CEQA Reform: AB 130 and SB 131 Create Series of Exemptions for Wide Range of Projects

Brownstein Hyatt Farber Schreck
Contact

Brownstein Hyatt Farber Schreck

Note: This is the third update in our series covering AB 130 and SB 131, two bills that work substantive changes to the California Environmental Quality Act (CEQA) and California housing law. Click here to learn more about other recent updates in these bills.


On June 30, 2025, California Gov. Gavin Newsom signed into law budget trailer bills AB 130 and SB 131, which take effect immediately. Together, these bills create multiple new California Environmental Quality Act (CEQA) exemptions to streamline the approval of a variety of projects.

SB 131 creates a wide range of new, statutory CEQA exemptions, which differ from categorical CEQA exemptions in that the many exceptions that apply to categorical exemptions––such as the “unusual circumstances” exception––do not apply. These new statutory exemptions are summarized in the table, below.

CEQA Exemption Public Resources Code Significant Criteria
Infill Housing Exemption Section 21080.66 See focused client alert on this exemption here.
Rezoning Consistent with Housing Element Exemption Section 21080.085

What is exempted? Rezoning that implements the schedule of actions contained in an approved housing element.

Significant criteria? Does not apply to construction of a distribution center, oil and gas infrastructure, or development that will occur within the boundaries of any “natural and protected lands,” as defined in Public Resources Code section 21067.5.

Farmworker Housing Exemption Section 21080.44

What is exempted? Projects for new agricultural employee housing (subject to limitations, below) or projects consisting exclusively of the repair or maintenance of an existing farmworker housing project.

Significant criteria? Does not apply to new projects unless the project complies with Pub. Res. Code sec. 21159.22 (existing agricultural worker CEQA exemption) and Health & Safety Code sec. 17021.8(i) (defining “eligible agricultural employee housing development”), and is funded by certain state programs or a local government OR is owned or operated by a public or non-profit organization that receives state, federal or local funding.

Small, Disadvantaged Water and Sewer Systems Exemption Section 21080.47

What is exempted? A project undertaken by a public agency or private entity that primarily benefits a small disadvantaged community water system or a state small water system or a project to provide sewer service to a disadvantaged community served by one or more inadequate sewage treatment systems.

Significant criteria? Must not affect wetlands or sensitive habitats.

Only applies through Jan. 1, 2032.

Community Water System Exemption Section 21080.48

What is exempted? A project undertaken by a community water system that receives funding from specified sources that does not otherwise include any construction activities.

Significant criteria? Only applies if the project results in long-term net benefits to climate resiliency, biodiversity and sensitive species recovery and includes procedures and ongoing management for the protection of the environment.

Only applies through Jan. 1, 2030.

Wildfire Risk Reduction Projects Exemption Section 21080.49

What is exempted? Wildfire risk reduction projects, including: (a) prescribed fire or fuel reduction on 50 contiguous acres or less within a half mile of a subdivision (30+ dwelling units), to reduce wildfire risk by reestablishing the fire return interval appropriate to the ecosystem for biodiversity or other benefits; (b) “defensible space” clearance up to 100 feet from roadway centerline; (c) “defensible space” wildfire risk reduction up to 200 feet from legal structure in high/very high wildfire hazard zone; and (d) fuel break up to 200 feet from structures.

Significant criteria? Prescribed fire or fuel reduction exemption does not apply if located on coastal sage scrub habitat or any other “sensitive habitat” (term not otherwise defined). To the extent feasible, must minimize impacts to candidate, rare, threatened, endangered plants and wildlife, wildlife nursery sites, riparian areas and tribal cultural resources.

Linear Broadband Right of Way Exemption Section 21080.51

What is exempted? Linear broadband deployment in a right-of-way, including a right-of-way of a local street or road.

Significant criteria? Must be within 30 feet of the right-of-way, incorporate measures developed by the government agency responsible for the right-of-way and provide public notice.

State Climate Adaptation Strategy Exemption Section 21080.55

What is exempted? Updates to the state’s climate adaptation strategy, which must be updated every three years per AB 1482 (2015).

Significant criteria? Only applies to the Natural Resources Agency.

Public Park and Recreational Trail Exemption Section 21080.57

What is exempted? Any activity or approval necessary for or incidental to planning, design, site acquisition, construction, operation or maintenance of public park or nonmotorized recreational trail facilities.

Significant criteria? Only applies to projects funded by the Safe Drinking Water, Wildfire Prevention, Drought Preparedness and Clean Air Bond Act of 2024 (see SB 867 from 2024 and Prop. 4, which voters approved in November 2024 to provide $10 billion for safe drinking water, drought and flood resilience; wildfire and forest resilience; coastal resilience; extreme heat mitigation; biodiversity and nature-based climate solutions; climate-smart, sustainable and resilient farms, ranches and working lands; park creation and outdoor access; and clean air programs).

Day Care, Health Center, Rural Health Clinic, Nonprofit Food Bank, Food Pantry, and Advanced Manufacturing Exemption Section 21080.69

What is exempted? Projects that consist exclusively of a day care center, a federally qualified health center, a rural health clinic, a nonprofit foodbank, a food pantry or a facility for advanced manufacturing (as defined in Pub. Res. Code sec. 26003), all as specified.

Significant criteria? Does not apply to a project located on “natural and protected lands,” as defined in Pub. Res. Code sec. 21067.5.

High-speed Rail Exemption Section 21080.70

What is exempted? A project that consists of the development, construction or operation of a heavy maintenance facility or other maintenance facility for electrically powered high-speed rail within one mile of high-speed rail right-of-way, or modification of a proposed passenger rail station or design changes to a passenger rail station, for the purpose of serving electrically powered high-speed rail.

Significant criteria? Project must have been evaluated in a prior project-level environmental impact report and incorporate all applicable mitigation measures.

“Near Miss” CEQA exemption streamlining Section 21080.1 See focused client alert on this exemption here.

Summer Associate Tessa Kardassakis contributed to this alert.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Brownstein Hyatt Farber Schreck

Written by:

Brownstein Hyatt Farber Schreck
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Brownstein Hyatt Farber Schreck on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide