CEQA Relief for Housing in Budget Trailer Bills featured image

CEQA Relief for Housing in Budget Trailer Bills

News from: CalChamber

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.