Archives: October 2025

California Legislature Relaxes CEQA Review for Transit-Oriented Housing Projects and Oil Drilling in Kern County

SB 79

SB 79 is intended to facilitate new high density housing developments near transit stops in an effort address the state’s housing shortages, reduce transportation costs and traffic congestion, and increase transit agencies’ funding sources. The new law allows transit-oriented housing developments in close proximity to transit stops to reach maximum heights up to 95 feet and allows up to 160 housing units per acre. Projects with more than 10 units must meet specified affordable housing requirements. Such projects will be eligible for streamlined ministerial approval, eliminating the need for local agencies to complete CEQA environmental review for the projects.

Similarly, SB 79 also applies these expanded height and density allowances to Agency Transit-Oriented Development for transit agency-owned real property on an infill site that is within ½ mile of a transit stop for which the transit agency operates service or plans to provide service. Fifty percent of the square footage of the Agency Transit-Oriented Projects must be dedicated to residential use and twenty percent of the total units must be restricted to affordable housing. Transit agencies may also adopt agency transit-oriented development zoning standards which shall not establish density standards that exceed 200 percent of the maximum density established in Government Code Section 65912.157. Adoption of these zoning standards is subject to CEQA review. Subsequent agency transit-oriented development projects, however, will not require CEQA environmental review unless there is substantial evidence that the project would have a significant effect on the environment that was not analyzed in a prior environmental document.

Local governments may enact an ordinance to make its zoning consistent with SB 79, so long as the ordinance provisions are objective and will not preclude SB 79’s development standards. Such an ordinance will be subject to review by the Department of Housing and Community Development. SB 79 also directs that each metropolitan planning organization shall create a map of transit-oriented development stops and zones within its region by tier, as designated by SB 79. Alternatively, a local agency may adopt a transit-oriented development alternative plan in an agency’s housing element to achieve compliance with SB 79.

SB 237

On September 19, 2025, the Governor signed SB 237 into law. In addition to several oil and gas provisions, SB 237 declared that the Kern County Supplemental Recirculated Environmental Impact Report for the Kern County Zoning Ordinance Focused on Oil and Gas Local Permitting is compliant with CEQA and no further environmental review is required. Accordingly, any projects that satisfy the requirements of the Oil and Gas Zoning Ordinance are deemed sufficient for full compliance with CEQA and will not require further environmental review. SB 237 applies prospectively to any new project applications to the County of Kern, and prospectively and retrospectively to any pending causes of action. While the Bill restricts new drilling in health protection zones as defined by Section 3280, the Bill allows for up to 2000 new oil wells per year in Kern County until 2036.

– Sara Helms

Fifth District Strikes Down SWRCB’s New Whole Effluent Toxicity Test as Applied to Federal Clean Water Act Permitting, But Upholds Toxicity Provisions’ Under CEQA and Porter-Cologne

In Camarillo Sanitary District v. State Water Resources Control Board (2025) 113 Cal.App.5th 407, the Fifth District Court of Appeal held that the State Water Resources Control Board’s (SWRCB’s) new effluent toxicity testing provisions complied with state law, including CEQA, but violated the federal Clean Water Act (CWA).

Background

Following dissatisfaction with existing whole effluent toxicity testing, the SWRCB adopted new toxicity provisions based on the EPA’s Test of Significant Toxicity, aiming to improve precision, reduce false positives or negatives, and encourage a higher quality and quantity of test data. The new provisions applied both to the waters of the United States and the surface waters of the state. As a result, entities regulated under the National Pollutant Discharge Elimination System (NPDES) were now required to obtain permits subject to the requirements of the provisions.

A group of entities subject to the new toxicity provisions challenged the provisions and the Test of Significant Toxicity, claiming the Test of Significant Toxicity was not an approved method under federal law, that the toxicity provisions were not legally authorized, and that SWRCB violated CEQA in adopting them. The trial court denied the writ. The plaintiffs appealed.

