Do you have questions about the recent CEQA reform? We have answers
By Melissa Sparks-Kranz, legislative advocate (environmental quality)
Cal Cities has released a primer on what the legislative authors are calling the most ambitious changes to the state’s environmental protection law. Signed by Gov. Gavin Newsom as part of the 2025 budget package, AB 130 (Wicks) and SB 131 (Wiener) took effect immediately on June 30. So, how big are these changes? And how could they impact your city?
What do these new laws do?
AB 130 created a new exemption to the California Environmental Quality Act (CEQA) for specific housing developments that meet site and project criteria, targeting existing urban areas. The bill also made changes to tribal consultation processes, hazardous substances assessments, air quality standards, and project labor requirements.
SB 131 changed the scope of the administrative record for litigation and the ability to focus environmental analyses on single conditions for what would otherwise be exempted housing projects. Under the new law, a variety of projects now qualify for CEQA exemptions, including:
- Rezoning actions that implement an approved housing element
- Farmworker housing
- Drinking water and onsite sewage treatment projects benefiting disadvantaged communities
- Broadband deployment in a right-of-way
- Public parks or non-motorized recreational trail facilities
- Wildfire risk reduction activities
- Daycare centers and rural health clinics
- Nonprofit food bank or food pantry projects
- Advanced manufacturing facilities
- High-speed rail and passenger rail stations
How could these changes impact my city?
Cities are encouraged to use the primer to identify and review the statute. Next, determine how these laws might impact projects in their community. The details really do come down to the specifics.
For questions about specific projects in your communities, please consult with your city attorney. For questions about the primer, please contact Cal Cities Legislative Advocate Melissa Sparks-Kranz. For more resources, including a guide to the 2024 climate bond, visit Cal Cities’ environmental quality webpage.