San Francisco officials express concerns over SB 37's impact on housing projects

The San Francisco County government meeting held on July 4, 2025, focused on the implications of proposed legislation, specifically Senate Bill 37 (SB 37), which aims to modify the environmental review process for development projects. The discussion highlighted concerns regarding the potential bureaucratic burden that the bill could impose on small home improvement projects and small businesses in the city.

The meeting began with a presentation outlining the current state of San Francisco's environmental regulations, particularly regarding the Cortese list, which identifies contaminated sites. It was noted that San Francisco has over 2,300 sites on this list, the majority of which are residential properties with historical heating oil tanks. The existing local laws are already stringent, requiring thorough investigation and remediation when new uses are proposed for these sites. The speaker emphasized that the current regulations effectively safeguard public health and safety without the need for additional statewide legislation.

As the discussion progressed, concerns were raised about how SB 37 would complicate the permitting process. The bill would require all projects on the Cortese list, regardless of their scope or whether they involve soil disturbance, to undergo a comprehensive California Environmental Quality Act (CEQA) review. This could lead to significant delays and increased costs for homeowners and small businesses, with estimates suggesting that around 130 small projects and housing units could be affected annually. The speaker argued that the bill would not yield any environmental benefits, as San Francisco already meets or exceeds state standards for hazardous cleanup.

The meeting also addressed the unique nature of San Francisco's permitting process, where nearly all permits are considered discretionary and thus subject to CEQA. This means that even minor projects, such as window replacements or kitchen expansions, could require extensive environmental documentation, potentially costing upwards of $30,000 and taking up to a year to complete.

In conclusion, the meeting underscored the need for a careful evaluation of SB 37's implications for San Francisco's regulatory framework. The city officials expressed a desire to amend the proposed legislation to better align with local practices, ensuring that it supports effective remediation without imposing unnecessary burdens on homeowners and small businesses. The discussion concluded with an invitation for further questions and a commitment to continue exploring solutions that balance environmental protection with the needs of the community.