous calendar year has increased by more than ___ therms since the 2021 calendar year.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The person does not primarily use the natural gas for the manufacture of tangible personal property, as defined in Section 6016 of the Revenue and Taxation Code.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Every data center consuming natural gas from a public utility gas corporation, or person that consumes natural gas to produce electricity primarily for a data center, is liable for the surcharge. This liability is not extinguished until
the surcharge has been paid to this state, except that payment to a public utility gas corporation under this article is sufficient to relieve the consumer from further liability for the surcharge. The surcharge required to be collected by the public utility gas corporation, and any amount unreturned to a data center a person that consumes natural gas to produce electricity primarily for a data center that is not a surcharge but was collected from the data center as a surcharge, constitutes debts owed by the public utility gas corporation to the state.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any amounts collected by a public utility gas corporation from a consumer on account of the purchase of natural gas, the consumption of which is subject to the surcharge, shall be applied proportionately between the liability of the data center on account of the purchase of the natural gas and the liability of the data center for the surcharge.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
A person may apply to a public utility gas corporation for an exemption from the surcharge. The utility shall not grant an exemption if the person does not meet the criteria in paragraph (3) of subdivision (e), or is not otherwise exempt from the surcharge imposed pursuant to Article 10 (commencing with Section 890). A public utility gas corporation or data center or person that consumes natural gas to produce electricity primarily for a data center may submit a request, including a statement showing the facts and basis for the claim, to the department to issue a ruling as to the applicability of the exemption. Pending issuance of the ruling by the department, the public utility corporation shall not be required to collect the surcharge from the claimant.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
A public utility gas corporation is relieved from liability to collect the surcharge insofar as the base upon which the
surcharge is imposed is represented by accounts that have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the public utility gas corporation has previously paid the amount of the surcharge it may, under regulations prescribed by the department, take as a deduction on its return the amount found to be worthless and charged off. If any such accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after such collection. The department may, by regulation, promulgate such other rules with respect to uncollected or worthless accounts as it shall deem necessary to the fair and efficient administration of this article.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Notwithstanding any other law, persons subject to the jurisdiction of the commission are not required to obtain any authorization from the commission to comply with this part.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Every public utility gas corporation selling natural gas for consumption in this state shall register with the department, in a form prescribed by the department, under the same name that it collects the surcharge imposed by Article 10 (commencing with Section 890).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_305C4A40-64B5-4C0B-AFFF-C6AD8828138F">
<ns0:Num>905.</ns0:Num>
<ns0:LawSectionVersion id="id_672DAAA9-9550-4084-B878-F686607A53A0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). For purposes of this article, the references in the Fee Collection Procedures Law to “fee” shall include the surcharges imposed by this article, and references to “feepayer” shall mean any person liable for the payment of the surcharges imposed under this article and collected pursuant to that law. The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this article, including, but not limited to, collections, reporting, refunds, and appeals.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The surcharges imposed by this article and the amounts thereof required to be collected are due quarterly on or before the last day of the month next succeeding each calendar quarter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Amounts due, for which a billing for the natural gas is issued by a public utility gas corporation to the consumer before the close of a calendar quarter, are payable when due.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_38D6A22C-D46E-4E7F-806C-B584BD7F0C92">
<ns0:Num>906.</ns0:Num>
<ns0:LawSectionVersion id="id_CA36A5E7-84A2-4004-8654-AA375479AED6">
<ns0:Content>
<html:p>All revenues, interest, and penalties derived from the surcharge imposed pursuant to this article shall be deposited into the Data Center Excess Energy Usage Surcharge Fund, established pursuant to Section 40225 of the Revenue and Taxation Code, less payments for refunds and reimbursement to the department for expenses incurred in the administration and collection of the surcharge.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_1263B2AF-34FB-43E3-91BB-E514446A3F42">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:RTC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'19.1.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 40220">
Part 19.1 (commencing with Section 40220) is added to Division 2 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading type="PART" id="id_E65B03DD-A587-4350-9906-9C2580C37F34">
<ns0:Num>19.1.</ns0:Num>
<ns0:LawHeadingVersion id="id_635D76DC-420A-4541-B940-7019887CCCEA">
<ns0:LawHeadingText>Data Center Excess Electricity Usage Surcharge Law</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_C364F3ED-C732-4870-9227-987F3C64F45E">
<ns0:Num>40220.</ns0:Num>
<ns0:LawSectionVersion id="id_0E1CC32F-DDE2-4C8D-8ABF-67FD5821180D">
<ns0:Content>
<html:p>This part shall be known, and may be cited, as the Data Center Excess Electricity Usage Surcharge Law.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_99F937E9-E40D-4048-ABB6-3A089ADC41BF">
<ns0:Num>40221.</ns0:Num>
<ns0:LawSectionVersion id="id_4FBEF848-E27B-43CF-B956-4E3C12CA2179">
<ns0:Content>
<html:p>For purposes of the surcharge imposed by this part, Part 19 (commencing with Section 40001) shall apply, except as otherwise provided.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_828B94BA-B1BD-43E4-A48B-ADB530F90FE8">
<ns0:Num>40222.</ns0:Num>
<ns0:LawSectionVersion id="id_040FF6BE-7622-451A-8964-546FA6F03165">
<ns0:Content>
<html:p>For purposes of this part, both of the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Data center” means a facility that primarily contains electronic equipment used to process, store, and transmit digital information, which may be either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A freestanding structure.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A facility within a larger structure, that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Energy Commission” means the State Energy Resources Conservation and Development Commission.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_262D6555-BD31-4A63-9AD3-6408CF4F212D">
<ns0:Num>40223.</ns0:Num>
<ns0:LawSectionVersion id="id_0E1DC309-265F-4BA1-BA9B-5621745178A0">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On and after January 1, 2027, a surcharge is hereby imposed on electricity consumed by a data center in this state and that is purchased from an electric utility, or the United States or an agency thereof, at the rate of ____ per kilowatthour.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The surcharge imposed by paragraph (1) shall apply to persons who meet all of the following criteria:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
