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SB-887 • 2026

California Environmental Quality Act: environmental leadership development projects: data centers: clean energy powerplant projects.

California Environmental Quality Act: environmental leadership development projects: data centers: clean energy powerplant projects.

Education Energy
Passed Legislature

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

Sponsor
Padilla
Last action
2026-04-24
Official status
Set for hearing May 4.
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details on how data centers will be reviewed or what conditions they must meet.

California Environmental Quality Act: Data Centers and Clean Energy Projects

The bill changes how data centers are reviewed under the California Environmental Quality Act (CEQA) by removing categorical exemptions for them, allowing the Governor to certify certain data center projects as environmental leadership development projects with specific conditions, and setting standards for these certified projects.

What This Bill Does

  • Removes categorical exemptions for data center projects, meaning they must go through a full environmental review process.
  • Allows the Governor to approve data centers that meet specific conditions as environmental leadership development projects.
  • Requires the State Energy Resources Conservation and Development Commission to set standards and monitor compliance for these certified data centers.

Who It Names or Affects

  • Data center operators in California
  • Local agencies responsible for environmental reviews of projects

Terms To Know

Categorical Exemption
A type of project that is exempt from certain parts of the CEQA review process because it has been determined to have no significant effect on the environment.
Environmental Leadership Development Project
Projects certified by the Governor as meeting specific environmental standards and eligible for streamlining benefits under CEQA.

Limits and Unknowns

  • The bill does not specify all details of how data centers will be reviewed or what conditions they must meet.
  • It is unclear exactly which geothermal powerplants would qualify for certification as environmental leadership development projects.

Bill History

  1. 2026-04-24 California Legislative Information

    Set for hearing May 4.

  2. 2026-04-22 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 3.) (April 21). Re-referred to Com. on APPR.

  3. 2026-04-16 California Legislative Information

    Set for hearing April 21.

  4. 2026-04-09 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on E., U & C.

  5. 2026-03-19 California Legislative Information

    Read second time and amended. Re-referred to Com. on E., U & C.

  6. 2026-03-18 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on E., U & C. (Ayes 4. Noes 1. Page 3600.) (March 18).

  7. 2026-03-09 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.Q.

  8. 2026-02-25 California Legislative Information

    Set for hearing March 18.

  9. 2026-02-11 California Legislative Information

    Referred to Coms. on E.Q. and E., U & C.

  10. 2026-01-14 California Legislative Information

    From printer. May be acted upon on or after February 13.

  11. 2026-01-13 California Legislative Information

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 887, as amended, Padilla.
California Environmental Quality Act: environmental leadership development projects: data centers: clean energy powerplant projects.
(1) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
CEQA requires the Office of Land Use and Climate Innovation to prepare and propose guidelines for the implementation of
CEQA by public agencies and requires the Secretary of the Natural Resources Agency to certify and adopt the guidelines. CEQA requires the guidelines to include a list of classes of projects that have been determined not to have a significant effect on the environment and that are exempt from CEQA, commonly known as categorical exemptions.
This bill would prohibit the application of categorical exemption to a project for the development and operation of a data center, as defined. By increasing the duties of a lead agency in relation to the environmental review of a data center project, this bill would impose a state-mandated local program.
(2) The Jobs and Economic Improvement Through Environmental Leadership Act of 2021 authorizes the Governor, until January 1, 2032, to certify environmental leadership development projects that meet specified requirements for certain streamlining benefits related to
CEQA. The act, among other things, requires a lead agency to prepare the record of proceedings for an environmental leadership development project concurrent with the administrative process and to provide a specified notice within 10 days of the Governor certifying the project. The act specifies the quantification and mitigation of impacts from emissions of greenhouse gases of certain environmental leadership projects, as provided. The act is repealed by its own terms on January 1, 2034.
This bill would authorize the Governor to certify a data center project that is certified by the lead agency to meet specified conditions as an environmental leadership development project. The bill would require the State Energy Resources Conservation and Development Commission to develop uniform statewide standards for those conditions for data centers, require regular compliance reporting by operators of data centers for those conditions, and initiate enforcement proceedings in
the event of noncompliance with those conditions, as appropriate. The bill would also authorize the Governor to certify a geothermal powerplant
meeting certain criteria
that meets certain criteria
as an environmental leadership development project. The bill would require the quantification and mitigation of impacts for emissions of greenhouse gases of a data center project in the same manner as those certain environmental leadership projects. By increasing the duties of a lead agency, the bill would impose a state-mandated local program.
(3) 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

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