Newsom, Democrats and Republicans Unite to Pass Bills Undermining CEQA
Governor Newsom claimed the legislation is “a landmark budget bill package that cuts red tape, fast-tracks housing and infrastructure, and improves affordability for all Californians.”

Sacramento — As expected, California Governor Gavin Newsom, who has cozied up to the likes of far-right wing influencers like Charlie Kirk, Steven Bannon and Michael Savage in his podcasts, on June 30 signed legislation that will weaken a landmark environmental law, the California Environmental Quality Act (CEQA).
Under intense pressure from Newsom, the California legislature passed two trailer bills, AB/SB 131 and 130, that will undermine the California Environmental Quality Act (CEQA) and halt cost-saving energy code updates statewide, according to Sierra Club California.
Senate President pro Tempore Mike McGuire, Assembly Speaker Robert Rivas and other legislative leaders joined Newsom at the State Capitol as Newsom signed the legislation.
Governor Newsom claimed the legislation is “a landmark budget bill package that cuts red tape, fast-tracks housing and infrastructure, and improves affordability for all Californians.”
“This isn’t just a budget. This is a budget that builds. It proves what’s possible when we govern with urgency, with clarity, and with a belief in abundance over scarcity,” Newsom gushed.
“In addition to the legislature, I thank the many housing, labor, and environmental leaders who heeded my call and came together around a common goal — to build more housing, faster and create strong affordable pathways for every Californian. Today’s bill is a game changer, which will be felt for generations to come,” Newsom claimed.
According to Senator Scott Weiner’s Office, SB 131 creates nine major new CEQA exemptions:
- Health centers and rural clinics
- Childcare centers
- Advanced manufacturing facilities
- Food banks
- Farm worker housing
- Clean Water projects (except the Delta Conveyance)
- Wildfire risk mitigation projects
- Broadband
- Parks
“In addition, AB 131 makes significant across-the-board process changes to CEQA. The bill helps reduce the length of CEQA lawsuits by raising the standard of relevancy for administrative records that can be used in the lawsuits, helping to reduce lawsuit “gotcha” moments. It introduces streamlined environmental reviews for housing projects that narrowly miss an existing CEQA exemption. The bill also removes a duplicative requirement by exempting from CEQA rezonings that are undertaken to implement a RHNA compliant housing element that has already gone through the CEQA process,” Weiner said in a statement.
Also in a press release issued on July 1, Senator Christopher Cabaldon, D-Yolo, and other legislators representing the Sacramento-San Joaquin Delta reported that they have “successfully rebuffed – at least for now” – efforts to speed up the process of building a giant tunnel that would divert water from the Sacramento River before it reaches the Delta and send it to southern California.
“The 2025-26 budget package passed by the Legislature and signed by Governor Newsom this week does not include the governor’s proposed legislation to waive regulations to fast-track the so-called Delta Conveyance Project, and to authorize the issuance of bonds to build it despite a court ruling that the bond plan exceeded the state’s authority,” according to Cabaldon.
“In May, Gov. Newsom proposed such legislation as part of his budget package. The Delta Caucus of lawmakers successfully fought back with the support of leaders in the Senate and Assembly,” Cabaldon noted.
The tunnel is fiercely opposed by Tribes, commercial and recreational fishing communities, Delta residents, business leaders, environmentalists and family farmers. Scientists and environmental justice advocates point out that the Delta Tunnel would hasten the extinction of Delta smelt, longfin smelt, Central Valley steelhead, spring and winter-run Chinook salmon, green sturgeon and other fish species.
"Thankfully our advocacy worked, and this budget does not include any language that would brush aside legal requirements to advance the tunnel and destroy the Sacramento-San Joaquin Delta," Sen. Cabaldon said. "We've told the governor, 'If you want to propose this, you’re going to have to come through the Legislature's policy committees in the full light of day.’”
Representatives of environmental groups blasted the passage of the budget trailer bills.
“These half-baked bills written behind closed doors will have destructive consequences for environmental justice communities and endangered species across California,” said Jakob Evans, Sierra Club California Senior Policy Strategist, in a statement.
"AB/SB 131 and 130 will undermine vital CEQA regulations and halt crucial statewide energy code savings. It is extremely disappointing that California’s leadership is taking notes from the Federal Administration by ramming through this deregulation via the budget process. Sierra Club California and our allies will be working closely with the legislature to ensure these rollbacks that impact CEQA's transparency are addressed,” Evans vowed.
It was a “loss for California’s wildlife and transparent decision making as the legislature passed and the Governor signed one of the worst rollbacks of the state’s environmental review law in decades,” according to the Alameda Creek Alliance.
“The claim that this is for housing and childcare centers is a diversion - it will allow developers and water diverters to hide damaging impacts from public scrutiny and limit challenges to projects that destroy wildlife habitat,” the group stated.
Barbara Barrigan-Parrilla, Executive Director of Restore the Delta, summed up what happened.
”On Monday June 30th, California lawmakers approved a budget trailer bill that significantly alters CEQA, exempting certain types of projects from environmental review—including water infrastructure,” she said in a statement to those who worked hard on trying to stop the legislation.
“Thank you to all of our members, partners and supporters who showed up to advocate for the Delta and against the Delta Tunnel. While the California Environmental Quality Act (CEQA) trailer bill did pass with the state budget, your calls and emails made a difference. Lawmakers have now committed to working on amendments that address the concerns we raised,” she stated.
“Your voices made a difference. This is proof that when we speak up together, our elected officials listen. Please continue to make your voices heard and ensure these amendments are made to explicitly exclude the Delta Conveyance Project from CEQA reform,” Barrigan-Parrilla added.
“We need and expect good governance in California and your voices of support will help ensure we have transparency, public participation, and accountability. Again, thank you to all who called, emailed and advocated against the Tunnel to protect our community. This is how you build a sustainable future, idea by idea, call by call!” she concluded.
Meanwhile, Governor Gavin Newsom continues to move forward with the salmon-killing Delta Tunnel, Sites Reservoir and voluntary agreements, despite the devastating impact they will have on salmon and other fish and wildlife species, the Bay-Delta ecosystem, Tribes, Delta cities and communities, family farmers, Delta region businesses and the public trust.
Here is some of the mainstream media coverage of the signing of Newsom’s Big, Ugly Bill package: