In a significant legislative shift, California lawmakers have exempted infill urban development from the California Environmental Quality Act (CEQA), marking a decisive moment in the long-standing battle over housing development versus environmental protections. This change comes after years of advocacy from housing developers who argue that CEQA creates unnecessary obstacles to building homes amid California’s critical housing crisis.
The recent passage of a budget-related housing bill means that most new apartment buildings will no longer be vulnerable to lawsuits over environmental concerns that CEQA allowed. As a result, urban developers will face fewer requirements to study the environmental impacts of their projects, including effects on traffic, pollution, local ecosystems, and historic sites.
Assemblymember Buffy Wicks, who introduced the law, emphasized that this legislation is a vital step towards addressing California’s housing crisis by eliminating excessive challenges to residential development. She noted that while this law won’t solve all housing problems, it removes the most significant barrier to developing environmentally-friendly housing.
Historically, CEQA required extensive public disclosure of potential environmental impacts, allowing for litigation by any individual or group dissatisfied with the reports. This presented delays and uncertainties for developers, ultimately contributing to California’s housing shortage.
In the current context, Governor Gavin Newsom advocated for this bill, highlighting its potential as a turning point in California’s approach to housing. Those supporting the change believe it can pave the way for increased urban development, hopefully leading to more affordable housing options for Californians.
The exemptions apply primarily to urban “infill” projects—those developed within existing city areas—while maintaining some limitations on project size and density. Advocates for this change argue that by promoting urban development, the state can reduce land use, minimize energy consumption, and decrease the need for long commutes, aligning economic growth with environmental sustainability.
This significant move demonstrates a shift in legislative priorities, showing a willingness to confront California’s housing crisis more directly. As the bill takes effect, the real test will be whether it leads to an uptick in housing construction and a relief for those grappling with rising rents and an escalating property market.
Though the change may not eliminate all barriers to housing development in California, supporters express optimism that it could catalyze necessary changes in a state facing persistent housing challenges.