AB 854: California Environmental Quality Act: exemptions.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-04-22
Current Status:
Failed
(2026-02-02: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that the lead agency proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
This bill would exempt from CEQA projects that consist of the inspection, maintenance, repair, restoration, reconditioning, reconductoring with advanced conductors, replacement, or removal of a transmission wire or cable used to conduct electricity or other piece of equipment that is directly attached to the wire or cable and that meet certain requirements. If a lead agency determines that a project is exempt from CEQA pursuant to the above provision, the bill would require the lead agency to file a notice of exemption with the Office of Land Use and Climate Innovation and the county clerk in each county in which the project is located, as provided. By increasing the duties of a lead agency, this the bill would impose a state-mandated local program.
The California Endangered Species Act prohibits the taking of an endangered, threatened, or candidate species unless the person has obtained an incidental take permit from the Department of Fish and Wildlife.Existing law prohibits an entity from substantially diverting or obstructing the natural flow of, or substantially changing or using any material from the bed, channel, or bank of, a river, stream, or lake, or deposit or dispose of debris, waste, or other materials where it may pass into a river, stream, or lake unless the Department of Fish and Wildlife receives written notification of the activity and the entity has entered into a lake or stream agreement with the Department of Fish and Wildlife.The Porter-Cologne Water Quality Control Act requires a California regional water quality control board to prescribe waste discharge requirements for the discharge of pollutants into state waters and authorizes the regional board to prescribe general waste discharge requirements for a category of discharges if the regional board finds or determines that certain criteria apply to the discharges in that category.This bill would exempt from CEQA the issuance of incidental take permits, lake or stream agreements, or waste discharge requirements for renewable energy projects.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that the lead agency proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
CEQA exempts from its requirements a residential project on an urbanized infill site that meets certain requirements, including that the site of the project is not more than 4 acres in total area.This bill would expand the exemption by increasing the size of a residential project that would qualify for the exemption to include a project of not more than 5 acres in total area. The bill would require a lead agency approving an exempt residential project on an urbanized infill site to file a notice of exemption with the Office of Land Use and Climate Innovation, as specified.Because the bill would increase the number of residential projects that would qualify for the exemption and would require lead agencies to file notices of exemption with the Office of Land Use and Climate Innovation, thereby increasing the duties of a local agency, it would impose a state-mandated local program.This bill would exempt from CEQA projects that consist of the inspection, maintenance, repair, restoration, reconditioning, reconductoring with advanced conductors, replacement, or removal of a transmission wire or cable used to conduct electricity or other piece of equipment that directly attached to the wire or cable and that meet certain requirements. If a lead agency determines that a project is exempt from CEQA pursuant to the above provision, the bill would require the lead agency to file a notice of exemption with the Office of Land Use and Climate Innovation and the county clerk in each county in which the project is located, as provided. By increasing the duties of a lead agency, this bill would impose a state-mandated local program.
The California Endangered Species Act prohibits the taking of an endangered, threatened, or candidate species unless the person has obtained an incidental take permit from the Department of Fish and Wildlife.
Existing law prohibits an entity from substantially diverting or obstructing the natural flow of, or substantially changing or using any material from the bed, channel, or bank of, a river, stream, or lake, or deposit or dispose of debris, waste, or other materials where it may pass into a river, stream, or lake unless the Department of Fish and Wildlife receives written notification of the activity and the entity has entered into a lake or stream agreement with the Department of Fish and Wildlife.
The Porter-Cologne Water Quality Control Act requires a California regional water quality control board to prescribe waste discharge requirements for the discharge of pollutants into state waters and authorizes the regional board to prescribe general waste discharge requirements for a category of discharges if the regional board finds or determines that certain criteria apply to the discharges in that category.
This bill would exempt from CEQA the issuance of incidental take permits, lake or stream agreements, or waste discharge requirements for renewable energy projects.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that the lead agency proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
Existing law, the Jobs and Economic Improvement Through Environmental Leadership Act of 2021, authorizes the Governor, until January 1, 2032, to certify projects that meet specified requirements for streamlining benefits related to CEQA. This bill would state the intent of the Legislature to enact subsequent legislation to adopt permit streamlining guidance for projects that will reduce greenhouse gas emissions.CEQA exempts from its requirements a residential project on an urbanized infill site that meets certain requirements, including that the site of the project is not more than 4 acres in total area.
