SB71 - California Environmental Quality Act: exemptions: transit projects.

Senate Bill No. 71 CHAPTER 742 An act to amend Sections 21080.20 and 21080.25 of the Public Resources Code, relating to environmental quality. [ Approved by Governor October 13, 2025. Filed with Secretary of State October 13, 2025. ] LEGISLATIVE COUNSEL'S DIGEST SB 71, Wiener. California Environmental Quality Act: exemptions: transit projects. 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, until January 1, 2030, exempts from its requirements active transportation plans, pedestrian plans, or bicycle transportation plans for the restriping of streets and highways, bicycle parking and storage, signal timing to improve street and highway intersection operations, and the related signage for bicycles, pedestrians, and vehicles. This bill would extend the operation of the above-mentioned exemption indefinitely. The bill would also exempt a transit comprehensive operational analysis, as defined, a transit route readjustment, or other transit agency route addition, elimination, or modification, from the requirements of CEQA. Because a lead agency would be required to determine whether a plan qualifies for this exemption, the bill would impose a state-mandated local program. CEQA, until January 1, 2030, exempts from its requirements certain transportation-related projects, such as pedestrian and bicycle facilities, transit prioritization projects, public projects located on a site that is wholly within the boundaries of an urbanized area or urban cluster, as provided, for the institution or increase of bus rapid transit, bus, or light rail service, including the construction or rehabilitation of stations, terminals, or existing operations facilities, and public projects for the construction or maintenance of infrastructure of facilities to charge, refuel, or maintain zero-emission public transit buses, trains, or ferries, as provided. CEQA requires, except as provided, those exempted projects to be carried out by a local agency and meet certain requirements, including certain labor requirements. This bill would extend the operation of the above-mentioned exemption until January 1, 2040. The bill would exempt from the requirements of CEQA a public project for the protection and improvement of bus rapid transit, bus, or light rail service, including the protection, operation, and maintenance, public projects for the protection, improvement, institution, or increase of microtransit, paratransit, shuttle, and ferry, and for the protection, maintenance, construction, operation, or rehabilitation of stops that will be exclusively used by zero-emission, near-zero-emission, low oxide of nitrogen engine, compressed natural gas fuel, fuel cell, or hybrid powertrain vehicles, rail or cable cars, rolling stock, or vessels. The bill would, until January 1, 2032, exempt from the requirements of CEQA a public project for the protection, improvement, institution, or increase of microtransit, paratransit, shuttle, bus, ferry, bus rapid transit, or light rail service, including the protection, maintenance, construction, operation, or rehabilitation of stops, stations, terminals, or existing operations facilities, if used primarily by near-zero-emission, low oxide of nitrogen engine, compressed natural gas fuel, or hybrid powertrain vehicles, except as provided. The bill would exclude from this exemption certain public projects for the construction or rehabilitation of a ferry terminal, as provided, and, except as provided, public projects for transit services operated by a transportation network company, as defined. Because a lead agency would be required to determine whether a project qualifies for this exemption, the bill would impose a state-mandated local program. CEQA exempts from its requirements a project that consists exclusively of a combination of any of the components of specified transportation-related projects. This bill would extend the operation of the above-mentioned exemption until January 1, 2040. The bill would, until January 1, 2040, exempt from the requirements of CEQA a project that combines any of those specified transportation-related projects and a housing development project that is either subject to a nondiscretionary approval or is exempt from CEQA, as provided. Because a lead agency would be required to determine whether a project qualifies for this exemption, the bill would impose a state-mandated local program. Existing law exempts from the requirements of CEQA public projects for the institution or increase of passenger rail service, other than light rail service that is eligible for a specified exemption, including the construction or rehabilitation of stations, terminals, or existing operations facilities, which will be exclusively used by zero-emission trains. This bill would extend the operation of the above-mentioned exemption until January 1, 2040. The bill would exempt from the requirements of CEQA public projects for the improvement of passenger rail service, other than light rail service eligible for a specified exemption, including the maintenance of stations, terminals, or existing operations facilities, which will be exclusively used by zero-emission trains, public projects for the maintenance, construction, or rehabilitation of stations, terminals, or existing operations facilities which will be exclusively used by zero-emission certified Tier 4 or cleaner rolling stock or locomotives, as provided. The bill would exclude from this exemption public projects located in certain air basins for the maintenance, construction, or rehabilitation of stations, terminals, or existing operations facilities that will be used by certified Tier 4 or cleaner rolling stock or locomotives that are not zero-emission rolling stock or locomotives. Because a lead agency would be required to determine whether a project qualifies for this exemption, the bill would impose a state-mandated local program. Existing law requires certain CEQA-exempt projects exceeding specified dollar amounts to meet certain criteria, as provided. This bill would instead require certain CEQA-exempt projects that are, based on the project engineer’s cost estimate, anticipated to exceed a specified dollar amount, to meet certain criteria, as provided. The bill would require the Office of Land Use and Climate Innovation, beginning January 1, 2026, and every two years thereafter, to adjust these amounts to reflect changes in the Consumer Price Index, as provided, and publish the updated amounts on its internet website. The bill would authorize the Office of Land Use and Climate Innovation to implement, interpret, or make specific that provision without taking any regulatory action. This bill would declare that its provisions are severable. 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. