Assembly advances package to make data centers pay grid and interconnection costs

The Assembly voted to concur in Senate amendments to AB 23‑83, part of a two‑bill package addressing how large data centers connect to the grid and how costs are allocated.

Assemblymember Ziburr said the measure is intended to protect ratepayers and communities as demand from high‑load data centers grows: "As demand for data centers grows rapidly across the country, this legislation is aimed at establishing a framework that assures that data centers pay their fair share and protect ratepayers, communities, and the state's clean energy goals." The companion measure, SB 8‑86, creates an interconnection tariff to collect appropriate interconnection costs from large new loads.

Supporters argued the bills balance innovation and affordability; opponents warned about impacts on economic development and the need to ensure projects still can locate where workforce needs exist. After floor votes the Assembly concurred in amendments (AB 23‑83: Ayes 59, No 1) and passed SB 8‑86 in a prior vote. The measures direct utilities and the Public Utilities Commission to develop implementing mechanisms and reporting so costs are not shifted onto general ratepayers.