Key facts
- Two bills, SB 344 and SB 958, aim to limit environmental lawsuits that delay housing projects in California.
- The legislation is a response to successful CEQA lawsuits, such as one that delayed San Diego's Midway Rising development.
- SB 344 would deem the Midway Rising project's environmental review sufficient, while SB 958 would prevent height increases from being treated as significant environmental impacts.
- Governor Gavin Newsom must decide whether to sign or veto the bills by September 30.
- San Diego has been a leading city in housing development, permitting thousands of homes annually.
California Governor Gavin Newsom is facing a decision on two bills that could significantly curb the use of environmental lawsuits to block housing developments. Litigation under the California Environmental Quality Act (CEQA) has long been a tool for opponents to delay or kill housing projects. The proposed legislation, Senate Bill 344 and Senate Bill 958, aims to address these legal barriers, particularly in response to challenges faced by San Diego's Midway Rising development.
SB 344 specifically targets the Midway Rising project, a nearly $4 billion development projected to bring thousands of housing units, including affordable options. If signed, it would declare that once the city certifies the project's environmental impact review, CEQA requirements will be considered fully satisfied, thereby cutting off arguments about the review's legal deficiency. SB 958, while initially focused on Midway Rising, has been amended to have a broader statewide impact. It seeks to prevent increased building heights from being classified as significant environmental impacts under CEQA for non-industrial infill projects with certified environmental reviews. This measure aims to override a recent appellate court ruling that established a precedent for height-based lawsuits.
These bills come as California lawmakers have intensified efforts to reform housing policy, loosening density rules and zoning limits to boost affordability. Previous legislative steps have made it tougher and more financially risky to file certain lawsuits. San Diego, in particular, has been an aggressive proponent of housing development, permitting nearly 8,800 homes in 2024. However, the Midway Rising project has faced significant delays due to lawsuits filed by groups like Save Our Access, which successfully argued that the city violated CEQA by not adequately studying the environmental impacts of taller buildings. The California Supreme Court denied an appeal, reinstating a height cap and forcing the city to conduct a new environmental study.
Opponents of SB 344 and SB 958, including groups that have utilized CEQA for litigation, have urged Governor Newsom to veto the bills. The Governor has until September 30 to make his decision. The authors of the bills, State Senator Akilah Weber Pierson and San Diego Mayor Todd Gloria, advocate for their passage as crucial steps to expedite housing construction.
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