California lawmakers passed a budget deal that rolls back parts of the state’s signature environmental law to fast-track construction projects including housing, water infrastructure, and EV and semiconductor plants.
Camille von Kaenel reports for POLITICO.
In short:
- A late budget agreement exempts a range of projects from California Environmental Quality Act (CEQA) review, including wildfire prevention work, parts of the high-speed rail, and advanced manufacturing facilities.
- Environmental groups and labor unions protested the rollback, warning it could allow industrial development without accountability for pollution or community harm.
- Despite the pushback, the bill passed easily and is expected to be signed quickly by Gov. Gavin Newsom, who tied it to the approval of the state’s $320 billion budget.
Key quote:
“They’re conditioning the funding of essential services like health care, education, to this huge policy change that would dramatically roll back environmental review for some of the most polluting facilities in California.”
— Asha Sharma, state policy director of the Leadership Counsel for Justice and Accountability
Why this matters:
The California Environmental Quality Act has long served as a check on development that could pollute air, water, or soil, especially in low-income or frontline communities. Weakening CEQA could allow industrial and housing projects to bypass review processes that help identify risks to public health and the environment. While supporters argue these changes will make it easier to build much-needed housing and infrastructure, critics warn that removing oversight invites unchecked pollution, particularly from advanced manufacturing sectors like EVs and semiconductors, which often generate hazardous waste. California’s move could signal a broader national trend.
Related: Newsom stalls California’s strict plastic waste rules after industry pushback
