Introduction to CEQA Overhaul

When a landmark state environmental law threatened to halt enrollment at UC Berkeley, legislators stepped in and wrote an exemption. When the Sacramento Kings were about to leave town, lawmakers brushed the environmental rules aside for the team’s new arena. When the law stymied the renovation of the state Capitol, they acted once again.

The History of CEQA

Lawmakers’ willingness to poke holes in the California Environmental Quality Act for specific projects without overhauling the law in general has led commentators to describe the changes as “Swiss cheese CEQA.” Now, after years of nibbling at it, Gov. Gavin Newsom and the Legislature are going in with the knives.

Proposed Changes to CEQA

Two proposals have advanced rapidly through the Legislature: one to wipe away the law for most urban housing developments, the other to weaken the rules for most everything else. Legal experts say the efforts would be the most profound changes to CEQA in generations. Newsom not only endorsed the bills last month, but also put them on a fast track to approval by proposing their passage as part of the state budget, which bypasses normal committee hearings and means they could become law within weeks.

Impact of CEQA on Development

Nearly the entire 55-year history of the California Environmental Quality Act has featured dueling narratives about its effects. On its face the law is simple: It requires proponents to disclose and, if possible, lessen the environmental effects of a project. In practice, this has led to tomes of environmental impact reports, including volumes of soil testing and traffic modeling studies, and sometimes years of disputes in court. Many credit CEQA for helping preserve the state’s scenic vistas and waterways while others decry its ability to thwart housing and infrastructure projects, including the long-delayed and budget-busting high-speed rail.

Evidence and Arguments

On the latter point, evidence supports both sides of the argument. One study by UC Berkeley law professors found that fewer than 3% of housing projects in many big cities across the state over a three-year period faced any litigation. But some contend that the threat of a lawsuit is enough to chill development, and examples continue to pile up of CEQA stalling construction of homeless shelters, a food bank and child-care center.

Labor and Environmental Groups’ Perspectives

Organized labor learned to use the law to its advantage and became one of its most ardent supporters, alongside environmentalists — major constituencies within Democratic politics in the state. Besides carve-outs for individual projects in recent years, lawmakers have passed CEQA streamlining for certain kinds of housing and other developments. These fast-track measures can be used only if proponents agree to pay higher wages to construction workers or set aside a portion of the project for low-income housing on land considered the least environmentally sensitive.

Concerns and Criticisms

To opponents of the bills, including dozens of environmental and labor groups, the effort misplaces the source of building woes and instead would restrict one of the few ways community groups can shape development. Asha Sharma, state policy manager for Leadership Counsel for Justice & Accountability, said her organization uses CEQA to reduce the polluting effects of projects in neighborhoods already overburdened by environmental problems.

Legislative Process and Negotiations

Because of the hefty push behind the legislation, Sharma expects the bills will be approved in some form. But it remains uncertain how they might change. Newsom, the two lawmakers and legislative leaders are negotiating amendments. Wicks said her bill will not require developers to reserve part of their projects for low-income housing to receive a CEQA exemption; cities can mandate that on their own, she said.

Conclusion

Passing major CEQA reforms would demonstrate lawmakers’ willingness to tackle some of the state’s toughest challenges, Wicks said. “It sends a signal to the world that we’re ready to build,” Wicks said. The proposed changes to CEQA have sparked intense debate, with supporters arguing that they will help address the state’s housing crisis and opponents warning that they will undermine environmental protections and community engagement.

FAQs

• Q: What is CEQA?
  A: The California Environmental Quality Act is a state law that requires proponents to disclose and, if possible, lessen the environmental effects of a project.
• Q: What are the proposed changes to CEQA?
  A: Two proposals have advanced rapid