SB 954: California Environmental Quality Act: advanced manufacturing facilities: exemption.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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 it 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 defines various terms, including “natural and protected lands” for its purposes.

This bill would revise the definition of that term to include habitats for protected species identified as candidate, sensitive, or species of special status by state or federal agencies.

CEQA exempts from its requirement projects that consist exclusively of a day care center that is not located in a residential area and projects that consist exclusively of an advanced manufacturing facility located on a site zoned exclusively for industrial uses.

This bill would additionally exempt projects consisting exclusively of a family day care home, as defined. The bill would, for the exemption for the day care center and family day care home, instead require the projects for those facilities not be located in an area zoned for industrial use or within 3,200 feet of a facility that actively extracts or refines oil or natural gas in order for the exemption to apply. The bill would revise the exemption for advanced manufacturing facility projects to require those projects to be used exclusively for final tier manufacturing, as defined. The bill would require an applicant of an advanced manufacturing project that is exempted from CEQA under the bill’s requirement to enter into a bona fide community benefits agreement, as provided, and to comply with certain labor requirements, as provided. The bill would require the lead agency, before determining that an advanced manufacturing project is exempt from CEQA, to hold at least one public hearing on the project and to ensure that the applicant complies with the requirement to enter into a bona fide community benefits agreement and the labor requirements.

CEQA exempts from its requirements a rezoning that implements the schedule of actions contained in an approved housing element. CEQA specifies that this exemption does not apply to a rezoning that would allow for the construction of certain facilities, including oil and gas infrastructure. CEQA also specifies that this exemption does not apply rezoning that would allow for construction to occur within the boundaries of any natural and protected lands, except as provided.

Sponsors

Sponsors by party (alphabetical): Democratic 17

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 18, 2026In Senate. Consideration of Governor's veto pending.
2. September 18, 2026Vetoed by the Governor.
3. September 4, 2026Enrolled and presented to the Governor at 2 p.m.
4. August 28, 2026Assembly amendments concurred in. (Ayes 28. Noes 10.) Ordered to engrossing and enrolling.
5. August 27, 2026In Senate. Concurrence in Assembly amendments pending.
6. August 26, 2026Read third time. Passed. (Ayes 50. Noes 17. Page 6623.) Ordered to the Senate.
7. August 21, 2026Ordered to third reading.
8. August 21, 2026Read third time and amended.
9. August 21, 2026Assembly Rule 69(b)(1) suspended. (Ayes 55. Noes 17. Page 6296.)
10. August 17, 2026Read second time. Ordered to third reading.
11. August 13, 2026Read second time and amended. Ordered to second reading.
12. August 13, 2026From committee: Do pass as amended. (Ayes 11. Noes 4.) (August 13).