This bill would expand the exemption by increasing the size of a residential project that would qualify for the exemption to include a project of not more than 5 acres in total area. The bill would require a lead agency approving an exempt residential project on an urbanized infill site to file a notice of exemption with the Office of Land Use and Climate Innovation, as specified.
Because the bill would increase the number of residential projects that would qualify for the exemption and would require lead agencies to file notices of exemption with the Office of Land Use and Climate Innovation, thereby increasing the duties of a local agency, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that the lead agency proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
Existing law, the Jobs and Economic Improvement Through Environmental Leadership Act of 2021, authorizes the Governor, until January 1, 2032, to certify projects that meet specified requirements for streamlining benefits related to CEQA.
This bill would state the intent of the Legislature to enact subsequent legislation to adopt permit streamlining guidance for projects that will reduce greenhouse gas emissions.
The Legislature finds and declares all of the following:
(a)California has created ambitious climate and energy goals to achieve a net-zero carbon economy by 2045. The 2022 State Air Resource Resources Boards scoping plan calls for California to cut air pollution by 71 percent and reduce fossil fuel consumption by 86 percent.
(b)The 100 Percent Clean Energy Act of 2018 (Chapter 312 of the Statutes of 2018) updated the California Renewables Portfolio Standard Program to ensure that by 2030 at least 60 percent of Californias electricity is from renewable energy resources and established a state policy for California to provide 100 percent of its retail sales from renewable energy resources and zero-carbon resources by 2045.
(c)The Clean Energy, Jobs, and Affordability Act of 2022 (Chapter 361 of the Statutes of 2022) made it the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity by December 31, 2035, 95 percent of all retail sales by December 31, 2040, 100 percent of all retail sales by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035.
(d)Permits and authorizations issued by the Department of Fish and Wildlife and the regional water quality control boards, such as incidental take permits, streambed alteration agreements, and waste discharge requirements, cannot be completed until after a notice of determination has been issued pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). These permits can add an additional 6 to 12 months or more to the permitting timeline for development projects.(e)(d)Reconductoring is the process of replacing smaller capacity wires with larger capacity wires on existing transmission poles to enhance transmission capacity using existing infrastructure. Reconductoring is the lowest impact, least-cost path to increasing statewide transmission capacity on a highly constrained system.
(f)(e)Californias ambitious climate and energy goals will require a massive buildout of new, clean energy projects and the grid infrastructure necessary to deliver electricity across the state. California must nearly double its clean energy capacity over the next five years, alone, to stay on track with its goals.
(g)Streamlining permitting described in subdivision (d) for renewable energy projects and facilitating(f)Facilitating the rapid completion of reconductoring projects will reduce the cost of Californias energy transition and will accelerate the development of clean energy.
SEC. 2.Section 21080.38 is added to the Public Resources Code, to read:21080.38.This division does not apply to any of the following:(a)The issuance of an agreement by the Department of Fish and Wildlife pursuant to Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code for a renewable energy project.(b)The issuance of an incidental take permit by the Department of Fish and Wildlife pursuant to the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code) for a renewable energy project.(c)The issuance of waste discharge requirements by a regional water quality control board pursuant to the Porter-Cologne Water Quality Control Act (Division 7 (commencing with Section 13000) of the Water Code) for a renewable energy project.SEC. 3.SEC. 2.Section 21080.39 is added to the Public Resources Code, to read:21080.39.(a)This division does not apply to a project that consists of the inspection, maintenance, repair, restoration, reconditioning, reconductoring with advanced conductors, replacement, or removal of a transmission wire or cable used to conduct electricity or other piece of equipment that is directly attached to the wire or cable and that meets both of the following:
(1)(A)The project is undertaken within an existing right of way. right-of-way.
(B)For a project undertaken within a private right of way, right-of-way, the project applicant has permission from the underlying property owner to access the property for the project.
