Senate passes SB 954 to narrow CEQA exemption for advanced manufacturing, adding environmental and labor guardrails

Senator Blakespear, sponsor of SB 954, told colleagues the bill was intended as a ‘‘course correction’’ to the broad CEQA exemption adopted in last year’s budget trailer and said recent incidents (including a chemical leak that forced evacuations) illustrated the need for guardrails. SB 954 keeps a broad list of advanced-manufacturing projects eligible for expedited review but imposes conditions: projects must satisfy environmental and labor guardrails such as setbacks from sensitive receptors (the bill mentions a 1,600-foot setback in debate), limits on air-pollution impacts, LEED certification, and compliance with high-road labor standards.

Backers said the guardrails preserve environmental protections and public safety while allowing streamlined paths for projects that meet the standards. Opponents — including Senators Valadares, Choi and Wiener — argued the bill reintroduces political approvals, could slow housing-related reforms embedded in prior legislation, and risked sending the message that California is less welcoming to investment. Senator Wiener said he would support the bill if it were limited to advanced manufacturing and not roll back housing streamlining measures enacted last year.

Floor debate was lengthy and bipartisan, with environmental groups and labor interests cited among supporters and industry and housing proponents among skeptics. The Senate recorded Ayes 22, Nos 10 and the measure passed in the form presented on the floor; sponsors and critics indicated further negotiation is likely in the Assembly.