Agenda Item Wording:
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Urgency Ordinance extension - Consideration of extending Ordinance No. 2026-10, an interim urgency ordinance adopted as a temporary moratorium on the acceptance, processing, approval, or issuance of permits and entitlements for new data center developments and communications equipment buildings within the City of Visalia pursuant to California Government Code Section 65858 for an additional ten (10) months and fifteen (15) days (4/5’s approval of the City Council is required for passage of Ordinance No. 2026-12).
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Agenda Date: 10/19/2026
Prepared by:
Paul Bernal, Planning and Community Preservation Director, (559) 713-4025, paul.bernal@visalia.gov; James Koontz, City Attorney
Department Recommendation:
Staff recommends that the City Council extend Ordinance No. 2026-10, an urgency ordinance placing a temporary moratorium on the acceptance, processing, approval, or issuance of permits and entitlements for new data center development and communications equipment buildings while the City continues to research and analyze recent state legislation and land use regulations governing new data centers within the City of Visalia pursuant to California Government Code Section 65858 (4/5’s approval of the City Council is required for passage of Ordinance No. 2026-12).
If adopted, the urgency ordinance will be extended for an additional ten (10) months, fifteen (15) days from the date of its adoption pursuant to Government Code section 65858.
Summary:
On September 8, 2026, the City Council adopted Ordinance No. 2026-10, which enacted a moratorium on the acceptance, processing, approval, or issuance of permits and entitlements for new data center development and communications equipment buildings, while the City considers land use regulations governing new data centers within the City of Visalia pursuant to California Government Code Section 65858. In addition, on October 5, 2026, the City Council received a staff report regarding the measures taken to alleviate the conditions which led to the adoption of Urgency Ordinance No. 2026-10, pursuant to Government Code Section 65858(d), which states, “Ten days prior to the expiration of that interim ordinance or any extension, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance.”
Urgency Ordinance No. 2026-10 is set to expire on October 23, 2026, based on the initial 45-day adoption, which occurred on September 8, 2026. The City Council may extend the ordinance up to a maximum of two additional times: first, for a period of ten (10) months and fifteen (15) days; and second, for a period of up to one year. In total, the urgency moratorium may last for two years.
This staff report requests an extension of Ordinance No. 2026-10, pursuant to Government Code Section 65858(a). The ordinance extension was publicly noticed in the newspaper for the October 19, 2026 City Council meeting.
Background Discussion:
There is growing concern across the state and nation regarding the proliferation of data center developments. Further research into data center development continues to note concerns related to soaring energy demand, water demand, air pollution and climate impacts, noise impacts, and land demand impacts. This has resulted in several communities adopting mortarium’s on new data center development to prevent this type of use from potentially creating significant impacts without further research to determine if this type of use is appropriate given potential strains on resources these types of uses appear to need to operate.
The City’s existing zoning regulations and development standards were adopted before the emergence of date centers and therefore do not adequately regulate the intensity, utility demand, operational characteristics, environmental impacts, or cumulative impacts associated with this particular type of use. Given the characteristics of data center projects, especially large-scale date center developments, staff concludes these types of uses would create a current and immediate threat to the public health, safety, or welfare in the absence of zoning and other regulations and the urgency ordinance is necessary in order to protect the City from the potential negative impacts.
Over the past month, staff has researched data center development tends including but not limited to:
• Data Center development features, such as size, energy consumption/demands, water usage, heating impacts, air quality, noise, and other operational requirements.
• Other jurisdictional approaches on how they are regulating and/or considering prohibiting this type of use.
In addition, staff has been analyzing recent legislative action enacted that regulates the data center industry by imposing new requirements on electricity costs, energy reporting, and local oversight. A summary of the seven bills approved are provided below:
• AB 1577: This bill requires data center owners and operators to submit specified information to the State Energy Resources Conservation and Development Commission (Energy Commission), including the data center’s location and size, power usage effectiveness, and the quantity of fuel consumed by onsite generators or other fuel-based energy systems. T
• AB 2383: A companion bill to SB 886, AB 2383 requires the CPUC to establish generation tariffs for data centers, ensuring compliance with state clean energy procurement requirements and statutory clean energy targets.
• AB 2469: This bill prohibits a city, county, or city and county from approving a discretionary or ministerial permit or other entitlement that would result in the construction, or an expansion that increases the maximum peak water use, of a data center unless specified conditions are satisfied, including, among others, that the applicant provides the city, county, or city and county prescribed information.
• AB 2619: This bill requires a person who owns or operates a data center, prior to applying to a city or a county for an initial business license, equivalent instrument, or permit, to provide its water supplier, under penalty of perjury, a good faith estimate of the expected water use, the anticipated source of water, and the data centers projected water use volume for the maximum day, maximum month, and average year.
• SB 886: This bill requires the California Public Utilities Commission (CPUC) to adopt new tariffs and update existing electric rules by January 1, 2028, to prevent data center electricity costs from being shifted to other ratepayers
• SB 887: This bill defines data center for the purposes of CEQA and prohibits the application of a categorical exemption to a project for the development and operation of a data center, as specified.
• SB 1168: This bill requires the Energy Commission to assess opportunities for rate structures to ensure that data center costs are not shifted to other ratepayers.
The request to extend the urgency ordinance will enable staff to continue to evaluate impacts, gather public input, and ultimately look to consider zoning regulations for this type of use.
Ordinance No. 2026-12 is included as Attachment 2 to this staff report and has prepared responses to the necessary findings required to extend the urgency ordinance.
Fiscal impact including annual maintenance and operating costs:
There is no additional cost to the General Fund associated with adoption of the interim ordinance. Staff time associated with preparation of permanent municipal code regulations to address Data Centers will be absorbed within existing departmental budget.
Prior Council Action:
• On September 8, 2026, the City Council adopted Ordinance No. 2026-10, an urgency ordinance placing a temporary moratorium on the acceptance, processing, approval, or issuance of permits and entitlements for new data center development and communication equipment buildings while the City considers land use regulations governing new data centers within the City of Visalia pursuant to California Government Code Section 65858.
• On October 5, 2026, the City Council received a staff report on Ordinance No. 2026-10, pursuant to Government Code Section 65858(d), describing the measures taken to alleviate the conditions which led to the adoption of the interim New Data Center Development moratorium within the City of Visalia.
Alternatives:
The City Council may revise or decline staff’s request to adopt an interim urgency ordinance.
Recommended Motion (and alternative motions if expected):
recommendation
I move to adopt Ordinance No. 2026-12, extending the urgency ordinance for an additional ten (10) months, fifteen (15) day which places a temporary moratorium on the acceptance, processing, approval, or issuance of permits and entitlements for new data center development and communications equipment buildings within the City of Visalia pursuant to California Government Code Section 65858.
Environmental Assessment Status:
The requested action is considered exempt under Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption has been prepared for the project because Section 15061(b)(3) states that the project is exempted from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed text amendments, which largely pertain to expanding the scope of residential uses and emergency shelters which are already allowed within the city will not have a significant effect on the environment.
California Environmental Quality Act (CEQA) Review:
A Notice of Exemption has been prepared for the project because Section 15061(b) (3) states that the project is exempted from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment.
Deadline for Action: 10/19/2026
Attachments:
1. Adopted Ordinance No. 2026-10
2. Proposed Ordinance No. 2026-12
3. PowerPoint Presentation
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
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