California Environmental Quality Act: advanced manufacturing facilities: exemption.

SB 954

California Bills

20250SB__095496AMD INTRODUCED 2026-02-02 AMENDED_SENATE 2026-03-25 AMENDED_SENATE 2026-04-16 AMENDED_SENATE 2026-05-14 REVISED 2026-06-25 2025 SB AMD Introduced by Senator Blakespear (Principal coauthor: Assembly Member Connolly) (Coauthors: Senators Allen, Arreguín, Cortese, Laird, McGuire, Pérez, and Reyes) (Coauthors: Assembly Members Addis, Caloza, Lee, Pellerin, Schultz, Ward , and Kalra ) LEAD_AUTHOR SENATE Blakespear PRINCIPAL_COAUTHOR ASSEMBLY Connolly COAUTHOR SENATE Allen COAUTHOR SENATE Arreguín COAUTHOR SENATE Cortese COAUTHOR SENATE Laird COAUTHOR SENATE McGuire COAUTHOR SENATE Pérez COAUTHOR SENATE Reyes COAUTHOR ASSEMBLY Addis COAUTHOR ASSEMBLY Caloza COAUTHOR ASSEMBLY Lee COAUTHOR ASSEMBLY Pellerin COAUTHOR ASSEMBLY Schultz COAUTHOR ASSEMBLY Ward COAUTHOR ASSEMBLY Kalra

An act to amend Sections 21067.5, 21080.085, and 21080.69 of, to add

Section 21069.5 to, and to add

Chapter 8 (commencing with

Section 21189.100) to Division of, the Public Resources Code, relating to environmental quality. environmental quality California Environmental Quality Act: advanced manufacturing facilities: exemption. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect.

CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA defines various terms, including “natural and protected lands” for its purposes. This bill would revise the definition of that term to include habitats for protected species identified as candidate, sensitive, or species of special status by state or federal agencies.

CEQA exempts from its requirement projects that consist exclusively of a day care center that is not located in a residential area and projects that consist exclusively of an advanced manufacturing facility located on a site zoned exclusively for industrial uses. This bill would additionally exempt projects consisting exclusively of a family day care home, as defined.

The bill would, for the exemption for the day care center and family day care home, instead require the projects for those facilities not be located in an area zoned for industrial use or within 3,200 feet of a facility that actively extracts or refines oil or natural gas in order for the exemption to apply. The bill would revise the exemption for advanced manufacturing facility projects to require those projects to be used exclusively for final tier manufacturing, as defined, and for the Governor to certify the project, as provided.

The bill would require an applicant of an advanced manufacturing project that is exempted from CEQA under the bill’s requirement to enter into a bona fide community benefits agreement, as provided, and to comply with certain labor requirements, as provided. The bill would require the lead agency, before determining that an advanced manufacturing project is exempt from CEQA, to hold at least one public hearing on the project and to ensure that the applicant complies with the requirement to enter into a bona fide community benefits agreement and the labor requirements.

CEQA generally does not apply to a rezoning that implements the

schedule of actions contained in an approved housing element, unless the rezoning would allow for the construction of certain facilities, including oil and gas infrastructure.

This bill would make CEQA applicable to a rezoning of this kind that authorizes a tourism facility use that was not permitted before the rezoning or authorizes an increase in the allowable floor area, height, density, intensity, or development capacity of a tourism facility use beyond that permitted under the site’s zoning designation in effect before the rezoning or before January 1, 2027, whichever is later, except as provided, or that would allow for the construction of oil and gas infrastructure.

Because the bill would imposes additional duties on a lead agency, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 21067.5 of the Public Resources Code is amended to read: 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 of Division 5. (

b) A wilderness area, as defined in

Section 5093.32. (

c) A marine protected area, as defined in

Section of the Fish and Game Code. (

d) The national park system, as defined in

Section of Title 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 of Title 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 of Division 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 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 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 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 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 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 of this code or

Section of the Government Code, as applicable.

(2) Section 4290.

(3) Chapter 7A (commencing with

Section 701A.1) of Part of Title 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 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with

Section 1900) of Division of the Fish and Game Code).

SEC.

Section 21069.5 is added to the Public Resources Code , to read: 21069.5. “Tourism facility” means either of the following: (

a) A hotel, resort, or other transient lodging facility. For purposes of this subdivision, “other transient lodging” does not include either of the following:

(1) A residential hotel, as defined in

Section of the Health and Safety Code.

(2) After the issuance of a certificate of occupancy, a resident’s use or marketing of a unit as short-term lodging, as defined in

Section 17568.8 of the Business and Professions Code, in a manner consistent with local law. (

b) An event center, as defined in

Section 40717.8 of the Health and Safety Code, that is at least 100,000 square feet or has a seating capacity of at least 10,000 seats.

