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DISCLAIMER: This guide is intended solely as a high-level summary of AB 130 (2025) and SB 131 (2025), as amended by SB 158 (2025). It is not legal advice regarding any jurisdiction’s specific policies or any proposed project. Local staff should consult with their city attorney or county counsel when determining how to implement these new pieces of legislation. [Updated] High-Level Summary of Key Provisions
in AB 130 (2025) and SB 131 (2025)
Introduction
On June 30, 2025, Governor Gavin Newsom signed two budget trailer bills—Assembly Bill (AB) 130 and Senate Bill (SB) 131—enacting some of the most significant reforms to the California Environmental Quality Act (CEQA) in recent history, along with a broad range of additional changes to land use and housing law. These provisions took effect immediately on July 1, 2025.
On October 11, 2025, the Governor signed SB 158, which amended several sections enacted by AB 130 and SB 131. These updates took effect immediately.
This document provides a high-level overview of AB 130 and SB 131, as amended by SB 158, to help local government staff identify key issues and determine where deeper analysis may be needed. References to provisions updated by SB 158 are preceded by “[Updated].” This resource is not exhaustive, but rather highlights provisions of particular relevance to planning, building, and housing staff. Additional technical assistance will be provided moving forward.
How to use this document:
• Green indicates an “action item.”
• Yellow indicates information that “impacts your job.” • Blue indicates information that is “good to know.”
Wherever colors are used, the text is labeled for accessibility.
Attachment 4
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New CEQA Exemptions
Urban Infill Housing Development Projects
AB 130 includes a new exemption from CEQA for certain urban infill housing development projects. The exemption, codified in Public Resources Code Section 21080.66, provides a complete exemption from CEQA for all aspects of a qualifying “housing development project,” including any permits and public improvements required for the project. This exemption applies in all incorporated cities, including charter cities, and in unincorporated “urban areas.” This new exemption offers broader eligibility and fewer barriers for qualifying projects than the existing Class 32 categorical infill exemption, although some projects may qualify for the Class 32 exemption that do not qualify for this exemption.
Key qualifying provisions include the following.
• Housing Development Project: This exemption applies only to a “housing development project,” which is defined in Government Code Section 65589.5(h)(2) to include residential units (including single-family homes); mixed-use developments where at least two-thirds of the square footage is designated for residential use or 50 percent is designated for residential use when other conditions are met; transitional and supportive housing; and farmworker housing.
• Location: The project site must be within an incorporated city or unincorporated “urban area” as defined by the U.S. Census Bureau.
• Urban Infill: The project site must be an urban infill site, which requires the project site to meet any of the following criteria: (1) has been previously developed with an urban use, (2) at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses, (3) at least 75 percent of the area within one-quarter mile radius of the site is developed with urban uses, or (4) for sites with four sides, at least three of the four sides are developed with urban uses and at least two-thirds of the perimeter of the site adjoins parcels that are developed with urban uses. • [Updated] Project Size: Generally, the project site may be up to 20 acres (or four acres for “builder's remedy” projects). Note that the eligible project size for builder’s remedy projects was decreased from five to four acres by SB 158. • Good to Know—Mapping of Eligible Infill Sites: The Office of Land Use and Climate Innovation (formerly OPR) is being tasked with mapping “eligible urban infill sites” by July 1, 2027. Draft maps will be submitted to each county and city for comment prior to
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adoption. However, the criteria are not the same as those required to qualify for the new infill exemption. (Public Resources Code Section 21083.03.) • Hazardous / Environmentally Sensitive Sites: The project must meet Government Code Section 65913.4(a)(6) siting criteria, which generally prohibits projects in environmentally sensitive areas (e.g., certain areas within the coastal zone, habitat, wetlands, conservation lands) and requires mitigation measures for sites in hazardous areas (hazardous waste sites, floodways, floodplains, very high fire hazard areas, fault hazard zones).
• Consistency: The project must be consistent with the general plan, zoning, and local coastal program (if applicable) based on substantial evidence. If general plan and zoning are inconsistent, consistency with one is sufficient. Density bonuses, incentives, waivers, or reduced parking per State Density Bonus Law do not create an inconsistency. • Minimum Density: The project must achieve at least one-half the default density, resulting in minimum densities of 10 or 15 units per acre for San Francisco Bay Area jurisdictions.
