Benicia Closes Data Center Loophole 5-0, Holds Off on Moratorium
City Council • BeniciaOctober 27, 2026
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Benicia will no longer let data centers into its industrial park without a public hearing. On Oct. 27, 2026, the City Council unanimously adopted zoning rules that require Planning Commission review and cap facility size, and it declined residents' calls for an immediate moratorium. The council also declared a local El Niño emergency to fast-track a $1.8M sewer repair and heard warnings that the city's refinery air-monitoring effort is running out of money.
- Data center ordinance adopted 5-0 on second reading. It ends by-right approvals and adds Planning Commission review.
- Councilmember Terry Scott flips to yes after opposing the first reading a week earlier.
- Residents push for a moratorium. The city attorney said state law requires a pending application first.
- Local El Niño emergency declared 5-0, unlocking emergency contracting for a $1.8M collapsed sewer main.
- Community air monitoring faces shutdown after Jan. 1 after a $5M Air District grant was denied.
Guardrails Now, Moratorium Later
The basics: Until now, data centers were allowed "by right" in parts of Benicia's industrial park. That means a project meeting the zoning rules could proceed with no public hearing. The Title 17 amendment changes that.
Why it matters: The ordinance closes a loophole that neighboring Fairfield faced. It also sets size, noise and review rules before any developer files an application.
"This item would sort of close the loophole and require a level of review that currently does not exist," said Mayor Steve Young.
Where things stand: After the first reading, the council directed one change. The ordinance will "place the Planning Commission … in a position of review authority for all use permits on data centers," said Suzanne Thorsen, Assistant City Manager/Development Services Director. Facilities are capped between 5 and 20 megawatts and face a 55-decibel noise limit.
Thorsen said follow-up amendments could address:
- Backup power and battery safety
- Water conservation during drought
- Clustering of facilities
- Separation from residential areas
Water hovered over the debate. Asked about the refinery's consumption, Thorsen said, "Valero's historic usage was about 4 million gallons per day. They are currently around 2 million gallons per day." Young noted that Valero cooperated with 25% cuts during the Lopes Road water line emergency. He asked staff to find out what the water is used for.
The other side: Speakers raised concerns about water, energy, noise, pollution, jobs, privacy and artificial intelligence.
- Pat Smith, a BCAMP board member, called for an immediate moratorium and cited toxic coolant among her concerns.
- Marilyn, also a BCAMP board member, wanted an emergency moratorium prepared in parallel. She warned of consolidation among developers and the influence of big tech.
- Vicki, a public commenter, said friends living near data centers elsewhere describe bait-and-switch promises, higher utility bills and constant noise.
- Ms. Gronert and Jill Morris, both public commenters, asked about nighttime noise, permitted hours, eligible properties and how the public would learn of applications.
On public notice, Thorsen said the city cannot send individual notices for every case: "We don't have bandwidth to do that for every type of a use permit application." One written comment, read by the mayor, took the opposite view and called the rules too restrictive.
The legal wall: The city attorney, Mr. Stock, said Government Code Section 65858 allows emergency moratoriums. It requires findings of an imminent threat tied to a pending entitlement, and no application is on file. "Imperial County enacted a moratorium that got struck down for similar reasons," Stock said.
Decisions and stakeholder impacts: Councilmember Kari Birdseye drew on her experience with the Natural Resources Defense Council. She said guardrails were preferable to a moratorium. If a moratorium becomes necessary, she said, "an emergency moratorium while we're vulnerable for the next 30 days is the way to go."
Scott voted no the previous week and said he remained unhappy with the timeline. "I'm asked to trust that the right thing to do is close the loophole," he said. He added that a unanimous vote "sends a message that we are all going to be watching this."
The ordinance passed on a roll call (For: 5 — Young, Vice Mayor Trevor Macenski, Birdseye, Councilmember Lionel Largaespada, Scott; Against: 0; Absent: 0).
