CP&DR News Briefs September 22, 2026: S.F. Waterfront; Santa Cruz Cnty. Data Centers; Huntington Beach; and More

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San Francisco Considers $17 Billion Proposal to Protect Waterfront from Rising Seas

The Port of San Francisco and the U.S. Army Corps of Engineers have presented a $17 billion study including proposals to save its bayside shoreline from rising sea levels. The San Francisco Waterfront Coastal Flood Study analyzes risk along the 7.5 mile stretch including Fisherman’s Wharf in an effort to combat the projected 3.5 foot sea level rise and $23 billion in damages expected to occur by the end of the century. Proposals include raising the Ferry Building by 7 feet, and replacing the 1800s-era seawall with a taller and wider construction to hold back mud that downtown is built upon, this time out of environmentally-conscious materials. Experts worry that environmental protection rollbacks under the Trump administration could delay funding and construction for years. (See related CP&DR coverage.)

Santa Cruz County Supervisors Reject Proposal to put Data Centers to a Vote

The Santa Cruz County Board of Supervisors rejected a proposed ordinance that would have granted voters a say in the construction of AI data centers in unincorporated parts of the county. Supervisor Justin Cummings introduced the proposal, which would have required voter approval before zoning, permitting, construction or operation, due to concerns about high electricity and water consumption, noise, traffic, pollution, and land use. While supporters argued that residents should have a say in major developments,opposing supervisors Manu Koenig and Kim De Serpa as well as Board Chair Monica Martinez said more research was needed before making sweeping changes. No AI data centers are currently proposed in Santa Cruz County, and any future projects would undergo the existing application process as well as an environmental impact report.

Following Settlement, State Claims Huntington Beach Housing Element Remains Out of Compliance

California is seeking additional penalties against Huntington Beach, claiming that the city’s plan is still out of compliance. The city previously accumulated $170,000 in fines for failing to adopt a compliant housing plan, and the state is now asking the court to reinstate a $50,000 monthly fine until Huntington Beach meets its obligations. In June, the city approved a new housing element intended to accommodate more than 13,000 housing units by the end of the decade. However, the California Department of Housing and Community Development found that the city had not completed the required zoning changes to support the plan. State officials argue that an enforceable rezoning program is necessary to ensure the housing plan leads to actual development opportunities. (See related CP&DR coverage.)

State Sues Feds over Attempt to Weaken Endangered Species Act 

California is suing the Trump administration over changes to the Endangered Species Act that reduce protections on critical habitats. The rollbacks altered the law by making it easier to avoid designating areas as critical habitat, removing automatic protections for threatened species, and opening up habitats where endangered species exist to mining, logging and development. The Trump administration argues that the revisions reduce federal overreach, regulatory burdens, and unnecessary costs. California’s endangered species law does not protect all species covered by federal law. Nearly 140 species that are protected at the federal level remain unprotected by state law, and it does not include habitats of endangered species in its purview. Environmental groups and California officials agree that the federal protections could be difficult to replace, increasing habitat loss and threatening species such as condors and sea otters.

CP&DR Legal Coverage: HCD Certification Required For Housing Element Approval

A Los Angeles judge called out the City of Pasadena for not processing a builders remedy application even though the California Department of Housing and Community Development had not certified the city’s housing element at the time. Judge Curtis Kin of the Los Angeles Superior Court ruled against the city even though the application was filed before the state adopted AB 1886 in 2024, which clarified that either HCD certification or a judge’s approval is necessary for a housing element to be valid. The developer filed a builder's remedy application, which the city did not process, and then sued, saying the city was required to process the project as a builder’s remedy because HCD had not certified the housing element at the time of the application. The city argued that its own approval of the housing element was sufficient, but Judge Kin disagreed. The case turned on the question of how a housing element qualifies as being compliant with state law.

Quick Hits & Updates

The California Department of Housing and Community Development warned Los Altos that it needs to amend its housing plan if Measure D passes in November. The measure restricts changes to 10 city-owned downtown parking plazas, potentially impacting housing development plans and putting the city’s housing element in noncompliance. The state warned that failure to update the general plan may result in financial penalties at a minimum of $10,000 per month, loss of local land-use authority, and other consequences, including triggering Builders Remedy.

Half Moon Bay City Council approved zoning changes to address an ongoing lawsuit filed by California Attorney General Rob Bonta asking the city to comply with state housing laws. Changes include increased housing density on 10 properties, establishing a Workforce Housing Overlay on four sites, and making 14 properties eligible for staff approval of housing projects without public hearings or planning commission review. 

The U.S. Department of Transportation has extended LA Metro an $802.5 million low-interest loan to fund an expansion of Interstate 105 ahead of the 2028 Olympics. The budget will be used to convert an existing carpool lane into an ExpressLane in each direction and add a second ExpressLane between the 405 and 605 freeways. The expansion will be crucial in creating Los Angeles’ Games Route Network, or the designated roads and freeways for Olympics-related travel, which the city is contractually obligated to complete as a host.

Brightline West, the proposed high-speed rail between Las Vegas and Southern California, has until Nov. 2 to make a $400 million equity investment in the project after accepting $3.5 billion of tax-exempt private activity bonds from the U.S. Department of Transportation and a $3 billion grant from the Biden administration. The project’s cost estimate has risen greatly from $12 billion at the time of groundbreaking in 2024 to $21 billion today, and financial difficulties and threats of bankruptcy affecting its sister company, Brightline Florida, have raised concerns. (See related CP&DR coverage.) 

Tribal leaders joined California state and Lake County officials to sign an agreement giving seven tribal governments shared responsibility for restoring and managing the Clear Lake watershed. The partnership aims to improve water quality, create safeguards for native species, and actively include and recognize the Pomo tribes’ longstanding connection to the region. Clear Lake faces environmental challenges, including harmful algal blooms, wetland loss, drought, and wildfire. Remediation efforts include an oxygenation system, algae harvesting, and phosphorus treatments designed to reduce harmful algae blooms.

Gilroy City Council instituted a temporary 45-day moratorium on new data centers. The moratorium prevents the city from accepting or approving new data center applications but does not affect the Amazon Web Services facility already under construction on Camino Arroyo. Officials will study potential impacts involving water use, electricity demand, noise, emissions, aesthetics, and cooling technology while seeking community input.

Federal regulators are seeking public comment on PG&E’s proposal to remove two dams on California’s Eel River, citing ecological benefits and recreation potential. PG&E attempted to sell the dams, which have not generated electricity in nearly five years, to no interest. The Federal Energy Regulatory Commission is still studying the project, which will require technical reviews, environmental analysis, and additional public input before it can move forward.

Elk Grove may impose a new moratorium on self-storage facilities amidst concerns about the growing number of facilities in the area and whether the 19 facilities in Elk Grove (and two under construction) are an appropriate use of space. Officials say the land could be used for housing, retail or other development, and the Planning Commission has recommended an indefinite moratorium while the city reviews its rules. 

Alameda County Board of Supervisors is withdrawing Measure D, which would give the board authority over land use changes, from the November ballot. Measure D, approved in 2000 and amended in 2022, protects agricultural and open-space land in the Livermore Valley while limiting the board’s ability to make major changes without voter approval. A recent survey of 800 likely voters found that 57% opposed the proposed amendment after hearing arguments for and against it.

A federal judge has decided that Texas oil company Sable Offshore Corporation will be allowed to continue pumping oil along the Santa Barbara County coast per the Defense Production Act, which the U.S. Department of Energy says protects the company from intervention. The pipeline has been dormant since a pipeline burst near Refugio State Beach in 2015, which caused one of the state’s worst oil spills.