Game-Changer for California Housing: What CEQA Reform Really Means

Big CEQA News!  On June 30, 2025, Governor Newsom signed into law Assembly Bill (AB) 130 and Senate Bill (SB) 131, which contain substantial reforms to CEQA as applicable to housing projects. Adopted as budget trailer bills, these took effect immediately on June 30, 2025.

• AB 130 exempts qualifying “infill” housing projects from CEQA, with no labor or wage standard requirements for projects up to 85 feet.

• SB 131 limits CEQA review for housing projects that narrowly fail to qualify for a CEQA exemption. CEQA review for such projects is now restricted to the environmental effects caused by the condition that precluded applicability of the exemption.

In the video, our President/CEO Marcela Escobar, and our Principal Environmental Consultant, Anna McPherson, do a deeper dive with Gary London on the details of each.  These bills represent the most comprehensive CEQA reform in the last couple of decades.

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