California Governor Gavin Newsom on Monday signed sweeping changes to the California Environmental Quality Act (CEQA), a move aimed at expediting housing construction across the state amid a deepening housing shortage and cost-of-living crisis.
The legislation, passed as part of the state’s $321.1 billion budget, takes effect Tuesday. It exempts new housing in urban infill areas from CEQA, removing a major legal hurdle that opponents have used to delay or block development projects. The law also streamlines CEQA processes for infrastructure development.
“Today is a big deal,” said Governor Newsom at a news conference on Monday night. “This is the most consequential housing reform in modern history in the state of California. Long overdue? Absolutely.”
The new law prevents groups from filing environmental lawsuits to stall urban housing projects. Supporters argue that CEQA has been increasingly used to obstruct affordable housing developments and serve other interests, including labor negotiations and business competition.
Governor Newsom reiterated the state’s goal of building 2.5 million homes by 2030 and called on local governments to take advantage of the new legislation to meet that target.
Lawmakers debated the proposal for hours on Monday. Some Democrats raised concerns about the process, noting the final version of the bill was introduced only days before the vote. “To undertake massive policy changes in a budget trailer bill that most members have a matter of hours to review is undemocratic and inappropriate,” said State Senator Steve Padilla, D-Chula Vista.
Environmental organizations and tribal representatives also voiced opposition during a State Senate budget hearing earlier in the day. “CEQA is essentially our environmental bill of rights,” said Nick Jensen of the California Native Plant Society. “We do a great disservice to communities and biodiversity when you choose to silence their voices.”
Lawmakers and the governor have previously approved CEQA exemptions for select projects, including sports stadiums, climate-related developments, and the new state office complex near the Capitol. The latest reform represents a broader and more permanent shift in CEQA policy, focused specifically on housing and infrastructure.
The legislation, passed as part of the state’s $321.1 billion budget, takes effect Tuesday. It exempts new housing in urban infill areas from CEQA, removing a major legal hurdle that opponents have used to delay or block development projects. The law also streamlines CEQA processes for infrastructure development.
“Today is a big deal,” said Governor Newsom at a news conference on Monday night. “This is the most consequential housing reform in modern history in the state of California. Long overdue? Absolutely.”
The new law prevents groups from filing environmental lawsuits to stall urban housing projects. Supporters argue that CEQA has been increasingly used to obstruct affordable housing developments and serve other interests, including labor negotiations and business competition.
Governor Newsom reiterated the state’s goal of building 2.5 million homes by 2030 and called on local governments to take advantage of the new legislation to meet that target.
Lawmakers debated the proposal for hours on Monday. Some Democrats raised concerns about the process, noting the final version of the bill was introduced only days before the vote. “To undertake massive policy changes in a budget trailer bill that most members have a matter of hours to review is undemocratic and inappropriate,” said State Senator Steve Padilla, D-Chula Vista.
Environmental organizations and tribal representatives also voiced opposition during a State Senate budget hearing earlier in the day. “CEQA is essentially our environmental bill of rights,” said Nick Jensen of the California Native Plant Society. “We do a great disservice to communities and biodiversity when you choose to silence their voices.”
Lawmakers and the governor have previously approved CEQA exemptions for select projects, including sports stadiums, climate-related developments, and the new state office complex near the Capitol. The latest reform represents a broader and more permanent shift in CEQA policy, focused specifically on housing and infrastructure.
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