SB 954: California Environmental Quality Act: advanced manufacturing facilities: exemption.

21067.5.

“Natural and protected lands” means sites located within any of the following locations:

(a) The state park system, as described in Article 1 (commencing with Section 5001) of Chapter 1 of Division 5.

(b) A wilderness area, as defined in Section 5093.32.

(c) A marine protected area, as defined in Section 2852 of the Fish and Game Code.

(d) The national park system, as defined in Section 100102 of Title 54 of the United States Code.

(e) A national recreation area.

(f) A national monument.

(g) The national wild and scenic rivers system, as defined in Section 1273 of Title 16 of the United States Code.

(h) Any ecological reserve or wildlife management area acquired and managed by the Department of Fish and Wildlife pursuant to Article 2 (commencing with Section 1525) or Article 4 (commencing with Section 1580) of Chapter 5 of Division 2 of the Fish and Game Code.

(i) A hazardous waste site that is listed pursuant to Section 65962.5 of the Government Code or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless either of the following apply:

(1) The site is an underground storage tank site that received a uniform closure letter issued pursuant to subdivision (g) of Section 25296.10 of the Health and Safety Code based on closure criteria established by the State Water Resources Control Board for the use proposed by the project. This paragraph does not alter or change the conditions to remove a site from the list of hazardous waste sites listed pursuant to Section 65962.5 of the Government Code.

(2) The State Department of Public Health, State Water Resources Control Board, Department of Toxic Substances Control, or a local agency making a determination pursuant to subdivision (c) of Section 25296.10 of the Health and Safety Code has otherwise determined that the site is suitable for the use proposed by the project.

(j) Within a regulatory floodway as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency, unless the development has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.

(k) Lands under conservation easement.

(l) On, or within a 300-foot radius of, a wetland, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).

(m) An environmentally sensitive area within the coastal zone, as defined in Section 30107.5.

(n) Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code) or habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.

(o) Within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178 of the Government Code, or within the state responsibility area, as defined in Section 4102. This subdivision does not apply to sites that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development, including, but not limited to, standards established under all of the following provisions or their successor provisions:

(1) Section 4291 of this code or Section 51182 of the Government Code, as applicable.

(2) Section 4290.

(3) Chapter 7A (commencing with Section 701A.1) of Part 2 of Title 24 of the California Code of Regulations.

(p) Either prime farmland or farmland of statewide importance, as defined pursuant to the United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction.

(q) Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).

21080.085.

(a) This division does not apply to a rezoning that implements the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code.

(b) (1) Subdivision (a) does not apply to any of the following:

(A) A rezoning that would allow for the construction of a distribution center.

(B) (i) Except as provided in paragraph (2), a rezoning that would allow for construction to occur within the boundaries of any natural and protected lands.

(ii) For purposes of clause (i), “natural and protected lands” does not include lands described in subdivision (q) of Section 21067.5.

(2) (A) (i) Notwithstanding subparagraph (B) of paragraph (1), subdivision (a) applies to a rezoning that contains within its boundaries any natural and protected lands if those natural and protected lands are excluded from the rezoning.

(ii) “Natural and protected lands” described in clause (i) does not include the lands described in subdivision (p) of Section 21067.5.

(B) The rezoning of a parcel or portions of a parcel that is excluded from a rezoning under this paragraph shall be a separate project that is subject to this division.

21080.1.

(a) The lead agency shall be responsible for determining whether the project is exempt from this division and whether an environmental impact report, a negative declaration, or a mitigated negative declaration shall be required for any project that is subject to this division. That determination shall be final and conclusive on all persons, including responsible agencies, unless challenged as provided in Section 21167.

