CaliforniaSB 712025-2026 Regular SessionSenateWALLET

California Environmental Quality Act: exemptions: transit projects.

Sponsored By: Scott Wiener (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

Parking changes and housing protections near transit

The law streamlines local parking and travel‑demand planning. Cities and counties can reduce or remove parking minimums, set parking maximums, remove or restrict parking, or add transportation demand management programs without CEQA review. Those parking and TDM planning decisions do not have to follow the separate board‑approval or skilled‑and‑trained‑workforce rules. Projects that combine an exempt transit component with housing that is nondiscretionary or already exempt can move forward together. Exempt projects cannot demolish affordable housing units.

Stronger worker rules on exempt projects

The law raises labor standards on exempt projects. A lead agency cannot sign a construction contract unless the contractor promises in writing to use a skilled and trained workforce and require the same of all subcontractors, or the work is covered by a project labor agreement. When the board approves an exempt project, the agency must certify it will use a skilled and trained workforce, unless an existing policy or project labor agreement already requires it. For projects with a notice of exemption filed before January 1, 2023, the agency may certify after granting the exemption or show it meets the law’s alternative workforce options.

Extra reviews and meetings for big projects

For exempt projects estimated at more than $100,000,000, the agency must meet added steps before construction. The project must be in a regional plan with program‑level review in the past 10 years; all construction impacts must be fully mitigated; a public business case must be prepared; and a racial equity analysis must be completed. The agency must hold at least three noticed public meetings before deciding the exemption and at least two noticed meetings each year during construction. Projects estimated above $50,000,000 must also follow extra public notice and meeting rules. If at least half the project or its stops are in areas at risk of residential displacement and peak headways are 15 minutes or less, the agency must finish a displacement analysis and list antidisplacement strategies. Starting January 1, 2026, the Office of Land Use and Climate Innovation updates these dollar thresholds every two years using the Consumer Price Index and may do so without formal rulemaking. This section ends on January 1, 2040.

Faster transit, bike, and pedestrian projects

The law speeds up many local transit, bike, and walking projects by exempting them from CEQA. It covers active transportation, pedestrian, and bicycle plans; transit route changes; bike and pedestrian facilities; transit‑priority signals and bus or HOV lane conversions; wayfinding; and utility work tied to those projects. It also exempts zero‑emission charging and refueling on agency or utility property, and some cleaner bus and passenger rail projects that sit inside existing rights‑of‑way. Limits apply: projects cannot add general highway lanes or induce single‑occupant driving; TNC‑run services are excluded except contracted microtransit; ferry terminals with a notice of preparation filed before January 1, 2026 are excluded; and in high‑pollution air basins, only zero‑emission trains qualify. Starting January 1, 2032, projects used mainly by near‑zero, low‑NOx, CNG, or hybrid vehicles lose this exemption (articulated‑bus projects are still allowed). Hydrogen refueling projects must also complete extra business‑case, equity, and public‑notice steps before using the exemption. If a whole project is built only from listed exempt parts, the combined project is exempt too.

More public notice for CEQA exemptions

Before an agency decides a project is exempt, it must hold noticed public hearings in the affected area and publish notices in a local paper. The agency must approve the exemption at a public board meeting, or use an existing approval process that already applies. When the agency approves or carries out an exempt project, it must file a notice with the Office of Land Use and Climate Innovation and the county clerk, following Section 21152. These steps make exemption decisions public and easier to find.

Sponsors & Cosponsors

Sponsor

  • Scott Wiener

    Democratic • Senate

Cosponsors

  • Jesse Arreguín

    Democratic • Senate

  • Phillip Chen

    Republican • House

  • Alex Lee

    Democratic • House

  • Christopher Ward

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 207 • No: 1

Senate vote 9/10/2025

Item 51 — Senate SFLOOR

Yes: 39 • No: 0

House vote 9/9/2025

Item 118 — Assembly AFLOOR

Yes: 78 • No: 1

legislature vote 8/29/2025

Vote in CX25

Yes: 10 • No: 0

legislature vote 7/14/2025

Vote in CX16

Yes: 12 • No: 0

Senate vote 6/3/2025

Item 146 — Senate SFLOOR

Yes: 36 • No: 0

legislature vote 5/23/2025

Vote in CS61

Yes: 5 • No: 0

legislature vote 4/28/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote 4/8/2025

Vote in CS59

Yes: 12 • No: 0

legislature vote 3/19/2025

Vote in CS64

Yes: 8 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 742, Statutes of 2025.

    10/13/2025Senate
  2. Approved by the Governor.

    10/13/2025legislature
  3. Enrolled and presented to the Governor at 2 p.m.

    9/17/2025legislature
  4. Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2820.) Ordered to engrossing and enrolling.

    9/10/2025Senate
  5. In Senate. Concurrence in Assembly amendments pending.

    9/9/2025Senate
  6. Read third time. Passed. (Ayes 78. Noes 1. Page 3082.) Ordered to the Senate.

    9/9/2025House
  7. Read second time. Ordered to third reading.

    9/3/2025House
  8. Read second time and amended. Ordered to second reading.

    9/2/2025House
  9. From committee: Do pass as amended. (Ayes 10. Noes 0.) (August 29).

    8/29/2025House
  10. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House
  11. Read second time and amended. Re-referred to Com. on APPR.

    7/17/2025House
  12. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 14).

    7/17/2025House
  13. (Ayes 49. Noes 15. Page 2578.)

    7/17/2025House
  14. Assembly Rule 63 suspended.

    7/17/2025House
  15. July 7 hearing postponed by committee.

    7/3/2025House
  16. From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES.

    6/30/2025House
  17. Referred to Com. on NAT. RES.

    6/9/2025House
  18. In Assembly. Read first time. Held at Desk.

    6/4/2025House
  19. Read third time. Passed. (Ayes 36. Noes 0. Page 1451.) Ordered to the Assembly.

    6/3/2025Senate
  20. Read second time. Ordered to third reading.

    6/2/2025Senate
  21. Ordered to second reading.

    5/29/2025Senate
  22. Read third time and amended.

    5/29/2025Senate
  23. Read second time. Ordered to third reading.

    5/27/2025Senate
  24. Read second time and amended. Ordered to second reading.

    5/23/2025Senate
  25. From committee: Do pass as amended. (Ayes 5. Noes 0. Page 1190.) (May 23).

    5/23/2025Senate

Bill Text

  • Chaptered

    10/13/2025

  • Enrolled

    9/12/2025

  • Amended Assembly

    9/2/2025

  • Amended Assembly

    7/17/2025

  • Amended Assembly

    6/30/2025

  • Amended Senate

    5/29/2025

  • Amended Senate

    5/23/2025

  • Amended Senate

    3/25/2025

  • Amended Senate

    3/13/2025

  • Introduced

    1/14/2025

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