Two budget trailer bills signed June 30, 2025 created the biggest set of CEQA exemptions in decades. Here is what qualifies, what was carved out and how a Kern developer should test a site.
The SB 131 CEQA exemption is one of several new shortcuts in Senate Bill 131 and Assembly Bill 130, budget trailer bills Gov. Gavin Newsom signed June 30, 2025. SB 131 exempts advanced manufacturing plants on sites zoned exclusively industrial. AB 130 exempts qualifying infill housing in cities and urban areas. Warehouses and protected lands are carved out. Both laws still stand after the governor vetoed SB 954, a bill to narrow them.
AB 130 and SB 131 at a glance
| Item | Detail |
|---|---|
| Laws | AB 130 (Chapter 22, Statutes of 2025) and SB 131 (Chapter 24, Statutes of 2025); amended by SB 158 (Chapter 650, Statutes of 2025) |
| Signed | June 30, 2025, effective immediately as budget trailer bills; SB 158 signed Oct. 11, 2025 |
| Housing | Infill housing exemption, Public Resources Code 21080.66: sites up to 20 acres in cities and Census urban areas |
| Industrial | Advanced manufacturing exemption, PRC 21080.69(a)(4): sites zoned exclusively for industrial uses |
| Carve-outs | Natural and protected lands (including prime farmland), and warehouses or distribution centers in several provisions |
| Other changes | Near-miss review for housing, housing element rezoning exemption, shorter permit clocks, narrower administrative record |
| Who it affects | Housing and manufacturing developers, landowners, cities and counties, project opponents |
| Status | In effect. SB 954, which would have narrowed the manufacturing exemption, was vetoed Sept. 18, 2026 |
| What to watch | Proposition 45 on the Nov. 3, 2026 ballot; first court rulings; Kern’s use of the new exemptions |
Key takeaways
- AB 130 and SB 131 took effect immediately on June 30, 2025 and created new California Environmental Quality Act (CEQA) exemptions for infill housing and advanced manufacturing.
- The advanced manufacturing exemption, Public Resources Code 21080.69(a)(4), applies only to a facility that consists exclusively of advanced manufacturing on a site zoned exclusively for industrial uses and not on natural and protected lands.
- The AB 130 infill housing exemption covers housing on sites of up to 20 acres in incorporated cities and Census urban areas that meet urban infill, density and siting tests.
- Newsom vetoed SB 954 on Sept. 18, 2026, which leaves the 2025 advanced manufacturing exemption in place.
- Projects that include a distribution center or oil and gas infrastructure do not get SB 131’s narrower administrative record rule. Housing element rezonings that would allow distribution centers are not exempt.
What are AB 130 and SB 131?
AB 130 and SB 131 are 2025 budget trailer bills that rewrote parts of CEQA and state housing law. Newsom signed both June 30, 2025, as Chapter 22 and Chapter 24 of the Statutes of 2025. A cleanup bill, SB 158 (Chapter 650), followed Oct. 11, 2025.
AB 130 focuses on housing: a broad infill housing exemption, faster permit deadlines and permanent versions of Housing Crisis Act rules. SB 131 adds a list of non-housing exemptions, including advanced manufacturing, plus a “near miss” path for housing that almost qualifies for an exemption. For the basics of CEQA review in Kern County, read our guide to industrial land entitlements and CEQA. This article covers only what changed.
How does the SB 131 CEQA exemption for advanced manufacturing work?
CEQA does not apply to a project that consists exclusively of an advanced manufacturing facility on a site zoned exclusively for industrial uses. Public Resources Code 21080.69 says so in a few lines, using the definition in Section 26003. The same section exempts some day care centers, small rural health clinics and nonprofit food banks on industrial sites. None of these exemptions apply on natural and protected lands.
Section 26003 is the definition the state’s alternative energy financing authority uses. According to Justia’s copy of the 2025 code, it covers manufacturing that creates or improves materials, products and processes through technologies such as microelectronics, advanced materials, nanotechnology, additive manufacturing and industrial biotechnology.
Holland & Knight warned in July 2025 that the definition was set to expire Jan. 1, 2026. Justia’s 2025 code shows the section as amended by Stats. 2025, ch. 211 (SB 86), which keeps it in effect only until Jan. 1, 2028, with a second version operative afterward.
What does not qualify?
