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.