POLICY WATCH – March 2025
In This Issue
Are California’s Climate Policies Increasing the Cost of Housing?
CEQA Reform, is it Finally True?
A Sample of New Laws in 2025 that May Impact the North Bay
Leaders of the North Bay Awards Luncheon, May 16th
Bay Area Transportation Summit, March 28th
Other Upcoming Events
Members in the New
March was full of travel and events for me at NBLC. I took some time off to accompany my husband, a history teacher at Tam High School in Mill Valley and chaperoned 12 students to the National High School Model United Nations (NHSMUN) in NYC. Over 2000 delegates (students) from over 70 countries gathered in mid-town Manhattan for an intense week of debate and diplomacy to help them draft solutions to simulated real-world events and communities through a variety of multimedia and educational tools. In addition to learning about the best ways to address global issues, NHSMUN challenges its delegates to experience the power of generosity and service in resolving problems by participating in a service learning project prior to and during the conference—uniting behind specific issues and organizations that are directly related to topics discussed in committee. These extensive programming options allow the delegates to truly engage in their role as model diplomats and global citizens. Watching our youth work together (globally and right here in the NB) gave me hope. And that is so needed right now in these chaotic and uncertain times.
NBLC hosted Josh Fryday, Chief Services Officer, Governor Newsom Cabinet Member before I departend for NHSMUN. As a member of the Governor Gavin Newsom’s Cabinet, Josh Fryday leads California Volunteers and the newly created Governor’s Office of Service and Community Engagement. We were motivated and inspired by the solutions volunteers are providing for unique challenges in the North Bay. If you want more information about service opportunities or know someone who wants to volunteer, please visit their website here.
In this issue we look at a report detailing how California’s climate policies have increased the cost of housing and how two legislators are doing something about it. We remind you that the crucial vote for the Richmond San Rafael Bridge modified plan is finally here as the BCDC prepares to take up the matter on Thursday, April 3. You will also learn more about NBLC’s upcoming events.
Enjoy.
Joanne
New Report: Climate Policies Worsening California's Housing Crisis, by Holland & Knight Partner Jennifer Hernandez
California's housing crisis has been exacerbated by the state's ambitious climate policies, which have inadvertently made housing less affordable and accessible for many residents, according to a new report.
Hernandez writes, "Scores of new laws and regulations are now ritually adopted in California each year in a quixotic effort to conjure millions of desperately needed homes in exactly the areas of the state where housing costs are highest, anti-housing lawsuits are the most likely, and the units being produced are rentals that are unaffordable to the vast “missing middle” of low-, median-, and moderate-income households and render homeownership entirely unattainable.”
She claims that other climate policies further increase housing costs and discourage construction, including massive VMT “mitigation” obligations which burden new housing with outsize obligations to subsidize public transit and bike lanes somewhere (for someone), and to contribute even more funding to income-restricted, lottery-dispersed taxpayer-funded apartments that can cost more than $1 million per apartment to build. Residents of new housing also get burdened by California Air Resources Board (CARB) policy to “decarbonize” new housing by banning lower-cost natural gas appliances, therefore forcing new residents to assume already-extraordinarily high (and growing) electricity costs."
In "Bad Climate for Housing," Jennifer L. Hernandez explores the unintended consequences of California's climate strategies on housing affordability, highlighting the sharp divide between coastal and inland housing markets, the increasing costs driven by climate policies, and the critical shortage of housing permits for median and lower-income households.
This article delves into the complex interplay between environmental regulations and housing development, offering a comprehensive analysis of how well-intentioned climate actions have led to a rolling disaster in the state's housing sector. NBLC’s mission is to support sound public policy. Advocating the need for more housing while supporting responsible climate action in the North Bay remains a priority.
Read the full report here.
Latest CEQA Reform Effort a ‘Major Needle-Mover,’ Some Housing Advocates Say
Keith Menconi | Examiner staff writer reports that some housing advocates are cheering recent efforts by Senator Scott Weiner, SB 607 bill author and co-author Assemblymember Buffy Wicks for introducing this legislation.
North Bay Leadership Council is among those too cheering this latest push to reform California’s environmental review standards and get California building again.
