Bill
AB 1095
AB 1095 lets data centers finance waste-heat capture via the Climate Catalyst Revolving Loan Fund and qualify their waste heat for Renewable Energy Credits if used on-site.
Status (as of 2025-05-23)
- Introduced: February 20, 2025
- Current status: In committee — Held under submission (Assembly Appropriations)
- Amends: Government Code §63048.93 (Climate Catalyst Revolving Loan Fund / I‑Bank)
- Classification: Bill; appropriation
Purpose / intent
- Encourage capture and productive use of waste heat from data centers by (1) making data center waste‑heat capture and conversion projects eligible for Climate Catalyst Revolving Loan Fund financing through the California Infrastructure and Economic Development Bank (I‑Bank), and (2) allowing certain data‑center waste heat to qualify for renewable energy credits under California’s Renewables Portfolio Standard (RPS) program.
Key provisions
1. I‑Bank financing eligibility
- Adds a new category of “climate catalyst projects” for projects that enable capture and conversion of data centers’ waste heat.
- Designates the State Energy Resources Conservation and Development Commission (Energy Commission) as the consulting agency for this category.
- If multiple projects seek fund support, consulting agencies must prioritize funding based on state policy and financial considerations as determined by the Energy Commission.
- Expands permissible uses of the Climate Catalyst Revolving Loan Fund (a continuously appropriated fund) — resulting in an appropriation effect.
Who is affected
- Data center operators seeking to capture and repurpose waste heat.
- Sponsors and participating parties (including tribes) seeking Climate Catalyst loan or financing assistance from the I‑Bank.
- The California Energy Commission (new consulting role) and the I‑Bank (administration and prioritization duties).
- Entities subject to the RPS (retail sellers and local publicly owned electric utilities) — potentially altered REC supply and procurement options.
Potential impacts
- Financial incentives and access to I‑Bank financing may lower the capital barrier for waste‑heat recovery projects at data centers.
- REC eligibility and an Energy Commission metric could create revenue streams or compliance value for on‑site waste heat reuse, especially for building heating applications.
- Could accelerate deployment of data‑center heat‑recovery systems, reduce fossil fuel heating demand, and advance state decarbonization goals.
- Fiscal: expands allowable expenditures from the Climate Catalyst Revolving Loan Fund (noted as an appropriation), and may have fiscal committee review.
Procedural notes / next steps
- Passed two policy committees (U. & E., and Nat. Res.) with recommendations to Appropriations; currently on the Appropriations suspense file and held under submission as of 5/23/2025.
- If advanced, further rulemaking/metric development by the Energy Commission and updates to the I‑Bank’s climate catalyst financing plan will be required to implement the new category and prioritization approach.
Compiled from official sources — confirm details with the bill’s official record.
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