Public Resources.

The California Senate Committee on Budget and Fiscal Review proposes significant modifications to environmental review requirements and homelessness prevention funding through legislation that establishes Round 7 of the Homeless Housing, Assistance, and Prevention program while creating targeted exemptions from the California Environmental Quality Act (CEQA).

The bill appropriates $500 million for Round 7 of the homelessness program, effective July 1, 2026, with disbursement contingent on jurisdictions substantially completing initial Round 6 distributions and obligating at least 50% of Round 6 awards. The Department of Finance may augment the 2025 Budget Act by $8 million to prepare for Round 7 administration. Future legislation will specify program parameters incorporating housing element compliance, encampment policies, and demonstrated progress on housing metrics.

The legislation creates new CEQA exemptions for specific project types, including rezoning that implements approved housing elements, agricultural employee housing projects, and wildfire risk reduction activities like prescribed burns and defensible space clearance. Additional exemptions apply to community water systems serving disadvantaged areas, linear broadband deployment in local rights-of-way, and certain public park facilities. The bill also exempts day care centers, rural health clinics, food banks, and high-speed rail maintenance facilities that meet defined criteria.

To promote urban infill development, the Office of Land Use and Climate Innovation must map eligible sites within urbanized areas by July 1, 2027, in consultation with local jurisdictions. The mapping process requires public review periods and considers land use designations that support compact development to reduce vehicle emissions, preserve open space, and enhance community connectivity.

The bill modifies CEQA procedural requirements by revising which documents must be included in legal proceedings' administrative records. For projects not involving distribution centers or oil infrastructure, certain internal agency communications are excluded unless reviewed by lead agency executives. These changes aim to streamline environmental review while maintaining core protections through specific conditions and exclusions for sensitive areas.