• Historic Structures: The project cannot involve the demolition of a historic structure that was listed on a national, state, or local historic register prior to the filing of a preliminary application.
• Transient Lodging: If the project is “deemed complete” under Government Code Section 65589.5(h)(5) after January 1, 2025, no portion of the housing project can be used for a hotel, motel, bed and breakfast, or other transient lodging (excluding residential hotels).
Agencies must apply certain conditions of approval.
• Freeway Proximity: Specified conditions apply if the housing is within 500 feet of a freeway.
• Environmental Assessment: A Phase I environmental assessment is required as a condition of approval for development. If a “recognized environmental condition” is found, a more detailed preliminary endangerment assessment is required to identify any hazardous substance release. Any identified release must be remediated to meet federal and state standards before a certificate of occupancy can be issued. • belowLabor Requirements. This exemption is tied to specific labor requirements for projects that meet any one of the following criteria: they are 100 percent dedicated to lower income households, are over 85 feet in height, or are other specified projects in
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San Francisco. Good to Know: These labor requirements are not expected to significantly limit project eligibility.
• Action Item: Prepare standard conditions of approval for projects that qualify for this exemption.
Agencies must also comply with processing requirements, including requirements for tribal consultation that specifically apply to projects that qualify for this exemption. • Tribal Notification. For projects “deemed complete” before July 1, 2026, a local government must notify Native American tribes within 14 days of receiving a notification that the project is eligible to be exempt. “Deemed complete” means either that the project has submitted a preliminary application containing all required elements, or, if a preliminary application was not submitted, that the project application was found complete under the Permit Streamlining Act. The tribal notification must be provided by certified mail and email and contain specified information. • Action Item: Local governments should prepare application forms listing the requirements for this exemption and requiring that applicants notifying the agency provide substantial evidence that the project is eligible for the exemption. • Tribal Consultation. Each tribe has 60 days to notify the local government that it wishes to be consulted, and the local government must initiate the consultation within 14 days after each tribal notification. The consultation must be completed in 45 days, with one 15-day extension possible if requested by the tribe.
• Conditions of Approval. Certain conditions of approval must be applied, unless both the tribe and applicant agree that they will not be applied, and any enforceable agreement in addition to those conditions must be signed by the applicant, local government, and the tribe.
• [Updated] Impacts Your Job – Approval Timeline. Projects qualifying for this exemption must be approved or disapproved by the lead agency within the later of the following dates: (1) 30 days from the conclusion of the tribal consultation, or (2) the deadline for conducting a consistency review, which is within 30 days (if the development contains 150 or fewer units) or 60 days (if the development contains more than 150 units) of when the application for the project is determined to be complete. (Gov. Code Section 65950(a)(7).) See Table 1 below for further information on the applicable timelines. • [Updated] Filing Notice of Exemption. If a project that is determined to be eligible for this exemption is approved, the lead agency must file a notice of exemption with the
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Office of Land Use and Climate Innovations and the county clerk in accordance with Public Resources Code Sections 21108(b)-(c) or 21152(b)-(c), as applicable.
Table 1. Tribal Consultation Timeline for Urban Infill Housing CEQA Exemption Timeline Required Actions and Details
Within 14 days of:
• The application being deemed complete,
OR
• For projects deemed complete before
July 1, 2026, receiving notice that the
project is eligible for the exemption
The local government must formally notify,
via certified mail and email, each California
Native American tribe traditionally and
culturally affiliated with the project site. This
notification serves as an invitation to consult
on the proposed project, its location, and its
potential effects on tribal cultural resources.
Public Resources Code Section 21080.66(b)
specifies the required contents of this
notification.
60 days from formal notification California Native American tribes have 60 days to accept consultation invitation. If the
tribes decline or fail to respond within 60
days, the consultation is considered
concluded.
Within 14 days of tribal acceptance The local government must initiate the consultation process with that tribe.
45 days from consultation initiation (plus
optional 15-day extension)
The consultation must conclude within 45
days of initiation, subject to a one-time 15-
day extension upon request by a
participating California Native American
tribe.
