Particle.news

Download on the App Store

Newsom Ties 2025–26 Budget to CEQA Reforms, Triggering Broad Development Exemptions

The state budget incorporates CEQA exemptions for multifamily developments under 20 acres, farmworker housing, advanced manufacturing plants, sewer systems, high-speed rail stations to accelerate project approvals.

A man waving at the camera
Image
Image

Overview

  • Governor Gavin Newsom refused to sign the budget until lawmakers passed two trailer bills exempting key development projects from CEQA, creating a deadline-driven incentive to secure approval.
  • The signed 2025–26 budget immediately exempts multifamily buildings on parcels under 20 acres, farmworker housing, advanced manufacturing facilities, specific sewer systems and high-speed rail stations from environmental review.
  • Legislative leaders employed accounting tactics such as pushing expenses into the next fiscal year and issuing new debt to prevent program cuts while accommodating the CEQA reforms.
  • Supporters say the exemptions will streamline approvals to accelerate construction during California’s deep housing shortage and persistent infrastructure delays.
  • Chevron USA has begun relocating executive operations from its Bay Area offices to Houston and has listed its San Ramon campus for sublease as part of a wider downsizing.