(b) (1) If a proposed housing development project would otherwise be exempt from this division pursuant to a statutory exemption, or categorical exemption pursuant to Class 1 to 5, inclusive, 12, 15, 20, 27, 30, or 32 that is adopted before January 1, 2026, but for a single condition detailed in the statutory exemption or in Section 15300.2, 15301, 15302, 15303, 15304, 15305, 15312, 15315, 15320, 15322, 15327, 15330, or 15332 of Title 14 of the California Code of Regulations, as applicable, the application of this division to the approval of the proposed housing development project shall be limited to effects upon the environment that are caused solely by that single condition.

(2) An initial study or environmental impact report prepared for a housing development project subject to this subdivision is only required to examine those effects that the lead agency determines, based upon substantial evidence in the record, are caused solely by the single condition that makes the proposed housing development project ineligible for the statutory exemption or categorical exemption.

(3) An environmental impact report for a housing development project subject to this subdivision is not required to include any discussion of alternatives to the housing development project or the growth-inducing impacts of the housing development project.

(4) This subdivision does not apply to any of the following housing development projects:

(A) A proposed housing development project that is not similar in kind to the projects listed in the statutory or categorical exemption.

(B) A proposed housing development project that is ineligible for the statutory exemption or categorical exemption due to two or more conditions.

(C) A proposed housing development project that includes a distribution center or oil and gas infrastructure.

(D) (i) A proposed housing development project located on natural and protected lands, as defined pursuant to Section 21067.5.

(ii) For purposes of this subparagraph, “natural and protected lands” does not include the lands described in subdivision (o) or (q) of Section 21067.5.

(E) The project site or the parcel size exceeds four acres, and either of the following occurred:

(i) The project is a builder’s remedy project, as defined in paragraph (11) of subdivision (h) of Section 65589.5 of the Government Code.

(ii) The project applicant applied pursuant to paragraph (5) of subdivision (d) of Section 65589.5 of the Government Code as it read before January 1, 2025.

(5) For purposes of this subdivision, the following definitions apply:

(A) “Condition” means a physical or regulatory feature of the project or its setting or an effect upon the environment caused by the project.

(B) “Housing development project” has the same meaning as defined in Section 65589.5 of the Government Code.

(c) In the case of a project described in subdivision (c) of Section 21065, the lead agency shall, upon the request of a potential applicant, provide for consultation before the filing of the application regarding the range of actions, potential alternatives, mitigation measures, and any potential and significant effects on the environment of the project.

21080.69.

(a) Except as provided in subdivision (b), this division does not apply to any of the following projects:

(1) A project that consists exclusively of either a day care center, as defined in Section 1596.76 of the Health and Safety Code, or a family daycare home, as defined in Section 1596.78 of the Health and Safety Code, and the project is not located in either of the following:

(A) An area zoned for industrial use.

(B) An area within 3,200 feet of a facility that actively extracts or refines oil or natural gas.

(2) A project that consists exclusively of a rural health clinic, as defined by Section 1396(d)(l)(1) of Title 42 of the United States Code, or a federally qualified health center, as defined by Section 1396(d)(l)(2) of Title 42 of the United States Code, if the facility is less than 50,000 square feet in total space.

(3) A project that consists exclusively of a nonprofit food bank or food pantry, defined as a nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 501(c)(3)), that solicits, stores, and distributes sufficient food to their defined service area, if the project is located on a site that is zoned exclusively for industrial uses.

(b) This section does not apply to a project located on natural and protected lands, as defined pursuant to Section 21067.5.

21189.100.

For purposes of this chapter, the following definitions apply:

(a) “Advanced manufacturing facility” means a facility used for advanced manufacturing, as defined in Section 26003, and is used exclusively for final tier manufacturing.

(b) “Advanced manufacturing facility project” or “project” means a project for the construction and operation of an advanced manufacturing facility.

(c) “Applicant” means a person, or a public or private entity or its affiliates, and its successors, heirs, or assignees, who undertakes or proposes an advanced manufacturing facility project.

(d) “Disadvantaged community” means any of the following:

(1) A disadvantaged community identified pursuant to Section 39711 of the Health and Safety Code.

(2) A disadvantaged unincorporated community as defined in Section 65302.10 of the Government Code.

