CE4A: LinkedIn Post

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With the passage of last week’s budget bill, we’re seeing major rollbacks in federal incentives for clean energy projects. Without federal tax incentives, streamlining the permitting process could become a larger priority.

Just last week, Governor Gavin Newsom signed Assembly Bill 130 and Senate Bill 131 into law — landmark pieces of legislation that reshape the state’s permitting landscape. Key highlights include:

- A major overhaul of the California Environmental Quality Act (CEQA) to accelerate housing and infrastructure projects
- Creation of sustainable financing tools to unlock long-term investment
- Faster permitting and approvals for housing — with continued protection for sensitive natural lands
- Regulatory stability by freezing residential building standards through 2031
- Enhanced support for renters, including more than doubling the Renters Tax Credit

What this could mean for clean energy:

- “This is one of the biggest wins for housing in a generation,” said Brian Hanlon, CEO of California YIMBY. The legislation “makes it crystal clear: building infill housing is not a threat to the environment — it’s how we save it.”

What detractors are saying:

- “This bill is the worst anti-environmental bill in California in recent memory,” wrote a coalition of over 100 organizations in a letter to Newsom. “It represents an unprecedented rollback of California’s fundamental environmental and community protections at a time when Californians are already facing intense federal threats to their health and livelihoods.”

What do you think? The Clean Air Task Force recently published “Unlocking California’s Geothermal Potential: A Strategic Opportunity for Clean, Firm Power”, highlighting how permitting reform could unlock new clean energy pathways. Could these new reforms be a meaningful step in that direction?