Share on LinkedInShare on LinkedIn

ARTICLE · 17 JULY 2025

California Overhauls CEQA With Reforms Designed To Accelerate Housing And Infrastructure Development

Duane Morris LLP
Explore more from Duane Morris LLP

On June 30, 2025, California Governor Gavin Newsom signed into law a suite of bills significantly revising the California Environmental Quality Act (CEQA), marking what the Governor described as "the most consequential housing reform in modern history."

United StatesEnvironment
David Amerikaner
David Amerikaner
Louis Formisano
Louis Formisano
Matthew L. Capone
Matthew L. Capone
Author LinkedIn connections

On June 30, 2025, California Governor Gavin Newsom signed into law a suite of bills significantly revising the California Environmental Quality Act (CEQA), marking what the Governor described as "the most consequential housing reform in modern history." These changes are designed to streamline environmental review processes for a range of projects, with the goal of expediting housing construction and the development of critical infrastructure statewide.

Among these changes are expanded exemptions from CEQA for infill housing development projects that meet local zoning, density and objective planning standards – provided the development projects are not, amongst other requirements, located on environmentally sensitive or hazardous sites. In instances where an infill housing development fails to meet the new CEQA exemption because of a single condition, only that single condition needs to be analyzed under CEQA. The specific focus on infill housing development

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Texas Governor Abbott Directs TCEQ To Freeze All Data Center Permits In A Whole-of-Government Action

Governor Greg Abbott has ordered the Texas Commission on Environmental Quality to immediately halt all environmental permits for data center projects, expanding a statewide regulatory freeze that now encompasses power, water, and environmental approvals. This directive establishes strict operational mandates requiring data centers to fully fund infrastructure costs, report all resource consumption...
United StatesEnvironment
Foley & Lardner LLP
Foley & Lardner LLP
Article

Governor Abbott Orders TCEQ To Pause All Permit Issuance For Data Center Projects

Governor Abbott has ordered Texas environmental regulators to halt all data center permit issuance until grid operators complete a comprehensive audit in mid-December 2026. The sweeping directive affects not only grid-connected facilities but also fully islanded data centers relying on behind-the-meter generation, creating uncertainty for developers and their contractual obligations.
United StatesEnvironment
Bracewell LLP
Bracewell LLP
Article

Texas Governor Directs A Halt On Data Center Permitting With State Agency Audits

Texas Governor Greg Abbott has directed state agencies to halt all data center permits until comprehensive audits assess the projects' impacts on electric infrastructure, residential ratepayers, and water resources. The directive requires data centers to fully fund necessary electric infrastructure and comply with enhanced reporting requirements, while the governor signals potential legislative action to codify new protections and phase out certain tax incentives.
United StatesEnvironment
Greenberg Traurig
Greenberg Traurig
Article

Governor Signs Seven Data Center Bills Addressing Energy And Noise Reporting, Water Use, Labor Standards, Electricity Rates, And CEQA Review

California has enacted seven unprecedented bills targeting data center development, imposing sweeping new requirements for energy reporting, water consumption assessments, labor standards, and electricity rate structures. These laws fundamentally reshape the regulatory landscape for data centers, requiring detailed disclosures at multiple project stages while prohibiting categorical CEQA exemptions and establishing new interconnection rules that shift infrastructure costs directly to developers.
United StatesEnvironment
Cox, Castle & Nicholson
Cox, Castle & Nicholson
Article

District Court Enjoins EPA From Reclassifying California’s Clean Air Act Waivers

A federal district court has preliminarily enjoined the EPA from reclassifying California's Clean Air Act preemption waiver orders as "rules" subject to the Congressional Review Act. The court found that EPA's reclassification likely violated the Administrative Procedure Act and exceeded the agency's authority, though the order does not prevent Congress from proceeding with pending disapproval resolutions.
United StatesEnvironment
Arnold & Porter
Arnold & Porter
Article

California Links Data Center Permitting And Licensing To New Water Use Disclosure And Drought Planning Obligations

California has enacted comprehensive legislation requiring data center developers to disclose water usage and demonstrate supply adequacy before obtaining permits. These new laws impose water supply assessments, efficiency reporting, and drought contingency planning obligations that fundamentally reshape the regulatory landscape for data center development in the state.
United StatesEnvironment
Allen Matkins Leck Gamble Mallory & Natsis LLP
Allen Matkins Leck Gamble Mallory & Natsis LLP
Article

EPA Issues Decisions On Small Refinery Exemptions

The EPA has released decisions on 34 small refinery exemption petitions from 2025, granting full or partial exemptions that total 1.76 million RINs - significantly more than initially estimated. This discrepancy has prompted the agency to announce a new rulemaking that will reallocate 100 percent of exempted volumes to 2026 and 2027 renewable volume obligations, potentially increasing compliance burdens for nonexempt obligated parties.
United StatesEnvironment
Holland & Knight
Holland & Knight