Damon Connolly

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

Existing law exempts from CEQA a rezoning that implements the schedule of actions contained in an approved housing element, as specified, except, among other things, a rezoning that would allow for the construction of a distribution center or for oil and gas infrastructure.

This bill would instead exempt a rezoning to the extent that it is necessary to implement a schedule of actions contained in an approved housing element, except, among other things, a rezoning that would allow for the construction of a distribution center, for a tourism facility, as defined, or for oil and gas infrastructure.

Existing law, for a proposed housing development project, as defined, that would otherwise be exempt from CEQA pursuant to a statutory exemption or specified categorical exemptions, but for a single condition, limits the application of CEQA to the effects upon the environment that are caused by that single condition, except as provided.

This bill, for purposes of those provisions, would modify the definition of housing development project to exclude a project that has any portion of the project designated for use as a tourism facility, as defined. To the extent that this would create new duties for a lead agency, this bill would impose a state-mandated local program.

Existing law exempts specified projects from CEQA, including a project that consists exclusively of a facility for advanced manufacturing, as defined, if the project is located on a site zoned exclusively for industrial uses. Existing law excludes projects located on natural and protected lands, as defined, from these exemptions, as provided. Existing law includes in the definition of natural and protected lands, lands protected as preserve areas or reserve lands pursuant to an adopted natural community conservation plan or habitat conservation plan, as specified.

This bill would instead include, for that portion of the definition of natural and protected lands, lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan, as specified. The bill would also expand the definition of natural and protected lands to include habitat for protected species, as specified, fully protected species, or species protected by the federal Endangered Species Act of 1973, the California Endangered Species Act, or the Native Plant Protection Act. The bill would eliminate the exemption from CEQA for advanced manufacturing projects. The bill would instead exempt from CEQA, until January 1, 2030, a project that consists exclusively of a facility for semiconductor manufacturing if the project is located on a site that was zoned exclusively for heavy industrial use on or before August 1, 2025, and meets specified criteria, including, among other things, that the project does not involve the storage, use, or discharge of extremely hazardous gases or chemicals above California's accidental release program reporting thresholds, the project applicant demonstrates high road employment standards and certifies to the lead agency that it will maintain those standards in the development, construction, and operation of the facility, and the project applicant has provided a legally binding commitment to comply with specified labor-related requirements with respect to the initial construction of the facility and subsequent maintenance that is contracted out to a contractor in the construction industry, as specified. Because a lead agency would be required to determine the applicability of this exemption, the bill would impose a state-mandated local program. The bill would require the State Energy Resources Conservation and Development Commission to develop and make available to lead agencies guidelines for evaluating whether a project applicant demonstrates high road employment standards. The bill would require the Office of Land Use and Climate Innovation, on or before January 1, 2029, to report to the Legislature on projects that were exempted from CEQA pursuant to the above exemption, as provided, and require the report to include a list of the projects for semiconductor manufacturing facilities that have been approved for development in the state, as specified. 

CEQA requires in an action or proceeding to attack, review, set aside, void, or annul certain acts or decisions of a public agency to be commenced according to a specified process and requires the record of proceedings to contain specified information, including all internal agency communications, except as specified. Existing law provides that for those projects that do not include a distribution center or oil and gas infrastructure, internal agency communication does not include staff notes and electronic internal agency communications, including emails, that were not presented to the final decisionmaking body, other than those communications and documents consulted, or reviewed by the lead agency executive or a local agency executive, as provided, thereby limiting what the record of proceeding is required to contain for these projects.

This bill would eliminate the above-described limitation on internal agency communication required to be included in the record of proceedings for those projects that do not include a distribution center or oil and gas infrastructure, thereby requiring additional information to be included in the record of proceeding. By imposing new duties on a lead agency in order to comply with this provision, the bill would create a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.