California's green rule rollback ignites firestorm

Politico

3 days ago

California Democrats' dramatic policy move to address the state's housing crisis has put party leaders on a collision course with environmental advocates and labor unions.
California Gov. Gavin Newsom and Democratic state lawmakers on Monday agreed to exempt a wide array of projects from the California Environmental Quality Act, which requires construction projects to assess and address environmental impacts, writes Camille von Kaenel. Newsom conditioned passage of the state's $320 billion budget to approval of the exemptions, which he said were necessary to get more homes built.
This is 'the most consequential housing reform that we've seen in modern history in the state of California,' Newsom said at a press conference.
The reform also exempts projects such as wildfire fuel breaks, water system upgrades, portions of the high-speed rail project and advanced manufacturing facilities like semiconductor and electric vehicle plants — outraging many environmental and labor groups.
'They're conditioning the funding of essential services like health care, education, to this huge policy change that would dramatically roll back environmental review for some of the most polluting facilities in California,' said Asha Sharma, the state policy manager at the Leadership Counsel for Justice and Accountability.
Teamsters, United Auto Workers and United Steelworkers likened the measure to the Trump administration's rollback of the National Environmental Policy Act and warned it 'would give carte blanche to companies like Tesla to expand without any environmental oversight.'
But critics of the foundational law, which was passed by Republican governor Ronald Reagan 55 years ago, say it has been weaponized to allow lawsuits to slow or halt housing development, fueling the state's housing shortage and driving up homelessness rates and the cost of living.
Building more densely in urban areas, they argue, is better for the environment. It allows for more energy efficiency and facilitates public transit, cutting down on super commuters who spend hours in traffic emitting climate pollution.
Still, that doesn't explain why advanced manufacturing facilities such as semiconductor and EV plants would be exempt from review, argue environmentalists and labor groups representing auto workers, machinists and scientists. Such facilities can leach toxic waste into neighborhoods, they said.
That argument seems to have stuck, Camille writes. Democratic state Sen. Scott Wiener said the California Senate is 'committed' to working on provisions related to advanced manufacturing, tribal consultation and endangered species protections in potential follow-up bills.
It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to [e-mail].
Today in POLITICO Energy's podcast: Zack Colman breaks down how a record-breaking heat wave strained the U.S. power grid last week, highlighting the risks of rising electricity demand and extreme weather.
Power Centers
Senate passes its megabill after an all-nighter The Senate narrowly approved its version of the Republican tax, energy and border security bill, after making changes that eased up on provisions opposed by the wind and solar industry, write Timothy Cama, Amelia Davidson and Nico Portuondo.
Republican Sens. Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky joined Democrats in voting against the measure, requiring Vice President JD Vance to cast the tie-breaking vote.
The sprawling domestic policy measure now heads to the House, with Republicans hustling to get it to the president's desk by July 4, writes Jordain Carney.
That will be a heavy lift: Moderates are worried about changes to Medicaid and clean energy tax credits included in the Senate bill, and conservatives are up in arms that it doesn't go far enough in cutting spending.
Megabill debate mirrors state battlesBefore Republican Senators passed their version of Trump's megabill, the party found itself embroiled in a debate about how harshly to treat the wind and solar industries, mirroring a major battle playing out in Texas, Oklahoma and other deep-red states, writes Jason Plautz.
The debate is one of ideology versus economics. While Republicans tend to look down on clean energy, the fiscal incentives are strong. In Texas, for example, business groups — even including oil and gas producers — were crucial in spreading the message that restricting solar and wind could drive up electricity costs.
Trump attacks the Montreal ProtocolAs treaties go, the Montreal Protocol is often considered one of the most successful. But the United States' continued participation in the 1987 agreement to save the ozone layer is suddenly in question, writes Sara Schonhardt.
Trump's proposed rescission package calls for eliminating funding to the agreement, as part of a plan to claw back $437 million appropriated for international organizations and programs during the Biden administration.
Experts say that could undermine new markets for U.S. goods while threatening protections from the sun's harmful radiation.
In Other News
Water infrastructure: Flint finally replaced its lead pipes.
Impacts: What does climate change mean for agriculture? Less food and more emissions.
Subscriber Zone
A showcase of some of our best subscriber content.
Trump ordered federal agencies Monday to begin sharing grant application details for critical mineral and energy infrastructure projects with the National Energy Dominance Council.
The EPA's proposal to reconsider its 16-year-old bedrock finding on the dangers of greenhouse gases is now in the White House's hands — a move that sets the stage for a broad climate rule attack.
Links to the nation's most comprehensive climate reports disappeared from the internet on Monday — along with the official government website that houses them.
That's it for today, folks! Thanks for reading.