California’s Key Environmental Law Is Blocking Its Path to Carbon Neutrality
September 22, 2025
Op-ed: New reforms could align CEQA’s environmental protections with our urgent housing and climate goals.
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California environmentalism is at a crossroads in 2025. Despite decades of leadership on clean energy and vehicle standards, the state is falling far short of its carbon reduction goals. The reason isn’t just smokestacks or tailpipes; it’s our land use.
The way we build housing dictates how much we drive, how much energy we use and how much open space we consume. The State of California’s own research indicates that our only viable path to carbon neutrality by 2045 is to build significantly more housing in walkable, transit-rich locations.
Yet even when cities have planned for this, many climate-friendly housing projects have stalled for years or been killed altogether because of California’s most important environmental law.
The California Environmental Quality Act (CEQA) was established in 1970 to illuminate the environmental impacts of major development projects. In the postwar boom, California built $10.5 billion worth of freeways in addition to “sixteen dams, eighteen pumping stations, nine power generating plants, and hundreds of miles of aqueducts, canals, and levees.”
For decades, many of these public works projects ran roughshod over the environment and vulnerable communities. That’s why environmental and community planners welcomed CEQA as an essential safeguard against industrial polluters, sprawling subdivisions and highway expansion. Environmentalists cheered when CEQA expanded discretionary approval beyond public projects also to include private development, strengthening the best tool to defend the environment from harmful development.
CEQA was a vital law for its time. Yet it is now clear that California cannot meet the contemporary challenge of climate change if the law remains unchanged. For decades, environmental progress in California has meant adding new protections and review processes. Yet today, the bigger challenge is that some of these same regulations now delay and block environmentally-friendly projects.
This is evident in California cities. Despite local governments planning and zoning for denser housing, many modest infill housing projects were still subject to review under CEQA, a process that is both redundant and actively harmful. Across the state, opponents of housing have routinely weaponized CEQA, not for concerns over the environment, but instead to protect parking or neighborhood aesthetics.
The result? CEQA ultimately preserves the high-carbon, sprawling status quo at the expense of low-carbon, walkable cities.
In Los Angeles, where we live, there are countless examples of CEQA abuse. Lorena Plaza, a 44-unit affordable housing development next to a light-rail station, took 18 years to complete. Why would a project that both advances California’s climate goals and allows working-class families to live near clean transportation be so comically delayed? A CEQA lawsuit initiated by a neighboring business offers one explanation. The suit was eventually dismissed, but not before years of delay and millions in costs.
Across California, infill housing projects designed to be climate-friendly have consistently faced the risk of lawsuits under CEQA. In 2022, CEQA was used to block UC Berkeley from building new housing for students, with the court initially siding with the neighbors against the university on the grounds that living next to college students could be considered a form of pollution.
Consider that in San Francisco and Santa Monica – two prominent, progressive and self-described climate-friendly cities — nearly all new housing developments face some form of discretionary review, leaving projects vulnerable to CEQA lawsuits that delay housing for years.
Cases like these slow both climate action and housing production. Examining census data on the age of housing units in Los Angeles, we observe that between the ‘50s and the ‘80s, the city added between 166,000 and 250,000 homes per decade. Since 1990, that number has dropped to fewer than 100,000 homes per decade.
The City of Los Angeles Housing Needs Assessment acknowledges that “the percentage of housing built in the 1990s and 2000s is the lowest of any decade,” based on this data from the US Census Bureau’s American Community Survey 2014-2018. Estimates from 2010 onward have been updated since this chart’s publication.
When we fail to build housing adjacent to transit in Los Angeles, would-be residents are forced to look elsewhere. Between 1990 and 2020, California built almost 45% of its new homes in the wildland-urban interface — a staggering 1.4 million homes in the fire-prone areas where residential neighborhoods abut chaparral, deserts, forests and grasslands. Located at the metropolitan edge, these ‘exurbs’ destroy habitats, increase driving and pollution, and expose residents to increasing wildfire threats.
This exurban migration is not due to preference; there is still a very high demand to live in Los Angeles. Instead, it is simply too hard to build new, walkable, transit-oriented housing in California cities at affordable prices. Unless we remove needless procedural hurdles and the threat of costly litigation, this will only worsen.
This summer, California took a critical step to address the problem. Assembly Bill 609, which exempts infill housing from duplicative CEQA review when projects already conform to local plans and zoning, was incorporated into Assembly Bill 130, a budget trailer bill. It passed the Assembly and Senate and was signed into law by Gov. Gavin Newsom on June 30. This new law allows cities to deliver climate-friendly housing without years of costly bureaucracy and litigation.
This reform doesn’t weaken necessary environmental protections. It directs CEQA where it’s most needed and removes barriers to projects that reduce emissions, limit sprawl and support sustainable transportation.
CEQA has never been an ideal tool to protect communities, especially in lower-income neighborhoods where organizing capacity is limited. It has prevented certain harmful projects, but its reliance on private lawsuits makes it easy to abuse and inconsistent as a safeguard. Many of CEQA’s “bundled” considerations — such as shadows, traffic or historic preservation — are better addressed in proactive planning.
If the goal is to uphold the precautionary principle, there may be more effective ways to do it: strengthening pollution control laws, empowering public agencies to review impacts proactively, and ensuring enforcement is equitable and consistent. That would allow CEQA to return to its core purpose — without becoming a catch-all veto that slows climate action.
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Thomas Irwin is an economic development professional and lead organizer at Eastside Housing for All. You can find his writing at The Pontification on Substack.com.
Awoenam Mauna-Woanya is an urbanist, organizer for Sunrise Movement LA and Urban Environmentalists LA, and podcast host for Fostering Our Earth.
Christopher Rhie is an urban planner and sustainability strategist at Buro Happold. With a background in public policy, urban design, and environmental management, Christopher has extensive experience with the development of sustainability and climate action plans for city and county governments, as well as colleges and universities across the United States.
Christopher K. Tokita is an ecologist and data scientist who sits on the Board of Directors for Abundant Housing LA, a pro-housing advocacy nonprofit.
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