Newsom Signs Major Rollback of CEQA Reviews, With a Big Carve-Out for Big Tech

Governor Gavin Newsom signed a budget bill that exempts most urban housing projects from environmental review under the California Environmental Quality Act (CEQA). He touted the reform as the most significant housing policy change in modern history, aimed at alleviating California's housing crisis. CEQA, enacted in 1970, was designed to ensure thorough environmental reviews for large development projects but has been criticized for enabling litigation that delays housing developments. The New York Times highlighted that while CEQA contributes to the homelessness crisis, income inequality remains a key factor. Critics, including the Leadership Council for Justice and Accountability, expressed concern that these rollbacks could disproportionately impact low-income communities by facilitating harmful industrial projects.

The state Assembly and Senate passed the reform bills decisively, with votes of 50-3 and 33-1, respectively. Newsom and supporters argue that the changes will reduce red tape and help meet the demand for housing. The effectiveness of these reforms in increasing housing construction remains to be seen.