Bill
SB 954
SB 954 creates CEQA exemptions for advanced manufacturing with Governor-certified environmental leadership standards, plus enforceable community benefits and labor protections.
Purpose and main intent
- SB 954 aims to modify California’s Environmental Quality Act (CEQA) exemptions and create a new framework to streamline certain advanced manufacturing projects.
- The bill seeks to encourage advanced manufacturing, reduce environmental impacts through modern standards, and add conditions and oversight intended to ensure community benefits and labor protections.
Key provisions and changes
- Redefinition of natural and protected lands (Section 21067.5)
- Expands the definition to include habitats for protected species identified as candidate, sensitive, or species of special status by state or federal agencies.
- New and expanded CEQA exemptions
- Advanced manufacturing facilities: Adds an exemption for projects that constitute an advanced manufacturing facility located on land zoned exclusively for industrial uses, with added requirements (e.g., Governor certification).
- Day care-related exemptions: Exempts day care centers and family day care homes only if not located in industrial zones or within 3,200 feet of oil/gas extraction or refining facilities; otherwise, the exemption does not apply.
- Other exemptions: Exempts certain residential or nonprofit facilities under specified conditions, but with tighter geographic or land-use limitations.
- Environmental Leadership Program for Advanced Manufacturing (Chapter 8, Division 13)
- Creates a new program to certify eligible advanced manufacturing projects via Governor certification.
- Certification criteria (Section 21189.102, .103, .104):
- Location requirements: site zoned exclusively for heavy industrial uses (as of Jan 1, 2026); not within 1,600 feet of a sensitive receptor; not within 1,000 feet of a disadvantaged community.
- Emissions and environmental standards: projects must meet specified emissions caps and risk thresholds; must use zero-emission backup generation; must comply with a quality community risk reduction plan; and must not impact natural/protected lands.
- Certification criteria: LEED Gold or better; demonstrable improvements in energy and water use, pollutant reductions (including PFAS/PFAS-related effluents), and air quality.
- Governor’s role: May certify eligible projects after review; the Governor’s certification is subject to Joint Legislative Budget Committee review, with a 30-day concurrence window (or deemed concurrence if no action).
- Community benefits and labor requirements for exempt projects
- If exempt from CEQA under the new chapter, applicants must enter into a bona fide Community Benefits Agreement (CBA) outlining enforceable commitments for local environmental mitigation, high-road employment standards, and job access.
- Labor standards and workforce requirements: construction and operation must adhere to prevailing wage requirements or project labor agreements; skilled and trained workforce obligations; monthly compliance reporting; penalties for noncompliance; and enforcement mechanisms.
- Labor peace and other labor-related provisions apply when the state has a direct financial interest or significant financial support in the project.
- Public hearing and lead agency duties
- Before determining an advanced manufacturing project is CEQA-exempt, the lead agency must hold at least one public hearing and ensure the applicant satisfies CBA and labor requirements.
Who and what is affected
- Advanced manufacturing facilities seeking CEQA exemptions or certification under the new program.
- Lead agencies evaluating CEQA exemptions and overseeing CBAs and labor provisions.
- Communities near projects, particularly disadvantaged communities and sensitive receptors, due to emissions and risk standards.
- Land-use and zoning authorities, due to expanded exemptions and location constraints.
Procedural and timeline aspects
- Governor certification process for eligible projects, with public disclosure and legislative oversight (Joint Legislative Budget Committee review).
- Local agencies must ensure CBAs and labor standards are in place prior to exemption determinations.
- Exemptions are conditioned on meeting geographic, environmental, and labor criteria, with possible mitigation requirements and reporting obligations.
Note: The text includes detailed definitions, thresholds, and procedural steps. The summary highlights the bill’s core structure and anticipated effects on CEQA exemptions, environmental leadership certification, and community/labor protections.
Compiled from official sources — confirm details with the bill’s official record.
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