Three filters do most of the work. The project must consist exclusively of advanced manufacturing, so a mixed facility with a large distribution warehouse is unlikely to fit. The zoning must be exclusively industrial. The term is undefined in the statute, so whether Bakersfield’s M-1 and M-2 zones or Kern County’s M zones, which allow some non-industrial uses, qualify is an open legal question. And the site cannot sit on “natural and protected lands” under section 21067.5, which includes:
- Prime farmland or farmland of statewide importance, as mapped under state criteria
- Hazardous waste sites, unless cleared for the proposed use
- Regulatory floodways, and land on or within 300 feet of a wetland
- Very high fire hazard severity zones, with an exception where fire hazard mitigation measures apply
- Conservation easements, habitat preserves, ecological reserves and parks
What is the AB 130 infill housing CEQA exemption?
Public Resources Code 21080.66 exempts “all aspects” of a qualifying housing development project, including required permits and public improvements, according to the Association of Bay Area Governments’ April 2026 summary. It applies in all incorporated cities and in unincorporated areas inside a Census Bureau urban area. Housing includes single-family homes, mostly residential mixed-use projects, supportive housing and farmworker housing.
AB 130 infill exemption: key tests (as amended by SB 158)
| Test | Requirement |
|---|---|
| Location | Incorporated city, or unincorporated Census urban area |
| Size | Up to 20 acres (4 acres for builder’s remedy projects) |
| Infill | Previously developed with an urban use, or at least 75% of the perimeter adjoins urban uses, or 75% of the area within a quarter mile is urban, or 3 of 4 sides urban |
| Density | At least half the jurisdiction’s state default density |
| Consistency | Consistent with general plan and zoning |
| Siting | Meets SB 35 environmental siting criteria (Gov. Code 65913.4(a)(6)) |
| Other | No demolition of a listed historic structure; no hotel use; Phase I environmental assessment required |
| Tribes | Notice within 14 days; tribes have 60 days to request consultation, which must finish in 45 days (one 15-day extension) |
Labor standards attach only to certain projects: those 100% affordable to lower-income households, those taller than 85 feet and specified San Francisco projects. The Permit Streamlining Act now requires a decision on an exempt infill project within 30 days after the later of tribal consultation or the consistency review period. That period is 30 days for 150 or fewer units and 60 days for larger projects. Missed deadlines can mean a “deemed approved” project.
What else changed: near-miss review, rezonings and the record
Near-miss review. Under PRC 21080.1, a housing project that would be exempt “but for a single condition” gets a CEQA document limited to the effects of that one condition. It needs no discussion of alternatives or growth-inducing impacts. SB 158 excluded projects on natural and protected lands (except very high fire hazard zones) and large builder’s remedy projects.
Housing element rezonings. PRC 21080.085 exempts rezonings that carry out the schedule of actions in a certified housing element. It does not cover rezonings that would allow distribution centers, oil and gas infrastructure or development on natural and protected lands, though prime farmland identified in the housing element is not categorically excluded. The state Department of Housing and Community Development issued a May 19, 2026 memo urging cities to use it, as Miller Starr Regalia’s CEQA Developments blog reported.
Administrative record. Internal staff emails that never reached decision-makers or supervisors can now be left out of the CEQA record, which shortens and cheapens litigation. That change does not apply to projects that include a distribution center or oil and gas infrastructure.
Other exemptions. SB 131 also added or widened exemptions for agricultural employee housing, community water system projects (through Jan. 1, 2030), wildfire fuel breaks, broadband in local road rights of way, park and trail projects, and high-speed rail stations and maintenance facilities, according to the ABAG summary.
Housing law. The Housing Crisis Act’s limits, including the five-hearing cap and the rule freezing standards at the preliminary application, became permanent. Local changes to residential building standards are largely frozen from Oct. 1, 2025 to June 1, 2031.
Did lawmakers narrow the SB 131 CEQA exemption in 2026?
They tried and failed. AB 1083 (Connolly), which would have limited the manufacturing exemption to semiconductor plants, died in the Assembly Jan. 31, 2026. SB 954 (Blakespear) passed the Assembly 50 to 17 on Aug. 26, 2026, and the Senate concurred 28 to 10 on Aug. 28. The governor vetoed it Sept. 18, 2026.
SB 954 would have limited the exemption to final-stage production facilities that met new siting, operational and emissions requirements, Manufacturing Dive reported. In his veto message, the governor wrote that those requirements “would make the narrower exemption impractical for many of the projects it was intended to support.” The California Manufacturers and Technology Association and the Bay Area Council opposed the bill. Sierra Club California and other environmental and health groups backed it, CalMatters reported.
