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ARTICLE · 01 AUGUST 2025

California Enacts Significant CEQA Reforms For Housing And Advanced Manufacturing Projects

K&L Gates
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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)...

United StatesEnvironment
Robert M. Smith
Robert M. Smith
Kenneth A. Kecskes
Kenneth A. Kecskes
Ankur K. Tohan
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."1 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. Businesses focused on housing production and industrial development should pay heed to these significant changes, which will significantly expedite environmental review for development that furthers housing development and advanced manufacturing activity in California. While these

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