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yesterday

California Enacts Major CEQA Overhaul to Expedite Housing

The package, secured through budget leverage by Gov. Newsom, unlocks $500 million for homeless programs under sweeping environmental exemptions.

California lawmakers on Monday passed some of the most significant changes to the state’s environmental review law since its inception.
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California Gov. Gavin Newsom. (Hector Amezcua/The Sacramento Bee/TNS)
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Overview

  • Lawmakers approved the reforms on July 1 tying them to the state’s fiscal 2025-26 budget to ensure swift enactment.
  • New exemptions waive CEQA reviews for housing in built-up areas that comply with local plans and for projects such as childcare centers, farmworker housing and wildfire risk reduction measures.
  • The budget deal restores $500 million for the state’s homeless assistance program after initial resistance from the governor.
  • Organizations including the Planning and Conservation League and Environment California warn the changes undermine endangered species protections and plan to challenge the law in court.
  • Supporters such as Sen. Scott Wiener predict the overhaul will remove barriers to development and accelerate construction of homes and essential infrastructure.