construction project

California’s Prop 45 aims to speed construction projects. Opponents say data centers will benefit

When a county judge put the brakes on what would be the largest data center in California, ruling the whole project needed extensive environmental review, Kristian Salgado was relieved.

The community organizer lives in Imperial County, where the nearly one-million-square-foot facility was proposed. The rural county near the Mexico border struggles with bad air pollution and has one the state’s highest rates of asthma hospitalization for kids, according to the National Institute of Environmental Health Sciences. One of Salgado’s nephews lives right next to the site and struggles with the respiratory disease.

“It just seemed very unusual that a project of this scale, with that many backup generators could be permitted without requiring any further [analysis] of what that would mean for residents,” she said.

Now, Salgado and others who share her concern believe Proposition 45 on the November ballot could roll back their wins. The initiative changes the California Environmental Quality Act, or CEQA, a law intended to inform decision makers and the public about a project’s possible environmental impacts — and mitigate them to the extent possible.

Supporters say Prop 45 will speed up environmental review for essential housing, transportation, water, health, education and other projects, cutting costly delays and passing the savings on to consumers. Opponents say it not only weakens environmental protections for many developments, but will cover potentially polluting ones — including data centers. The Yes on 45 campaign forcefully rejects the data center claim, but independent legal experts are divided.

At the heart of the debate is the definition of one of the categories covered by Prop 45: “broadband internet access projects” or “mass-market retail service … that provides the capability to transmit data to, and receive data from, all or substantially all internet endpoints.”

Dan Dunmoyer, president and chief executive of the California Building Industry Assn., which supports the proposition, was adamant: “We specifically excluded data centers” when crafting the measure.

Yet the proposition expressly names certain excluded projects: nuclear energy, high-speed rail, jails and Delta conveyance facilities. Data centers aren’t among them.

Dunmoyer maintains that even if they’re not explicitly listed, data centers just don’t fit the measure’s definition.

In a Daily Journal op-ed, Rachelle Chong, a former Federal Communications Commission member, similarly argues that the definition refers to internet access bought from a provider like AT&T or Comcast. “A conventional data center ordinarily performs an entirely different function,” she wrote, arguing data centers aren’t in play.

But land use attorneys Matthew McKerley and Richard Frank, in another op-ed, say many modern data centers fit the bill because they house equipment used to transmit consumer data to and from the internet.

They also highlight conspicuous campaign finance contributions, including $250,000 from Prologis, which developed two data centers in San Jose.

Ethan Elkind, director of the climate program at UC Berkeley Law, said data centers will argue they fit the definition — and then it will be up to the courts to decide.

“Anyone telling you that it’s definitely not going to be data centers, they cannot read the future,” he said. “The way they’ve written the language, they can’t provide 100% assurance.”

Eric Biber, a UC Berkeley law school professor with expertise in environmental law, pointed to language in the measure requiring it to be interpreted broadly “to afford the fullest possible weight to the interest of, and the approval and realization of, essential projects.” In a blog post, he called it “a thumb on the scale” that could lead courts to conclude that projects should be covered when their eligibility is in doubt.

But Ryan Thomason and J. Scott Miller, partners at the law firm Mitchell Chadwick with CEQA expertise, think it’s likely courts would rule otherwise. In an article, they note that the definition used in the measure hews closely to another section of California law, which distinguishes providing internet services from offering content, services and applications online. “Courts generally interpret identical language in related statutes to have the same meaning,” they write.

Dunmoyer, of the California Building Industry Ass., stressed that the measure doesn’t overthrow local zoning rules.

Opponents are “making it sound like in your backyard will be a data center,” he said. “Well, that doesn’t happen at all by this initiative. That has to happen by a county board of supervisors voting to put a data center in your backyard. And if they decide to do that, this initiative does nothing to expedite that CEQA review.”

But what if local officials run afoul of their constituents? In the case of the Imperial Valley Data Center Campus, the roughly 75 acres of unincorporated land where it would go had already been zoned for data centers. As a result, county officials said they had the power to move forward with the facility for artificial intelligence computing infrastructure without city approval.

They granted the project an exemption from the state environmental review.

Then came the backlash. Residents spoke out at public meetings, rallied on the streets, circulated a petition and formed a community organization. The city of Imperial and the Sierra Club sued. In the wake of the outrage, the county walked back its decision, declaring a moratorium on data centers. (The developer sued the county over the ban, and the county recently rescinded it following a court order.)

If Prop 45 passes — and data centers are covered by it — Eric Biber, of UC Berkeley Law, told The Times that such a moratorium wouldn’t be possible. That’s because the measure prevents state and local officials from changing the rules for a project once its application is submitted, he said. So if a community didn’t have a moratorium in place and its zoning laws allow a data center, “They’re done,” said. Existing bans aren’t expected to be affected.

Attorneys for the No on Prop 45 campaign argue that it could have real-world impacts for the Imperial Valley facility, saying the developer could claim the new rules apply. For instance, the measure would prevent courts from overturning approvals of qualifying projects because of CEQA violations. Courts would only be able to halt the affected portion of the project while the issue is fixed.

Sebastian Rucci, principal developer of the Imperial Valley data center, said he will fight for his project to move forward and that there’s an environmentally sound way to do it. He said he’s willing to negotiate and mitigate where necessary — but will not go through the CEQA process. If push comes to shove, he said he’ll move the project elsewhere. California could “get in the game” or be left in the dust, he said.

