California AB 2383 data center electric tariffs (2026)

California AB 2383 (Zbur) — Separate Data Center Transmission, Distribution and Generation Tariffs So Data Centers Bear Their Own Grid, Wildfire and Generation Costs; Signed September 21, 2026 (Ch. 435, Stats. 2026)
California · Cal. AB 2383 (2026), Ch. 435, Stats. 2026

Status
Enacted (not yet in effect)
Takes effect
January 1, 2027
Applies to
Investor-owned electrical corporations, community choice aggregators, electric service providers; data center customers
Enforced by
California Public Utilities Commission

AB 2383 requires the California Public Utilities Commission to make each investor-owned electric utility file separate transmission/distribution and generation tariffs for data centers, so that data centers pay a reasonable share of costs such as wildfire mitigation and liability, electrification and environmental programs. Community choice aggregators and electric service providers must adopt data center generation tariffs by January 1, 2028. Generation tariffs must use a payment mechanism of at least 10 years, with early termination and non-completion fees, so other ratepayers are held harmless; data centers can reduce these obligations by installing zero-emissions resources behind the meter. Governor Newsom signed it on September 21, 2026 as part of a seven-bill data center package that a law-firm alert says primarily takes effect January 1, 2027.

Who is protected: California electric ratepayers who are not data centers

Legal detail

AB 2383 (Zbur), 2025-26 Reg. Sess.; adds Pub. Util. Code §§ 945.1, 945.4, 945.5, 945.6, 945.8. Ch. 435, Stats. 2026; approved and chaptered Sept. 21, 2026. Assembly concurrence in Senate amendments Aug. 31, 2026 (Ayes 67, Noes 2). LEGISLATIVE COUNSEL'S DIGEST: requires the CPUC, in a new or existing proceeding, to require each electrical corporation to file a transmission and distribution service tariff and a generation service tariff for 'participating customers' (data centers tariffed under the article); requires each community choice aggregator or electric service provider to adopt a generation service tariff for data centers on or before January 1, 2028. DEFINITIONS (§ 945.1): 'data center' — facility housing computing infrastructure (GPUs/CPUs, servers, storage, networking, power and cooling) primarily for processing, storing or distributing electronic data; 'facility' aggregates contiguous/adjacent commonly owned or controlled property; electrical cooperatives excluded from 'electrical corporation'. Violations of CPUC orders implementing it are crimes under the Public Utilities Act (state-mandated local program). KQED: works with SB 886 to create separate rate structures so data centers bear their own infrastructure costs. VERIFIED TEXT (billNavClient): T&D tariff must ensure participating customers 'pay a reasonable share of the costs relating to wildfire mitigation, wildfire liability, electrification and environmental programs'; generation payment mechanism minimum duration 'at least 10 years' incl. non-completion and early termination fees and protection if load is below anticipated; behind-the-meter zero-emissions resources may reduce generation funding requirements; CPUC (and CCAs/ESPs for their tariffs) must set a minimum peak demand threshold that may not exceed 25 megawatts; generation tariff does not apply to publicly funded research facilities, public safety facilities, publicly funded national security facilities, publicly owned facilities, or utility facilities (incl. terrestrial telecom). Non-urgency statute. EFFECTIVE DATE 2027-01-01 per Foley & Lardner alert ('primarily take effect on January 1, 2027'), not stated on the leginfo page.

Key facts

JurisdictionCalifornia
LevelState
StrengthModerate
EnactedSeptember 21, 2026
CitationCal. AB 2383 (2026), Ch. 435, Stats. 2026
Private right of actionNo, agency enforcement only
PenaltiesViolation of a CPUC order implementing the act is a crime under the Public Utilities Act (per Legislative Counsel's Digest)
Topicsdata-center siting and energy · consumer protection
Bill textAB-2383 Electricity: data centers — bill status, California Legislative Information

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