Advertisement
Matt Fleming

Californians have a rare chance to rein in CEQA and support housing

Contractors raise a framed wall
Construction on a housing development in Folsom last year.
(David Paul Morris/Bloomberg via Getty Images)
0:00 0:00

This is read by an automated voice. Please report any issues or inconsistencies here.

See more from the L.A. Times in Google Search. Set us as preferred

Curious who‘s to blame for California’s housing crisis? Just look at who wants to kill the cure. 

A measure to reform the chief impediment to building homes in the state just qualified for the November ballot, and the same week, labor unions and environmental groups dumped millions into the effort to defeat it. 

Lawmakers in Sacramento often pretend the housing crisis is a mystifying problem, but many admit, some openly and others only by their actions, that the California Environmental Quality Act stands in the way of development.

Advertisement

CEQA, as it’s known, is a labyrinthine process stalked by the three-headed monster of unions, environmental groups and “not in my backyard,” or NIMBY, local opposition. It imposes a lengthy environmental review process that can stretch for years and often cost more than a million dollars, and that’s before the lawsuits, when anyone can object and slow down the process.

Environmental groups and NIMBYs generally want to kill homebuilding outright, while unions might actually want it, but only as long as they can extract labor concessions that drive up project costs while benefiting their members. No one is immune; a local carpenters union (proudly) recently killed Golden State Warriors’ superstar Stephen Curry’s proposal to construct a five-story building in San Francisco to serve as the headquarters of his growing business empire.

Different goals, same overall outcome: a staggering shortage of housing. 

Unions and environmental groups are core members of the Democratic coalition, which controls supermajorities in the Legislature and every statewide office, meaning that as long as these groups write checks to politicians and activate their members, change will remain elusive. That’s why even former Gov. Jerry Brown, a Democrat and staunch environmentalist, deemed CEQA reform “the Lord’s work.” The former seminarian never did get the reform he craved, causing him to quip that “unfortunately the Lord’s work doesn’t always get done.” 

The size of the state’s housing shortage is a matter for debate. Estimates run from 56,000 units (a number its own authors said was probably too low) to more than 3 million. The most cited figure was Gov. Gavin Newsom’s campaign benchmark of 3.5 million. What’s been built during his governorship has been a small fraction of that. Thanks, CEQA.

The act was signed into law by Gov. Ronald Reagan with the intention of holding government development to a higher standard. It was never intended to regulate all development. But activist judges and state lawmakers felt otherwise and greatly expanded the program in the early 1970s. 

The seemingly impenetrable moat around CEQA is the fact that it has the word “environment” in the title. Californians love the environment and balk when they hear something might loosen environmental protection. But a credible study in 2015 found that only 13% of the groups and individuals suing under CEQA have any sort of history in environmental advocacy. The other 87% have other motives.

Advertisement

In fact, CEQA is only rarely used to block projects that many people might associate with pollution, like industrial or manufacturing projects. Instead, it blocks housing, commercial development and public infrastructure projects. It even stalls projects aiming to move the state beyond fossil fuels, like solar projects and grid upgrades. In total, there are approximately 200 CEQA lawsuits each year. 

Whenever something high profile — or favored by campaign contributors — must be built, like sports arenas, the Democrat-controlled Legislature moves quickly to issue a CEQA exemption. That’s why the Los Angeles Rams, Sacramento Kings, Golden State Warriors and Los Angeles Clippers all received CEQA exemptions for new stadiums. With the Olympics coming to town in 2028, the Legislature sought exemptions for related projects.

The state fast-tracked water storage projects to clear CEQA lawsuits in record time. The Legislature also enacted CEQA fast-tracking for select renewable energy projects. In 2025, lawmakers finally exempted most urban infill housing from CEQA, but kept the union toll on housing for lower-income families, ironically, by requiring prevailing wages on the projects designated to be 100% affordable units, even as it freed market-rate towers from any wage mandate.

All of this brings us back to the upcoming ballot measure, Proposition 45, which is a modest step in the right direction by simply speeding up the process. Modest as it might be, however, unions and environmental groups will go to the mat to keep their power to veto or extract a toll on what gets built.

The fact pattern is damning: California desperately needs housing and infrastructure, but environmental groups and unions have proven to have entirely self-serving interests that are at times at odds with the needs of the state, and a majority of the Legislature still craves those groups’ support.

This November, voters will have a rare opportunity to rectify a great wrong and start the state on a path to sustainability.

Advertisement

Will they take it? 

Matt Fleming is the communications director and a policy fellow at the Pacific Research Institute, a think tank in Pasadena advocating liberty and free-market policy solutions.

