According to the California Construction and Industrial Materials Association (CalCIMA), as part of a deal in enacting the 2025-2026 fiscal year state budget, legislators and Gov. Gavin Newsome hammered out an agreement on permitting reforms to stimulate housing and manufacturing.
Specifically, the legislation exempts and streamlines certain permitting provisions in the California Environmental Quality Act (CEQA) for infill housing and high tech manufacturing.
The housing exemption applies to infill projects of 20 acres or less, and probably for apartments. The manufacturing exemption applies to advanced manufacturing, water infrastructure, and broadband among others located in industrial zones.
“Advanced manufacturing facilities” include projects that “improve or create entirely new materials,” including “advanced materials.” These can include ones that advance industry standards for materials, products, sustainability and use of resources.
The CEQA reforms mean study will no longer be required for mitigating traffic, air quality, habitat, noise, water, historical and other impacts and also limit what is reviewable in the courts.
Also according to CalCIMA, the CA Transportation Commission approved $5 billion for a variety of transportation projects to fix roads, ease congestion, improve movement of goods and advance technology.
Of the $5 billion, $3.5 billion is for roads and bridges and about $1.5 for zero emission freight and connectivity. The funding comes from SB 1, federal, and local sources.
The Commission approved the projects despite concerted opposition from groups seeking less highway construction and more alternative travel modes. CalCIMA’s Cameron Richardson, director of technical services, provided testimony urging adoption of the proposed road projects.