California Environmental Quality Act: categorical exemptions: infill projects.

Senator Wiener's comprehensive reform of the California Environmental Quality Act (CEQA) aims to streamline environmental reviews while maintaining core protections through redefined standards and expanded exemptions for urban infill development. The legislation modifies how public agencies evaluate environmental impacts by emphasizing evidence-based determinations and creating new categorical exemptions for certain housing projects.

The bill redefines key CEQA terms to clarify review requirements. A negative declaration must now detail the substantial evidence showing a project will not significantly affect the environment. Similarly, mitigated negative declarations must demonstrate through substantial evidence that proposed changes will effectively address potential environmental impacts. These modifications establish a more concrete evidentiary standard for environmental determinations.

For urban infill development, the bill creates new pathways for CEQA compliance. The Office of Land Use and Climate Innovation must map eligible infill sites statewide by July 2026 and develop alternative compliance methods for the existing infill categorical exemption. Projects on mapped sites that meet specific criteria may qualify for streamlined review. The bill also exempts rezoning actions consistent with approved housing elements from CEQA review, except when involving distribution centers or oil and gas infrastructure.

The legislation introduces procedural changes to focus environmental review on specific impacts. When a single condition prevents a project from qualifying for a categorical exemption, review is limited to effects directly caused by that condition. The bill also modifies requirements for legal proceedings under CEQA, including changes to documentation requirements and court enforcement orders. These provisions aim to reduce delay while preserving meaningful environmental analysis.

Local agencies retain authority to implement these changes through service charges and fees, as the bill does not require state reimbursement for the mandated program. The reforms exclude distribution centers over 50,000 square feet and oil/gas infrastructure facilities, maintaining existing environmental review standards for these projects.