(3) A census tract receiving the highest 15 percentile of the CalEnviroScreen Pollution Burden percentile score.

(e) (1) “Final tier manufacturing” means the stage of manufacturing that does any of the following:

(A) Performs the final assembly of components, subassembly, or materials into a completed, market-ready product.

(B) Integrates hardware or software, or other functional systems necessary for the product’s intended use.

(C) Conducts final quality control testing, inspection, certification, or validation required for sale or distribution.

(D) Packages or otherwise prepares the completed product for sale or distribution.

(2) “Final tier manufacturing” does not include any of the following:

(A) The production of or conversion of materials into fuels, feedstocks, or other raw materials.

(B) Disposal activities as described in subdivision (a) or (b) of Section 40192.

(C) The production of equipment designed and used primarily for the activities described in subparagraph (A).

(D) The manufacture of intermediate components or subassembly of intermediate components that are not sold or distributed as complete, end-use products.

(f) “Office” means the Office of Land Use and Climate Innovation.

(g) “Sensitive receptor” has the same meaning as set forth in Section 65098 of the Government Code.

21189.101.

Subject to Section 21189.105, this division does not apply to an advanced manufacturing facility project that meets all of the following criteria:

(a) The project is located on a site zoned exclusively for industrial uses as of January 1, 2026.

(b) The project is not located within 1,600 feet of a sensitive receptor.

(c) The project is not located within 1,000 feet of a disadvantaged community.

(d) The project does not produce air pollution emissions through construction or operation that exceed 50 percent of the thresholds of significance used or established by the air quality management district or regional air pollution control district in which the project is located for purposes of this division, including criteria air pollutants and toxic air contaminants.

(e) The project does not cause significant adverse impacts to tribal cultural resources unless there is a documented enforceable agreement as defined in subparagraph (B) of paragraph (5) of subdivision (b) of Section 21080.66.

(f) The project is not located on natural and protected lands.

(g) The project uses at least 50 percent zero-emission backup generation.

(h) The advanced manufacturing facility is eligible to be certified as Leadership in Energy and Environmental Design gold or better by the United States Green Building Council or to be certified gold through the Green Globes program. To achieve either of those certifications, the project shall earn points through achieving the energy and water efficiency standards for those certifications.

(i) For an advanced manufacturing facility for semiconductors, the facility shall install and operate all of the following:

(1) Onsite wastewater treatment equipment designed to remove and destroy perfluoroalkyl or polyfluoroalkyl substances without incineration.

(2) Point of use treatment systems designed to achieve 99 percent destructive removal efficiency for fluorinated process gases.

(3) Cooling systems to minimize the emission of fugitive fluorinated heat transfer fluids.

21189.102.

Before making a determination that a project is not subject to this division, the lead agency shall do all of the following:

(a) Hold at least one public hearing on the project.

(b) Ensure that the applicant complies with Section 21189.103.

(c) Ensure that the applicant complies with Section 21189.104.

21189.103.

(a) An applicant of a project that is exempt from this division under this chapter shall meet both of the following requirements:

(1) (A) The applicant shall demonstrate high road employment standards and shall certify to the lead agency that it will maintain those standards in the operation of the facility.

(B) The State Energy Resources Conservation and Development Commission shall develop and make available to lead agencies guidelines for evaluating whether a project applicant demonstrates high road employment standards as required pursuant to subparagraph (A). The guidelines shall be made publicly available.

(2) (A) The applicant shall enter into a bona fide community benefits agreement that includes enforceable commitments to provide local environmental mitigation, high road employment standards, and job access within the community in which the project is located.

(B) The specific terms of the bona fide community benefits agreement shall include funding for, or direct implementation of, specific community improvements or amenities that may include, but are not limited to, park and playground equipment, urban greening, enhanced safety crossings, paving roads and bicycle paths, reductions in or credits for residential utility bills, and annual contributions to a nonprofit or community-based organization that awards grants to organizations delivering community-based services and amenities.

