Reforming CEQA
CEQA was designed to ensure that environmental considerations are integrated into the decision-making process for development projects. It requires state and local agencies to identify significant environmental effects and to mitigate them when feasible. The act emphasizes transparency and public participation in the environmental review process.
In practice, CEQA has been exploited by various interest groups to obstruct development projects. A study by Holland & Knight found that less than 15% of CEQA lawsuits were filed by organizations with a track record of environmental advocacy. Instead, many lawsuits are initiated by groups aiming to block competition, leverage concessions, or prevent changes in their communities. For instance, CEQA has been used to delay infill housing in Sacramento, solar farms in San Diego, and transit projects in San Francisco.
The mere threat of a CEQA lawsuit can deter developers, particularly for smaller projects, due to the potential for prolonged delays and increased costs. This misuse of CEQA has contributed to the state's housing shortage by making it more difficult and expensive to build new homes, especially in urban areas where housing is needed most.
Recognizing the need to address the misuse of CEQA, California lawmakers have proposed several reforms. Assembly Bill 609, introduced by Assemblymember Buffy Wicks, aims to exempt most urban housing projects from CEQA's environmental reviews. The bill is part of a broader legislative package designed to accelerate housing development in the state.
Governor Gavin Newsom has expressed support for reforming CEQA, stating that the law has been weaponized by wealthy homeowners to block much-needed housing projects. He has emphasized the importance of balancing environmental protection with the urgent need to build more housing.
“If we’re able to get it to the governor’s desk, I think it’s probably one of the most significant changes to CEQA we will have seen since the law’s inception.”
Assemblymember Buffy Wicks speaking at a presser for the California Legislature's Permitting Reform Package
Photo: californialocal.com