Overview

• Governor Gavin Newsom signed Assembly Bills 130 and 131 on July 1 as part of the $321 billion 2025-26 budget, marking the most extensive rollback of the California Environmental Quality Act since its inception.
• The reforms broadly exempt new apartments in urban infill zones and key projects—including rail stations, childcare centers, farmworker housing and advanced manufacturing facilities—from CEQA review.
• Projects on environmentally sensitive or hazardous sites remain subject to full review and developers must still conduct hazard assessments and meet local planning and zoning requirements.
• Supporters led by Newsom and Sen. Scott Wiener argue the changes are necessary to cut litigation delays and accelerate construction toward California’s 2.5 million-home goal by 2030.
• Environmental and community organizations such as Sierra Club and San Francisco Baykeeper contend the overhaul strips essential protections and are weighing legal and advocacy challenges.