“State Sen. Scott Wiener, who represents San Francisco, has put forward a bill — SB 607 — that would make a number of highly technical changes aimed at narrowing the scope of the California Environmental Quality Act, a decades-old environmental law that critics say has been harnessed to block all manner of projects throughout the state. The proposed changes, for the most part, expand the range of projects that receive exemptions from the environmental reviews required by CEQA.”
“The measure would offer welcome relief for housing developers, said Corey Smith, executive director of the San Francisco-based Housing Action Coalition, which advocates for home builders. The organization is among a number of other pro-housing development groups that have so far rallied in its support of Wiener’s proposal.”
“CEQA has made housing in places like San Francisco more expensive and take longer to build,” Smith said.
Menconi continues, “Wiener’s bill targets the rollback of CEQA’s reviews only to cover “environmentally friendly and environmentally neutral projects,” according to a press release from his office. But environmental legal experts say the changes could be far more sweeping.”
“It rips the heart out of CEQA,” said Richard Drury, an Oakland-based environmental lawyer who has litigated CEQA cases for decades.
“The law — first passed in 1970 — requires studies to determine the potential environmental impact from projects, including how they could affect air quality, waterways and noise pollution. Over the decades, however, critics say the measure has been extended well beyond the original intent of lawmakers, and used as a cudgel to block a broad range of projects — everything from new housing developments, to shelters for the homeless, to transportation infrastructure — by adding additional layers of review that often takes years to complete”, Menconi writes.
NBLC has been a long-spoken critic and supports reforms. In the 50 years since CEQA was passed, Congress and the Legislature have adopted more than 120 laws to protect the environment including air quality, water quality, species protection, greenhouse gas reduction, responsible land-use planning and more. However, CEQA has not received a major update to take these new laws and the reality of the state’s housing crisis into account. As a result, many environmentally desirable projects are being held up by abusive CEQA lawsuits and unintended consequences of the law.
NBLC believes that compliance with California's stringent environmental standards should mean something, but instead, CEQA is being abused to stop projects that "play by the rules" and comply with all applicable standards—causing delays of years and increased taxpayer costs and sometimes even killing good projects altogether.
Menconi continues, “Wiener’s proposal, introduced last month, would expand upon existing CEQA exemptions put in place in recent years. Those include measures championed by Wiener that exclude student housing, certain transportation projects, and supportive housing for the homeless from CEQA review.
“I'm not one of these people who wants to get rid of CEQA,” said Wiener in an interview with The Examiner. “But I want it to be very focused on actually protecting the environment without preventing California from building all of the things that we need to succeed.”
The proposals make fine-grained tweaks to the complicated statutes undergirding the application of CEQA. They include changes that would limit the scope of CEQA reviews as well as the range of administrative records that would be included in environmental studies.”
Stakeholders on all sides agree that, after 50 years, there are important improvements that can be made to CEQA. These reforms must retain the foundation of the law – public disclosure and environmental protection – while limiting misuses and expanding exemptions for the critical projects that have little to do with the environment and jeopardize economic growth and environmental leadership.
North Bay Leadership Council (NBLC) representing business, education, hospitals, clean tech, transit, affordable housing and other organizations that support these moderate reforms to CEQA that will preserve its original intent – environmental protection and public disclosure – while furthering job creation, community renewal and our environment.
New Laws in 2025 that May Impact the North Bay
NBLC 2025 Priorities: New Laws passed in 2025 as reported by The Mercury News
Housing
NBLC Supported, Senate Bill 1395, sponsored by Democratic Menlo Park state Sen. Josh Becker, seeks to ramp up construction of so-called tiny homes by exempting them from the California Environmental Quality Act. The goal? Using tiny homes temporarily to house homeless residents. That’s a strategy embraced by San Jose Mayor Matt Mahan, though with some controversy. The new law had bipartisan support and faced little opposition from interest groups.
More than 80,000 accessory dwelling units, or ADUs, have been built in California in the last seven years because of laws encouraging them, according to the pro-housing advocacy group California YIMBY. Senate Bill 1211 allows a homeowner to build more detached ADUs on their property than what was previously allowed. The law was sponsored by outgoing Berkeley Sen. Nancy Skinner.
Economic Resiliency
Amsterdam’s famed cannabis “coffeeshops” are coming to California via Assembly Bill 1775, which allows dispensaries to serve non-cannabis food and drinks to customers who can relax and smoke on the premises. These new business will officially be known as “cannabis consumption lounges.” San Francisco Assemblymember Matt Haney, a Democrat, sponsored the law.