What qualifies in Bakersfield and Kern County?
For housing, every incorporated Kern city, from Bakersfield and Delano to Tehachapi and Ridgecrest, is eligible ground for the infill exemption, subject to the site tests. Unincorporated land qualifies only inside a Census urban area. Many unincorporated neighborhoods near Bakersfield may qualify, while farmland and rural communities generally will not.
For manufacturing, the farmland carve-out matters more in Kern than in almost any other county. Industrial zoning on the edge of Bakersfield, Shafter or Delano can still sit on land the state maps as prime farmland or farmland of statewide importance. According to the ABAG summary of SB 158, the prime farmland item in section 21067.5 carries no urban or zoning exception, so such a site would not qualify for the SB 131 exemption. The Department of Conservation’s farmland map, the Cortese hazardous sites list and FEMA flood maps show whether a candidate site meets these exclusions.
The sources cited here show no ordinance, resolution or guidance from Kern County or the City of Bakersfield implementing AB 130 or SB 131, and no Kern project publicly identified as using the advanced manufacturing or infill exemptions. Shafter’s pending housing element rezoning relies on its 2005 general plan program EIR plus an addendum rather than the new rezoning exemption, as our Shafter rezoning coverage explains. The sources cited here also show no appellate decisions interpreting sections 21080.66 or 21080.69.
How does the 2025 CEQA overhaul interact with AB 98 and Prop 45?
A CEQA exemption does not waive other laws. A warehouse still has to meet the AB 98 warehouse law if its loading bays sit within 900 feet of homes or schools, along with air district rules and local zoning. The 2025 reforms also left distribution centers out of the friendliest provisions, so logistics projects in Kern should expect conventional CEQA review.
Voters weigh a broader change Nov. 3, 2026. Proposition 45, titled “Modifies Environmental Review for Certain Projects,” would change review for projects it defines as essential. According to the Legislative Analyst’s Office, it includes a 365-business-day limit for finishing an environmental impact report and a cap on how many alternatives applicants must develop. Our guide to California’s November 2026 ballot measures covers it. Housing developers should also see how the AB 2011 commercial-to-residential rules fit alongside AB 130, and how the Bakersfield 2045 General Plan sets local zoning context.
How should a Kern developer evaluate the new CEQA paths?
- Start with the land: zoning (exclusively industrial or residential), city limits or Census urban area, and acreage.
- Screen natural and protected lands early: farmland maps, floodways, wetlands within 300 feet, hazardous site lists and fire hazard zones.
- For manufacturing, confirm in writing that the use fits the Section 26003 definition and that the project is exclusively manufacturing.
- For housing, test the urban infill and density criteria, and build tribal consultation time into the schedule.
- If one condition fails, ask whether near-miss review is available before scoping a full EIR.
- Get a written exemption determination from the planning department, and file a notice of exemption to shorten the challenge period.
- Track Proposition 45 and any 2027 legislation before locking in schedules.
Illustrative comparison: two Kern projects under the new rules
These scenarios are hypothetical and simplified to show how the tests work. They are not legal conclusions about any real site.
Project A is a 120-unit apartment project on 6 acres of vacant land inside Bakersfield city limits, zoned for multifamily, with homes on three sides. It likely passes the location, size and infill tests, so the open questions become density, general plan consistency and the siting criteria. Tribal consultation could take about 133 days if a tribe asks to consult (14 days for notice, 60 for a response, 14 to begin and 45 to finish), before the 30-day decision clock.
Project B is a 200,000-square-foot battery component plant with a 60,000-square-foot finished goods warehouse on M-2 land outside Shafter. The exemption could fail on two grounds. The warehouse may mean the project is not exclusively advanced manufacturing, and the parcel may be mapped as prime farmland. If either applies, the project faces normal CEQA review.
| Test | Project A (housing) | Project B (manufacturing) |
|---|---|---|
| Exemption | PRC 21080.66 infill | PRC 21080.69(a)(4) |
| Zoning test | Consistent with zoning | Zoned exclusively industrial |
| Use test | Housing development project | Exclusively advanced manufacturing |
| Main risk | Density or siting criteria | Farmland mapping, mixed warehouse use |
Frequently asked questions
What is the SB 131 CEQA exemption?
It is a 2025 statutory exemption, Public Resources Code 21080.69(a)(4). A project that consists exclusively of an advanced manufacturing facility, as Section 26003 defines it, on a site zoned exclusively for industrial uses needs no CEQA review. Natural and protected lands such as prime farmland, wetland buffers, floodways and hazardous waste sites are excluded. SB 131 also created several other exemptions.
