blog home Civil Litigation CEQA Reforms and Their Impact on Property Development in California

CEQA Reforms and Their Impact on Property Development in California

By Peterson Law Group on May 11, 2025

In California, land use and development are deeply intertwined with environmental oversight. For decades, the California Environmental Quality Act (CEQA) has served as a gatekeeper for new development, requiring environmental review before projects can proceed.

While CEQA has played a critical role in preserving California’s natural resources, it has also been criticized for enabling litigation that slows or blocks housing, infrastructure, and commercial growth.

In response to mounting pressure to address the state’s housing crisis and climate goals, CEQA reforms in California 2024 have introduced significant changes. For developers, local governments, and property owners, understanding these reforms and their legal implications is now essential to navigating the real estate landscape.

At Peterson Law Group PC, we have decades of experience advising clients on land use regulation, environmental compliance, and development disputes across California. Whether you’re a developer pursuing a large-scale project or a property owner facing environmental challenges, we provide strategic guidance to ensure legal compliance and forward momentum.

What Is the CEQA?

The California Environmental Quality Act (CEQA) was enacted in 1970 to ensure that public agencies and developers assess and disclose the environmental impacts of proposed projects. CEQA applies broadly to private and public undertakings that require discretionary approval from a government agency.

Key components of CEQA include:

• Initial Study (IS) to determine potential impacts
• Negative Declaration (ND) or Mitigated Negative Declaration (MND) if impacts can be avoided
• Environmental Impact Report (EIR) for projects with significant environmental effects
• Public review, agency findings, and mitigation measures

Why the 2024 Reforms Matter

The CEQA has become a legal and procedural barrier to urgently needed development. In 2024, California enacted several legislative and administrative reforms aimed at streamlining CEQA procedures and limiting abuse. These 2024 California CEQA reforms include:

Expedited Judicial Review

SB 149 and related measures accelerate judicial review timelines for qualifying infrastructure, housing, and clean energy projects. Courts now face stricter deadlines to resolve CEQA lawsuits, which is critical for reducing costly delays.

Exemptions for Certain Housing Projects

Projects that meet specific infill, affordability, and zoning standards may now qualify for CEQA exemptions or streamlined processing under AB 2011 and SB 35. This allows shovel-ready housing to move forward without lengthy environmental reports.

Digital Filing and Transparency Requirements

To modernize CEQA administration, reforms now require agencies to post documents online and maintain searchable public records. This shift promotes transparency but also raises the bar for procedural compliance.

Guidance on Climate Change and GHG Mitigation

The California Natural Resources Agency has updated CEQA Guidelines to include a more rigorous analysis of greenhouse gas emissions, climate resiliency, and energy impacts. Projects must now show alignment with the state’s climate goals, including reductions in vehicle miles traveled (VMT).

These reforms reshape how developers, planners, and agencies must approach environmental regulations in project design and approval.

Implications for Property Development

The 2024 CEQA reforms have wide-ranging consequences for property development in California. While they open the door to faster approvals in some cases, they also heighten scrutiny in others. Here’s how different stakeholders are affected:

For Developers

CEQA exemptions for certain housing projects reduce the burden for infill and affordable housing. But the reforms also tighten review for climate impacts and increase enforcement for procedural missteps. Developers must ensure:

• Eligibility for CEQA streamlining or exemption is thoroughly documented;
• GHG and climate risk analyses are included where applicable;
• Project files are digitally accessible and properly maintained.

For Local Governments

Agencies now face stricter timelines for review and litigation. They also bear increased responsibility for managing public comment processes online and applying new climate-related CEQA standards. Local governments must balance speed with legal compliance to avoid reversal in court.

For Landowners

Property owners looking to sell, subdivide, or improve land must account for CEQA impacts at an earlier stage, especially if the property is near sensitive environmental areas or in wildfire risk zones. Consulting with land use counsel early in the process is more important than ever.

Risks and Opportunities

The new CEQA framework presents both opportunities and risks. While procedural streamlining can reduce delays, legal challenges remain a powerful tool for opponents to stall projects. Common CEQA-related legal pitfalls include:

• Improper exemptions: Projects misclassified as exempt may face reversal and delays.
• Inadequate impact analysis: Failure to evaluate climate, water, or cultural impacts invites litigation.
• Incomplete mitigation: Weak or unenforceable mitigation measures fail to meet CEQA’s legal thresholds.
• Public comment violations: Digital notice and comment procedures must be carefully executed to avoid procedural invalidation.

At Peterson Law Group PC, we help clients reduce these risks by ensuring that CEQA documentation is thorough, legally sound, and strategically structured. Our attorneys provide pre-project legal assessments, advise during EIR preparation, and represent clients in administrative and judicial proceedings.

Compliance Tips Under CEQA 2024

To succeed under the new CEQA landscape, property developers and landowners should adopt proactive strategies:

Start with Legal Review

Have experienced CEQA counsel assess whether your project qualifies for streamlining, exemption, or requires an EIR. Early guidance can prevent expensive mistakes.

Engage Technical Experts

Work with environmental consultants, traffic engineers, and biologists to prepare robust studies aligned with updated CEQA standards, especially for climate impact and VMT metrics.

Maintain Digital Records

Ensure all notices, studies, and comment responses are accessible online, as required by recent reforms. This transparency is now a legal necessity.

Prepare for Litigation

Even with reforms, CEQA lawsuits remain common. That’s why you’ll want to have a litigation strategy in place before the project is approved, including timelines and expert declarations ready to support your case.

How CEQA Intersects with Other Laws

CEQA doesn’t exist in a vacuum. It overlaps with:

• The Coastal Act in coastal zones;
• The Subdivision Map Act for parcel development;
• SB 375 and local General Plans related to climate and transportation planning;
• Endangered Species Act compliance for protected habitat.

At Peterson Law Group PC, we integrate CEQA analysis with these overlapping frameworks to provide clients with a comprehensive risk assessment and path forward.

Reasons to Choose Peterson Law Group PC?

For more than three decades, Peterson Law Group PC has been a leader in land use litigation, environmental law, and property rights advocacy in California. Led by John S. Peterson, our firm has been recognized by Best Lawyers, and John is a proud member of the Multi-Million Dollar Advocates Forum.

We assist clients at every stage, from project concept and permitting to defense against CEQA challenges. Whether you’re a developer navigating CEQA reforms or a landowner seeking clarity on how environmental laws affect your plans, our team offers experienced, strategic representation.

Contact an Experienced California Property Development Attorney Today

The 2024 CEQA reforms may open new doors for your property development goals, but they also come with new legal expectations. At Peterson Law Group PC, we know how to help you move forward with confidence.

Contact our Los Angeles land use lawyers to learn more today: (213) 319-4993.