Senate budget committee approves CEQA trailer bill with $500 million for homelessness; critics say advanced-manufacturing exemptions, tribal and species reviews

The California State Senate Committee on Budget and Fiscal Review on Thursday passed AB 1 31, a budget trailer bill that pairs a $500 million general fund appropriation for the Homeless Housing Assistance and Prevention (HAP) program with a series of changes to the California Environmental Quality Act (CEQA), including a new exemption for “advanced manufacturing” on industrially zoned land.

The bill was approved by the committee after several hours of discussion, public comment, and debate; the committee recorded a roll-call vote of 13 to 2 in favor. Supporters said the measure accelerates housing and infrastructure delivery and funds homelessness programs. Opponents — including tribal nations, environmental and environmental-justice groups, and some senators — warned the bill removes public review in ways that could harm endangered-species habitat and communities adjacent to industrial zones.

AB 1 31 links a proposed $500,000,000 general fund appropriation for an additional round of the Homeless Housing Assistance and Prevention program (HAP) to a set of CEQA changes. Department of Finance staff told the committee the funding is contingent on enactment of the trailer bill and related accountability metrics. "This targeted CEQA exemption is part of the broader budget agreement to accelerate housing and infrastructure delivery across the state," a Department of Finance presenter said during the committee session.

The bill contains multiple strands: - Housing streamlining: SB 1 31 (the trailer language) creates exemptions and a so-called “near miss” approach limited to housing projects. Under the “near miss,” if a project would otherwise meet an exemption but fails one criterion, environmental review would be…