Court of Appeal’s Decision

New Test Not Allowed Under Clean Water Act

Whole effluent toxicity testing seeks to determine the overall toxicity of water by taking a broader approach in testing water pollutants and measuring the overall toxicity of a discharge based on its effect on biological organisms. Even when all individual pollutant limits are met, the tested water may still be toxic based on a combination of pollutants or because it contains substances not yet found to be toxic. The CWA’s approved tests provide two “statistical endpoints” to measure if water is toxic: (1) the no observed effect concentration—which measures the highest concentration with no harmful effects; and (2) the 25 percent inhibition concentration—which identifies the concentration that causes a 25 percent reduction in organism growth or reproduction. However, SWRCB’s new Test of Significant Toxicity labeled water as toxic if test organisms showed 75 percent or less survival, growth, or reproduction compared to a control sample.

The Fifth District held the Test of Significant Toxicity cannot be utilized in NPDES permitting to measure whole effluent toxicity because it is inconsistent with the CWA and fundamentally changed what qualified as toxic water. According to the court, this new definition of toxicity was inconsistent with outcomes from the existing CWA tests. As NPDES permitting is governed by the CWA, which sets a regulatory “floor” for water pollution standards, the court determined this was improper.

State Water Law and Administrative Procedure Act Claims

While the court determined that the new Test of Significant Toxicity could not be used for NPDES permitting, it also reviewed the Toxicity Provisions’ adoption as a state water policy and held that it was compliant with state law, including the Porter-Cologne Water Quality Control Act and the California Administrative Procedure Act.

SWRCB Satisfied CEQA

Appellants argued that SWRCB incorrectly utilized a substitute CEQA document under its certified regulatory program instead of preparing an EIR. The court disagreed. Under Public Resources Code section 21080.5, subdivision (a), when a certified regulatory program requires documentation containing environmental information, that documentation may be used in place of an EIR, provided the program has been certified by the Secretary of the Natural Resources Agency. The program at issue was the “Water Quality Control (Basin)/208 Planning Program of the State Board and the Regional Water Quality Control Boards,” which was adopted and certified to support the ongoing development and updating of Regional Water Quality Control Plans to reflect evolving state policies aimed at protecting water quality.

Appellants’ argument hinged on the inclusion of “basin” within the program’s title, contending that the program only applied to basin planning rather than broader water quality control actions. Rejecting this interpretation, the court found the language was broad enough to cover the entire state water quality control planning process.

Appellants also argued the environmental document failed to adequately consider and mitigate potentially significant impacts of the Toxicity Provisions’ adoption. The court again disagreed, holding that SWRCB satisfied the requirements of CEQA. Since the regulations did not specify the actual compliance methods that permittees were required to use, the analysis was of a “general, programmatic nature.” Although no quantitative analysis was conducted regarding the implementation of specific toxicity controls as that approach was deemed too speculative by SWRCB, it concluded that the major category of reasonably foreseeable methods of compliance would be “an increase in monitoring, testing, and laboratory analysis.”

Additionally, though SWRCB found the choices of future toxicity controls to be speculative and not reasonably foreseeable, it still discussed the potential impacts of possible toxicity controls and provided an environmental checklist in its analysis. SWRCB ultimately concluded that compliance with the toxicity provisions was projected to have a potentially significant impact on agricultural and forestry resources. These conclusions were followed by a detailed discussion of the provisions’ expected impacts and related mitigation.

The court found that this analysis sufficiently discussed the degree of uncertainty, reasonably foreseeable alternatives, significant foreseeable environmental effects, and the effects of mitigation efforts. A more detailed disclosure of impacts and mitigation efforts was not required since the exact parameters of generally foreseeable future actions could not reasonably be predicted. Further, even if the court found SWRCB’s conclusion improper, the environmental checklist met the disclosure requirements for generally foreseeable impacts that cannot be accurately predicted.

– Sara Helms