Assembly committee advances bill to tighten CEQA exemption for advanced manufacturing

SB 954, advanced in a Labor and Employment subcommittee hearing on June 26, seeks to narrow a broadly written CEQA exemption enacted last year and add worker and environmental protections for advanced manufacturing projects. The sponsor said the bill "follows through on those commitments" made when the earlier exemption passed and would require skilled, trained workers, prevailing wage and high‑road employment standards for projects that seek the CEQA exemption.

Supporters framed the bill as a fix to an overly expansive exemption in last year’s budget measure. Elmer Lizardi of the California Federation of Labor Unions said the earlier statute "eroded labor standards for workers, environmental safeguards, and public accountability" and urged the committee to preserve traditional oversight. Gabriel Tolleson of the Planning and Conservation League warned that categories of projects included in the earlier exemption "use and might release chemicals that can cause cancer, birth defects, and other health problems," and said the legislation restores community and tribal input.

Business groups raised objections to parts of the bill. Andrea Lynch of the California Chamber of Commerce said provisions that condition the exemption on private‑sector labor requirements — including labor‑peace arrangements and skilled‑and‑trained mandates that apply to subcontractors — could create steep compliance costs and be ‘‘unprecedented in CEQA law.’’ Luis Morante of the Bay Area Council warned that some requirements (for example, post‑construction certifications) are difficult to meet during permitting and could push projects out of state.

Committee members expressed support for narrower exemptions with guardrails. After discussion, the subcommittee recorded a motion to pass SB 954 with the recommendation that it be referred to the Committee on Appropriations. The secretary called the roll and the measure was reported out to Appropriations with the committee leaving the roll open for absent members.

The bill’s next procedural step is consideration by the Appropriations Committee; the hearing record shows parties on both sides expect further negotiations on definitions, labor provisions and environmental triggers.