Agenda Item Wording:
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Update on urgency ordinance no. 2026-10 - Receive the 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.
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Agenda Date: 10/05/2026
Prepared by:
Paul Bernal, Planning and Community Preservation Director, paul.bernal@visalia.gov, (559) 713-4025
James Koontz, City Attorney
Department Recommendation:
Receive the staff report regarding the measures taken to alleviate the conditions which led to the adoption of Urgency Ordinance No. 2026-10, an interim urgency ordinance that placed a temporary moratorium on new data center developments and communications equipment buildings within the City of Visalia, 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.”
The urgency ordinance is set to expire on October 23, 2026, based on the initial 45-day adoption. The City Council thereafter may extend the ordinance up to a maximum of two additional times: first, for a period of 10 months and 15 days; and second, for a period of up to one year. In total, the urgency moratorium may last for two years.
This report is being provided for informational purposes as City staff is preparing a public hearing item requesting an extension of Ordinance No. 2026-16, pursuant to Government Code Section 65858(a). The ordinance extension public hearing request will be publicly noticed for the October 19, 2026, City Council meeting.
No other action is required at this time other than to receive the staff report.
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 while the City considers land use regulations governing new data centers and Communications Equipment Buildings, within the City of Visalia pursuant to California Government Code Section 65858. Per the City Council staff report, staff noted the City of Visalia does not regulate nor define “data center” land uses, including location, size and scope, and other development standards in the Zoning Ordinance, as 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.
In addition, staff further noted that the current zoning regulation, Chapter 17 Zoning, allows for “Communications Equipment Buildings” within the city. This usage is defined as a “building housing electrical and mechanical equipment necessary for the conduct of a public communications business”. Although City staff does not consider this type of use to be a current data center use, in order to avoid potential issues, to the extent this type of use cannot be shown not to be a data center, as defined in the interim ordinance, this use was also prohibited under the temporary moratorium.
The adoption of the urgency ordinance has provided staff with limited time to begin researching, complying, and reading a plethora of information on data center development and impacts.
During the past 27 days, 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.
Furthermore, recent legislative action has also been enacted with the California Governor signing seven bills regulating the data center industry, imposing new requirements on electricity costs, energy reporting, and local oversight including:
• AB 1577 by Assemblymember Rebecca Bauer-Kahan (D-Orinda). Data centers: reporting. 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 by Assemblymember Rick Chavez Zbur (D-Hollywood). Electricity: data centers. 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 by Assemblymember Diane Papan (D-San Mateo). Data centers: water use disclosures. This bill will prohibit 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 by Assemblymember Diane Papan (D-San Mateo). Water resources: data center. This bill would 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 by Senator Steve Padilla (D-San Diego) and Senator Jerry McNerney (D-Pleasanton). California Technology Innovation and Ratepayer Protection Act. 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 by Senator Steve Padilla (D-San Diego). California Environmental Quality Act (CEQA): environmental leadership development projects: data centers: geothermal power plant projects. 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 by Senator Jerry McNerney (D-Pleasanton). Data centers: Rate structures. This bill requires the Energy Commission to assess opportunities for rate structures to ensure that data center costs are not shifted to other ratepayers.
Given the degree of information related to data centers, and enactment of new state legislation on data centers, staff will be seeking a request to extend the moratorium pursuant to Government Code Section 65858(a) for an additional 10-months, 15-days; however, this request requires a notice of public hearing, which will occur at the October 19, 2026, City Council meeting.
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 interim urgency ordinance placing a temporary moratorium on the acceptance, processing, approval, or issuance of permits and entitlements for new data center development within the City of Visalia pursuant to California Government Code Section 65858.
Alternatives:
None.
Recommended Motion (and alternative motions if expected):
recommendation
No action is required. This staff report is for informational purposes as required pursuant to Government Code Section 65858(d).
Environmental Assessment Status:
N/A.
California Environmental Quality Act (CEQA) Review:
N/A.
Deadline for Action: 10/05/2026
Attachments:
1. Ordinance No. 2026-10 - Urgency Interim Ordinance on New Data Center Development within the City of Visalia.
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
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