SACRAMENTO—Gov. Gavin Newsom isn’t afraid to step into the political fray when it comes to standing up to President Donald Trump over national issues that impact California. He’s not always wrong when he sues the administration or speaks out against, say, ICE raids in Los Angeles. But most of those high-profile actions seem designed to burnish his national reputation. For your own safety, please don’t stand between him and a television camera.
Newsom would have a better national-leadership case, however, had he strategically arm-twisted the state’s Democratic-controlled Legislature to pass controversial measures that address California’s long-simmering problems of homelessness, traffic congestion, the high cost of living, crime and sky-high housing costs. As others have noted, the best way to prove the wisdom of the California Way is to, you know, actually run the state in a stellar manner. But maybe he is learning.
As Politico Pro reported on Wednesday, the governor has tied his signing of a budget deal with the Legislature but only after it passes “legislation that streamlines housing development by making environmental protection rules more lenient.” Specifically, he insists that lawmakers pass Assembly Bill 131. The details are still in flux and need to be in print 72 hours before a vote, but it’s likely more aggressive than past housing reforms.
The measure is reportedly based on Senate Bill 607, which affirms the Legislature’s intent “to make changes to the California Environmental Quality Act (CEQA) to ensure the state meets its infrastructure needs and is more affordable for all Californians, as specified, without compromising environmental protections,” per the legislative analysis. Lawmakers in May stripped away specific exemptions, turning it into a non-substantive bill in the face of opposition from the usual suspects.
Another late-breaking housing bill, Assembly Bill 130, was under consideration as part of the budget but, as reports note, not subject to Newsom’s ultimatum. The language provided CEQA reforms related to ADUs and infill housing. It sounded promising given that Politico reports it “is receiving backlash from labor, environmental and tribal groups.” But before I could finish writing this piece, lawmakers caved to unions and derailed it.
The Sacramento Bee reports this bill was roughly based on another measure that “allows developers to bypass CEQA review if they agree to pay a certain minimum wage to construction workers.” Mandating wage boosts drives up the cost of housing construction and weakens the usefulness of these deregulations, but it’s an attempt to lessen the degree to which unions use CEQA to slow construction projects to extract concessions.
The unions weren’t satisfied with this compromise because they’re not often satisfied as they single-mindedly pursue higher wages—whatever the impact on anyone else. Maybe the governor is learning he can’t make the changes this state needs unless he musters the courage to stand up to special interests. His failure to overcome union opposition here is a disappointment, but doesn’t tarnish an otherwise noteworthy effort.
The budget must be complete by June 30. A deal should be struck before you read this. However Newsom’s maneuvering works out—and feel free to hold me to my prediction that the Legislature will blink first—it’s significant he’s finally playing hardball. The Bee interviewed Capitol insiders who cannot recall a budget ever before being held up to secure passage of a single non-budget-related bill. More of this, please.
Lawmakers routinely gripe about CEQA, but they never do anything to fix it beyond adding a limited streamlining or exemption provision (especially when it comes to sports arenas). The pro-housing YIMBY Law (Yes In My Back Yard) produced a report showing the myriad laws that have reduced CEQA impediments for housing have produced few real-world results. That’s no surprise given that they don’t go far enough, rarely apply to market-rate housing and always include union giveaways.
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It’s high time to end unfettered ICE and border patrol abuses The history of legal attacks on Proposition 13 Los Angeles leaders made a mess of the city. Now they’re desperate for a bailout. In striking Iran, President Trump rose to the occasion Trump plunges America into Iran War quagmire Legislators are finally pushing harder for broader exemptions. I rarely agree with them on non-housing issues, but state Sen. Scott Wiener, D-San Francisco, and Assembly member Buffy Wicks, D-Oakland, deserve praise for doggedly pursuing the issue. And with Newsom using this nuclear option to bring this bill across the finish line, we might—provided the final version is substantive and not just a toothless intent law—see some progress.It might seem odd that progressives have embraced the pro-housing religion, but consider a study from the Holland & Knight law firm. It found 49% of CEQA lawsuits target governmental projects, with infill projects also a particular target. “CEQA litigation abuse is primarily the domain of Not In My Backyard (NIMBY) opponents and special interests such as competitors and labor unions seeking non-environmental outcomes,” the study added.
Basically, progressives are finding their own objectives threatened by CEQA abuse. And Gov. Newsom is learning that if he wants to look tough—and help address a serious state problem—there no downside for him to use his political capital in such a way.
Steven Greenhut is Western region director for the R Street Institute and a member of the Southern California News Group editorial board. Write to him at [email protected].
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