California Enacts Significant CEQA Reforms for Housing and Advanced Manufacturing Projects

By Robert M. Smith, Kenneth A. Kecskes, and Ankur K. Tohan

On 30 June 2025, Governor Newsom signed Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131) into law, introducing some of the most significant changes to the California Environmental Quality Act (CEQA) in recent history, with the goal of increasing housing supply and improving housing affordability in California. The reforms were also partially motivated by legislative concerns over the misuse of CEQA by project opponents to “delay a project for reasons unrelated to environmental protection.” The bills expand CEQA exemptions for certain housing and advanced manufacturing projects, with the goal of facilitating a faster environmental review process and fewer CEQA legal challenges.

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