CEQA Reform Deserved Transparency, Not a Backroom Deal

By Marcel Rodarte- Executive Director of California Contract Cities Association

Californians understand we’re facing a crisis in housing. Our cities are ready to be partners in solving it. But process matters. Transparency matters. And when legislation that dramatically reshapes how California reviews and approves housing developments is rushed through without public input, it undermines trust and risks long-term consequences.

That’s why the California Contract Cities Association (CCCA), which represents 80 cities across Southern California and over 7.5 million residents, was sounding the alarm on how Assembly Bill 130 was pushed through the legislature. Let me be clear: we were not opposed to AB 130 in its entirety, nor did we oppose the notion of reform of the California Environmental Quality Act, or CEQA.

Our member cities broadly support responsible efforts to streamline housing approvals and reduce red tape that delays desperately needed homes. What we opposed, firmly, was the last-minute insertion of sweeping CEQA reform language drawn from Assembly Bill 609 (Wicks) into AB 130, a budget trailer bill. This maneuver effectively circumvented the legislative process, bypassing public hearings, stakeholder consultation and committee deliberation. It was a textbook example of governance done in the shadows.

These CEQA provisions in question were no minor adjustment. They will significantly expand California’s infill exemption by allowing housing developments on parcels of up to 20 acres to skip environmental review under CEQA, so long as they meet certain criteria. For cities and local governments, this change will alter how entire neighborhoods are developed, how infrastructure is planned, and how community voices are heard. But rather than allow AB 609 to proceed through the normal policy process where lawmakers, city officials, housing advocates, environmental experts and the public could weigh-in, the bill’s language was inserted into AB 130 at the eleventh hour, days before the 2025–26 budget deadline. To make matters worse, the budget itself was made contingent on passage of this policy change through a “poison pill”clause: if the CEQA trailer bill didn’t pass, the state budget would effectively be nullified.

That now sets a dangerous precedent.

As an organization that has worked for more than 65 years to advocate for collaborative governance, CCCA believes that structural changes of this magnitude demand stakeholder engagement. Local governments sit on the frontlines where housing policy meets community reality. They are the ones responsible for implementing these laws. Yet, they and millions of Californians they serve were given no meaningful opportunity to review or shape the policy before it became law.

We recognize the frustration surrounding CEQA. Yes, the law has sometimes been misused to delay needed housing. But it has also protected communities from environmental harm, given residents a voice in development and ensured thoughtful planning for infrastructure, public safety and sustainability. To strike the right balance, we need deliberation, data and public trust.

Lawmakers themselves have expressed discomfort with how this was handled. Legislators criticized the lack of transparency, and union leaders called the process “the most outrageous abuse” they’d seen. Environmental justice groups, housing experts and local government advocates were all blindsided. That’s not just an optics problem, it’s a substantive failure of inclusive governance.

Moreover, using the budget process as a vehicle for controversial policy shifts undermines legislative norms. It reduces public confidence in government and invites backlash, even on well-intentioned ideas. We at the Contract Cities Association urge Sacramento to do better. CEQA reform was a conversation worth having — out in the open. We preferred AB 609 proceed through the standard legislative route. Allowing cities to bring their experience to the table. Letting environmental, housing, labor and community voices be heard.

That’s how we build a durable policy. That’s how we build trust.

Marcel Rodarte is the executive director of California Contract Cities Association (CCCA), an organization representing over 80 cities throughout Los Angeles County and the Inland Empire.