Do warehouses qualify for the new CEQA exemptions?
Generally no. The manufacturing exemption requires a project that is exclusively a manufacturing facility. Lawmakers also kept distribution centers out of the narrower administrative record rule and the housing element rezoning exemption. A Kern County warehouse should plan on standard CEQA review and must also meet the AB 98 warehouse law if it sits near homes or schools.
Does the AB 130 infill housing exemption apply in unincorporated Kern County?
Only inside a Census Bureau urban area. All incorporated cities qualify, and so can unincorporated land near metropolitan Bakersfield, while rural and agricultural areas generally cannot. The site must still meet the size, urban infill, density, consistency and environmental siting tests.
What is near-miss CEQA review?
SB 131 added PRC 21080.1 for housing projects that would qualify for an exemption except for one condition. The environmental document studies only the effects of that single condition, with no alternatives or growth-inducing analysis. Projects on natural and protected lands, projects failing two or more conditions and large builder’s remedy projects are excluded.
Was the advanced manufacturing CEQA exemption repealed?
No. SB 954 (Blakespear) would have narrowed it to final-stage production facilities with new siting and emissions rules, but Newsom vetoed it Sept. 18, 2026. An earlier bill, AB 1083, died in January 2026. The June 2025 exemption remains in effect. Future legislation or Proposition 45 could still change the rules.
When did AB 130 and SB 131 take effect?
Both took effect immediately when Newsom signed them June 30, 2025. SB 158, signed Oct. 11, 2025, made cleanup changes, including lowering the builder’s remedy size limit to four acres and adjusting the near-miss exclusions. The residential building standards freeze runs from Oct. 1, 2025 to June 1, 2031.
Has Bakersfield adopted rules to implement AB 130 or SB 131?
The sources cited here show no Bakersfield or Kern County ordinance or guidance. The statutes apply directly, so local adoption is not required. Planning departments issue written exemption determinations, and the statute leaves terms such as “zoned exclusively for industrial uses” undefined.
If you are weighing a Kern County site for housing or manufacturing and want to know whether a new CEQA path could shorten your timeline, Kern CRE can help you screen sites and connect with local planners and counsel. Call Kern CRE at 855-KERN-CRE (855-537-6273) or contact us. Get Kern County CRE news monthly: subscribe to the Kern CRE report.
Sources
- AB 130 and SB 131 (2025) summary, as amended by SB 158 (updated), Association of Bay Area Governments, April 21, 2026.
- California SB 131, Chaptered text (Chapter 24, Statutes of 2025), LegiScan, June 30, 2025.
- California AB 130, Chaptered text (Chapter 22, Statutes of 2025), LegiScan, June 30, 2025.
- California SB 158, Chaptered text (Chapter 650, Statutes of 2025), LegiScan, Oct. 11, 2025.
- California’s Summer Blockbuster, Continued!: Newly Enacted Non-Housing CEQA Reforms, Holland & Knight (Bradley B. Brownlow, Ryan Michael Leaderman), July 28, 2025.
- 2025 California Public Resources Code Section 26003, Justia.
- California SB 954 (2025-2026), bill history and status, LegiScan.
- Gov. Newsom vetoes bill narrowing CEQA advanced manufacturing exemption, Manufacturing Dive (Jeff Kinney), Sept. 21, 2026.
- Newsom sides with industry, vetoes bill on factories near homes and schools, CalMatters, republished by Mountain View Voice, Sept. 21, 2026.
- California AB 1083 (2025-2026), bill history and status, LegiScan.
- HCD Issues Guidance on New Housing Element Rezoning CEQA Exemption, CEQA Developments, Miller Starr Regalia (Arthur F. Coon), June 16, 2026.
- Proposition 45: Modifies Environmental Review for Certain Projects. Initiative Statute., Legislative Analyst’s Office, Nov. 3, 2026 ballot.
- SB 131 bill information, California Legislative Information.
- AB 130 bill information, California Legislative Information.
- SB 158 bill information, California Legislative Information.
About this article
Kern CRE prepared this article with help from AI research and writing tools. An editor reviewed the draft, checked its facts against the sources linked above and edited it for accuracy and clarity. It is general information about California law, not legal, tax, investment or financial advice. CEQA exemption eligibility is fact specific, so talk with a land use attorney and the lead agency before relying on any exemption.