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Timeline Required Actions and Details
[Updated] Within 30 days from the later of
the following dates:
• The conclusion of the tribal consultation,
or
• The expiration of the applicable time limit
to conduct a consistency review per
Government Code Section 65589.5(j)(2)
(which is either 30 or 60 days after the
project is determined to be complete).
The public agency that is the lead agency for
a development project must approve or
disapprove the project (or it is deemed
approved). The timeline does not include
appeals.
Other New / Expanded CEQA Exemptions
Housing Element Rezoning
• New CEQA Exemption: CEQA does not apply to a rezoning that implements the schedule of actions contained in an approved Housing Element. This could include not only rezoning to increase densities on sites designated for lower income housing, but also all other changes in zoning contemplated by the Housing Element, such as increases in height, parking reductions, and increased density in single-family areas. (Public Resources Code Section 21080.085.)
• Exclusions: This exemption does not apply to rezoning that allows construction within any “natural and protected lands” as defined in the new Section 21067.5 (and as amended by SB 158), except that rezoning of prime farmland is eligible for the exemption if included in the Housing Element’s schedule of actions. If a site designated for rezoning includes both “natural and protected lands” and areas not included in that definition, the exemption will apply if the rezoning excludes the natural and protected lands.
“Near Miss” Projects
• Narrowed CEQA Analysis: For housing development projects that would otherwise be exempt from CEQA under all statutory exemptions or specified categorical exemptions adopted before January 1, 2026, “but for a single condition,” CEQA review is limited solely to the environmental effects caused by that single condition. (Public Resources Code Section 21080.1).
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• Scope: An initial study, Negative Declaration, or Environmental Impact Report (EIR) prepared for a housing development project that qualifies for this narrowed analysis must only examine effects that, based upon substantial evidence in the record, are caused solely by the single condition that disqualifies the project from the CEQA exemption. In addition, an EIR is not required to include any discussion of alternatives to or the growth-inducing impacts of the housing development project. • Good to know: “Condition” is defined as a physical or regulatory feature of the project or its setting or an effect upon the environment caused by the project. What constitutes a single “condition” may be subject to dispute and legal review. • [Updated] Exclusions: This narrowed CEQA analysis does not apply to projects located on natural and protected lands (as defined in the new Section 21067.5, as amended by SB 158), except that it may apply to a project located in a very high fire hazard severity zone. It also does not apply to a housing project that is not similar in kind to the projects listed in the exemption, or to a housing development project with two or more conditions that would make the project ineligible for one of the identified exemptions.
Lastly, it does not apply to a project located on a site or parcel that exceed four acres and that is either (1) a builder’s remedy project or (2) a project that applied under a pre- 2025 provision of the Housing Accountability Act as a builder’s remedy project.1
1 The relevant provision of the Housing Accountability Act (Government Code Section 65589.5(d)(5)), as it read before January 1, 2025, provides as follows:
(d) A local agency shall not disapprove a housing development project, including farmworker housing as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code, for very low, low-, or moderate-income households, or an emergency shelter, or condition approval in a manner that renders the housing development project infeasible for development for the use of very low, low-, or moderate-income households, or an emergency shelter, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
…
(5) The housing development project or emergency shelter is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan as it existed on the date the application was deemed complete,
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Exemptions for Certain Community-Serving and Infrastructure Projects A number of CEQA exemptions for certain community-serving and infrastructure projects were added or expanded in SB 131, including the following.
• Day Care Centers: For certain day care centers that are not located in a residential area or on natural or protected lands. (Public Resources Code Section 21080.69(a)(1).) • Rural Health Clinic or Federally Qualified Health Center: For facilities as defined that are less than 50,000 square feet and are not on natural or protected lands. (Public Resources Code Section 21080.69(a)(2).)
• Nonprofit Food Bank or Food Pantry: For projects located on a site that is zoned exclusively for industrial uses and is not on natural or protected lands. (Public Resources Code Section 21080.69(a)(3).)
• Advanced Manufacturing: For projects located on a site that is zoned exclusively for industrial uses and is not on natural or protected lands. (Public Resources Code Section 21080.69(a)(4).)
