In a landmark move, California’s lawmakers have exempted most urban housing development from the California Environmental Quality Act (CEQA), potentially transforming the landscape of housing development in the state.

A long-standing political struggle between housing developers and advocates of California’s primary environmental law has likely reached a resolution with the approval of a state budget-related housing bill.

This new legislation makes CEQA inapplicable to a significant portion of urban residential development in the state.

According to reports, the implications of this development are far-reaching. Most new apartment buildings will no longer face threats of environmental litigation. Urban developers will no longer need to assess, predict, and mitigate potential impacts of new housing on local traffic, air pollution, flora and fauna, noise levels, groundwater quality, and objects of historical or archaeological significance.

Assemblymember Buffy Wicks, an Oakland Democrat who introduced the CEQA law as a separate bill in March, said to Cal Matters, “Saying ‘no’ to housing in my community will no longer be state sanctioned.”

She added that while this won’t solve all housing issues in the state, it will eliminate the most substantial hurdle to building environmentally friendly housing.

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The new law states that urban “infill” housing developments -- housing constructed in and around existing development -- are no longer subject to CEQA. There are a few exceptions and qualifiers, but they are considered relatively minor by development advocates.

The bill applies to projects under 20 acres, mainly affecting large multi-block-spanning mega developments. A certain level of density is required, effectively excluding the policy for single-family home construction.

Before any project can proceed, affiliated tribal governments must be notified, but the consultation is put on a short timeline. To qualify for the exemption, a proposed project must also comply with local zoning regulations.

Gov. Gavin Newsom (D), who spent much of last week persuading the Legislature to pass the bill as part of his budget package, signed it last week. The key question now is whether this significant political and policy shift will result in more homes being built in California’s cities.

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