CaliforniaData centers face environmental review; eligible projects may get faster review
Public agencies must apply environmental review to data center projects, while eligible data center and geothermal projects may receive optional state certification for streamlined review.
What it does
Public agencies must apply California’s environmental review law to covered data center projects. They cannot use a categorical exemption, though several public, utility, and university facilities are excluded.
The Governor may certify a data center for streamlined environmental review only if it meets energy, water, cost, and community benefit rules. Certification is optional.
The Governor may certify a geothermal powerplant for streamlined environmental review if it meets specified renewable energy and other legal requirements.
For qualifying data center and geothermal projects, agencies must measure greenhouse gas emissions and follow an order for reducing or offsetting them.
Argument forNearby residents could help set community benefits, while data center applicants must cover grid costs and meet cleaner energy and water rules.
Argument againstStrict energy, water, payment, and community agreement rules could keep some data center projects from qualifying for faster environmental review.
More detail
Public agencies must apply CEQA review to covered data center projects and cannot exempt them categorically. This covers projects proposed by a public agency to develop or operate a data center, including related permits and approvals. Excluded from this data center definition are publicly funded research and national security facilities, public safety and publicly owned facilities, other utility facilities, and research facilities run by independent higher education institutions.
The Governor may certify qualifying data center projects as environmental leadership projects. This applies to a data center project that the lead agency certifies meets the statutory conditions. The lead agency must certify that the project meets all listed conditions, including covering its full connection and grid investment costs, not increasing fossil fuel use in California, and meeting zero-carbon energy and water requirements. The project must have enforceable agreements to pay grid costs and provide benefits identified with nearby affected communities. The applicant must meet the other energy, emissions, and statutory requirements. Statewide standards for meeting the conditions must be developed for certified data center projects.
The Governor may certify qualifying geothermal powerplants as environmental leadership projects. This applies to geothermal powerplants that meet the specified eligibility requirements. The lead agency must certify that the powerplant meets specified renewable energy criteria and other listed legal requirements. The Governor decides whether to certify the project.
Lead agencies must quantify and mitigate greenhouse gas emissions for qualifying data center and geothermal projects under the specified rules. This applies to data center and geothermal projects covered by the environmental leadership project provisions. Agencies must first seek direct project emission cuts, then local reductions, then local offsets, and finally offsets that directly benefit the region if earlier steps cannot fully address impacts.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 21Chaptered by Secretary of State. Chapter 439, Statutes of 2026.Latest
- Sep 21Approved by the Governor Gavin Newsom.Became Law
- Sep 9Enrolled and presented to the Governor at 2 p.m.To Governor
- Aug 31Assembly amendments concurred in. (Ayes 29. Noes 8.) Ordered to engrossing and enrolling.Major
- Vote recorded SB 887 Padilla Senate Third Reading By Connolly. Result: pass.Lower
- Vote recorded Unfinished Business SB887 Padilla et al. Concurrence. Result: pass.Upper
- Aug 31In Senate. Concurrence in Assembly amendments pending.
- Aug 31Read third time. Passed. (Ayes 59. Noes 11. Page 6977.) Ordered to the Senate.Passed Assembly
- Aug 27Ordered to third reading.Minor
- Aug 27Read third time and amended.Major
- Aug 27Joint Rule 61(b)(16) suspended. (Ayes 58. Noes 1. Page 6727.)
- Aug 21Ordered to third reading.Minor
- Aug 21Read third time and amended.Major
- Aug 21Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Lower
- Aug 13From committee: Do pass. (Ayes 11. Noes 4.) (August 13).Minor
- Aug 13Assembly Rule 63 suspended.
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jun 29Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 25From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 1.) (June 24).Major
- Jun 24
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 23From committee: Do pass and re-refer to Com. on U. & E. (Ayes 10. Noes 3.) (June 22). Re-referred to Com. on U. & E.Minor
- Jun 22
- Vote recorded Do pass and be re-referred to the Committee on [Utilities and Energy]. Result: pass.Lower
- Jun 15Assembly Rule 56 suspended.
- Jun 1Referred to Coms. on NAT. RES. and U. & E.Minor
- May 26In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading SB887 Padilla et al. Result: pass.Upper
- May 26Read third time. Passed. (Ayes 29. Noes 9. Page 4451.) Ordered to the Assembly.Passed Senate
- May 19Read second time. Ordered to third reading.Minor
- May 18Read second time and amended. Ordered to second reading.Major
- May 18From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4256.) (May 14).Major
- May 14
- Vote recorded Do pass as amended. Result: pass.Upper
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 24Set for hearing May 4.
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 3. Page 3973.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 16Set for hearing April 21.
- Apr 9From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U & C.Major
- Mar 19Read second time and amended. Re-referred to Com. on E., U & C.Major
- Mar 18From committee: Do pass as amended and re-refer to Com. on E., U & C. (Ayes 4. Noes 1. Page 3600.) (March 18).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Energy, Utilities and Communications]. Result: pass.Upper
- Mar 9From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.Q.Major
- Feb 25Set for hearing March 18.
- Feb 11Referred to Coms. on E.Q. and E., U & C.Minor
- Jan 14From printer. May be acted upon on or after February 13.
- Jan 13Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced
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