(2)The project applicant enters into a legally binding agreement to restore the right of way right-of-way to its condition before the commencement of the project.
(b)If the lead agency determines that a project is exempt from this division pursuant to this section, the lead agency shall file a notice of exemption with the Office of Land Use and Climate Innovation and with the county clerk in each county in which the project is located in a manner specified in subdivisions (b) and (c) of Section 21108 or subdivisions (b) and (c) of Section 21152.
(c)For purposes of this section, reconductoring with advanced conductors has the same meaning as set forth in Section 454.58 of the Public Utilities Code.
SEC. 4.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.The Legislature finds and declares all of the following:
(a)California has created ambitious climate and energy goals to achieve a net-zero carbon economy by 2045. The 2022 State Air Resource Boards scoping plan calls for California to cut air pollution by 71 percent and reduce fossil fuel consumption by 86 percent.
(b)The 100 Percent Clean Energy Act of 2018 (Chapter 312 of the Statutes of 2018) updated the California Renewables Portfolio Standard Program to ensure that by 2030 at least 60 percent of Californias electricity is from renewable energy resources and established a state policy for California to provide 100 percent of its retail sales from renewable energy resources and zero-carbon resources by 2045.
(c)The Clean Energy, Jobs, and Affordability Act of 2022 (Chapter 361 of the Statutes of 2022) made it the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90 percent of all retail sales of electricity by December 31, 2035, 95 percent of all retail sales by December 31, 2040, 100 percent of all retail sales by December 31, 2045, and 100 percent of electricity procured to serve all state agencies by December 31, 2035.
(d)Permits and authorizations issued by the Department of Fish and Wildlife and the regional water quality control boards, such as incidental take permits, streambed alteration agreements, and waste discharge requirements, cannot be completed until after a notice of determination has been issued pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). These permits can add an additional 6 to 12 months or more to the permitting timeline for development projects.
(e)Reconductoring is the process of replacing smaller capacity wires with larger capacity wires on existing transmission poles to enhance transmission capacity using existing infrastructure. Reconductoring is the lowest impact, least-cost path to increasing statewide transmission capacity on a highly constrained system.
(f)Californias ambitious climate and energy goals will require a massive buildout of new, clean energy projects and the grid infrastructure necessary to deliver electricity across the state. California must nearly double its clean energy capacity over the next five years, alone, to stay on track with its goals.
(g)Streamlining permitting described in subdivision (d) for renewable energy projects and facilitating the rapid completion of reconductoring projects will reduce the cost of Californias energy transition and will accelerate the development of clean energy.
SEC. 2.Section 21080.38 is added to the Public Resources Code, to read:21080.38.This division does not apply to any of the following:
(a)The issuance of an agreement by the Department of Fish and Wildlife pursuant to Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code for a renewable energy project.
(b)The issuance of an incidental take permit by the Department of Fish and Wildlife pursuant to the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code) for a renewable energy project.
(c)The issuance of waste discharge requirements by a regional water quality control board pursuant to the Porter-Cologne Water Quality Control Act (Division 7 (commencing with Section 13000) of the Water Code) for a renewable energy project.
SEC. 3.Section 21080.39 is added to the Public Resources Code, to read:21080.39.(a)This division does not apply to a project that consists of the inspection, maintenance, repair, restoration, reconditioning, reconductoring with advanced conductors, replacement, or removal of a transmission wire or cable used to conduct electricity or other piece of equipment that is directly attached to the wire or cable and that meets both of the following:
(1)(A)The project is undertaken within an existing right of way.
(B)For a project undertaken within a private right of way, the project applicant has permission from the underlying property owner to access the property for the project.
(2)The project applicant enters into a legally binding agreement to restore the right of way to its condition before the commencement of the project.
(b)If the lead agency determines that a project is exempt from this division pursuant to this section, the lead agency shall file a notice of exemption with the Office of Land Use and Climate Innovation and with the county clerk in each county in which the project is located in a manner specified in subdivisions (b) and (c) of Section 21108 or subdivisions (b) and (c) of Section 21152.