SEC.

Section 21080.085 of the Public Resources Code is amended to read: 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 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) Except as provided in paragraph (2), a rezoning that would allow for construction to occur within the boundaries of any natural and protected lands. (

C) A rezoning that does either of the following: (

i) Authorizes a tourism facility use that was not permitted on the site before the rezoning. (ii) Authorizes an increase in the allowable floor area, height, density, intensity, or development capacity for a tourism facility use beyond that permitted under the site’s zoning designation in effect before the rezoning or before January 1, 2027, whichever is later. (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.

SEC.

Section 21080.69 of the Public Resources Code is amended to read: 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 of the United States Code, or a federally qualified health center, as defined by

Section 1396(d)(l)(2) of Title 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.

SEC. 5.

Chapter 8 (commencing with

Section 21189.100) is added to Division of the Public Resources Code , to read: 8. Environmental Leadership Program for Advanced Manufacturing 21189.100. (

a) The Legislature finds and declares both of the following:

(1) California is first in the nation in manufacturing output and remains the global center for innovation, technology, and entrepreneurship.

(2) The state’s manufacturing sector spans advanced electronics, semiconductors, clean energy technologies, decarbonization, and climate resilience. These industries are essential to economic resilience, supply chain security, and climate progress. (

b) It is the intent of the Legislature to streamline manufacturing for advanced manufacturing that deploys cutting-edge technologies to significantly reduce environmental impacts, to increase resource use efficiency compared to existing industry standards in California, and to promote development of clean energy and other manufacturing industries that lead to an abundant future for all Californians. 21189.101. 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. (1)<xhtml:span class="EnSpace"/>____.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>____.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>____.</xhtml:p>"?> (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 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 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, recycling, or conservation of materials into fuels, feedstocks, or raw materials. (

B) The production of equipment designed and used primarily for the activities described in subparagraph (A). (B)</xhtml:p>"?> (

C) 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 of the Government Code. 21189.102. Subject to

Section 21189.105, this division does not apply to an advanced manufacturing facility project that is certified by the Governor pursuant to

Section 21189.104 and meets all of the following criteria: (

a) The project is located on a site zoned exclusively for heavy 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 exceed any of the following operational or construction emissions limits:

(1) Fifty-four pounds per day or tons per year of reactive organic gases, whichever is lower.

(2) Fifty-four pounds per day or tons per year of oxides of nitrogen, whichever is lower.

(3) Eighty pounds per day or 14.6 tons per year, whichever is lower, of particulate matter less than microns in diameter.

(4) Fifty-four pounds per day or tons per year, whichever is lower, of particulate matter less than 2.5 microns in diameter.

(5) Ten pounds per day or less of methane.

(6) One hundred thirty-seven pounds per day or tons per year, whichever is lower, of oxides of sulfur.

(7) Five hundred forty-eight pounds per day or tons per year, whichever is lower, of carbon monoxide. (

e) The project is compliant with a quality community risk reduction plan or demonstrates an increased cancer risk of no more than in one million and an increase in noncancer risk of less than 1.0 on the hazard index for both chronic and acute exposure for receptors within 1,000 feet radius of the fence of the advanced manufacturing facility. (

f) 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. (

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

h) The project uses zero-emission backup generation. 21189.103. An advanced manufacturing facility project is eligible for certification by the Governor if the project meets both of the following: (

a) The advanced manufacturing facility is certified as Leadership in Energy and Environmental Design gold or better by the United States Green Building Council. (

b) The applicant demonstrates that the project has significant improvements over the current industry standards for energy and water consumption, water quality impacts, specifically including reducing perfluoroalkyl or polyfuoroalkyl substances effluent as compared to industry baselines, and air quality impacts. 21189.104. (a)

(1) The Governor may certify a project under this

chapter if the project meets the requirements of

Section 21189.103. An applicant may apply for certification of a project by the Governor under this

chapter by submitting an application to the office. The applicant shall provide evidence and materials deemed necessary by the Governor demonstrating that the project meets the requirements of

Section 21189.103. The applicant shall also submit the business case on why the project should be implemented.

(2) The office may charge a fee on an applicant seeking certification under this

chapter for the reasonable costs incurred by the Governor’s office in implementing this chapter.

(3) The office shall make evidence and materials submitted by the applicant in support of the application publicly available on its internet website at least days before the Governor’s decision on the application. (b)

(1) If the Governor determines to certify the project, the Governor shall submit the proposed certification and any supporting information to the Joint Legislative Budget Committee for review and concurrence or nonconcurrence.

(2) Except as provided in paragraph (3), within days of receiving the determination, the Joint Legislative Budget Committee shall concur or nonconcur in writing on the determination.

