Overview

• Governor Gavin Newsom signed AB 130 and SB 131 on June 30 as part of the state budget, triggering immediate exemptions from environmental review for infill projects up to 20 acres
• The laws waive CEQA reviews on previously developed or adjacent urban sites while preserving scrutiny for wetlands, prime farmland and protected species habitats
• Exemptions cover housing, child care centers, health clinics and high-tech manufacturing but exclude greenfield developments and major transit expansions
• Critics warn that the last-minute budget insertion bypassed public hearings and could prompt legal challenges from environmental and community groups
• Local zoning limits, high fees and labor costs remain unaddressed obstacles that may blunt the reforms’ impact on California’s housing shortage