(c)For purposes of this section, reconductoring with advanced conductors has the same meaning as set forth in Section 454.58 of the Public Utilities Code.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SECTION 1.Section 21159.24 of the Public Resources Code is amended to read:21159.24.(a)Except as provided in subdivision (b), this division does not apply to a project if all of the following criteria are met:(1)The project is a residential project on an infill site.(2)The project is located within an urbanized area.(3)The project satisfies the criteria of Section 21159.21.(4)Within five years of the date that the application for the project is deemed complete pursuant to Section 65943 of the Government Code, community-level environmental review was certified or adopted.(5)The site of the project is not more than five acres in total area.(6)The project does not contain more than 100 residential units.(7)Either of the following criteria are met:(A)(i)At least 10 percent of the housing is sold to families of moderate income, or not less than 10 percent of the housing is rented to families of low income, or not less than 5 percent of the housing is rented to families of very low income.(ii)The project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of the housing units for very low income, low-income, and moderate-income households at monthly housing costs determined pursuant to paragraph (3) of subdivision (h) of Section 65589.5 of the Government Code.(B)The project developer has paid or will pay in-lieu fees pursuant to a local ordinance in an amount sufficient to result in the development of an equivalent number of units that would otherwise be required pursuant to subparagraph (A).(8)The project is within one-half mile of a major transit stop.(9)The project does not include any single level building that exceeds 100,000 square feet.(10)The project promotes higher density infill housing. A project with a density of at least 20 units per acre shall be conclusively presumed to promote higher density infill housing. A project with a density of at least 10 units per acre and a density greater than the average density of the residential properties within 1,500 feet shall be presumed to promote higher density housing unless the preponderance of the evidence demonstrates otherwise.(b)Notwithstanding subdivision (a), this division shall apply to a development project that meets the criteria described in subdivision (a), if any of the following occur:(1)There is a reasonable possibility that the project will have a project-specific, significant effect on the environment due to unusual circumstances.(2)Substantial changes with respect to the circumstances under which the project is being undertaken that are related to the project have occurred since the community-level environmental review was certified or adopted.(3)New information becomes available regarding the circumstances under which the project is being undertaken and that is related to the project, that was not known, and could not have been known, at the time the community-level environmental review was certified or adopted.(c)If a project satisfies the criteria described in subdivision (a), but is not exempt from this division as a result of satisfying the criteria described in subdivision (b), the analysis of the environmental effects of the project in the environmental impact report or the negative declaration shall be limited to an analysis of the project-specific effect of the projects and any effects identified pursuant to paragraph (2) or (3) of subdivision (b).(d)A lead agency approving a project that is exempt from this division under this section shall file a notice of exemption with the Office of Land Use and Climate Innovation in the manner specified in subdivision (b) of Section 21152.(e)For purposes of this section, residential means a use consisting of either of the following:(1)Residential units only.(2)Residential units and primarily neighborhood-serving goods, services, or retail uses that do not exceed 25 percent of the total building square footage of the project.SEC. 2.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)Except as provided in subdivision (b), this division does not apply to a project if all of the following criteria are met:
(1)The project is a residential project on an infill site.
(2)The project is located within an urbanized area.
(3)The project satisfies the criteria of Section 21159.21.
(4)Within five years of the date that the application for the project is deemed complete pursuant to Section 65943 of the Government Code, community-level environmental review was certified or adopted.
(5)The site of the project is not more than four five acres in total area.
(6)The project does not contain more than 100 residential units.
(7)Either of the following criteria are met:
(A)(i)At least 10 percent of the housing is sold to families of moderate income, or not less than 10 percent of the housing is rented to families of low income, or not less than 5 percent of the housing is rented to families of very low income.
(ii)The project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of the housing units for very low, low-, low income, low-income, and moderate-income households at monthly housing costs determined pursuant to paragraph (3) of subdivision (h) of Section 65589.5 of the Government Code.
(B)The project developer has paid or will pay in-lieu fees pursuant to a local ordinance in an amount sufficient to result in the development of an equivalent number of units that would otherwise be required pursuant to subparagraph (A).
(8)The project is within one-half mile of a major transit stop.
(9)The project does not include any single level building that exceeds 100,000 square feet.
