California overhauls landmark environmental law to speed up housing construction

SACRAMENTO, Calif. -- One of the biggest barriers to building new housing in California is now gone. Gov. Gavin Newsom has signed two bills Monday that roll back parts of the state's landmark environmental law - the California Environmental Quality Act, or CEQA - in a push to accelerate housing and infrastructure development.

Newsom is calling it the most significant state housing overhaul in decades.

"This is the most consequential housing reform that we've seen in modern history in the state of California, long overdue," Newsom said at the bill signing ceremony.

For decades, environmental groups have successfully defended CEQA's regulations, which require detailed environmental impact reports before major projects can break ground.

But with housing supply shortages and affordability issues statewide, Democratic leaders say the state could not further delay.

The pair of bills were looped into the state's $321 billion budget which takes effect on Tuesday, bypassing the Legislature's typical approval process for bills.

"The cost of housing is outrageous. It is too damn hard to build housing," said Assemblymember Buffy Wicks, D-Oakland.

Effective immediately, most urban housing and infrastructure projects will no longer be required to complete CEQA's lengthy environmental reviews. The law previously allowed anyone to sue if they found a project's environmental report was inaccurate or missed important context.

"They have to they have to do this enormous evaluation called an environmental impact report that really shouldn't apply to just a regular housing complex," said Bay Area Council CEO Jim Wunderman. "Maybe thousands of pages of documents that no one is really ever going to read, except the people who want to stop the project."

He says CEQA has often been used - or abused - to block new housing from being built.

"We went too far in terms of our regulations and restrictions in this state, and we're paying a dear price for it," Wunderman said. "It's hurting our economy, and it's not giving our kids the chance to live in the place that they grew up."

The law also makes it easier to rezone certain properties, like converting an empty shopping center into housing.

Pushback from environmental advocates

Environmental groups warn these changes could jeopardize community safety, particularly in the face of worsening climate threats.

"Catastrophic fires, extreme heat pollution, flooding - all of these things are getting worse," said Mary Creasman, CEO of California Environmental Voters. "How we do development matters. It's either going to protect communities or put communities at risk."

"Communities need a voice to say what makes sense for them from a health and safety perspective," she added.

Although the legislation takes effect immediately, local zoning rules still apply. That means it may take time before Californians see new developments on the ground.

Still, for lawmakers and housing advocates, this marks a major shift - signaling California is "open for business" when it comes to building.

"Housing at all income levels - that is what we need to do in the state of California," Wicks said.