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Council approves LS Power franchise for Metcalf co-location after environmental concerns raised
Summary
The council granted a franchise to LS Power to co-locate at the Metcalf substation to increase regional grid reliability; environmental advocates asked for fuller review of possible data-center impacts on Alviso baylands and air quality.
The San Jose City Council unanimously approved a franchise agreement on April 1 to allow LS Power Grid California to co-locate at the Metcalf station alongside PG&E, a step officials said will support regional grid reliability projects estimated at nearly $2 billion.
During public comment, environmental groups urged the council to defer the franchise until additional environmental review and community outreach were completed. "The environmental impact report for this project does not analyze the impacts of data centers, even though the massive capacity appears to be intended to serve data-center growth," said Dasha Leads, conservation coordinator with the Sierra Club Loma Prieta chapter, during the hearing. She and other speakers raised concerns about diesel backup generators, added air and noise pollution, and cumulative burdens on Alviso, which state screening tools flag as environmentally sensitive.
LS Power's senior vice president, Casey Carroll, told the council the franchise is a critical step toward projects to strengthen regional reliability and that the company will continue coordination with city staff and local agencies. "The franchise, if granted, would mark a significant milestone for nearly $2 billion in grid reliability projects proposed to serve San Jose and neighboring communities," Carroll said.
Councilmembers praised staff work to negotiate protections for open space and to coordinate with PG&E and the Open Space Authority. Councilmember Campos said the agreement included provisions designed to limit impacts on Coyote Valley and Alviso and thanked staff for their work to preserve open space while improving the grid.
The council vote cleared the franchise; staff and LS Power said they will continue community engagement as project permitting and environmental work proceed.
What happens next: franchise approval permits LS Power to proceed with franchise-related work and coordination; project-specific environmental reviews and permitting processes for construction and transmission-line routing remain separate and ongoing processes.