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 21080.20 of the Public Resources Code is amended to read: 21080.20. (a) (1) (A) This division does not apply to an active transportation plan, a pedestrian plan, or a bicycle transportation plan for the restriping of streets and highways, bicycle parking and storage, signal timing to improve street and highway intersection operations, and the related signage for bicycles, pedestrians, and vehicles. (B) This division does not apply to a transit comprehensive operational analysis, transit route readjustment, or other transit agency route addition, elimination, or modification. (2) An active transportation plan or pedestrian plan is encouraged to include the consideration of environmental factors, but that consideration does not inhibit or preclude the application of this section. (3) An individual project that is a part of an active transportation plan, pedestrian plan, or transit comprehensive operational analysis remains subject to this division unless another exemption applies to that project. (b) Before determining that a project described in subdivision (a) is exempt pursuant to this section, the lead agency shall hold noticed public hearings in areas affected by the project to hear and respond to public comments. Publication of the notice shall be no fewer times than required by Section 6061 of the Government Code by the public agency in a newspaper of general circulation in the area affected by the proposed project. If more than one area will be affected, the notice shall be published in the newspaper of largest circulation from among the newspapers of general circulation in those areas. (c) If a local agency determines that a project is not subject to this division pursuant to this section and it determines to approve or carry out that project, the notice shall be filed with the Office of Land Use and Climate Innovation and the county clerk in the county in which the project is located in the manner specified in subdivisions (b) and (c) of Section 21152. (d) For purposes of this section, the following definitions apply: (1) “Active transportation plan” means a plan developed by a local jurisdiction that promotes and encourages people to choose walking, bicycling, or rolling through the creation of safe, comfortable, connected, and accessible walking, bicycling, or rolling networks, and encourages alternatives to single-occupancy vehicle trips. (2) “Pedestrian plan” means a plan developed by a local jurisdiction that establishes a comprehensive, coordinated approach to improving pedestrian infrastructure and safety. (3) “Transit comprehensive operational analysis” means a plan that redesigns or modifies a transit operator’s or local agency’s public transit service network, including the routing of fixed route and microtransit services. SEC. 2. Section 21080.25 of the Public Resources Code is amended to read: 21080.25. (a) For purposes of this section, the following definitions apply: (1) “Affordable housing” means any of the following: (A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents or sales prices to levels affordable, as defined in Section 50052.5 or 50053 of the Health and Safety Code, to persons and families of moderate, lower, or very low income, as defined in Section 50079.5, 50093, or 50105 of the Health and Safety Code, respectively. (B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (C) Housing that had been occupied by tenants within five years from the date of approval of the development agreement by a primary tenant who was low income and did not leave voluntarily. (2) “Bicycle facilities” includes, but is not limited to, bicycle parking, bicycle sharing facilities, and bikeways as defined in Section 890.4 of the Streets and Highways Code. (3) “High-occupancy vehicle” means a vehicle with three or more occupants. (4) “Highway” means a way or place of whatever nature, publicly maintained and open to the use of the public for purposes of vehicular travel. “Highway” includes a street. (5) “Local agency” means a public transit operator, city, county, city and county, special district, joint powers authority, local or regional transportation agency, or congestion management agency. (6) “Part-time transit lanes” means designated highway shoulders that support the operation of transit vehicles during specified times and are not open to nonpublic transit vehicles at any time. (7) “Project labor agreement” has the same meaning as defined in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code. (8) “Public transit operator” has the same meaning as “operator” in Section 99210 of the Public Utilities Code, or means a public entity that provides contracted paratransit services. (9) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. (10) “Transit lanes” means street design elements that delineate space within the roadbed as exclusive to transit use, either full or part time. (11) “Transit prioritization projects” means any of the following transit project types on highways or in the public right-of-way: (A) Signal and sign changes, such as signal coordination, signal timing modifications, signal modifications, or the installation of traffic signs or new signals. (B) The installation of wayside technology and onboard technology. (C) The installation of ramp meters. (D) The conversion to dedicated transit lanes, including transit queue jump or bypass lanes, shared turning lanes and turn restrictions, the narrowing of lanes to allow for dedicated transit lanes or transit reliability improvements, or the widening of existing transit travel lanes by removing or restricting street parking. (E) Transit stop access and safety improvements, including, but not limited to, the installation of bus shelters, lighting, transit bulbs, and the installation of transit boarding landings and islands. (12) “Transportation demand management program” means a specific program of strategies, incentives, and tools to be implemented, including, with specified annual status reporting obligations, to reduce vehicle trips by providing opportunities for the public to choose sustainable travel options, such as transit, bicycle riding, or walking. A specific program of strategies, incentives, and tools includes, but is not limited to, any of the following: (A) Provision of onsite electric vehicle charging stations in excess of applicable requirements. (B) Provision of dedicated parking for car share or zero-emission vehicles, or both types of vehicles, in excess of applicable requirements. (C) Provision of bicycle parking in excess of applicable requirements. (b) This division does not apply to any of the following projects: (1) Pedestrian and bicycle facilities that improve safety, access, or mobility, including new facilities, within the public right-of-way. (2) Projects that improve customer information and wayfinding for transit riders, bicyclists, or pedestri [Text truncated for display. Full text available on Congress.gov.]