California passes 'Holy Grail' reform to speed up homebuilding

The Facts

Governor Gavin Newsom signed Assembly Bill 130 (AB130) on June 30, exempting most urban homebuilding from California Environmental Quality Act (CEQA) reviews. The landmark reform will fix a long-broken rule that pushed new homes out of urban areas and into the grasslands and countryside, putting new homes at elevated fire risk and forcing people into megacommutes. The reform is a huge victory for the YIMBY movement, which has long advocated for reforming CEQA to allow more homes to be built in urban areas.

The Context

CEQA-mandated environmental reviews can run hundreds of pages and take years to complete, even for small apartment buildings and single-family homes! This well-intentioned environmental law has become the go-to choice for slowing down and blocking homebuilding over the last thirty years.

A 2022 study found that 50% of homes being built in California faced CEQA lawsuits in 2020, with interest groups using environmental lawsuits to delay or extract concessions from developers.

The reform defines urban infill projects broadly to include incorporated areas and unincorporated urban lands, excluding only coastal areas, historic sites, and environmentally sensitive zones like wetlands and fire areas.

The GrowSF Take

CEQA was a good idea when it was created in 1970 – after all, who doesn't want to protect endangered species, wetlands, and old-growth forests? But over the past thirty or so years, it has primarily served to spoil untouched wilderness. Rather than protect the natural beauty of our state, CEQA has pushed millions of homes and businesses out of cities and into the countryside, plopping down suburbs and office parks where there should be actual parks.

It's also pushed up the cost of homes in cities, clogged our highways with supercommuters, and lowered the quality of life for everyone. It's way past time that we fixed its flaws, and we're extremely grateful to Governor Newsom, Assemblymember Buffy Wicks, and State Senator Scott Wiener for their leadership