California lawmakers gathered at the state Capitol to celebrate the passage of a state budget and what some are calling transformative housing legislation.
However, behind the scenes, political power dynamics were at play as Democratic lawmakers appeared to capitulate to the soon-to-be termed-out Governor Gavin Newsom.
Lorena Gonzalez, the leader of the California Labor Federation, expressed concern, stating, “We’ve seen multiple situations now where it’s clear that the Legislature is in one place and the governor is in another.”
She emphasized that lawmakers needed to assert their legislative authority rather than simply following the governor’s lead.
Earlier this year, Newsom took a significant step by publicly supporting two bills aimed at reducing environmental review standards to expedite housing construction.
Despite his previous promises to bolster homebuilding, progress had stalled until he shifted his approach in response to criticisms, including arguments articulated in journalist Ezra Klein’s book, “Abundance.”
In it, Klein suggested that California’s strict environmental law poses a barrier to housing development, a point that resonated with the governor.
With an eye on a potential presidential run in 2028, Newsom aimed to demonstrate that he could navigate political challenges and push through significant housing reform.
When a crucial housing bill faced delays in the state Senate, Newsom took decisive action by attaching it to the state budget bill, employing a “poison pill” tactic that required the passage of housing legislation for the budget to take effect on July 1st.
During a celebratory event, Newsom declared the newly signed bills as the “most consequential housing reform that we’ve seen in modern history in the state of California.”
He voiced concerns that allowing the legislative process to proceed normally would expose the reforms to the same opposition that had thwarted them previously.
Over the years, lawmakers have grappled with the California Environmental Quality Act (CEQA), which imposes strict regulations that have made housing development cumbersome.
Powerful labor groups have frequently opposed easing these regulations unless accompanied by benefits for workers.
The legislation signed by Newsom Monday bypassed many of these labor demands.
Assembly Bill 130 exempts most urban housing projects from CEQA requirements, mandating union-level wages only for high-rise buildings and low-income projects.
Senate Bill 131 further diminishes CEQA mandates for housing and releases some nonresidential projects from environmental restrictions altogether.
Industry experts believe these changes could represent the most significant alterations to CEQA since its inception over 55 years ago, particularly concerning urban housing.
Dave Rand, a land-use attorney, remarked that CEQA has historically been a significant hurdle for homebuilders, noting that the new legislation provides much-needed relief.
“The worst cog in the wheel has always been CEQA,” he stated.
More than ten projects are poised to move forward under these new exemptions, according to Rand.
While the changes for non-housing projects may not amount to a comprehensive overhaul, they still bring meaningful adjustments that reflect lawmakers’ ongoing attempts to streamline development processes.
Historically, the legislature has offered targeted CEQA waivers for specific projects, and the latest reforms continue this practice but offer broader relief than in previous years.
Bill Fulton, publisher of the California Planning & Development Report, noted that legislators are selectively expediting particular projects under CEQA, a trend he refers to as “Swiss cheese CEQA.”
Observers have noted that Newsom’s actions signify a substantial shift in his legislative approach, especially regarding controversial housing policies.
In previous years, he often took a backseat during the legislative process, only publicly endorsing bills after their passage, but this time he engaged more forcefully.
His strategy in navigating this controversial terrain will likely reflect his influence as his term nears its conclusion in early 2027.
Wicks, who championed Assembly Bill 130, acknowledged the governor’s significant commitment to advancing these proposals, stating, “He went all in on pushing for taking on these sacred cows like CEQA.”
This acknowledgement of reform’s urgency illustrates a broad consensus among lawmakers regarding the need to address California’s ongoing housing crisis.
Wiener’s Senate Bill 131, initially slower to draw support, faced delays due to negotiations between the Senate and the governor’s office before being tied to the budget, increasing pressure on lawmakers to pass it.
During the legislative discussions, Senator Henry Stern acknowledged significant issues with the legislation but chose to support it in light of the assurances that concerns would be addressed in the future.
He commented, “I think nature and abundance can live side by side. In fact, they must.”
Despite progressive lawmakers’ hesitancies, both bills ultimately passed on Monday.
Gonzalez criticized the process, asserting that lawmakers were not voting in line with their values, likening their compliance with Newsom’s agenda to the dynamics seen in Congress with Republican legislators.
With the recent legislative successes, Newsom has further solidified his position as a powerful figure in California politics, even as he approaches the end of his term.
The impact of these housing reforms on California’s growth and its housing crisis remains to be seen, but the governor has positioned them as vital steps towards addressing an ongoing crisis that has long plagued the state.
image source from：latimes