During any single month, beginning January 1, 2027, the person purchased electricity from an electric utility that was wholly or partially consumed by a data center with a total facility capacity of 20 megawatts or greater.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The person’s
consumption of electricity in the current or previous calendar year has increased by more than 25,000 kilowatthours since the 2021 calendar year.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The person does not primarily use electricity for the manufacture of tangible personal property, as defined in Section 6016.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Every data center consuming electricity in this state purchased from an electric utility, or the United States or an agency thereof, is liable for the surcharge. This liability is not extinguished until the surcharge has been paid to this state, except that payment to an electric utility registered under this part is sufficient to relieve the consumer from further liability for the surcharge.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Every electric utility selling electricity to data centers in this state shall collect the surcharge from each data center,
other than a data center that is an electric utility, at the time it collects its billings from the data center for the electricity sold or provided. The duty to collect the surcharge from a data center shall commence with the beginning of the first regular billing period applicable to that person that starts on or after January 1, 2027.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A person may apply to an electric utility for an exemption from the surcharge. The utility shall not grant an exemption if the data center does not meet the criteria in subparagraph (C) of paragraph (2) of subdivision (a), or Chapter 3 (commencing with Section 40041) of Part 19. An electric utility or a data center may submit a request, including a statement showing the facts and basis for the claim, to the department to issue a ruling as to the applicability of the exemption. Pending issuance of the ruling by the department, the electric utility shall not be required to collect the surcharge from the
claimant.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The surcharge required to be collected by the electric utility from the consumer shall be added to the charges to the data center for the electricity sold. The amount of the surcharge may be stated separately. If the electric utility does not separately state the amount of the surcharge, the electric utility shall include on the billing a notice to the effect that the charges include energy resources surcharge computed at (applicable rate) mill per kilowatthour.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The surcharge required to be collected by the electric utility, and any amount unreturned to a data center that is not a surcharge but was collected from the data center as a surcharge, constitutes debts owed by the electric utility to this state.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Any amounts collected by an electric utility from a consumer on account of the purchase
electricity, of the consumption of which is subject to the surcharge, shall be applied proportionately between the liability of the data center on account of the purchase of the electricity and the liability of the consumer for the surcharge.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
An electric utility is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts that have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the electric utility has previously paid the amount of the surcharge it may, under regulations prescribed by the department, take as a deduction on its return the amount found to be worthless and charged off. If any such accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after such collection. The department may, by regulation, promulgate such other rules with
respect to uncollected or worthless accounts as it shall deem necessary to the fair and efficient administration of this part.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Notwithstanding any other law, persons subject to the jurisdiction of the Public Utilities Commission are not required to obtain any authorization from the commission to comply with this part.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Every electric utility selling electricity for consumption in this state shall register with the department, in a form prescribed by the department, under the same name that the electric utility collects the surcharge imposed by Part 19 (commencing with Section 40001).
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_6CB1BD31-00DF-4C77-A163-7D348D564E71">
<ns0:Num>40224.</ns0:Num>
<ns0:LawSectionVersion id="id_7CE3BF3C-EFD4-4818-B01C-4827987D7DE4">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to “fee” shall include the surcharges imposed by this part, and references to “feepayer” shall mean any person liable for the payment of the surcharges imposed under this part and collected pursuant to that law. The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The surcharges imposed by this part
and the amounts thereof required to be collected by electric utilities are due quarterly on or before the last day of the month next succeeding each calendar quarter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Amounts due, for which a billing for the electricity is issued by an electric utility to the consumer before the close of a calendar quarter, are payable when due.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_8626E1EB-9DC9-40CF-8F0D-6768BF02332E">
<ns0:Num>40225.</ns0:Num>
<ns0:LawSectionVersion id="id_E2F73378-22ED-4EC6-AAC8-E86B6DBF4607">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
All revenues, interest, and penalties derived from the surcharge imposed pursuant to this part and Article 10.5 (commencing with Section 901) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, consistent with Section 906 of the Public Utilities Code, shall be deposited into the Data Center Excess Energy Usage Surcharge Fund, which is hereby created in the State Treasury, less payments for refunds and reimbursement to the department for expenses incurred in the administration and collection of the surcharge.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding Section 13340 of the Government Code, all moneys in the Data Center Excess Energy Usage Surcharge Fund are continuously appropriated without regard to fiscal year as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Revenues collected from local publicly owned electric utility territory under this part or Article 10.5 (commencing with Section 901) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code are continuously appropriated to the Energy Commission to establish a Low-Income Rate Assistance Program Account at the Energy Commission for apportionment to local publicly owned electric utilities to buy down the cost of low-income rate assistance programs offered by those local publicly owned electric utilities.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Revenues collected from electrical corporation territory under this part or Article 10.5 (commencing with Section 901) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code are continuously appropriated to the Public Utilities Commission to establish a Low-Income Rate Assistance Program for apportionment to the electrical corporations to buy down the cost
of providing California Alternate Rates for Energy (CARE) program and Family Electric Rate Assistance (FERA) program benefits to their ratepayers.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D0C84DCD-227A-4073-B071-D6337DD1DD49">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>