5 things to know about big potential changes to California's building laws

Los Angeles Times

05-06-2025

Government runs on acronyms. In California, few inspire such strong reactions as CEQA.
Those four letters stand for the California Environmental Quality Act. It's a state law that's been around since 1970. Depending on whom you ask, it's either the reason California retains its natural beauty in the face of unrelenting development pressure or why the state has plunged into a housing crisis.
But now the Legislature is debating the most substantial overhaul to CEQA in generations. One proposal would exempt urban housing from its requirements and the other would weaken its rules for almost everything else.
Here's why the law is so integral to California and what changes might do.
The law is straightforward. CEQA requires proponents of a development — housing, highways, power plants, warehouses and many more — to disclose and, if possible, lessen its environmental effects before breaking ground. In practice these rules have meant thousand-plus page reports that include lengthy analyses of soil testing and traffic modeling, and sometimes endless litigation that puts entire projects at risk.
Supporters of CEQA say the law is essential to preventing development from dirtying California's waterways and mountain ranges and protects communities from harm. They say the law's effects on stopping development are overblown, pointing to studies that show few projects face lawsuits.
Those who want CEQA overhauled respond that even threats to sue can derail projects, such as housing or clean energy infrastructure, that the state needs to be more affordable and respond to climate change.
The reformers contend that a project's opponents weaponize the broad requirements in CEQA to try to stop the developments, including homeless shelters and a food bank in recent years, for reasons that have nothing to do with the environment.
Two of CEQA's biggest fans are environmental and labor groups, influential constituencies in state politics. They've successfully resisted major changes to the law over the years and have learned to wield it.
So even though governors and lawmakers have talked a big game about CEQA changes, they've been able to pass relief only for specific pet projects or those willing to pay construction workers higher wages, or set aside a portion of the development for low-income housing or other benefits.
The two new bills have been proposed by veteran lawmakers who have written many of the CEQA and housing reforms in recent years, frustrated that large-scale development hasn't followed.
Their efforts have been buoyed by a national 'Abundance' movement that's growing within Democratic circles. The argument goes that laws like CEQA in part drive the housing and infrastructure crises in blue states that are stifling the party's political fortunes.
Gov. Gavin Newsom, who has embraced the call, endorsed the two bills and put them on a fast-track to approval as soon as this month.
Even opponents of the bills believe something is going to pass. But what that looks like remains an open question. One lawmaker indicated that some labor standards may be part of her bill, and the other's bill was gutted in a legislative committee. All eyes will be on Newsom and legislative leaders in the coming weeks as they attempt to hammer out a final deal.
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