(10)The project promotes higher density infill housing. A project with a density of at least 20 units per acre shall be conclusively presumed to promote higher density infill housing. A project with a density of at least 10 units per acre and a density greater than the average density of the residential properties within 1,500 feet shall be presumed to promote higher density housing unless the preponderance of the evidence demonstrates otherwise.
(b)Notwithstanding subdivision (a), this division shall apply to a development project that meets the criteria described in subdivision (a), if any of the following occur:
(1)There is a reasonable possibility that the project will have a project-specific, significant effect on the environment due to unusual circumstances.
(2)Substantial changes with respect to the circumstances under which the project is being undertaken that are related to the project have occurred since the community-level environmental review was certified or adopted.
(3)New information becomes available regarding the circumstances under which the project is being undertaken and that is related to the project, that was not known, and could not have been known, at the time that the community-level environmental review was certified or adopted.
(c)If a project satisfies the criteria described in subdivision (a), but is not exempt from this division as a result of satisfying the criteria described in subdivision (b), the analysis of the environmental effects of the project in the environmental impact report or the negative declaration shall be limited to an analysis of the project-specific effect of the projects and any effects identified pursuant to paragraph (2) or (3) of subdivision (b).
(d)A lead agency approving a project that is exempt from this division under this section shall file a notice of exemption with the Office of Land Use and Climate Innovation in the manner specified in subdivision (b) of Section 21152.
(d)(e)For the purposes of this section, residential means a use consisting of either of the following:
(1)Residential units only.
(2)Residential units and primarily neighborhood-serving goods, services, or retail uses that do not exceed 25 percent of the total building square footage of the project.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
SECTION 1.(a)The Legislature finds and declares all of the following:(1)The impacts of climate change in California include wildfire, drought, heat waves, and catastrophic weather events of increasing severity and unpredictability. These impacts pose significant threats to public health, public safety, and the economy in California.(2)To address the impacts of climate change, California has established a number of ambitious greenhouse gas (GHG) emission reduction goals, targets, and programs, including a target to cut GHG emissions 40 percent below 1990 levels by 2030, and Executive Order No. B-55-18 creates a state goal to achieve net carbon neutrality by 2045, consistent with science-based assessments to achieve global climate stabilization. (3)California is a leader in driving the affordable and equitable transition to a clean reliable energy system and economy. However, the impacts of climate change are occurring sooner and with more intensity and frequency than previously anticipated.(4)Extreme events from climate change, including heat waves, wildfires, and drought, combined with other factors, such as supply chain disruptions, are jeopardizing Californias ability to build out the energy infrastructure needed to maintain affordability and reliability.(5)Climate authorities such as the United Nations Intergovernmental Panel on Climate Change have declared that carbon management measures such as carbon capture and sequestration and direct air capture will be required to meet climate goals established under the Paris Agreement.(6)As California transitions to a clean energy future and contends with climate impacts and other challenges, sufficient capacity of new and existing generation assets will be required to maintain reliability during extreme events.(b)It is the intent of the Legislature to enact subsequent legislation to adopt permit streamlining guidance for projects that will reduce GHG emissions.(a)The Legislature finds and declares all of the following:
(1)The impacts of climate change in California include wildfire, drought, heat waves, and catastrophic weather events of increasing severity and unpredictability. These impacts pose significant threats to public health, public safety, and the economy in California.
(2)To address the impacts of climate change, California has established a number of ambitious greenhouse gas (GHG) emission reduction goals, targets, and programs, including a target to cut GHG emissions 40 percent below 1990 levels by 2030, and Executive Order No. B-55-18 creates a state goal to achieve net carbon neutrality by 2045, consistent with science-based assessments to achieve global climate stabilization.
(3)California is a leader in driving the affordable and equitable transition to a clean reliable energy system and economy. However, the impacts of climate change are occurring sooner and with more intensity and frequency than previously anticipated.
(4)Extreme events from climate change, including heat waves, wildfires, and drought, combined with other factors, such as supply chain disruptions, are jeopardizing Californias ability to build out the energy infrastructure needed to maintain affordability and reliability.
