SB-978 • 2026

Data centers: labor: electricity rates.

Crime Education Energy

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Pérez
Last action: 2026-04-20
Official status: April 20 hearing: Placed on APPR. suspense file.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide specifics about labor standards or reporting requirements, leaving these areas unclear.

Data Centers: Special Electricity Rates and Labor Standards

The bill requires the Public Utilities Commission to establish special electricity rates for large data centers with peak demands of at least 75 megawatts and mandates labor standards for their construction.

What This Bill Does

Requires the Public Utilities Commission (PUC) to set up a special rate structure for large-scale energy users, specifically data centers with peak demands of at least 75 megawatts.
Ensures that these rates protect other electricity customers and prevent cost shifts onto them.
Reimburses electrical corporations for upfront costs related to infrastructure upgrades needed for providing service to these data centers.
Requires new data center constructions subject to the special rate structure to follow certain labor requirements.

Who It Names or Affects

Data centers with peak demands of at least 75 megawatts.
Electrical corporations providing service to these data centers.
The Public Utilities Commission (PUC).

Terms To Know

Public Utilities Commission (PUC): A government agency that regulates public utilities, including electricity providers.
Megawatt: A unit of power equal to one million watts, used to measure the capacity or demand for electricity.

Limits and Unknowns

The bill does not specify what labor requirements data centers must follow.
It is unclear how these special rates will be determined and enforced.

Bill History

2026-04-20 California Legislative Information
April 20 hearing: Placed on APPR. suspense file.
2026-04-10 California Legislative Information
Set for hearing April 20.
2026-04-08 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1.) (April 8). Re-referred to Com. on APPR.
2026-03-26 California Legislative Information
Set for hearing April 8.
2026-03-23 California Legislative Information
Read second time and amended. Re-referred to Com. on L., P.E. & R.
2026-03-19 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on L., P.E. & R. (Ayes 12. Noes 4. Page 3588.) (March 17).
2026-03-09 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U & C.
2026-03-09 California Legislative Information
Set for hearing March 17.
2026-02-11 California Legislative Information
Referred to Coms. on E., U & C. and L., P.E. & R.
2026-02-05 California Legislative Information
From printer. May be acted upon on or after March 7.
2026-02-04 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 978, as amended, Pérez.
Large-scale energy facilities:
Data centers:
labor: electricity rates.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the PUC to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.
This bill would require the PUC to establish a special rate structure for
large-scale energy users, who would be defined as customers of electrical corporations operating facilities with operational requirements of at least
data centers, as defined, taking transmission level electrical service with an estimated peak demand of at least
75 megawatts of
electricity, except as provided,
electricity
to
, among other things,
protect other customers of electrical corporations, prohibit cost shifts to those other customers, and require
large-scale energy users
data centers
to pay for the electrical corporations’ upfront costs of transmission or distribution infrastructure upgrades necessary for the provision of electrical service to
those users.
the data centers.
The bill would require the construction of
those facilities
data centers subject to the special rate structure
to comply with certain labor requirements.
Existing law establishes the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% by December 31, 2040, and 100% by December 31, 2045. Existing law requires the PUC, the State Energy Resources Conservation and Development Commission, and the State Air Resources Board, in consultation with all California balancing authorities, to annually issue a joint report related to meeting that state policy.
This bill would require that the joint report also includes the impacts of
large-scale energy users
data
centers subject to the special rate structure
on the state’s ability to achieve the above-described state policy.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the provisions of the bill would be part of the act and a violation of a PUC action implementing the bill’s requirements would be a crime, this bill would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Read the full stored bill text

Download Bill PDF