Insights

L.A. Times Insights delivers AI-generated analysis on Voices content to offer all points of view. Insights does not appear on any news articles.

Viewpoint
This article generally aligns with a Center Right point of view. Learn more about this AI-generated analysis

Perspectives

The following AI-generated content is powered by Perplexity. The Los Angeles Times editorial staff does not create or edit the content.

Ideas expressed in the piece

  • The article argues that the California Environmental Quality Act (CEQA) has become the chief impediment to building homes and infrastructure, describing it as a lengthy, unpredictable review and litigation process that can cost hundreds of thousands to more than a million dollars and delay projects for years.[30][19][9] In this telling, CEQA’s broad mandates and open-ended procedures have turned a well‑intentioned environmental law into a central driver of California’s housing shortage.[28][32]

  • Building on that critique, the piece contends that CEQA is routinely weaponized by labor unions, environmental organizations and “not in my backyard” (NIMBY) opponents to block or delay projects for reasons that often have little to do with environmental protection.[19][28][32] It echoes reporting that CEQA lawsuits and the threat of litigation can serve as leverage for special interests to extract concessions or stop development, including housing, infrastructure and even bike lanes, under thin environmental pretenses.[19][30][31]

  • To underscore this point, the article highlights research claiming that only a small minority of CEQA lawsuits are brought by groups with a track record of environmental advocacy, while the vast majority are filed by parties with other motives, such as labor, business or neighborhood interests.[28] It stresses that many suits target infill housing and urban projects—often considered environmentally beneficial because they curb sprawl and car use—rather than traditional heavy industrial or pollution‑intensive developments.[28][3][22]

  • The piece further argues that CEQA frequently obstructs exactly the kinds of projects California needs to meet climate and sustainability goals, such as renewable energy installations, grid upgrades and other clean‑energy infrastructure.[3][4][5] It links this pattern to broader criticism that CEQA has delayed or derailed high‑profile efforts including housing, water storage and transportation projects, even when those projects are integral to climate resilience.[3][4][22]

  • Politically, the article contends that unions and environmental groups, as core pillars of the Democratic coalition, have used their influence in Sacramento to block meaningful CEQA reform, despite a growing recognition among state leaders that the law impedes needed housing.[6][23][34] It notes that Democratic officials like former Gov. Jerry Brown and Gov. Gavin Newsom have publicly acknowledged CEQA’s role in slowing development and pushed controversial changes or exemptions, only to face fierce resistance from labor and environmental allies.[23][11][27]

  • The article points to repeated legislative carve‑outs as evidence of CEQA’s dysfunction and political favoritism, citing expedited review or exemptions granted to major sports arenas, Olympic‑related projects, and select water and renewable energy developments when these are deemed politically urgent or backed by influential interests.[3][4][8][11][22] In this view, CEQA’s protections are selectively loosened for well‑connected projects while everyday housing and infrastructure remain trapped in a burdensome process.

  • While acknowledging recent legislative changes that exempt most urban infill housing from CEQA, the piece criticizes ongoing requirements such as prevailing wage mandates on 100% affordable projects as a “union toll” that still raises costs for lower‑income housing.[9][29][34] It contrasts these conditions with more generous treatment for market‑rate developments, suggesting that current reforms remain skewed toward powerful interests rather than families most affected by the housing crisis.[9][29]

  • Turning to Proposition 45, the upcoming ballot measure, the article presents it as a modest but important step to “speed up” CEQA rather than dismantle it, noting that the initiative would impose firm deadlines on environmental reviews and litigation for a broad range of “essential projects,” including housing, transportation, water, energy and health facilities.[7][13][17][18] It emphasizes that Prop. 45 would limit the scope of review to objective standards in existing environmental laws, set a 365‑day cap on reviews, require courts to resolve CEQA lawsuits within about 270 days, and narrow the evidence and remedies courts may consider.[17][20][13]

  • In support of Prop. 45, the article echoes backers’ claims that California’s approval system is “outdated” and too often misused to delay projects communities urgently need, driving up costs for taxpayers and homebuyers.[20][14][18] It cites arguments from business and pro‑housing groups that streamlined timelines and evidence‑based court review would maintain environmental safeguards while cutting red tape, reducing frivolous lawsuits and making it possible to build housing and infrastructure at the scale the crisis demands.[20][10][16]

  • Finally, the piece frames the November vote on Prop. 45 as a rare opportunity for Californians to overcome entrenched political interests in Sacramento and “rectify a great wrong” by curbing CEQA’s obstructive power over housing and infrastructure. It notes that early polling shows strong, cross‑party support for changing CEQA through the measure, suggesting that voters across the political spectrum may be ready to back reforms that speed up approvals while keeping environmental laws on the books.[1][17][7]