A counterpart in the state Senate, Scott Wiener, also a Democrat, sponsored Senate Bill 969. The law allows cities to create “entertainment zones” where customers can wander while carrying open alcoholic drinks. Wiener pitched the idea as a tool to revitalize cities by removing “needless restrictions.”
Upcoming Events
Move Bay Area - North Bay Summit, Friday, March 28 from 9 a.m. to 3 p.m. Join NBLC CEO Webster and explore the links between climate, health, and mobility as a regional transportation vision is explored at the transportation summit.
The event will be held at Napa Valley College, 2277 Napa Vallejo Highway. Reserve your free spot. MTC is one of the sponsors of the event.
Move Bay Area brings transportation leaders and the community together in person to discover commonality and regional solutions to transportation challenges with the goal of building a regional transportation vision together.
Business Edge Briefing: Unspoken Truths from the Startup Trenches, Wednesday, March 26 · 11 a.m. – 12 p.m.
Entrepreneur and startup consultant Ashwin Gulati dismantles the myths and uncovers the raw realities and ambitions that shape an entrepreneurial culture where 97% of startups are destined to fail. So why do entrepreneurs keep lining up? Why do venture capitalists continue to fund them? And what exactly isn’t working?
Leaders of the North Bay Awards Luncheon, Friday, May 16th, Flamingo Resort, Santa Rosa 11:30 a.m. – 1:30 p.m.
Every year NBLC honors outstanding leaders in the North Bay. Join us in honoring this year’s winners!
Members in the News
North Bay Business Journal’s 25th Annual Wine Industry Conference
Cheers to 25 Years! Join Us for the North Bay Business Journal’s Wine Industry Conference on April 23 from 8:00 a.m. – 11:20 a.m.
Bank of America Documentary on Cinequest About Founder Draws Real Interest
The documentary explores the life of the founder of the Bank of Italy, which later became the Bank of America, and the title comes from his reputation for helping out the “little guy” that other banks would ignore.
Redwood Credit Union Names Esteban Zuno Senior Vice President of Wealth, Insurance & Deposit Services
Esteban Zuno has been promoted to senior vice president of wealth, insurance, and deposit services for Redwood Credit Union
Congratulations to Our Members Who Made the North Bay Business Journal Forty Under 40 for 2025
North Bay Business Journal announces its Forty Under 40 award winners, those North Bay trailblazers under the age 40 who are rising stars and game changes in their industries.
Sonoma Clean Power Seeks Help from California Lawmakers on Speeding Up Permits for Geothermal Expansion Effort at The Geysers
California’s effort to generate much more round-the-clock clean energy from geothermal resources such as The Geysers area straddling Sonoma and Lake counties seems to be running out of steam because of the state’s permitting system.
Providence Humboldt Donates $2 Million for New Behavioral Health Triage Center
Providence Humboldt County is providing a $ 2 million donation to the upcoming Behavioral Health Triage Center in Arcata.
Basin Street Properties Welcomes Grove Wealth Advisors Offices to Fountaingrove Center in Santa Rosa
Basin Street Properties, a prominent real estate investment, development, and management firm, is pleased to announce Grove Wealth Advisors has signed a lease at Fountaingrove Center in Santa Rosa.
BioMarin Pharmaceutical Q4 Results Show Revenue Increase
BioMarin Pharmaceutical (Nasdaq: BMRN) reported $747.31 million in revenue for the fourth quarter, a 16% year-over-year increase.
Buck Institute and Phenome Health Awarded up to $52M from ARPA-H
The Buck Institute for Research on Aging and strategic partner Phenome Health today announced a four-year award of up to $52M from the Advanced Research Projects Agency for Health (ARPA-H) to support its groundbreaking research project, “Personalized Analytics for Transforming Health (PATH): A PATH Toward Proactive Health.”
Buck Institute for Research on Aging’s CEO Eric Verdin’s Statement on Proposed Changes to NIH Funding
The guidance issued by the NIH on February 7 lowered the standard indirect rate to 15% for all NIH grants. Indirect costs, also known as Facilities and Administration or F&A costs, are critical to a research enterprise; indeed they make the research possible.