(5)Climate authorities such as the United Nations Intergovernmental Panel on Climate Change have declared that carbon management measures such as carbon capture and sequestration and direct air capture will be required to meet climate goals established under the Paris Agreement.
(6)As California transitions to a clean energy future and contends with climate impacts and other challenges, sufficient capacity of new and existing generation assets will be required to maintain reliability during extreme events.
(b)It is the intent of the Legislature to enact subsequent legislation to adopt permit streamlining guidance for projects that will reduce GHG emissions.
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Date
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Status
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|---|---|
| Feb 2, 2026 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan 31, 2026 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr 28, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Apr 24, 2025 | (Pending re-refer to Com. on U. & E.) |
| Apr 24, 2025 | Assembly Rule 56 suspended. (Page 1265.) |
| Apr 23, 2025 | Re-referred to Com. on NAT. RES. |
| Apr 22, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Apr 8, 2025 | Re-referred to Com. on NAT. RES. |
| Apr 7, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Mar 25, 2025 | Re-referred to Com. on NAT. RES. |
| Mar 24, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Mar 24, 2025 | Referred to Coms. on NAT. RES. and L. GOV. |
| Feb 20, 2025 | From printer. May be heard in committee March 22. |
| Feb 19, 2025 | Read first time. To print. |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
|
Position
|
Date
|
|---|---|---|
| AES Corporation | ** Support | |
| American Clean Power California | ** Support | |
| Anza-Borrego Foundation | ** Against | |
| Arevon | ** Support | |
| Audubon California | ** Against | |
| Aypa Power Development | ** Support | |
| California Council For Environmental And Economic Balance | ** Support | |
| California Energy Storage Alliance | ** Support | |
| California Native Plant Society | ** Against | |
| California Wind Energy Association | ** Support | |
| Center For Biological Diversity | ** Against | |
| Defenders Of Wildlife | ** Against | |
| Independent Energy Producers Association | ** Support | |
| Intersect Power | ** Support | |
| Large-Scale Solar Association | ** Support | |
| Leeward Renewable Energy | ** Support | |
| Planning And Conservation League | ** Against | |
| Solar Energy Industries Association | ** Support |
Date of Hearing: April 28, 2025
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Isaac G. Bryan, Chair
ABPCA Bill Id:AB 854 (
Author:Petrie-Norris) – As Amended Ver:April 22, 2025
SUBJECT: California Environmental Quality Act: exemptions
SUMMARY: Establishes a California Environmental Quality Act (CEQA) exemption for “reconductoring,” as defined, and related wires maintenance and improvements to existing transmission lines within existing rights of way.
EXISTING LAW:
- Requires, pursuant to CEQA, lead agencies with the principal responsibility for carrying out or approving discretionary projects to prepare a negative declaration, mitigated negative declaration, or environmental impact report (EIR), unless the project is exempt from CEQA. CEQA includes several statutory exemptions, as well as categorical exemptions in the CEQA Guidelines. (Public Resources Code (PRC) 21000 et seq.)
