Committee backs SB 8 87 to restrict CEQA exemptions for data centers and create an environmental leadership pathway

Senator Padilla and cosponsors presented SB 8 87 as a targeted response to a fast‑growing wave of large data center projects that can consume substantial energy and water and, in some cases, assert ministerial exemption claims. The bill would bar categorical CEQA exemptions for data centers but create an Environmental Leadership Development Project (ELDP) pathway offering expedited review if projects meet high standards — for example, hourly 100% zero‑carbon procurement, on‑site storage, water efficiency, community benefits and workforce protections.

Proponents, including Net Zero California and TURN, said SB 8 87 would incentivize ‘‘good neighbor’’ projects that support grids and local communities. Sammy Denton (Net 0 California) said the ELDP is not a CEQA exemption and described it as an incentive to drive quality projects.

Industry groups, including the Data Center Coalition and the Silicon Valley Leadership Group, opposed the bill as drafted. They argued the ELDP criteria are currently infeasible at scale, that the bill singles out data centers for unequal treatment, and that the loss of ministerial status could drive jobs and investment out of state. The bill’s supporters said they will continue to work with industry to make the ELDP operationally practical.

The committee recorded a do‑pass recommendation to the Utilities and Energy Committee. Members and advocates emphasized the need to balance grid reliability, community impacts and economic competitiveness as the proposal moves forward.