Office of Senator Blakespear
SB 954 Factsheet | Updated April 7, 2026
SB 954 : Tightening CEQA Exemptions
SUMMARY
SB 954 makes targeted changes to last
year’s California Environmental Quality
Act (CEQA) reforms enacted in SB 131. In
particular, the bill would narrow overly
broad definitions of advanced
manufacturing, add environmental
guardrails to protect communities, and
clarify language so the original intent of
SB 131 is followed without harming the
environment, labor or tribal resources.
BACKGROUND
SB 131 created numerous changes to
CEQA, adding a dozen new exemptions,
including for housing, high speed rail
facilities, and most significantly,
“advanced manufacturing.”
At the time of SB 131’s passage, several
legislators raised concerns about
insufficient protections for sensitive
species and tribal resources, and an
overly broad definition for advanced
manufacturing, while at the same time
supporting the main thrust of the bill.
A dozen Senators and 20
Assemblymembers signed a letter urging
prompt legislation to fix these
outstanding issues, but no action has
been taken yet.
PROBLEM
SB 131’s CEQA exemption for advanced
manufacturing relies on an expansive
definition originally developed for a tax
credit program that covers almost all
manufacturing. This means that even
manufacturing that is damaging to the
environment, such as s trip mining and
lithium extraction, gets a CEQA
exemption, without other historic
considerations or protections required.
This runs counter to the spirit of CEQA.
Additionally, SB 131 permitted childcare
facilities in industrial zones – but not in
residential areas – to qualify for CEQA
exemptions and allowed projects on
habitat for protected species to move
forward without environmental review.
SOLUTION
SB 954 strengthens protections for habitat
of protected species, extends CEQA
exemptions for residential daycare
facilities, and adds clear environmental
guardrails to the CEQA exemption for
advanced manufacturing. Specifically,
this bill requires projects to: 1) have zero
emission backup generation; 2) be sited
in heavy industrial zones with setbacks of
1,600 feet from sensitive receptors and
1,000-foot setbacks from disadvantaged
communities; 4) not harm tribal
resources; and 5) include a community
benefits agreement and high roads
labor standards. The b ill requires the
governor to certify these projects as
‘advanced manufacturing’ leaders, that
are not only more efficient, but also more
environmentally sound than current
industry standards. This bill also specifies
the intent of the Legislature to further
narrow the definition of advanced
manufacturing to appropriate sectors,
allowing room for stakeholders and the
Legislature to continue discussions on the
definition of advanced manufacturing
and CEQA exemptions.
Office of Senator Catherine Blakespear
SB XX Factsheet | Updated April 7, 2026
SB 954 fulfills commitments made to
address SB 131’s outstanding issues and
ensures that CEQA reforms are
implemented thoughtfully, balancing
streamlining with environmental
protections to support a clean and
abundant future for all Californians.
STAFF CONTACT
Jack Christensen | Chief of Staff |
[email protected]| 916-651-4038
Brynn Cook |Principal Consultant, Senate
Environmental Quality Committee|
[email protected] | 916-651-4108