Residents near the industrial park gain a hearing and a noise ceiling. Any future developer now faces discretionary review instead of a ministerial approval.
What's next: The ordinance takes effect in 30 days. Members signaled amendments are coming, and an emergency moratorium remains an option if an application arrives during that window.
El Niño Emergency Unlocks Fast-Track Contracts
Why it matters: The emergency declaration lets the city award contracts without competitive bidding before winter storms and king tides arrive. The council keeps oversight of that spending.
Where things stand: Staff tied the declaration to Gov. Gavin Newsom's Sept. 21 statewide proclamation. Staff also cited a NOAA forecast giving a greater than 83% chance of a strong to very strong El Niño lasting into 2027. Expected impacts include flooding, shoreline erosion, landslides and power outages.
The most urgent job is underground. On Oct. 8, crews found a collapsed 12-inch sewer main under Industrial Way near Park Road. It now runs on a temporary bypass staffed 24 hours a day, with help from the firm Coastland. "The estimated repair cost is $1.8 million," said Neil Leary, Deputy Public Works Director and City Engineer. The money will come from wastewater accounts.
Leary said crews "restocked the self-filling sandbag stations at East E Street and Corp Yard." The city has also prepared pre-filled sandbags, equipment and plant readiness.
The other side: Young asked how residents will be notified when king tides close B Street. Staff described social media notices, pedestrian detours and signage.
A resident of Rancho Benicia, a private park that has flooded before, asked whether the city would help if flooding recurs. Officials said emergency response is the same on private property. Smith asked whether plans account for a predicted Kelvin wave raising tides over Thanksgiving and through winter. Officials said such waves are accounted for as best as possible.
Decisions and stakeholder impacts: The resolution passed 5-0 (For: Young, Macenski, Birdseye, Largaespada, Scott). Shoreline neighborhoods and wastewater ratepayers have the most at stake.
Refinery Air Monitoring Running on Fumes
Why it matters: Speakers warned that Benicia has neither the fee revenue nor a monitoring plan to back its Industrial Safety Ordinance (ISO). Meanwhile, Valero operates under a two-year product-import agreement.
Where things stand: A public commenter said the ISO was promised to be paid for by the regulated parties. Instead, the commenter said, the city spent $500,000 in the first year and collected $70,000. The commenter urged the council to bring back a fee structure and monitoring program soon.
BCAMP board members Marilyn and Smith said the Air District denied the group's $5M grant request. That leaves only a $250,000 seed grant and no money to maintain monitors after Jan. 1. Smith said the BCAMP website, which residents use to check smells and leaks, would go offline.
What's next: No action was taken. "I'll be meeting with the Air District people twice this week, and I will certainly raise that issue," Young said. He added that he would try to bring an item back to the council.
Retirees Fill Police and Fire Gaps
The council approved two resolutions, 5-0, appointing CalPERS retired annuitants to temporary roles. CalPERS, the state pension system, requires these appointments to be approved as a public business item.
- Police Chief Mark Minasini retired Oct. 20 and will return as interim chief.
- Stacy Hatfield of the fire department retires in December. She will stay a few months to train a replacement.
The fire department "basically lost 100% of our administrative staff in a matter of just a few days," said Kim Imboden, Interim HR Manager. Staff said CalPERS limits annuitants' hours and requires active recruitment for permanent hires. Staff also addressed "double dipping" concerns. A retired teacher spoke in support.
- Ruby Bridges Day: Young proclaimed Nov. 18, 2026, as Ruby Bridges Walk to School Day. Advocate Kashana said discrimination persists in Benicia schools.
- City joins school walk: The VIBE team and city employees will take part in the walk.
- Consent calendar: Item 14B, waiving readings of ordinances, passed 5-0.
- Agenda adopted: The agenda was approved 5-0 with no changes.
Looking ahead: There is no council meeting Nov. 3 because of Election Day. The council next meets Nov. 17. Watch for data center amendments, a possible Air District monitoring item and a water rate analysis that staff expects in December.