CEQA Relief for Housing in Budget Trailer Bills

A package of budget-related bills that include changes to how environmental laws are applied to some types of housing in urban areas was signed into law by Governor Gavin Newsom last week.

The signed bills that streamline how the California Environmental Quality Act (CEQA) applies in specific circumstances are AB 130 (Committee on Budget) and SB 131 (Committee on Budget and Fiscal Review).

“The late insertion into this year’s California budget process of proposals to streamline more housing construction signals how vital the issue has become in addressing the state’s persistent affordability crisis,” the California Chamber of Commerce said in a statement released shortly before the Governor signed the budget trailer bills.

CEQA Streamlining

Among the CEQA streamlining provisions, which went into effect immediately, are the following:

  • Infill housing projects in urban areas are no longer subject to CEQA review, a process that can take several years to complete.
  • Limits on certain Coastal Commission housing appeals.
  • Speeding coastal permits.
  • Making permanent key portions of the Housing Crisis Act, a 2019 CalChamber-supported law, that reduce delays in local agency approvals of housing development projects that comply with applicable standards.

Vehicle Miles Traveled Mitigation Bank

One provision of AB 130 creates a vehicle miles traveled (VMT) mitigation bank program. The bill describes the program as “one optional strategy that a project applicant may use to mitigate a significant transportation impact under CEQA.”

CalChamber believes the provision is a mandate on housing developers that would add significant new construction costs — thus leading to fewer housing units built for California’s working families, the engine that drives the state’s economy forward.

Builders, CalChamber and allied local chambers asked that the bill be amended to make use of the mitigation option available only when the lead agency and project developer mutually agree, but the final version of AB 130 did not contain the requested language.

Staff Contact: Adam Regele

Adam Regele
Adam Regele joined the CalChamber in April 2018 as a policy advocate specializing in environmental policy, housing and land use, and product regulation issues. He was named a senior policy advocate in April 2021, and promoted to vice president of advocacy and strategic partnerships in March 2023. He came to the CalChamber after practicing law at Oakland-based Meyers, Nave, Riback, Silver & Wilson, PLC, where he advised private and public clients on complex projects involving land use and environmental laws and regulations at the local, state and federal levels. Before entering private practice, Regele served as a federal judicial law clerk to the Honorable Edward J. Davila of the U.S. District Court, Northern District of California. Regele earned a B.S. in environmental science at the University of California, Berkeley, and a J.D. from UC Hastings College of Law, where he was symposium editor and research and development editor for the Hastings West-Northwest Journal. See full bio.