Major CEQA Reform Now in Effect
Andrea Schultz
Your project may now be CEQA-exempt
Let’s Talk
Most Meaningful CEQA Overhaul
in Over 50 Years
AB 130 and SB 131, enacted via the 2025–26 budget on June 30, 2025, represent the broadest CEQA reform ever for housing and infrastructure:
AB 130 creates a statutory exemption for urban infill housing up to 20 acres, bypassing CEQA review entirely
SB 131 caps review for “near‑miss” projects—only issues preventing exemption need be studied
AB 130 and SB 131 fundamentally reduce the scope and power of CEQA for infill housing projects, eliminating the need for environmental review for qualifying urban housing developments (AB 130) and dramatically limiting the scope of CEQA analysis for near-qualifying projects (SB 131). Together, they shift CEQA from a tool that could delay or kill infill housing into a streamlined process with clear rules, fast timelines, and legal protections against abuse, removing one of the biggest barriers to housing production in California.
Infill Housing Projects
AB 130 is a game-changer for urban infill housing. Effective June 30, 2025, it exempts qualifying “housing-rich” projects from all CEQA review—no EIR or MND—if they meet specific criteria:
Up to 20 acres (5 acres under builder’s remedy)
In previously developed or urban-adjacent areas
Zoning- and density-compliant
Not historic, sensitive, or transient use sites
Complete Tribal consultation and, if needed, remediation
Complete a Phase I Environmental Site Assessment and, if needed, remediation
SB 35-compliant siting and proximity to freeway rules apply
Unlike previous exemptions, this one is statutory and immune to litigation under “unusual circumstances.” Projects under 85 feet face no affordability or labor mandates.
Paired with SB 131
This new law narrows CEQA analysis to just the single issue that triggers review (e.g., a historic structure), streamlining infrastructure projects even further.
Why It Matters
Applies to new and pending projects
Cities must act within 30 days post-tribal consultation
Cuts months (or years) off the approval timeline
How CAJA Environmental Services can help
Determine exemption eligibility
Convert in-process CEQA reviews
Prepare zoning and exemption documentation
Guide Tribal consultation and minimize legal exposure
We’re actively tracking guidance from state and local agencies. Contact CAJA Environmental Services to get your project moving—faster and smarter.
We can help developers and cities navigate the new rules with fast, defensible eligibility screenings, targeted documentation, and backup strategies if a project doesn't fully qualify. If you're planning a residential or mixed-use project in an urban area, now is the time to find out if AB 130 or SB 131 can move you straight to approval.
CONTACT US
CAJA Environmental Services, LLC
CAJA’s Leadership Team
Chris Joseph | chris@ceqa-nepa.com
Stacie Henderson | stacie@ceqa-nepa.com
Seth Wulkan | seth@ceqa-nepa.com
Kerrie Nicholson | kerrie@ceqa-nepa.com