SB 887: California Environmental Quality Act: environmental leadership development projects: data centers: geothermal powerplant projects.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(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 develop proposed 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 define “data center” for the purposes of CEQA and prohibit the application of categorical exemption to a project for the development and operation of a data center, as specified. By increasing the duties of a lead agency in relation to the environmental review of a data center project, the 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 process for 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 Office of Land Use and Climate Innovation, in consultation with the State Energy Resources Conservation and Development Commission and other state agencies, as necessary, to develop uniform statewide standards for satisfying those conditions for data center projects, as specified. The bill would also authorize the Governor to certify a geothermal powerplant that is certified by the lead agency to meet 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 and a geothermal powerplant project to be determined in the same manner as for 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.

Sponsors

Sponsors by party (alphabetical): Democratic 6

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 21, 2026Chaptered by Secretary of State. Chapter 439, Statutes of 2026.
2. September 21, 2026Approved by the Governor.
3. September 9, 2026Enrolled and presented to the Governor at 2 p.m.
4. August 31, 2026Assembly amendments concurred in. (Ayes 29. Noes 8.) Ordered to engrossing and enrolling.
5. August 31, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 31, 2026Read third time. Passed. (Ayes 59. Noes 11. Page 6977.) Ordered to the Senate.
7. August 27, 2026Ordered to third reading.
8. August 27, 2026Read third time and amended.
9. August 27, 2026Joint Rule 61(b)(16) suspended. (Ayes 58. Noes 1. Page 6727.)
10. August 21, 2026Ordered to third reading.
11. August 21, 2026Read third time and amended.
12. August 21, 2026Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)