• Agricultural Employee Housing: For new agricultural employee housing projects that meet specified criteria and are owned or operated by a public or nonprofit entity or that are the recipient of certain state, federal, or local public funding. Also, for projects consisting exclusively of repair or maintenance of existing farmworker housing. (Public Resources Code Section 21080.44.)
• Community Water System Projects: For projects as defined in Public Resources Code Section 21080.47 that receive funding from certain sources; do not otherwise include any construction activities; will result in long-term net benefits to climate resiliency, biodiversity, and sensitive species recovery; and meet other specified requirements.
This exemption remains in effect until January 1, 2030. (Public Resources Code Section 21080.48.)
and the jurisdiction has adopted a revised housing element in accordance with Section 65588 that is in substantial compliance with this article. For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter.
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• Wildfire Risk Reduction Projects: For projects that include fuel breaks, defensible space fire clearance, the re-establishment of fire intervals, or certain other wildfire reduction strategies that meet specified requirements. The project cannot exceed 50 contiguous acres and must be located within one-half mile of a subdivision with at least 30 units. (Public Resources Code Section 21080.49).
• Broadband: Expands existing exemption for linear broadband deployment in a right-of- way to include a right-of-way of a local street or road. Also removes certain limitations (e.g., on funding sources) that previously applied. (Public Resources Code Section 21080.51.)
• Public Park/Nonmotorized Trail Facilities: For activities or approvals necessary for or incidental to planning, design, site acquisition, construction, operation, or maintenance of public park or nonmotorized recreational trail facilities funded by a specified source. (Public Resources Code Section 21080.57.)
• High-Speed Rail Projects: For the development, construction, or operation of heavy maintenance or other maintenance facilities for electrically powered high-speed rail, if conditions are met. Also, for the development, construction, or modification of a proposed passenger rail station, or design changes to a station, for serving electrically powered high-speed rail, if conditions are met. (Public Resources Code Section 21080.70.)
Additional CEQA Provisions
New Strategies to Mitigate Vehicle Miles Traveled (VMT) AB 130 creates a new, optional strategy for lead agencies to mitigate significant transportation impacts under CEQA.
• New Mitigation Strategy: If a project is determined to have a significant Vehicle Miles Traveled (VMT) impact, a lead agency may now mitigate this impact to less than significant by (1) helping to fund or otherwise facilitating qualified VMT-efficient affordable housing or related infrastructure projects, or (2) contributing to the state’s Transit-Oriented Development (TOD) Implementation Fund, starting July 1, 2026. The use of these new mitigation strategies is not mandatory, and other mitigation measures may be used as well. (Public Resources Code Section 21080.44.) • Implementation: The Office of Land Use and Climate Innovation will develop guidance on methodologies for determining appropriate funding levels, identifying qualified projects, and estimating VMT reductions. This guidance is expected by July 1, 2026.
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• Good to Know: This provides a more flexible, and potentially faster, alternative to traditional on-site or localized VMT mitigation measures.
Limiting the Administrative Record
• Narrowing of Scope of Administrative Record: Internal agency communications (e.g., emails) that were not presented to the final decision-making body or to an administrative official in a supervisory role who is reviewing the project may be excluded from the administrative record. (Public Resources Code Section 21167.6(e)(1)(B).)
• Exclusions: This provision does not apply to projects that include a distribution center or oil and gas infrastructure.
Permit Streamlining Act (PSA)
AB 130 amends the Permit Streamlining Act (PSA)—which requires local government agencies to adhere to strict time limits for reviewing and approving or disapproving development project applications—in ways that further expedite the processing of housing development projects. • Impacts Your Job—Expanded Definition of "Development Project": The definition of "development project" that is subject to the PSA has been amended to include any ministerial housing development project requiring an entitlement permit, but excludes post-entitlement phase permits. (Government Code Section 65928.) However, the PSA already required review of all housing development projects for completeness, including ministerial projects. (Government Code Section 65943(g).) • Impacts Your Job—Revised Approval Timeline for Ministerial Projects: For ministerial projects, public agencies must now approve or disapprove an application within 60 days of receiving a complete application (with the exception of projects using AB 2011, The Affordable Housing and High Road Jobs Act of 2022, which concerns affordable and mixed-income housing in commercial zones. (Government Code Section 65950(a)(6).) This provision effectively replaces the longer timelines in other sections providing ministerial review, such as Government Code Section 65913.4 (SB 35), which allowed 90 to 180 days to make a decision on a project.
