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The “California Assembly Select Committee on Permitting Reform Final Report – March 2025” (the “Report”), published earlier this month, sounds an alarm bell regarding the need to overhaul the state’s “failed approach to permitting” if it is to have any hope of addressing its interconnected housing and climate crises.  Citing a housing shortage of 2.5 million units, 200,000 homeless persons, unaffordable rents, and increasing temperatures, droughts, flooding, and wildfires, the 35-page Report observes that “California will need to facilitate new construction [of housing, clean energy generation, storage and transmission infrastructure, and climate resiliency projects] at an unprecedented scale” – something achievable “only if governments consistently issue permits in a manner that is timely, transparent, consistent, and outcomes-oriented[.]”Continue Reading CEQA Identified By Assembly Select Committee Report As Among Obstacles To Permitting Reform Needed To Meet State’s Housing and Climate Goals

On February 13, 2025, the Second District Court of Appeal (Div. 7) filed its 71-page published opinion affirming the trial court’s judgment rejecting CEQA safety hazard and cumulative impacts analysis challenges – as well as Administrative Procedure Act (“APA”) and generic “arbitrary and capricious” writ challenges – to the California Air Resources Board’s (“CARB”) August 2020 decision adopting the “Control Measure For Ocean-Going Vessels At Berth” (the “Regulation,” codified at 17 Cal. Code Regs. § 93130 et seq).  Western States Petroleum Association v. California Air Resources Board (2025) 108 Cal.App.5th 938.Continue Reading Second District Affirms Judgment Rejecting CEQA And Other Challenges To CARB’s “Technology-Forcing” Emissions-Control Regulation For At-Berth Tanker And Other Ships

In an opinion filed August 27 and later ordered published on September 24, 2024, the Fifth District Court of Appeal affirmed a judgment denying a writ petition that challenged the State Air Resources Board’s (CARB) adoption of the Advanced Clean Trucks Regulation (Regulation) on CEQA and Administrative Procedures Act (APA; Gov. Code, § 11340 et seq) grounds.  California Natural Gas Vehicle Coalition v. State Air Resources Board (2024) 105 Cal.App.5th 304.  The Court held that CARB’s in-depth study of three alternatives (including the “no project” alternative) constituted a reasonable range for CEQA purposes; it further held that CARB’s alternative analysis wasn’t deficient for rejecting without in-depth study, as infeasible for policy reasons, an alternative proposed by opponents of the Regulation that would have applied a low-NOx vehicle credit to sales mandates applicable to zero-emission vehicles (ZEV).  Based on the same reasoning, the Court held CARB also need not have considered the now-NOx vehicle credit as a mitigation measure for the acknowledged significant near-term air quality impacts of the Regulation.  (The Court also rejected appellant Coalition’s APA arguments in a portion of its opinion that won’t be further discussed in this post.)  Finally, the Court held on CARB’s affirmative appeal that any error with respect to the admission of a specific “white paper” document into the administrative record was nonprejudicial, and therefore harmless, as it did not impact either the trial court’s or its own analysis.Continue Reading Fifth District Affirms Judgment Rejecting CEQA/APA Challenges to CARB’s Approval of ZEV Truck Sales Mandate Regulation; Holds Alternatives and Mitigation Analyses Need Not Include Low-NOx Vehicle Credit Contrary to Project’s Underlying Fundamental Purpose

In a partially published (but mostly unpublished) opinion filed on March 7, 2024, the Fifth District Court of Appeal reversed the trial court’s judgment and writ-discharge order which had upheld Kern County’s most recently revised “streamlined permitting” ordinance for oil and gas wells and its associated CEQA review.  V Lions Farming, LLC v. County of Kern, et al. (California Independent Petroleum Association, et al., Real Parties) (2024) 100 Cal.App.5th 412.  The Court of Appeal instead directed entry of a judgment and writ setting aside the County’s revised ordinance and related certification of a revised supplemental recirculated EIR (SREIR) and addendum.  It held (in unpublished portions of its opinion) that the SREIR’s discussion of cancer risk from the potential drilling of multiple wells near a sensitive receptor was informationally deficient, and that the County also erred in analyzing the significance of lowering groundwater levels in wells by misconstruing CEQA to prohibit consideration of the social and economic impacts on disadvantaged communities in making that significance determination.  (These and other unpublished portions of the opinion will not be discussed in any further detail in this post.)Continue Reading Fifth District Clarifies That Agricultural Conservation Easements (ACE’s) Qualify As Legally Permissible “Compensatory Mitigation” For Agricultural-Land Conversion Impacts Under CEQA Despite Not Ensuring No Net Loss

