California enacts ceqa reforms affecting manufacturers with new exemptions

Gavin Newsom, Governor of California
Gavin Newsom, Governor of California - CalMatters
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New legislation signed by California Governor Gavin Newsom is changing the landscape for manufacturers in the state. The new laws, AB 130 and SB 131, which took effect immediately after being signed in June, introduce several exemptions to the California Environmental Quality Act (CEQA). These changes are aimed at streamlining project approvals that have historically faced delays due to CEQA requirements.

CEQA, enacted in 1970 under then-Governor Ronald Reagan, was designed to inform government officials and the public about environmental impacts of proposed developments. Over time, it has been criticized by many in the business community for creating obstacles to development.

The latest reforms exempt a range of projects from certain CEQA requirements. This includes infill housing, farmworker housing, day care centers, and advanced manufacturing projects. Specifically, SB 131 exempts advanced manufacturing facilities involved in microelectronics, nanoelectronics, semiconductors, advanced materials, integrated computational materials engineering, nanotechnology, additive manufacturing and industrial biotechnology. However, these projects must be located on land zoned exclusively for industrial use and cannot be sited on natural or protected lands.

To help local businesses understand these changes and navigate the land entitlement process, a workshop titled “Breaking Ground: Navigating Land Entitlement for Manufacturing Growth in Central Valley” will take place on Thursday, September 18 at the Tower Conference in Fresno. The event is organized by the Fresno Business Council, San Joaquin Valley Manufacturing Alliance and American Institute of Architects. It targets manufacturers and businesses seeking to expand operations or build new facilities in Central California.

The workshop will feature a panel discussion moderated by Armen Devejian of Associated Design & Engineering in Fresno. Panelists include Bonique Emerson from Precision Engineering; Arielle Harris from Cox, Castle & Nicholson; Sal Gonzales of Lance Kashian Company; and Phillip Siegrist from the City of Fresno Planning Department.

Devejian said his office has received many questions about land entitlement pathways for manufacturing facilities in Fresno and the Central Valley as well as potential obstacles developers may face. “I think it is going to be very beneficial to any manufacturer or business who is looking to grow, expand or build a new facility in the Valley,” Devejian said.

He explained that some CEQA requirements address issues such as traffic flow impacts, vehicle miles traveled, proximity to schools or shopping centers and notification of Native American tribes—factors not always considered at first glance when planning a project.

According to Devejian: “Being informed about CEQA makes land development much less scary and takes away ‘the black hole of worry and concern.’”

While he acknowledged that recent changes may make some aspects easier but others more restrictive, he emphasized that having knowledgeable support throughout the process can help companies plan effectively.

Devejian also noted opportunities for growth in Southwest Fresno—not only for manufacturing but also commercial development that could improve amenities for residents similar to those available elsewhere in Fresno or Clovis.

He described California as one of the most challenging states for developing manufacturing facilities due to its extensive regulations compared with other states where entitlements can be secured within months rather than years. Still, he stated: “It’s more challenging in California, but California is the best place to do it,” adding: “I would not trade any of the regulations and the benefits we get from CEQA to live in a state that doesn’t have these protections for citizens.”



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