Imperial Valley Computer Manufacturing, the company behind the project, says it will create at least 100 permanent jobs and generate $28.7 million in annual property tax revenue.

CEQA requirements “are not about the environment,” Rucci said. “They may be for some, but they’re not for many. For many, they are about killing things.”

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Why hasn’t the Trump administration decided the fate of TPS for Salvadorans?

More than three weeks have passed since the deadline for extending or revoking temporary protections against deportation for around 170,000 immigrants from El Salvador.

The Trump administration still hasn’t reached a decision, plunging the Salvadoran community into uncertainty and raising questions about what has prompted the delay.

The deportation reprieve is known as Temporary Protected Status. About 1.3 million people from 17 countries had TPS when President Trump returned to office last year, and Salvadorans make up the largest group of remaining beneficiaries.

When the TPS expiration deadlines approached for other groups, the administration reached a decision within days of a deadline. Haitians lost their TPS protections and were encouraged to leave the country. Some have been deported.

For now, Salvadoran immigrants are stuck. Many have been able to keep their jobs, though others were laid off in the absence of an official work permit extension.

Last month, administration officials said an announcement on TPS for Salvadorans would come “at the appropriate time” and that they would retain work authorization in the meantime. Asked for updated guidance Friday, a Homeland Security spokesperson provided the same statement.

The Department of Homeland Security had been prepared to end TPS protections for Salvadorans but was stopped from doing so by the White House, Politico reported.

So what’s causing the limbo?

One theory focuses on political considerations — that extending the deportation reprieve could have made the administration appear weak on immigration to its conservative base, just ahead of next month’s consequential midterm election.

Another theory holds that ending TPS would shock El Salvador’s economy, which is heavily reliant on remittances from Salvadorans in the U.S. President Nayib Bukele, a Trump ally, advocated for more time, according to Politico.

In addition, the White House was warned that canceling TPS for Salvadorans would disrupt construction projects in Washington, D.C., the New Yorker reported and a source with knowledge of the warnings confirmed they had occurred.

A White House official, in a statement, said that “any assertion Washington D.C. construction projects had anything to do with a decision about El Salvador TPS are false.”

The Washington region has the second-largest Salvadoran population in the U.S., after Los Angeles, and the construction industry relies significantly on workers with TPS.

Trump is overseeing a sweeping aesthetic makeover of the nation’s capital, including his controversial 90,000-square-foot, $600-million ballroom complex at the White House. The president also ordered a facelift for the Lincoln Memorial Reflecting Pool, renovations at Lafayette Square, a public park across from the White House and the application of 23.75 karat gold leaf to four bronze and granite statues.

Contracts at sensitive locations such as the White House typically include requirements that workers be U.S. citizens. A White House official said there is no one with TPS status working on the East Wing Modernization construction project.

Asked about those working on the president’s other projects around the district, a Department of Interior spokesperson said contractors are obligated to ensure everyone working on any project is legally permitted to work in the U.S.

“The Department has not had any conversations about TPS or how it relates to construction projects around the city,” the spokesperson wrote in a statement.

People with TPS do work in other federal facilities.

Lauren Truslow is chief executive of 3D Enviro, a Virginia company that does hazardous materials abatement with a handful of workers affected by the TPS expiration for El Salvador. She said that after her employees’ federal badges expired last month, they were eventually reinstated until Oct. 9 — but not before missing several days of work.

TPS allows immigrants to obtain work permits and other documents. The uncertain status of TPS has led to sometime conflicting actions by government agencies or employers.

Advocates for TPS holders said some states have refused to renew their driver’s licenses, while others renewed licenses for different lengths of time. Truslow said some of her employees were only able to get federally noncompliant driver’s licenses, which they can’t use to get into federal facilities.

“At least they’re here in this community and they weren’t forced to leave,” she said. “I don’t want to look a gift horse in the mouth, but I think there were ramifications with the decision and still there’s uncertainty.”

Truslow said the government agency her company works with is unrolling a new process. After next week, her workers on that project can seek an approval extension for their badges that would last until March.

For construction companies, getting rid of TPS “would be a disaster,” said Arnoldo Diaz, co-coordinator of the National TPS Alliance, an advocacy group. “D.C. can’t function without TPS.”

Rebecca Shi, executive director of the American Business Immigration Coalition, has had ongoing conversations with Homeland Security and White House leaders about TPS. What sets Salvadorans apart, she said, is the decades of experience many bring to the construction industry, which would be impossible to quickly replace.

“Many are managers and business owners themselves, running large projects,” she said. “It’s a level of skill set and longtime loyalty that cannot be replaced overnight. Because the president has been in this industry for five decades, he instinctively knows that.”

That economic consideration, coupled with polls showing that Latino voters think Trump has gone too far with immigration enforcement, “are the much larger considerations than the president’s own pet projects,” Shi said.

Roxy Mejia, political director of a local painters union in Washingon, said 67% of the 1,500 members are Latino and many of them Salvadoran TPS holders.

Mejia said she and her father immigrated to the U.S. from El Salvador in 1985, before TPS existed. He worked on the Pentagon renovation after 9/11.

Under this administration, some Salvadorans with TPS have been declining government contract jobs out of fear of being detained, she said.

“Even the contractors have lobbied with us to keep TPS extending, because they would lose a lot of manpower in this area,” she said.

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