California’s Environmental Law Rewritten to Create More Housing

California Gov. Gavin Newsom signed legislation that enacts major changes to the California Environmental Quality Act (CEQA) that are designed to increase the availability of affordable housing across the state.

KCRA reports the new law takes effect today and will exempt new housing in urban infill areas from CEQA standards. As a result, activist groups will not be able to halt a project by filing a lawsuit alleging possible environmental violations. The legislation also changes CEQA’s processes to increase the pace of infrastructure projects.

Under earlier laws, the bypassing of CEQA standards was allowed for stadiums, climate projects and the construction of a new office building behind the Capitol in Sacramento.

Supporters of the new law claimed CEQA was weaponized to prevent affordable housing projects from being built in certain neighborhoods. Environmental groups were opposed to the new law, stating the rush to build ignored the potential for ecological damage.

“CEQA is essentially our environmental bill of rights, it ensures decision-makers and the public have the opportunity to understand the effects of projects big and small,” said Nick Jensen with the California Native Plant Society. “We do a great disservice to communities and biodiversity when you choose to silence their voices.”

The governor, who is widely seen as a potential candidate for the 2028 Democratic Party presidential nomination, hailed the law as addressing the state’s ongoing housing shortage.

“Today is a big deal,” said Newsom at a news conference on Monday night when he signed the legislation. “This is the most consequential housing reform in modern history in the state of California. Long overdue? Absolutely.”