Focus
“A course correction”: Supreme Court reinforces agency deference and narrows the scope of environmental effects that agencies must consider under NEPA
Allen Matkins – May 30
On May 29, 2025, the Supreme Court held that the National Environmental Policy Act (NEPA) — which requires federal agencies to analyze the environmental impacts of projects that they carry out, fund, or approve — does not require agencies to consider the effects of “other future or geographically separate projects that may be built (or expanded) as a result of or in the wake of the immediate project under consideration.” The Court’s decision narrows the scope of effects that agencies must consider under NEPA, provides clear direction to agencies and lower courts, and will likely benefit developers of infrastructure and other projects that require federal agency approvals or receive federal funding.
News
SB 607 sparks debate over future of CEQA in California
Vanguard News Group – May 26
Senate Bill (SB) 607, a proposal to reform the California Environmental Quality Act (CEQA), has ignited an intense debate between state leaders pushing for streamlined development and environmental justice advocates warning of deep rollbacks to community and ecological protections. Authored by Senator Scott Wiener and backed by Governor Newsom and Senate President pro Tempore Mike McGuire, the bill passed out of the Senate Appropriations Committee and is pending a final vote by the Senate floor and approval by the Assembly. The bill was gutted by the Senate Appropriations Committee to remove its original content and replace it with placeholder language signaling continued negotiations.
California bill allowing more housing near transit stops narrowly passes Senate
San Francisco Chronicle – June 4
State Sen. Scott Wiener’s bill to legalize mid-rise apartments around major transit stops squeezed through the state Senate Tuesday, five years after his previous attempt died in the same chamber. SB 79 would allow taller, denser projects — whether housing or commercial — to be built within a half-mile of some transit stops, with the most generous bonuses reserved for projects near major systems like BART, Caltrain, and parts of the Los Angeles Metro. The maximum height and density would depend on how close a project is to a transit stop, and the type of transit it’s near. The bill would also allow projects built on land owned by transit agencies to bypass CEQA. SB 79 still needs to get through the Assembly to become law.
Fresno takes step backward in affordable housing with scolding from state
The Business Journal – May 24
Fresno Mayor Jerry Dyer announced during last Thursday’s Fresno City Council meeting that the California Department of Housing and Community Development (HCD) has revoked the City of Fresno’s pro-housing designation, citing the city’s failure to implement key housing policies by a November 2024 deadline. The HCD wrote in a letter that Fresno did not enact several proposed reforms, including permitting “missing middle” housing types and reducing parking requirements near transit. Fresno first received the designation in 2023.
What will it take to convert San Francisco offices into housing?
Mission Local – May 24
City officials have floated incentive after incentive to transform empty San Francisco office space into residential housing. In the latest example, supervisors on the Budget and Finance Committee recently advanced a proposal that would return property taxes to developers in a zone that runs down Market Street from the waterfront to Civic Center, including the Financial District, SoMa, and Union Square. That extra incentive is necessary, say its backers, because developers still aren’t biting. Despite the incentives already in place, there is just one office-to-residential conversion in San Francisco’s pipeline.
Zone changes aim to lure housing to El Camino
Palo Alto Online – May 28
Seeking to encourage a housing boom on commercial zones along El Camino Real, Palo Alto officials approved a series of zoning changes last week that will allow taller and denser developments on various stretches of the prominent artery in the southern half of the city. The goal of the zone changes is to spur the creation of hundreds of new dwellings in the stretch of El Camino Real just south of Page Mill Road, consistent with the city’s Housing Element. The document envisions about 2,000 new units in commercial areas along El Camino Real and around San Antonio Road by 2031.
LA continues to fall far short of reaching state-mandated housing goals, city report shows
LAist – May 26
Los Angeles permitted more than 17,200 housing units last year, according to a new annual progress report issued by city planning officials. That’s about 30% of what the city needs to produce every year to reach the housing goals handed down by state regulators. Under state law, Los Angeles is required to plan for more than 456,000 new homes between 2021 and 2029. About 185,000 of those homes must be affordable to residents earning incomes that qualify as “low” or “very low.”
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