• [Updated] Impacts Your Job—Approval Timeline for Urban Infill CEQA Exemption Projects: For projects that qualify for the urban housing infill CEQA exemption, public agencies must approve or disapprove an application within the later of the following dates: (1) 30 days of the conclusion of the tribal consultation process (or specified
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environmental assessments); or (2) by the time consistency review must be complete, which is 30 days (if the development contains 150 or fewer units) or 60 days (if the development contains more than 150 units) after the application for the project is determined to be complete. (Government Code Section 65950(a)(7).)).) • Impacts Your Job— “Deemed Approved” Process Simplified: If a public agency fails to approve or disapprove a project within the required PSA timelines, the application will be automatically “deemed approved.” The previous requirement for public notice prior to an application being deemed approved has been removed. (Government Code Section 65956.)
• Timeframe Precedence: The PSA timeframes apply only if they are equal to or shorter than any other applicable time limits. (Government Code Section 65953.) • Action Item: Local government staff should take note of these tight timelines and develop strategies and processes with internal stakeholders to meet them. Note that a one-time extension of up to 90 days may be granted by mutual agreement of the applicant and the local government. (Government Code Section 65957.) Other Major Land Use and Housing Reforms
Housing Accountability Act
AB 130 removes several sunset dates from the Housing Accountability Act (HAA), effectively making certain provisions permanent unless amended in the future, including the following. • Definitions. The definitions of terms including “deemed complete,” determined to be complete,” and “objective” will now remain in effect indefinitely. (Government Code Section 65589.5(h).)
• Applicable Rules. The provision stating that housing development projects are subject to only the ordinances, policies, and standards in effect at the time that the preliminary application was submitted has been made permanent. (Government Code Section 65589.5(o).)
• Court Order to Correct Action. The requirement that a court must issue an order to correct an action in cases where a local agency requires a housing development project to comply with an ordinance or standard not in effect when the preliminary application was filed now remains in effect indefinitely. (Government Code Section 65589.5(k).)
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Housing Crisis Act (SB 330)
AB 130 removes several sunset dates that were imposed as part of SB 330, making certain provisions permanent, including the following.
• Housing Crisis Act Sunset Date Removed. The Housing Crisis Act now remains in effect permanently, due to the deletion of Government Code Section 66301. • Hearing Limit: Local agencies are now permanently prohibited from requiring more than five public hearings (including continuances and appeals) on a housing development project that complies with the applicable, objective general plan and zoning standards in effect at the time the application is deemed complete. (Government Code Section 65905.5.)
• Required Completeness List. Local governments are now permanently required to include on their application forms the information needed to determine replacement housing requirements, to limit completeness comments to those on application forms, to limit completeness comments on resubmittals to those raised in the first comment letter, and to comply with other requirements. (Government Code Sections 65940 and 65943.)
• Preliminary Application. The provision authorizing a housing development proponent to submit a preliminary application and requiring a local government to determine the completeness of that preliminary application is in effect indefinitely. (Government Code Section 65941.1.)
Affordable Housing on Faith and Higher Education Lands (SB 4) Changes were made to SB 4 (Government Code Section 65913.16), which established a ministerial approval process for 100 percent affordable housing on land owned by religious and certain higher education institutions, including the following. • Child Care Ancillary Use. There is no limit on the number of children who can be served by child care centers that are eligible for approval by right as an ancillary use on the ground floor. (Government Code Section 65913.16(h).)
• Parking Requirements. AB 130 removes the parking requirement for nonresidential space, requiring the proposed development to provide up to one space per unit, unless a state law or local ordinance requires fewer spaces. (Government Code Section 65913.16(i) & (k).)
