(1) 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.

This bill would subject a rezoning that would allow for the construction of a bed and breakfast inn, motel, hotel, or other transient lodging to CEQA review even if the rezoning implements a schedule of actions contained in an approved housing element. The bill would specify that other transient lodging does not include a residential hotel, as defined, or a resident’s use or marketing of a unit as short-term lodging, as defined, in a manner that is consistent with local law.

(2) Existing law, for the approval of a proposed housing development project, as defined, that would otherwise be exempt from CEQA pursuant to a statutory exemption, or specified categorical exemptions adopted before January 1, 2026, but for a single disqualifying condition, as specified, limits the application of CEQA to the effects upon the environment that are caused solely by that single condition. For these projects, existing law requires the initial study or EIR to examine only those effects that the lead agency determines, based upon substantial evidence in the record, are caused solely by the single condition that makes the proposed project ineligible for a statutory or categorical exemption.

This bill would exempt from that limited application of CEQA a housing development project that has a project site or parcel size that exceeds 4 acres, if the project is a builder’s remedy project, as defined, and the project applicant applied, as specified.

(3) Existing law exempts from CEQA, except when located on natural and protected lands, a project that consists exclusively of a facility for advanced manufacturing, as specified.

Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.

(4) This bill would appropriate $10,000 from the General Fund to the Office of Land Use and Climate Innovation for implementation of this act.

(6)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.