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.