exemptions

SACRAMENTO — Gov. Gavin Newsom signed a pair of bills this week designed to help a San Diego stadium and development project led by Los Angeles Rams owner Stan Kroenke sidestep environmental review hurdles.

Newsom signed Senate Bill 344 and Senate Bill 958, which were put forward by state Sen. Akilah Weber Pierson (D-La Mesa) to help the stadium project, known as Midway Rising. The project would replace the decades-old Pechanga Arena and include a new 16,000-seat facility, 4,254 homes, including up to 2,000 affordable units, and commercial and outdoor space. The site is south of Mission Bay.

Newsom cast the bills as part of a package to help speed up the construction of much-needed housing.

“Every Californian deserves a fair shot at a stable home — families shouldn’t have to wait years for housing to be approved and built in their communities,” he said in a written statement.

Senate Bill 344 deems Midway Rising in full compliance with the state’s landmark California Environmental Quality Act, known was CEQA.

The act, adopted in 1970, has been credited for protecting California’s natural resources and minimizing pollution. It also has been criticized for sometimes being weaponized by opponents of a project, including housing developments.

After the state Legislature’s vote last month, Weber Pierson said the project would provide “much-needed affordable housing, permanent jobs, community spaces, and health resources in a part of our city that is ready for investment.”

Former San Diego Assemblymember Lori Saldaña, a longtime critic of the proposal, called Senate Bill 344 “reckless and rushed” because it was introduced late in the session without public input. Saldaña said the site isn’t suitable for development because of sea-level rise that she said is causing street flooding in the area.

Senate Bill 958 states that a project’s increased building height, and any related noise, shadows, or impact on wildlife shall not be considered significant environmental impacts, if the project meets a host of conditions.

It would apply to any development in the state but was introduced to benefit Midway Rising, according to Weber Pierson.

Assemblymember Carl DeMaio (R-San Diego) was among those who voted against both bills.

The developers “don’t want to play by the rules, so they came here to Sacramento asking for a special exemption,” DeMaio said during a discussion on Senate Bill 958 last month.

“We’re talking about the coast. I think a big condo tower on the coast impeding the view is a significant environmental impact, and I think deep down in your heart of hearts, you know that,” DeMaio said.

State lawmakers routinely carve out environmental exemptions for proposed sports stadiums, sometimes in the closing days of the legislative session.

Former Senate leader Darrell Steinberg (D-Sacramento) led his colleagues in passing a bill in 2013 that helped the Sacramento Kings arena by limiting environmental lawsuits. The new arena for the Golden State Warriors basketball team in San Francisco also benefited from CEQA reforms passed by state lawmakers in 2011.

The San Diego City Council still needs to approve the project.

Gov. Gavin Newsom on Friday vetoed legislation that would have narrowed exemptions to the California Environmental Quality Act for advanced manufacturing facilities amid pushback from business and industry groups.

Senate Bill 954 from state Sen. Catherine Blakespear (D-Encinitas) would have rolled back parts of last year’s controversial overhaul of CEQA, which fast-tracked approvals for a broad array of housing and infrastructure projects in an effort to ease new construction in the state.

Critics said the overhaul opened up a path for advanced manufacturing facilities such as strip miners, chemical producers, battery recyclers and semiconductor plants to open in communities without any environmental review. Dozens of environmental groups including the Sierra Club, the Natural Resources Defense Council and California Environmental Voters urged the governor to sign the legislation into law, arguing that it would have provided essential protections for communities that already experience the worst pollution from industrial facilities.

In his veto message, Newsom said last year’s CEQA reform was a “long overdue overhaul to get California building again.”

“While I appreciate the author’s stated intent to ensure these reforms do not result in unintended adverse impacts on the environment, this bill does not merely clarify or refine the existing exemption. It repeals the CEQA exemption for advanced manufacturing facilities,” the governor wrote. “Further, the bill’s numerous new siting, operational, and emissions requirements would make the narrower exemption impractical for many of the projects it was intended to support.”

In a statement, Blakespear said she was “disappointed” in the governor’s decision. While some of the new CEQA exemptions are important to stimulate construction, the recent near-miss chemical disaster in Garden Grove — which prompted thousands of evacuations in May —illustrates the danger that can come from siting advanced manufacturing facilities in communities, she said.

“We should not have to wait for another emergency before recognizing that sweeping — and rushed — exemptions from environmental review need reasonable guardrails,” Blakespear said. “Protecting communities and workers is not an impediment to economic growth; it is part of responsible growth. We need guardrails to these CEQA exemptions to safeguard Californians and ensure the environment isn’t damaged.”

Newsom’s veto came amid pushback from industry groups and prominent business organizations including the California Chamber of Commerce and the California Manufacturers & Technology Assn. The California Department of Finance also was opposed to the bill, which it described in an analysis as “inconsistent with Administration policy.”

Lance Hastings, chief executive of the California Manufacturers & Technology Assn., said in a statement Friday that the governor’s veto protects “the ability of manufacturers to innovate and create here in California.”

Manufacturing generates $382 billion a year for California and supports 1.24 million jobs, he said.

But opponents said Newsom’s decision will ultimately endanger communities and leave more people exposed to industrial hazards.

“Frontline communities across California continue to face consequences from polluting industries that have damaged our air, and water for the sake of corporate profit,” said Asha Sharma, deputy director at the nonprofit Sierra Club California. “SB 954 was developed to ensure those same mistakes do not continue.”

Blakespear said she will continue working on the issue next year.