• Height Limits. SB 4 previously provided that a housing development may be one story above the maximum height otherwise applicable to the parcel. This has been amended
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to provide that the housing development may be up to one story or 11 feet above the otherwise applicable height limit. (Government Code Section 65913.16(j).) Starter Home Revitalization Act of 2021 (SB 684 / SB 1123) Changes were made to SB 684 / SB 1123, which established a ministerial approval process for subdividing a parcel into 10 or fewer residential parcels containing 10 or fewer residential units.
These changes include the following.
• Remainder Parcels: Authorizes proposed subdivision to designate a remainder parcel that retains existing land uses/structures, does not contain new residential units, and is not exclusively dedicated to serving the housing development project. Remainder parcels do not count against the 10-parcel maximum for ministerial review and are excluded from residential density calculations. (Government Code Section 66499.41(a).) • Sale/Lease/Finance Restrictions: A parcel from an SB 684 or SB 1123 subdivision is generally restricted from being sold, leased, or financed separately, unless the parcel satisfies one of four criteria. However, local agencies may override this prohibition via ordinance or map condition. (Government Code Section 66499.41(e).) Surplus Land Act
• School District Exemptions Removed from the Act: Property previously considered “exempt surplus land” for school districts must now follow the standard Surplus Land Act disposal procedures. (Government Code Section 54221(f).) Accessory Dwelling Units
• Exception for Certain Local Standards Eliminated: AB 130 removed a provision in State ADU law (Government Code Section 66323(g)) that stated that if a local agency had adopted an ordinance before July 1, 2018 to ministerially approve ADUs in multifamily dwelling structures, it could impose objective standards on ADUs (such as design, development, and historic standards, but not minimum lot size). • Action Item: Jurisdictions applying pre-July 1, 2018 objective standards to multifamily ADUs may need to amend their ordinance to comply with current state law and HCD guidance.
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Residential Building Standards Freeze
AB 130 adds several provisions that limit the ability to make modifications to the California Building Standards Code relating to residential units, including the following. • Local Amendments Restriction: From October 1, 2025, to June 1, 2031, a city or county is generally prohibited from making changes to provisions that are published in the California Building Standards Code and that apply to residential units unless certain conditions are met (e.g., deemed necessary by the California Building Standards Commission as emergency standards to protect health and safety). (Health & Safety Code Sections 17958, 17958.5, 17958.7, 18941.5.)
• Building Code Amendment Restriction. Similarly, from October 1, 2025, to June 1, 2031, the California Building Standards Commission is generally prohibited from making changes to provisions that are published in the California Building Standards Code and that apply to residential units unless certain conditions are met (e.g., deemed necessary as emergency standards to protect health and safety). (Health & Safety Code Sections 18929.1 and 18930.) Note that the 2025 version of the Building Code will go into effect as expected on January 1, 2026.
Homeless Shelters
AB 130 adds provisions to the Health and Safety Code regarding the regulation of homeless shelters, including as follows.
• Annual Inspections. Cities and counties are required to perform an annual inspection of every homeless shelter in their jurisdiction, announced or unannounced. (Health & Safety Code Section 17974.1.)
• Occupants Rights Notice. Homeless shelters must prominently display information about an occupant’s rights and the complaints process as well as provide written notice to new occupants during intake. (Health & Safety Code Sections 17974.1, 17974.1.5, 17974.5.)
• Reporting Requirements. Cities and counties must report the number of complaints received by the city or county, including whether no complaints were received, in the annual report submitted to the Department of Housing and Community Development and the Business, Consumer Services, and Housing Agency by April 1st of each year. (Health & Safety Code Section 17974.5.)
• Action Item: Cities and counties should take note of the above-listed requirements and update procedures to ensure compliance.
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Additional Resources
• Webinar. The Regional Housing Technical Assistance (RHTA) Program held a webinar on August 12, 2025 to review AB 130, SB 131, and their implications. A recording of the webinar and slide deck may be found here.
• Office Hours. The Regional Housing Technical Assistance consultant team held office hours on September 25 and October 28. An compilation of frequently asked questions is coming soon.
• Products. The following products relating to the urban infill housing development CEQA exemption are coming soon: Template Application, Template Required Conditions of Approval, Template Letter Notifying Tribes, Template Letter to Tribe Requesting Consultation, and Template Documentation of Tribal Consultation Process.