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9h ago

Newsom Signs Sweeping CEQA Exemptions to Accelerate Housing and Infrastructure

Linking the reforms to the $321 billion budget ensured they take effect immediately

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The California Environmental Quality Act, or CEQA, was long used to issue environmental challenges against new housing developments. Now that its been reformed, there’s hope projects, like this in San Francisco’s Bayview from 2018, won’t be blocked.

Overview

  • AB 130 and AB 131 carve out broad CEQA exemptions for urban infill housing, transit stations, advanced manufacturing and water infrastructure.
  • Newsom conditioned enactment of the $321 billion 2025-26 budget on passing AB 131, securing a last-minute legislative push and instant implementation.
  • Supporters led by Sen. Scott Wiener argue the reforms will break litigation bottlenecks and accelerate essential projects to ease the housing shortage.
  • Environmental and tribal advocates warn the rollback undermines decades of protections, threatens vulnerable habitats and limits community participation.
  • Despite taking effect immediately, the exemptions still require developments to meet local zoning rules, assess hazards and face pending legal challenges.