CAL.Regulation
California extends CEQA environmental leadership certification to qualifying data centers and geothermal powerplants
California enacted SB 887 (Chapter 439) on September 21, 2026, making qualifying data centers and geothermal powerplants eligible for certification as CEQA environmental leadership development projects. Qualifying data centers must prepay interconnection costs, avoid increasing in-state fossil fuel consumption, deploy zero-carbon storage of at least four hours at full peak demand, reach 100% zero-carbon hourly electricity within five years, use recycled water and water-efficient cooling, and enter enforceable community benefits agreements. The act takes effect January 1, 2027.
Enrolled text (California Legislative Information) →
Key points
- Qualifying data centers and geothermal powerplants may be certified as CEQA environmental leadership development projectsCalifornia Legislative Information
- Data-center applicants must pay full interconnection costs in advance to prevent cost shifts to other ratepayersCalifornia Legislative Information
- Data centers must reach 100% zero-carbon hourly electricity within five years, with 75% of it newly developedCalifornia Legislative Information
- Projects must use zero-carbon storage of at least four hours at 100% of forecasted peak demand and recycled water for coolingCalifornia Legislative Information
- Applicants must enter enforceable community benefits agreements after engaging nearby affected communitiesCalifornia Legislative Information
- Signed September 21, 2026 as Chapter 439, Statutes of 2026; the act takes effect January 1, 2027.California Legislative Information
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RegulationCal.SB 887 - CEQA: environmental leadership development projects: data centers and geothermal (2026)EnergyEnvironmentalFor governanceFor vendors