Bill would require CEQA review for large data centers, offer ELDP pathway with strict environmental and labor criteria
March 18, 2026 | California State Senate, Senate, Legislative, California
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Senator Padilla introduced SB 887 to require CEQA review for large data‑center projects and create a pathway for Environmental Leadership Development Project (ELDP) streamlining for projects that meet vigorous environmental, reliability and labor standards.
Padilla said the bill responds to rapid hyperscale growth that can place heavy demands on energy, water and local communities and that the ELDP path would preserve environmental review while giving certainty to projects that meet high standards.
TURN attorney Matt Friedman and IBEW policy director Corey Schumacher testified in support, outlining ELDP criteria such as a 50 MW peak demand threshold, on‑site energy storage capable of meeting 100% of peak demand for at least four hours, reliance on 0‑carbon electricity within five years (with a large share newly developed), water‑efficient cooling, full cost responsibility for grid interconnection and project labor agreements.
Industry groups including the Data Center Coalition and the Silicon Valley Leadership Group opposed the bill unless amended, arguing it would single out data centers, subject many projects to discretionary review and litigation, and impose unattainable requirements (for hourly 100% 0‑carbon procurement and four hours of 100% peak storage).
Supporters said the ELDP pathway mirrors federal pledges by some technology companies to procure new generation and avoid cost‑shifting to ratepayers, while opponents warned the ELDP standards exceed current technical feasibility at scale and could drive investment to neighboring states.
Committee members debated the balance between environmental protections, local control and permitting certainty. The committee moved the bill as amended to Energy, Utilities and Communications but recorded the item "on call" pending completion of votes.
The author said the bill seeks to protect communities and maintain CEQA integrity while offering certainty for projects that meet strong standards.
Padilla said the bill responds to rapid hyperscale growth that can place heavy demands on energy, water and local communities and that the ELDP path would preserve environmental review while giving certainty to projects that meet high standards.
TURN attorney Matt Friedman and IBEW policy director Corey Schumacher testified in support, outlining ELDP criteria such as a 50 MW peak demand threshold, on‑site energy storage capable of meeting 100% of peak demand for at least four hours, reliance on 0‑carbon electricity within five years (with a large share newly developed), water‑efficient cooling, full cost responsibility for grid interconnection and project labor agreements.
Industry groups including the Data Center Coalition and the Silicon Valley Leadership Group opposed the bill unless amended, arguing it would single out data centers, subject many projects to discretionary review and litigation, and impose unattainable requirements (for hourly 100% 0‑carbon procurement and four hours of 100% peak storage).
Supporters said the ELDP pathway mirrors federal pledges by some technology companies to procure new generation and avoid cost‑shifting to ratepayers, while opponents warned the ELDP standards exceed current technical feasibility at scale and could drive investment to neighboring states.
Committee members debated the balance between environmental protections, local control and permitting certainty. The committee moved the bill as amended to Energy, Utilities and Communications but recorded the item "on call" pending completion of votes.
The author said the bill seeks to protect communities and maintain CEQA integrity while offering certainty for projects that meet strong standards.
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