TO: Honorable Mayor and Members of the City Council
FROM: Jessica Serrano, Community Development Director
SUBJECT: Extension of Urgency Ordinance No. 834 – Temporary Moratorium on Data Center Development
MEETING DATE: September 22, 2026
RECOMMENDATION
It is recommended that the City Council conduct a public hearing, take public testimony and adopt, by a four-fifths (4/5) vote, the proposed Urgency Ordinance extending for ten (10) months and fifteen (15) days the temporary moratorium established by Urgency Ordinance No. 834 on the acceptance, processing, and approval of applications, permits, entitlements, or other approvals for Data Center development within the City of Commerce pursuant to Government Code section 65858.
PUBLIC NOTICE REQUIREMENTS
Pursuant to California Government Code Section 65858 and Section 65090, the City is required to publish a notice of the public hearing in a newspaper of general circulation at least ten (10) days prior to the date of the public hearing. Notice of the public hearing for the extension of Urgency Ordinance No. 834 was published in the Los Cerritos Community News on September 11, 2026.
BACKGROUND
On August 11, 2026, the City Council adopted Urgency Ordinance No. 834 establishing a temporary forty-five (45) day moratorium on the acceptance, processing, and approval of applications, permits, entitlements, or other approvals for Data Center development within the City. The moratorium was adopted pursuant to Government Code section 65858 and became effective immediately upon adoption.
The City Council adopted the moratorium to provide the City with sufficient time to study the potential land use, infrastructure, environmental, public health, and public safety impacts associated with Data Centers and to consider appropriate amendments to the Commerce Municipal Code. At the time the moratorium was adopted, the Commerce Municipal Code did not specifically define or regulate Data Centers or address the distinct land use and Item No.
CITY OF COMMERCE
AGENDA REPORT
City of Commerce Staff Report – Extension of Urgency Ordinance No. 834 – Temporary Moratorium on Data Center Development
September 22, 2026
infrastructure characteristics associated with such facilities. Following notice pursuant to Government Code section 65090 and a public hearing, the City Council may extend the ordinance for an additional ten (10) months and fifteen (15) days.
On August 25, 2026, the City Council issued the written report required by Government Code section 65858(d), describing the measures taken to address the conditions that led to adoption of Urgency Ordinance No. 834. Unless extended, Urgency Ordinance No. 834 will expire on September 25, 2026.
ANALYSIS
Since adoption of Urgency Ordinance No. 834, City staff and the City Attorney's Office have continued to study Data Centers and potential amendments to the Commerce Municipal Code. Staff has reviewed the City's existing zoning regulations and evaluated the potential land use and infrastructure impacts associated with Data Centers, including substantial electricity and water demands, utility infrastructure requirements, mechanical noise, air emissions associated with backup generators, land use compatibility, and the use of finite industrial land.
Staff have also researched regulatory approaches adopted or considered by other California jurisdictions and have prepared Zoning Text Amendment No. 26-01. The proposed Zoning Text Amendment would establish a definition of “Data Center” within Title 19 of the Commerce Municipal Code and prohibit Data Centers throughout the City. Zoning Text Amendment No. 26-01 has been scheduled for consideration by the Planning Commission on September 21, 2026. Following Planning Commission consideration and action, the proposed Zoning Text Amendment and implementing ordinance will be presented to the City Council for consideration.
Although substantial progress has been made toward development of permanent regulations, additional time is necessary to complete the City's legislative process. The existing moratorium will expire before the permanent regulations can complete the legislative process and become effective. Allowing applications, permits, entitlements, or other approvals for Data Center development to proceed before the City completes its consideration of permanent regulations could result in the establishment of uses that conflict with the zoning regulations currently under consideration and could frustrate the City's ability to address the land use, infrastructure, environmental, health, and safety concerns that prompted adoption of Urgency Ordinance No. 834.
The conditions that supported adoption of Urgency Ordinance No. 834 therefore continue to exist.
City of Commerce Staff Report – Extension of Urgency Ordinance No. 834 – Temporary Moratorium on Data Center Development
September 22, 2026
Government Code section 65858 permits the City Council, following a duly noticed public hearing, to extend the existing moratorium for an additional ten (10) months and fifteen (15) days. The proposed Urgency Ordinance contains the required findings that there remains a current and immediate threat to public health, safety, and welfare and that approval of applications or entitlements for Data Center development before completion of the City's pending regulatory process could result in that threat.
Notice of the public hearing was published in accordance with Government Code section 65090.
If adopted, the proposed Urgency Ordinance will extend the temporary moratorium established by Urgency Ordinance No. 834 through August 11, 2027, unless terminated earlier by the City Council or otherwise superseded in accordance with applicable law. It is not anticipated that the city will require the entire extension period to complete that process.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
The provisions of the Interim Urgency Ordinance are exempt from the California Environmental Quality Act (“CEQA”) because it continues an existing temporary regulatory restriction and constitutes a continuing administrative activity and thus is not a project, as CEQA defines that term, pursuant to Section 15378(b)(2) of the CEQA Guidelines. To the extent adoption of this Urgency Ordinance constitutes a project, the City Council finds pursuant to CEQA Guidelines Section 15061(b)(3) that the project is exempt from environmental review because it can be seen with certainty that extension of the temporary moratorium would not have a significant effect on the environment.
FISCAL IMPACT
This activity may be carried out without additional impact on the current operating budget.
RELATIONSHIP TO STRATEGIC GOALS
This item supports the City's strategic goals of promoting responsible land use planning, protecting public health and safety, preserving infrastructure and community resources, and supporting a long-range planning vision through the City's General Plan and zoning regulations.
Extending the temporary moratorium will provide the City with sufficient time to complete consideration of permanent regulations addressing Data Centers and to ensure that future land use decisions are consistent with the City's long-term land use, infrastructure, economic development, and community objectives.
City of Commerce Staff Report – Extension of Urgency Ordinance No. 834 – Temporary Moratorium on Data Center Development
September 22, 2026
Prepared by:
Jessica Serrano, Community Development Director
Approved as to form by:
Noel Tapia, City Attorney
Respectfully submitted:
Ernie Hernandez
ATTACHMENTS
1. Proposed Urgency Ordinance Extending Urgency Ordinance No. 836
2. Urgency Ordinance No. 834
3. Government Code Section 65858(d) Written Report