(b) For purposes of this section, the following definitions apply:

(1) “Community benefits agreement” means a private agreement between the applicant and independent stakeholders from the surrounding communities, and that is informed by meaningful engagement and outreach to residents of the surrounding communities. Stakeholders that receive financial remuneration from a project applicant shall not be considered independent.

(2) “Enforceable commitments” means specific mechanisms, such as binding arbitration, built into agreements that ensure that the parties have remedies to resolve disputes.

(3) “High road employment standards” means employment practices and standards that include, but are not limited to, all of the following:

(A) Provision of comparatively good wages and benefits, relative to the industry, occupation, and labor market in which participating workers are employed.

(B) Payment of workers at or above local or regional living wage standards as well as payment at or above regional prevailing wage standards where those standards exist for the occupations in question.

(C) Commitment to investing in employee training, growth, and development, including through comprehensive workforce training programs or apprenticeship programs.

(D) Adoption of mechanisms to include worker voice and agency in the workplace.

(E) Safe and healthy working conditions.

(F) Consistent compliance with workplace laws and regulations, including proactive efforts to remedy past problems.

21189.104.

For a project that is exempt from this division under this chapter, the applicant shall comply with either of the following requirements with respect to the initial construction of the facility and subsequent maintenance that is contracted out to a contractor in the construction industry:

(a) (1) For a project undertaken by a public agency, the project is a public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

(2) Except as provided in paragraph (3), for a project undertaken by a public agency, an entity shall not be prequalified or shortlisted or awarded a contract by the public agency to perform any portion of the project unless the entity provides an enforceable commitment to the public agency that the entity and its contractors and subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades.

(3) Paragraph (2) does not apply if the project will be covered by a project labor agreement that will bind all contractors and subcontractors at every tier performing work on the project to use a skilled and trained workforce and provide for enforcement of that obligation through an arbitration procedure.

(b) For a project undertaken by a private entity, the applicant shall do all of the following:

(1) Certify to the lead agency that either of the following is true:

(A) The entirety of the project is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.

(B) (i) If the project is not in its entirety a public work, all construction workers employed on the project will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the project is subject to this subparagraph, then for those portions of the project that are not a public work, all of the following shall apply:

(I) The project applicant shall ensure that the prevailing wage requirement is included in all contracts for the performance of all construction and maintenance work.

(II) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work on the project or contract at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.

(III) (ia) Except as provided in sub-subclause (ic), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided therein.

(ib) Except as provided in sub-subclause (ic), the obligation of the contractors and subcontractors at every tier to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, or by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.

(ic) Sub-subclauses (ia) and (ib) do not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the project or contract and provides for enforcement of that obligation through an arbitration procedure.

(ii) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.

(2) Certify to the lead agency that a skilled and trained workforce will be used to perform all construction work on the project. All of the following requirements shall apply to the project:

(A) The project applicant shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to construct and maintain the project.

(B) Every contractor and subcontractor at every tier shall use a skilled and trained workforce to construct and maintain the project.

(C) (i) Except as provided in clause (ii), the project applicant shall provide to the lead agency, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the local government pursuant to this subclause shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection. A project applicant that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the project using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund, established pursuant to Section 1771.3 of the Labor Code.

(ii) Clause (i) shall not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure.

(3) Certify to the lead agency that it has entered into a labor peace agreement. This paragraph applies only if the state has a proprietary interest in the project or the state is providing direct financial assistance to the project, tax credits, or tax preferences in excess of two million five hundred thousand dollars ($2,500,000).

21189.105.

For purposes of Section 21189.104, both of the following definitions apply:

(a) “Labor peace agreement” means an agreement between the applicant and any bona fide labor organization that, at a minimum, prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the project applicant’s business. As a part of the agreement, the applicant agrees not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant’s employees work for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. The agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

(b) “Project labor agreement” has the same meaning as provided in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.

(c) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.