Summary
SB-232 will study the effects of a lock-in period for California Environmental Quality Act (CEQA) regulations at issuance of Notice of Preparation (NOP) to promote project efficiency while preserving environmental diligence.
Background
CEQA requires government agencies to consider the environmental consequences of their actions before approving plans and policies or committing to a course of action on a project. This process of consideration includes studies, environmental impact reports (EIRs), and public input to identify and mitigate any significant environmental impacts that might be associated with a project or action. If the agency determines that the project may have a significant effect on the environment, it will issue a NOP which signals its intent to begin drafting an EIR.
In 2023, the Little Hoover Commission (LHC) held a series of public hearings to gather stakeholder input and expert testimony regarding potential CEQA reform. In 2024, the commission published a report with bipartisan recommendations that balanced the values of environmental protection with the need for increased housing and green infrastructure development. The LHC report states that “current case law under CEQA requires lead agencies to use the most up-to-date significance thresholds and analytical models available.” They further state that this creates substantial difficulties for large projects with extensive review and “the release of new regulatory standards during the review process can force projects to throw out existing analysis and start over.”
The commission recommended the Legislature study the feasibility of establishing a reasonable period during which project review and litigation could proceed to completion regardless of new CEQA modeling that might emerge. The NOP would seem to be the most reasonable period because it is the latest point in the CEQA review process before drafting an EIR (see CEQA Process Flowchart) thus maximizing the use of the latest findings while respecting the work of compliant agencies.
Proposal
SB-232 would require the Governor’s Office of Land Use and Climate Innovation to study the effects of locking-in the regulations that govern the CEQA review process at the time a NOP is issued.