Morning Report: CEQA Reforms Won’t Have Much Impact

Earlier this year, state lawmakers made national headlines when they voted to roll back parts of California’s landmark Environmental Quality Act, known as CEQA.

Environmentalists decried the decision to end CEQA oversight of small-to-medium-sized housing projects in urban areas. Pro-growth advocates applauded.

Both sides may have overreacted.

Our Sacramento reporter Deborah Brennan asked homebuilders what difference the rollback would make to actual construction projects.

Their verdict: Not much. And definitely not right away.

“We’re not going to see an increase in deliveries in 2026 because of these changes,” said Robert Vallera, senior vice president for the San Diego office of Voit Real Estate Services.

Builders said slimming down CEQA could make it easier to convert strip malls into small apartment complexes. And permitting timelines could speed up for some projects.

But plenty of barriers to home construction remain in California, they said: Bureaucratic delays, high labor and materials costs, strict liability laws and environmental regulations.

“We’re seeing a lot of developers pull back…right now,” Vallera said.

Read the Sacramento Report here.

VOSD Podcast: That Dam San Diego

This week’s VOSD Podcast heads north, where our North County reporter Tigist Layne reports a company is suing the city of San Diego for allegedly ruining the company’s mining business by releasing billions of gallons of water from an aging dam.

It’s a juicy story with a bold-faced name representing the company in court.

Also: Our hosts explain the Board of Supervisors’ recent decision to clear the way for dipping into the county’s massive reserve funds. And Assemblymember Chris Ward calls in from Sacramento to talk about California’s redistricting ballot measure.

Listen to the VOSD Podcast here.

Politics Report: Carve-Outs Coming for Tourism Minimum Wage Hike

The wheeling and dealing at City Hall is fast and furious as San Diego policymakers race to require some tourism and entertainment employers pay a higher minimum wage with a vote now scheduled for Sept. 16.

Our Scott Lewis learned last week that one major local attraction already has won an exemption from the proposed $25-an-hour minimum wage policy: the zoo.

Are other carve-outs on the way?

Plus: Lewis learned other details about the proposal that might lessen its immediate impact on local businesses.

And you’ll never guess who’s backing the carve-outs and other tweaks to the proposal. Subscribe to get all the key details.

Read the Politics Report here.

In Other News

• Federal prosecutors in San Diego last week credited three YouTubers for helping them dismantle a Chinese organized crime ring that scammed $65 million from thousands of mostly senior citizen victims. “Not all heroes have capes,” one U.S. attorney said. “Some have YouTube channels.” (Union-Tribune)
• Community college advocates and local lawmakers gathered at Southwestern College last week to decry a Trump Administration decision not to defend a federal program serving Latino college students against a constitutional court challenge. The likely end of the program will cause San Diego-area community colleges to lose more than $15 million in outreach, support and retention funding for Latino students, advocates said.
• KPBS reports that the city of Chula Vista is employing a novel tactic to encourage affordable housing construction. City leaders recently gave initial approval to issuing up to $25 million in tax-exempt bonds on behalf of a developer planning to build nearly 100 affordable two- and three-bedroom units in Otay Ranch.
• Also, KPBS crunched the numbers and found that a recently proposed state redistricting ballot measure would imperil the congressional seat currently held by Republican U.S. Rep. Darrell Issa while making a neighboring seat currently held by Democrat Scott Peters more competitive.
• Gov. Gavin Newsom last week launched a statewide homeless response task force that will field teams from multiple state agencies to clear encampments along highways and other state properties in major California cities, including San Diego. (CalMatters)
• Fans of Cowles Mountain, San Diego’s tallest peak and the cornerstone of surrounding Mission Trails Regional Park, this year are celebrating the 50th anniversary of the peak’s purchase by the city of San Diego for $2.2 million. The Union-Tribune tells the unlikely story of how the peak, once slated for development, became a beloved city landmark.

The Morning Report was written by Jim Hinch. It was edited by Andrea Sanchez-Villafaña. 

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