- Defines “project” as an activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, including an activity that involves the issuance of a lease, permit, license, certificate, or other entitlement for use by one or more public agencies. (PRC 21065)
- Requires the CEQA Guidelines to include a list of classes of projects that have been determined by the Secretary of the Natural Resources Agency to not have a significant effect on the environment and that shall be exempt from CEQA. (PRC 21084)
The list of “categorical exemptions” includes:
- Repair and maintenance of existing public or private facilities, involving negligible or no expansion of use, including existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. (Guidelines 15301)
- Replacement or reconstruction of existing facilities on the same site with the same purpose and capacity, including existing utility systems and/or facilities involving negligible or no expansion of capacity. (Guidelines 15302)
- New construction or conversion of small structures, including electrical, gas, and other utility extensions of reasonable length to serve such construction. (Guidelines 15303)
- Requires the PUC to certify the “public convenience and necessity” require a transmission line over 200 kilovolts (kV) before an investor-owned utility (IOU) may begin construction (Certificate of Public Convenience and Necessity, or CPCN). The CPCN process includes CEQA review of the proposed project. A CPCN confers eminent domain authority for construction of the project. A CPCN is not required for the extension, expansion, upgrade, or other modification of an existing electrical transmission facility, including transmission lines and substations. (Public Utilities Code (PUC) 1001)
- Requires an IOU to obtain a discretionary permit to construct (PTC) from the PUC for electrical power line projects between 50-200 kV. A PTC may be exempt from CEQA pursuant to PUC orders and existing provisions of CEQA. IOU electrical distribution line projects under 50 kV do not require a CPCN or PTC from the PUC, nor discretionary approval from local governments, and therefore are not subject to CEQA. (PUC General Order (GO) 131-E)
- Requires the PUC, by January 1, 2024, to update the former GO 131-D to authorize IOUs to use the PTC process or claim an exemption under GO 131-D Section III(B) to seek approval to construct an extension, expansion, upgrade, or other modification to its existing electrical transmission facilities, including electric transmission lines and substations within existing transmission easements, rights of way, or franchise agreements, irrespective of whether the electrical transmission facility is above 200 kV. (PUC 564)
- Defines “reconductored with advanced conductors” as replacing the existing electric conductor with a conductor that has a direct current electrical resistance at least 10 percent lower than existing conductors of a similar diameter on the system and may include rebuilding support structures or other associated facilities. (PUC 454.58)
THIS BILL:
- Exempts from CEQA a project that consists of the inspection, maintenance, repair, restoration, reconditioning, reconductoring with advanced conductors, replacement, or removal of a transmission wire or cable used to conduct electricity or other piece of equipment that is directly attached to the wire or cable and that meets both of the following:
- The project is undertaken within an existing right-of-way. For a project undertaken within a private right-of-way, requires the project applicant to obtain permission from the underlying property owner.
- The project applicant enters into a legally binding agreement to restore the right-of-way to its condition before the commencement of the project.
- Requires the lead agency to file a notice of exemption with the Office of Land Use and Climate Innovation and with the county clerk in each county in which the project is located.
- Makes related findings.
FISCAL EFFECT: Unknown
COMMENTS:
- Background. CEQA provides a process for evaluating the environmental effects of applicable projects undertaken or approved by public agencies. If a project is not exempt from CEQA, an initial study is prepared to determine whether the project may have a significant effect on the environment. If the initial study shows that there would not be a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows that the project may have a significant effect on the environment, the lead agency must prepare an EIR.
Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact expected to result from the proposed project, identify mitigation measures to reduce those impacts to the extent feasible, and evaluate a range of reasonable alternatives to the proposed project. Prior to approving any project that has received environmental review, an agency must make certain findings. If mitigation measures are required or incorporated into a project, the agency must adopt a reporting or monitoring program to ensure compliance with those measures.
Electrical transmission line projects are eligible for a number of CEQA exemptions pursuant to the CEQA Guidelines and GO 131-E. Only larger, high-voltage projects over 200 kV, which also require a CPCN, are consistently subject to complete CEQA review, including an EIR. According to PUC data, from 2012 to 2023, 608 projects have been exempted from CEQA, 29 projects have been approved via negative declaration, and 27 have required an EIR.
GO 131-E specifically addresses the procedures to be followed in applications for siting of electric transmission infrastructure. GO 131-E establishes the distinction in the levels of review based on the voltage level of the project (under 50 kV, 50 to 200 kV, and above 200 kV) as described above. The PUC reviews permit applications under two concurrent processes: (1) an environmental review pursuant to CEQA, and (2) the review of project need and costs pursuant to PUC 1001 and GO 131-E.
Prior to adoption of the predecessor to GO 131-E (GO 131-D) in 1994, the construction of projects below 200 kV did not require utilities to obtain a permit. In GO 131-D, the PUC lowered that threshold to 50 kV, requiring most projects rated between 50-200 kV to obtain PTC.
SB 529 (Hertzberg), Chapter 357, Statutes of 2022, directed the PUC to revise GO 131-D to authorize a utility to use the PTC process or claim an exemption to seek approval to construct an extension, expansion, upgrade, or other modification to its existing transmission facilities regardless of the voltage level. In May 2023, the PUC opened a rulemaking to solicit comments that would revise the GO 131-D rules.
