Governor Newsom Signs Broadest CEQA Reform Ever To Boost Affordability & Cut Red Tape
AB 130 and SB 131, with significant CEQA reforms drawn from bills authored by Assemblymember Wicks and Senator Wiener, respectively, will streamline approvals for housing, broadband, childcare centers, health centers, advanced manufacturing, and more, saving Californians money and cutting red tape.
SACRAMENTO – Governor Newsom signed SB 131 and AB 130, bills to enact the most significant reforms to CEQA ever considered by the Legislature to lower costs for families. The bills, drawing on proposals (SB 607 and AB 609) by Senator Scott Wiener (D-San Francisco) and Assemblymember Buffy Wicks (D-Oakland), respectively, create 10 new CEQA exemptions to streamline approvals for housing, as well as childcare centers, clean water infrastructure, climate adaptation projects, broadband, health clinics, advanced manufacturing, and much more. These streamlined approvals will reduce costs and cut red tape for the projects Californians most need to secure an affordable and thriving future.
AB 130 passed the Assembly 67-0 and the Senate 28-5. SB 131 passed the Assembly 50-3 and the Senate 33-1.
Senator Wiener issued the following joint statement:
“These new CEQA reforms are a bold step forward toward tackling the root causes of California’s affordability crisis. The high costs devastating our communities stem directly from our extreme shortage of housing, childcare, affordable healthcare, and so many of the other things families need to thrive. These bills get red tape and major process hurdles out of the way, allowing us to finally start addressing these shortages and securing an affordable California and a brighter future. My deepest gratitude goes out to my colleagues, Assemblymember Wicks, Speaker Rivas, and Governor Newsom for their partnership in getting these reforms across the finish line, and especially to my friend and longtime legislative partner Pro Tem McGuire for his steadfast leadership in the face of challenging circumstances.”
AB 130
AB 130 streamlines infill housing projects by creating a new CEQA exemption for environmentally friendly housing projects. Specifically, it exempts infill housing developments that meet local zoning, density, and objective planning standards — so long as they’re not located on environmentally sensitive or hazardous sites. By streamlining approvals for qualifying projects and removing CEQA-based legal barriers, the bill aims to accelerate the production of housing in areas already designated for development, reduce housing costs, and improve environmental and climate outcomes by steering growth away from undeveloped land.
SB 131
SB 131 creates nine major new CEQA exemptions:
- Health centers and rural clinics
- Childcare centers
- Advanced manufacturing facilities
- Food banks
- Farm worker housing
- Clean Water projects (except the Delta Conveyance)
- Wildfire risk mitigation projects
- Broadband
- Parks
In addition, AB 131 makes significant across-the-board process changes to CEQA. The bill helps reduce the length of CEQA lawsuits by raising the standard of relevancy for administrative records that can be used in the lawsuits, helping to reduce lawsuit “gotcha” moments. It introduces streamlined environmental reviews for housing projects that narrowly miss an existing CEQA exemption. The bill also removes a duplicative requirement by exempting from CEQA rezonings that are undertaken to implement a RHNA compliant housing element that has already gone through the CEQA process.
AB 130 and SB 131 are supported by a broad coalition:
"We are excited to see language in the budget for major CEQA reform. AB 130 and SB 131 ensures that the state's environmental review process works better — not just for housing, but for climate action and equity,” said Corey Smith, Executive Director of The Housing Action Coalition. “California’s current CEQA framework is too often misused to block exactly the kinds of infill, affordable, and sustainable housing our communities desperately need. We’re committed to continuing the fight for thoughtful, responsible reform that clears a path to the homes Californians need while upholding our environmental values."
"SB 131 makes important, and common sense improvements to CEQA that will protect Californians from wildfires, expedite public health projects, improve the quality of life for residents, and increase the production of sorely-needed housing across the state,” said John Kennedy, Policy Advocate at the Rural County Representative of California (RCRC). “More work remains, but SB 131 takes immediate steps to help California achieve its basic needs."
“SB 131 makes extremely consequential progress on delivering the advanced manufacturing, transportation, housing and so many more projects that Californians need and deserve to reduce the cost of living in this state,” said Jim Wunderman, President and CEO of the Bay Area Council. “The Bay Area Council thanks Senator Wiener for his tireless leadership on SB 607 this year and congratulates all of Senate leadership, especially Senate Pro Tem McGuire, on this historic legislation. This bill will accelerate the delivery of countless projects that California’s environment and economy depend on for a brighter future.”
"SB130 and SB131 create landmark reforms that make it easier and faster to build the infill housing, infrastructure, healthcare, and clean energy projects Californians desperately need," said Melissa Breach, Chief Executive Officer of Prosperity California. "These bills help lower the cost of living for working families and put us on the path to a more vibrant, inclusive, and sustainable California."
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