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California’s New CEQA Exemptions Take Effect as Agencies Revise Procedures

City planners are parsing fast-track infill rules; local zoning hurdles, building fees, looming legal challenges raise questions about how quickly projects will advance.

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California Gov. Gavin Newsom (C) points to California Assemblymember Buffy Wicks (L) during a press conference on September 28, 2022 in San Francisco, California. California Gov. Gavin Newsom signed two bills into law that will help with the housing crisis in the state. | Justin Sullivan/Getty Images
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Overview

  • Governor Gavin Newsom signed AB 130 and SB 131 on June 30, exempting qualifying urban infill and related projects up to 20 acres from CEQA review.
  • The reforms took effect July 1, and state and local agencies are updating permitting procedures to implement the new exemptions.
  • Proponents say streamlined reviews and reduced litigation will lower development costs and accelerate housing and infrastructure projects.
  • Critics fault the last-minute insertion of reform language into the budget trailer bill for bypassing public input and undermining transparency.
  • Stakeholders warn that persistent zoning controls, building fees and potential court challenges could delay on-the-ground impacts for months.