Since 1970, the California Environmental Quality Act (CEQA) has shaped how development projects are reviewed in California. In 2025, Governor Gavin Newsom signed Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131), ushering in major reforms aimed at streamlining CEQA without compromising environmental integrity.
For developers, agencies, and consultants, these recent CEQA reforms represent both opportunities and challenges.
The Evolution of CEQA
Over the decades, CEQA has evolved from a basic disclosure law into a complex regulatory framework. The CEQA guidelines now cover a wide range of issues, including , and more, making it one of the most comprehensive environmental review processes in the country.
Over time, this complexity has resulted in longer review periods and increased litigation risk, which can affect project timelines and costs. These challenges, combined with California’s housing needs and climate objectives, prompted lawmakers to introduce CEQA reforms aimed at improving efficiency. In 2025, AB 130 and SB 131 were enacted to streamline CEQA compliance while maintaining environmental standards, marking a significant update for developers and agencies.
What’s New in CEQA for 2025?
1. Expanded Housing Exemptions
AB 130 introduces exemptions for qualifying housing projects in urban areas, provided the project meets the following criteria:
- Up to 20 acres (or 5 acres for Builder’s Remedy sites).
- Aligns with local zoning and General Plans.
- Avoids historic structures and sensitive lands.
- Meets minimum density standards.
- Complies with Tribal consultation requirements.
SB 131 adds a single-condition exemption: If a project narrowly misses an existing CEQA exemption due to one condition, review for CEQA compliance is limited to that single issue.
2. Judicial Streamlining
Large housing projects over $100 million now benefit from expedited judicial review for CEQA compliance. Developers can also establish compliance with greenhouse gas goals by demonstrating consistency with the California Air Resources Board’s (CARB’s) Scoping Plan instead of conducting a full greenhouse gas analysis.
3. Emergency CEQA Suspensions
Recent Executive Orders temporarily waived CEQA requirements for wildfire recovery, signaling flexibility during disasters. This precedent may influence future emergency responses.
Implications for Developers and Agencies
The 2025 CEQA reforms promise faster timelines, but they also introduce new layers of complexity. Here’s what that means for project teams:
- Streamlined processes and exemptions can reduce delays, but only if projects meet very specific criteria. Understanding those thresholds early can make the difference between qualifying for an exemption and facing preparing a full Environmental Impact Report (EIR).
- New CEQA guidelines around Tribal consultation and greenhouse gas consistency require careful planning. Missing a single requirement can negate an exemption and trigger additional review, adding time and cost.
- Sensitive lands, cultural resources, and historic structures remain protected under CEQA. Even with the recent reforms, agencies must demonstrate that these areas are not adversely impacted, which often involves detailed technical analysis.
In short, while CEQA guidelines are evolving to support housing and infrastructure goals, the path to compliance is far from automatic. Projects that anticipate these nuances early in the process are best positioned to take advantage of the new streamlining opportunities.
How Yorke CEQA Can Help
Navigating CEQA compliance requires more than just understanding the law; it demands strategic planning and technical expertise. Whether you need a Categorical Exemption justification memorandum, a full EIR, or a targeted technical study, we can help you streamline compliance, reduce risk, and keep your projects moving forward.