Gov. Gavin Newsom on Monday signed legislation that would roll back that state’s landmark environmental law for urban residential developments in California.
In a news release, Newsom’s office said that the changes will “boost housing production and infrastructure statewide and improve affordability for all.”
The California Environmental Quality Act, enacted in 1970, requires public agencies in California to evaluate the potential environmental impacts of proposed projects and avoid those impacts, if possible.
However, many argue that the law has been weaponized to block new housing projects and development.
“CEQA can be an expensive and lengthy process, especially for large or complicated projects. This is true even if there is no litigation. Preparation of an Environmental Impact Report under CEQA can take a year or longer and cost hundreds of thousands of dollars, or even, in some cases, more than $1 million,” a 2024 report from the bipartisan Little Hoover Commission said.
The new legislation, AB 130 and SB 131, creates 10 new CEQA exemptions to streamline approval for housing.
Before signing the legislation, Newsom voiced his support for reforms to CEQA.
Improving California’s housing crisis has been a priority for Newsom since taking office.
In 2018, Newsom, in a Medium post, wrote, “As Governor, I will lead the effort to develop the 3.5 million new housing units we need by 2025 because our solutions must be as bold as the problem is.”
Newsom has since revised that goal, setting a new benchmark for cities to plan for 2.5 million homes by 2030.