On July 10, 2023, Governor Newsom signed into law a number of bills aimed at streamlining and accelerating the construction of critical infrastructure projects needed to achieve California’s ambitious climate and clean energy goals. Among the many bills was SB No. 149, CEQA legislation that amended Public Resources Code §§ 21167.6, 21181, 21183, 21189.1, and 21189.3; added Chapter 7 (commencing with § 21189.80); and became effective immediately as an urgency measure “[t]o promote environmental protection and safeguard economic development of California’s diverse public resources and people, and enhance the state’s ability to maximize federal funding to support those efforts[.]”  The full text of SB 149 can be found here.Continue Reading Governor Signs Infrastructure/Budget Legislation Including Significant Revisions To CEQA (SB 149)

In late April the Bay Area Air Quality Management District (“BAAQMD”) promulgated its revised 2022 CEQA Guidelines (“2022 Guidelines”), available here.  Previously BAAQMD had published guidelines in 2012, which were the subject of litigation culminating in the California Supreme Court’s decision in California Building Industry Assn. v. Bay Area Air Quality Management Dist. (2015) 62 Cal.4th 369, an important case delineating the scope of CEQA in which we represented several amici curiae and which we blogged about here.Continue Reading BAAQMD Adopts Ambitious Revised 2022 CEQA Guidelines

On April 7, 2023, the Third District Court of Appeal filed a lengthy published opinion – the latest installment in one of the longer ongoing CEQA battles in recent memory – affirming a judgment finding an EIR for the Federal relicensing of Oroville Dam and related hydropower facilities legally adequate.  County of Butte and County of Plumas, et al v. Dept. of Water Resources  (2023) 90 Cal.App.5th 147.Continue Reading That Dam Case (Again):  Third District Upholds Oroville Hydropower Facilities Relicensing EIR Against Numerous CEQA Challenges

In a published opinion filed March 2, 2023, the Fifth District Court of Appeal held that where no governmental approvals were required, an investor-owned public utility was not required to comply with CEQA prior to exercising its eminent domain power by filing an action to condemn a maintenance/access easement in connection with its existing electrical power transmission facilities located on and traversing private property.  Robinson v. Superior Court of Kern County (5th Dist. 2023) 88 Cal.App.5th 1144.  While most of the opinion involved eminent domain issues irrelevant to this blog, the pertinent issue here is a simple definitional one:  CEQA applies only to “discretionary projects proposed to be carried out or approved by public agencies” (Pub. Resources Code, § 21080(a)), and CEQA’s definition of “public agency” includes only state agencies, boards and commissions, and local and regional agencies.  (Pub. Resources Code, § 21063; CEQA Guidelines, § 15379.)Continue Reading CEQA Does Not Apply To Investor-Owned Public Utility’s Exercise Of Power Of Eminent Domain To Acquire Electric Facilities Maintenance Easement

A 10-page article by Holland & Knight’s Jennifer Hernandez, published this month by the Center for Jobs & the Economy/California Business Roundtable, documents that CEQA litigation targeted nearly 50,000 housing units – approximately half the state’s total annual housing production – in 2020 alone.  While Holland & Knight’s analysis of 2019-2021 CEQA lawsuit data is ongoing, the article’s “interim report”, which can be read here, states there is no expectation of change in the magnitude of anti-housing CEQA actions, which most frequently allege violations relating to analysis of climate change related impacts, i.e., GHGs and VMT.
Continue Reading CEQA vs. Housing: A Very Wrong Picture

In a 5-2 opinion filed August 1, 2022, a divided California Supreme Court held the Federal Power Act (“FPA”; 16 U.S.C. § 791a et seq.) does not “occupy the field” and entirely preempt CEQA’s application to the state’s participation, as applicant and hydroelectric facility owner/operator, in the Federal Energy Regulatory Commission (“FERC”) licensing process the FPA requires to operate such facilities.  County of Butte v. Department of Water Resources (2022) 13 Cal.5th 612, Case No. S258574.  Acknowledging the result would likely be different if a private party were the license applicant, the Court applied a narrower type of direct conflict preemption, based on a state entity being the facility owner/operator/applicant.  The majority did agree with the Third District Court of Appeal that the Counties challenging the State Department of Water Resources’ (“DWR”) EIR, prepared in connection with its application to renew a 50-year license to operate its Butte County Oroville dam and related hydroelectric facilities, could not seek to unwind a settlement agreement prepared as part of FERC’s application process and proceedings; nor could they seek to enjoin DWR from operating under the proposed (but not yet issued) license – a request for relief the Counties initially pursued, but apparently abandoned at oral argument before the Supreme Court.  The Court’s majority acknowledged such actions would contravene FERC’s “sole jurisdiction” over licensing process disputes and be preempted under longstanding federal law.  (18 C.F.R. § 4.34 (i)(6)(vii); First Iowa Coop. v. Federal Power Comm’n (1946) 328 U.S. 152, 164 (“First Iowa”).)
Continue Reading California Supreme Court Holds In 5-2 Decision, Over Chief Justice’s Strong Dissent, That Federal Power Act Does Not Fully Preempt CEQA’s Application to FERC’s Licensing Process for State-Owned and Operated Hydroelectric Projects