On January 30, 2025, the PUC adopted GO 131-E, replacing the previous GO 131-D. The new order establishes updated rules for the permitting, approval, and construction of electric transmission lines, substations, and generation facilities. It also clarifies and streamlines the regulatory process. Some of these reforms include:
- Allow applicant-prepared draft CEQA documents: Applicants may submit draft CEQA documents alongside their applications, providing an alternative pathway that can accelerate environmental review. This approach reduces duplication and allows applicants to complete much of the required analysis in advance, streamlining the overall permitting process.
- Require pre-filing consultation: Applicants are now required to meet with PUC staff at least six months before submitting their applications. This early engagement is intended to clarify requirements, address potential issues in advance, and support a more efficient and coordinated review process.
- Authorize pilot program to explore faster CEQA review: A pilot program will be created to track PUC CEQA review timelines and explore the potential for a faster CEQA review process for certain electric transmission projects.
- Implement presumption of need for projects: A “rebuttable presumption” will be implemented when the California Independent System Operator (CAISO) transmission planning process has already determined that a project is needed. This would streamline the CEQA review by removing CEQA’s alternative analyses for projects already determined to be needed by the CAISO.
According to the PUC, GO 131-E exempts certain upgrades or modifications from PUC permitting (CPCN or PTC) under Section III.B.1 and III.B.2, but it does not provide a CEQA exemption. Utilities must still separately assess CEQA applicability. As a result, many reconductoring and replacement projects, particularly those in environmentally sensitive areas, remain subject to CEQA review today even if exempt from PUC permitting.
SB 1006 (Padilla), Chapter 597, Statutes of 2024, requires each transmission-owning utility to periodically study (1) the feasibility of using "grid-enhancing technologies" (GETs) and (2) the potential to reconductor its transmission lines with advanced conductors.
- Author’s statement:
In 1970, California was one of the first states to officially create statutory schemes for protecting endangered wildlife and environments. The benefits we all have enjoyed because of these protections are indisputable. Fast forward to today and the world is confronted with an unprecedented environmental catastrophe – climate change. The environmental protections that were designed to limit and slow the pace of building things are now impacting the pace of building the things we desperately need in order to transition to a carbon free economy. Many well intended protections of species and the environment are now overly time consuming, opaque, confusing, and seem to favor process over outcomes. Without question, some of these complexities are warranted. But for certain types of projects, it is questionable whether or not the benefits continue to outweigh the negative impacts like project delays and cost overruns. AB 854 is a narrowly tailored set of commonsense reforms that prioritize positive outcomes over process. It accelerates the development of critical energy and infrastructure projects while maintaining the species and environmental protections Californians have enjoyed for decades. California has set ambitious carbon reduction goals. It is incumbent on us to show the world that transitioning from a fossil-based economy to a net-zero carbon economy is possible.
- Suggested amendments. In order to focus this bill more precisely on advanced reconductoring of existing transmission lines on non-sensitive lands, and support implementation of the forthcoming GETs strategic plans, the author and the committee may wish to consider the following amendments:
- Limit to reconductoring projects approved by the PUC.
- Exclude projects on sensitive sites, including state parks and wilderness areas; national parks, wilderness, and recreation areas; and habitation/conservation lands.
- Exclude projects adversely impacting historical and tribal cultural resources.
- Limit right-of-way width to 200 feet.
- Sunset January 1, 2031.
- Double referral. This bill has been double-referred to the Utilities and Energy Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
AES Corporation
American Clean Power - California
Arevon
Aypa Power Development
California Council for Environmental and Economic Balance
California Energy Storage Alliance
California Wind Energy Association
Independent Energy Producers Association
Intersect Power
Large-scale Solar Association
Leeward Renewable Energy
Solar Energy Industries Association
Opposition
Anza-Borrego Foundation
Audubon California
California Native Plant Society
Center for Biological Diversity
Defenders of Wildlife
Planning and Conservation League
Analysis Prepared by: Lawrence Lingbloom / NAT. RES. /
Bill Author
Bill Co-Author(s):