Assemblymember Bauer-Kahan Introduces Bill to Increase Transparency in AI Development and Cut Costs for California Ratepayers

[Sacramento, CA] — Wednesday, Assemblymember Rebecca Bauer-Kahan introduced AB 222, a bill designed to address the growing energy demands of artificial intelligence (AI) development while protecting California ratepayers from bearing unnecessary costs. AB 222 ensures that developers, data centers, and utility providers work collectively to reduce energy costs for Californians who do not directly benefit from these energy-intensive technologies.

Under AB 222, AI developers creating large, energy-intensive models will collect and publish data on the total energy consumed during the development process. This information will be made publicly accessible on developer’s websites, providing consumers and policymakers with a clear view of the energy footprint associated with cutting-edge AI technologies.

Operators of data centers will be required to report their annual energy consumption and efficiency metrics to the California Energy Commission, including details such as total electricity usage, renewable energy contributions, and energy used specifically for AI development. These reports will enable the Commission to monitor energy trends, evaluate the impact on California’s electrical grid, and craft policies to ensure sustainable operations in one of the state’s most energy-intensive sectors. Further, the Commission is directed to adopt energy efficiency performance standards for data centers. 

Importantly, AB 222 introduces safeguards to prevent energy costs being unfairly passed on to  ratepayers. The bill directs the California Public Utilities Commission (CPUC) to evaluate costs associated with building or upgrading data centers. When a utility seeks a rate increase to recover these costs, the CPUC is directed to minimize the shifting of expenses to Californians who do not directly benefit from the data centers, ensuring the financial burden of infrastructure expansion is fairly distributed.

"Artificial intelligence represents incredible potential, but it also comes with an enormous energy footprint," said Assemblymember Bauer-Kahan. "This bill is about ensuring transparency, accountability, and fairness as we build the infrastructure for AI while protecting our environment and California consumers." 

By prioritizing transparency and aligning technological innovation with California’s clean energy goals, AB 222 sets a standard for responsible AI development and energy usage, while also protecting Californians from unnecessary costs.