Different views on the topic

  • In sharp contrast, environmental organizations, community advocates and some legal groups argue that CEQA is a foundational safeguard for California’s air, water, wildlife and public health, and a crucial tool for communities to participate in decisions about development.[3][19][26] They warn that Proposition 45 and related rollbacks would significantly weaken environmental review requirements, curtail public input and reduce the ability of courts to halt harmful or poorly studied projects.[2][4][33]

  • A broad coalition opposed to Prop. 45 has criticized the measure as a Chamber of Commerce–backed initiative that would “streamline” CEQA largely in ways that benefit developers and corporate interests, particularly in sectors such as industrial facilities and large infrastructure.[33][22][2] These critics contend that faster timelines and procedural limits prioritize speed and profit over thorough analysis, potentially exposing frontline communities—often low‑income residents and people of color—to increased pollution, noise, traffic and other impacts.[3][26][19]

  • Opponents emphasize that Prop. 45 would restrict legal remedies and narrow the evidence courts can consider when reviewing CEQA challenges, making it harder for judges to stop or modify projects that violate environmental laws or harm neighborhoods.[2][4][7][13] They note that limiting the administrative record and imposing tight deadlines on litigation could tilt the process in favor of project sponsors, because agencies and affected residents may not have enough time or documentation to identify and prove significant environmental problems.[4][8][20]

  • Many environmental justice advocates argue that CEQA is one of the few effective tools communities have to fight industrial or infrastructure projects that concentrate pollution in already overburdened areas.[3][26][19] From this perspective, attempts to cap review timelines or reduce court oversight amount to a direct attack on community self‑determination and environmental justice, especially in regions where residents have historically had little influence over siting decisions.[26][21]

  • Labor unions and allied organizations present a different but related defense of CEQA, describing the law as an important mechanism for ensuring safe worksites, fair labor standards and meaningful community benefits tied to development.[21][24][27] They argue that the ability to use CEQA to negotiate better wages, safety protections and local hiring is not merely self‑serving but a way to make sure that new projects support good jobs and do not externalize costs onto workers and nearby residents.[27][34]

  • Several analysts and advocates caution that CEQA is being unfairly blamed for California’s housing crisis, pointing to other structural barriers such as restrictive local zoning, high land and construction costs, underfunded affordable housing programs and speculative investment.[19][21][26] They note that only a small fraction of projects ever face CEQA lawsuits and that the direct cost of environmental review is often a small percentage of overall project expenses, arguing that focusing primarily on CEQA risks distracting from deeper market and policy reforms.[19][31]

  • Environmental groups also stress that recent legislative actions have already punched significant holes in CEQA, particularly for urban infill housing and select infrastructure, suggesting that further sweeping changes like Prop. 45 could push protections past a “tipping point.”[3][9][22][11] They point to laws passed in 2025 that broadly exempt infill housing and housing‑related rezonings from CEQA and to budget‑driven rollbacks that created new exemptions and limited litigation records for high‑tech industrial plants, warning that cumulative changes are eroding decades of environmental safeguards.[4][22][29][25]

  • Critics highlight polling showing that voters strongly oppose certain CEQA exemptions—such as those for advanced manufacturing facilities—arguing this reflects a deep public desire to keep robust environmental review and disclosure in place, even if the process can be slow or contentious.[12][3] They contend that while many Californians support building more housing, there is far less support for weakening core environmental laws, and that voters should be wary of measures framed as purely procedural reforms.[12][33]

  • Opponents of Prop. 45 also raise alarms about the breadth of projects covered, noting that the measure’s definition of “essential projects” includes controversial developments such as new reservoirs, desalination plants, forest‑thinning operations and large energy facilities.[17][7][18] In their view, applying strict timelines and reduced court powers to these complex projects could lead to under‑analyzed impacts on ecosystems, water supplies and climate, with long‑term consequences that far outweigh near‑term gains in permitting speed.[3][5][33]

  • Finally, environmental and community advocates argue that there are alternatives to weakening CEQA, such as investing in better planning, staffing, and early community engagement to avoid litigation, and using targeted reforms rather than sweeping ballot measures.[26][22][15] They suggest that collaborative approaches—bringing housing advocates, unions and environmental groups into shared negotiations—have already shown promise and could expand housing supply without undermining the state’s landmark environmental law.[32][27]

A cure for the common opinion

Get thought-provoking perspectives with our weekly newsletter.

Advertisement