Navigating CEQA Reform: What California’s Environmental Rollbacks Mean for Developers

California’s landmark environmental law—the California Environmental Quality Act (CEQA)—has undergone a historic overhaul. The recent rollback, approved under state budget bills AB 130 and SB 131, represents a significant shift aimed at accelerating construction and infrastructure projects across the state.

At Hillmann, we have a history of working with our partners to navigate CEQA and help them obtain environmentally based exemptions for their projects.  We see this as a pivotal moment for developers, property owners, and real estate investors. With the right guidance, these regulatory updates present a rare opportunity to fast-track development timelines while still prioritizing environmental responsibility and community outcomes.

What Changed in CEQA?

Governor Gavin Newsom signed the CEQA reform into law in June 2025, fast-tracking approval for various project types. Hillmann reviewed the reform and these changes are designed to stimulate housing and infrastructure development while streamlining the environmental review processes.

Key CEQA Rollback Highlights:

• Expanded Exemptions for:
  • Urban infill housing projects
  • Advanced manufacturing facilities
  • Broadband and high-speed rail infrastructure
  • Childcare centers, food banks, and health clinics
  • Wildfire mitigation, parks, and water/sewer infrastructure
• Litigation limitations to reduce costly legal delays
• Permitting acceleration that cuts project review time from 12–18 months to as little as 60–90 days

Why This Matters for Commercial Real Estate & Construction

For those involved in real estate development, construction management, or public infrastructure, the CEQA reform offers a critical advantage: speed-to-market. But speed without strategy can backfire—especially if environmental risks are overlooked in the process.

At Hillmann, we help clients:

• Identify CEQA-exempt opportunities
• Mitigate environmental health & safety risks
• Navigate local permitting and stakeholder concerns
• Accelerate timelines responsibly

Whether you’re a developer, investor, healthcare provider, or public-sector planner, our multidisciplinary team ensures compliance, risk reduction, and project momentum—every step of the way.

How Hillmann Supports Clients Through the Transition

Our team is already working with clients across California to align current and upcoming projects with the new CEQA exemptions.

We Offer:

• CEQA Readiness Audits
  Determine whether your project qualifies for an exemption and identify steps for compliant execution.
• Environmental Due Diligence
  Including Phase I & II Environmental Site Assessments (ESAs), hazardous materials surveys, and risk management for sensitive sites.
• Development Advisory & Owner’s Representation
  We coordinate every phase—from entitlements and permitting to stakeholder engagement and contractor oversight.
• Construction Risk Management
  Including plan and cost reviews, loan monitoring, and zoning services to keep your project on track.

Industries That Will Benefit Most

• Commercial & Multifamily Developers
• Healthcare Real Estate & Public Health Facilities
• Technology & Advanced Manufacturing
• Public Infrastructure & Educational Institutions
• Municipal Planners & Economic Development Agencies

Stay Ahead: Let Hillmann Be Your CEQA Advisor

With more than 40 years of experience, a nationwide footprint, and deep local knowledge across California markets, Hillmann is uniquely positioned to help you leverage CEQA reform to your advantage—while minimizing environmental and reputational risk.

We’re already advising clients across Northern and Southern California, including Los Angeles, San Diego, San Jose, San Francisco, Sacramento, and the Central Valley.

Connect with Our CEQA Advisors on LinkedIn

Hillmann’s team is actively helping clients navigate California’s updated CEQA landscape—from identifying exemption opportunities to managing environmental risk.

Click on each team member’s photo below to connect with them on LinkedIn. We’re here to answer your questions, share insights, and help you move your project forward—quickly, compliantly, and confidently.

Get Started Today

Are you planning a project that might qualify under CEQA’s new exemptions?
Let’s talk about how Hillmann can support your goals. Contact us TODAY!