California Environmental Quality Act: categorical exemptions: infill projects.

Senator Wiener's environmental quality reform package modifies California's environmental review process by revising how agencies determine significant environmental impacts and streamlining approvals for certain infill development projects. The legislation establishes a "more likely than not" standard for environmental effects, requiring environmental impact reports only when substantial evidence indicates probable significant impacts.

The bill creates new categorical exemptions from environmental review for housing projects that implement approved housing elements, while maintaining existing protections for sensitive projects. Distribution centers, oil and gas infrastructure, and developments on protected lands remain subject to full environmental analysis. For projects that would otherwise qualify for exemption but for a single condition, environmental review is limited to impacts directly caused by that specific condition.

By July 2026, the Office of Land Use and Climate Innovation must map eligible urban infill sites statewide and develop alternative compliance pathways for infill projects to meet categorical exemption requirements. The office will establish objective "safe harbor" thresholds that agencies can use to determine environmental effects. The legislation also streamlines administrative records by excluding internal agency communications not presented to final decision-makers, except for distribution center and energy infrastructure projects.

The reforms modify judicial review procedures, limiting court orders for projects found to violate environmental requirements to only those actions necessary for compliance. Local agencies retain authority to implement these changes through existing fee mechanisms, with no state reimbursement required. The bill preserves core environmental protections while providing clearer standards and focused review processes for urban infill development.