Transportation and Environment Committee Meeting – February 9, 2026

The Transportation and Environment Committee of the San José City Council met on February 9, 2026, to discuss and take action on several items including an update on large load energy customer development, the Climate Adaptation and Resilience Plan, the citywide pavement condition and maintenance program, and a sewer rate setting audit. The committee also held a consent calendar and open forum.

Consent Calendar

• The committee voted to approve an update to the Climate Advisory Commission work plan as part of the consent calendar. The item was moved to the consent calendar after initial discussion and adopted unanimously (4-0).

Public Comments & Testimony

• Alina, a lifelong San José resident, expressed concerns about the lack of study and public engagement on public health and environmental impacts of data centers. She noted that the Environmental Impact Report for the South Bay Great Oaks facility showed recycled water was not feasible and that 36 diesel generators were installed. She urged the city to consider cumulative health impacts.
• Mashika Allgood, an AI ethicist and South Bay resident, raised concerns about air quality and water scarcity from large-scale AI data center build-outs. She stated that the city cannot rely blindly on environmental reviews and urged the committee to exercise oversight.
• Anne Ferris, representing the Bicycle and Pedestrian Advisory Committee, expressed support for the Climate Adaptation and Resilience Plan but urged prioritization of shaded pedestrian infrastructure and flood control along major bicycle pathways.
• Jordan Muldow, a District 3 resident, supported the Climate Adaptation and Resilience Plan and emphasized the need for funding, shade, and flood protection. He also commented on the pavement program, urging mode shift to reduce road maintenance costs and advocating for Vision Zero and bike plan projects funded by SB1 gas tax.
• Anne Ferris also commented on the pavement program, urging that Measure T funds be used for street safety improvements, including daylighting, narrowed lanes, and protected bike lanes, and that repaving be aligned with climate goals.
• Jordan Muldow, during open forum, reported traffic safety issues during downtown events and requested more motorcycle and bicycle enforcement officers.

Discussion Items

Large Load Energy Customer Development Status Report

• Staff presented the status of large load energy customer development, including the PG&E implementation agreement signed July 2025, goals to energize three large projects by June 2026, and fiscal benefits. Data centers provide significant utility user tax revenue without adding traffic or major service demands. Environmental regulations such as CEQA, recycled water requirements, and air quality rules were highlighted.
• Councilmember Ortiz asked about water monitoring, generator runtime, and cost allocation to prevent ratepayer burden. Staff responded that water supply is sufficient, generator use is limited and monitored by the Bay Area Air Quality Management District, and that Rule 30 before the CPUC ensures data centers pay for their infrastructure. Councilmember Ortiz requested a study session or annual report to inform the public.
• Chair Cohen suggested a standing annual report to council. The committee approved the report unanimously (5-0).

Climate Adaptation and Resilience Plan (CARP)

• Staff presented the CARP, which identifies hazards (flooding, extreme heat, sea level rise, wildfire smoke) and outlines 19 measures and 62 implementation strategies. The plan was developed with state funding and community engagement.
• Public comment highlighted the need for shaded infrastructure and flood-resilient bicycle paths.
• Councilmember Tordios praised strategies that address both mitigation and adaptation, such as improved thermal envelopes in buildings.
• The committee approved the plan (5-0) and directed it to be cross-referenced to the March 3, 2026 city council meeting.

Citywide Pavement Conditions, Funding, and Maintenance Program

• Staff reported that the city's combined Pavement Condition Index (PCI) is 73, up from 63 ten years ago. Current annual funding needed to maintain PCI 70 is $66.3 million, but with Measure T sunsetting in 2028, funding will decrease. The deferred maintenance backlog is projected to reach $673 million in 10 years.
• The 2026 program includes 201 miles of paving, with emphasis on residential streets and use of low-carbon concrete and permeable pavement.
• Public comment urged using repaving as an opportunity for safer street design and alignment with climate goals.
• Vice Mayor Foley asked about ADA ramp regulations (PROWAG) and the feasibility of flush crosswalks. Staff noted PROWAG is on pause and flush crosswalks are expensive.
• The committee approved the report (5-0).

Sewer Rate Setting Audit Report

• The City Auditor presented findings that the Environmental Services Department should review rate model assumptions, develop formal reserve policies, and improve transparency. Six recommendations were made.
• ESD staff accepted the recommendations.
• No public comment. The committee accepted the report (5-0) and cross-referenced it to the March 3, 2026 city council meeting.

Key Outcomes

• All agenda items passed unanimously. The work plan item was adopted under the consent calendar (4-0).
• The large load energy report was approved, with direction to consider a study session or annual report on data centers.
• The Climate Adaptation and Resilience Plan was approved (5-0) and will go to full council on March 3, 2026.
• The pavement program report was approved (5-0).
• The sewer rate audit was accepted (5-0) and will go to full council on March 3, 2026.