(3) If the Joint Legislative Budget Committee fails to concur or nonconcur on the determination within days of the submittal, the project is deemed to be certified. 21189.105. 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 21189.106. (

c) Ensure that the applicant complies with

Section 21189.107. 21189.106. (

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). (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. 21189.107. 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 of Division 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 of Division 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 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 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 of the Labor Code, which may be reviewed pursuant to

Section of the Labor Code, within 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 or 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 of Division 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 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 of Division 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 months of completion of the project using the same procedures for issuance of civil wage and penalty assessments pursuant to

Section of the Labor Code, and may be reviewed pursuant to the same procedures in

Section 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). 21189.108. For purposes of

Section 21189.107, 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 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 of Division of the Public Contract Code.

SEC. 6. No reimbursement is required by this act pursuant to

Section of

Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of

Section of the Government Code. REVISIONS: Heading—Line 4.

Document details

CollectionCalifornia Bills
CitationSB 954
Date2026-05-14
Typebill
Languageen
SourceCA_BILL
Identifier20250SB95496AMD

California Environmental Quality Act: advanced manufacturing facilities: exemption.

SB 954

California Bills

California Environmental Quality Act: advanced manufacturing facilities: exemption.

SB 954

California Bills

20250SB__095496AMD INTRODUCED 2026-02-02 AMENDED_SENATE 2026-03-25 AMENDED_SENATE 2026-04-16 AMENDED_SENATE 2026-05-14 REVISED 2026-06-25 2025 SB AMD Introduced by Senator Blakespear (Principal coauthor: Assembly Member Connolly) (Coauthors: Senators Allen, Arreguín, Cortese, Laird, McGuire, Pérez, and Reyes) (Coauthors: Assembly Members Addis, Caloza, Lee, Pellerin, Schultz, Ward , and Kalra ) LEAD_AUTHOR SENATE Blakespear PRINCIPAL_COAUTHOR ASSEMBLY Connolly COAUTHOR SENATE Allen COAUTHOR SENATE Arreguín COAUTHOR SENATE Cortese COAUTHOR SENATE Laird COAUTHOR SENATE McGuire COAUTHOR SENATE Pérez COAUTHOR SENATE Reyes COAUTHOR ASSEMBLY Addis COAUTHOR ASSEMBLY Caloza COAUTHOR ASSEMBLY Lee COAUTHOR ASSEMBLY Pellerin COAUTHOR ASSEMBLY Schultz COAUTHOR ASSEMBLY Ward COAUTHOR ASSEMBLY Kalra

An act to amend Sections 21067.5, 21080.085, and 21080.69 of, to add

Section 21069.5 to, and to add

Chapter 8 (commencing with

Section 21189.100) to Division of, the Public Resources Code, relating to environmental quality. environmental quality California Environmental Quality Act: advanced manufacturing facilities: exemption. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect.

CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA defines various terms, including “natural and protected lands” for its purposes. This bill would revise the definition of that term to include habitats for protected species identified as candidate, sensitive, or species of special status by state or federal agencies.

CEQA exempts from its requirement projects that consist exclusively of a day care center that is not located in a residential area and projects that consist exclusively of an advanced manufacturing facility located on a site zoned exclusively for industrial uses. This bill would additionally exempt projects consisting exclusively of a family day care home, as defined.

The bill would, for the exemption for the day care center and family day care home, instead require the projects for those facilities not be located in an area zoned for industrial use or within 3,200 feet of a facility that actively extracts or refines oil or natural gas in order for the exemption to apply. The bill would revise the exemption for advanced manufacturing facility projects to require those projects to be used exclusively for final tier manufacturing, as defined, and for the Governor to certify the project, as provided.

The bill would require an applicant of an advanced manufacturing project that is exempted from CEQA under the bill’s requirement to enter into a bona fide community benefits agreement, as provided, and to comply with certain labor requirements, as provided. The bill would require the lead agency, before determining that an advanced manufacturing project is exempt from CEQA, to hold at least one public hearing on the project and to ensure that the applicant complies with the requirement to enter into a bona fide community benefits agreement and the labor requirements.

CEQA generally does not apply to a rezoning that implements the

schedule of actions contained in an approved housing element, unless the rezoning would allow for the construction of certain facilities, including oil and gas infrastructure.

This bill would make CEQA applicable to a rezoning of this kind that authorizes a tourism facility use that was not permitted before the rezoning or authorizes an increase in the allowable floor area, height, density, intensity, or development capacity of a tourism facility use beyond that permitted under the site’s zoning designation in effect before the rezoning or before January 1, 2027, whichever is later, except as provided, or that would allow for the construction of oil and gas infrastructure.

Because the bill would imposes additional duties on a lead agency, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 21067.5 of the Public Resources Code is amended to read: 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 of Division 5. (

b) A wilderness area, as defined in

Section 5093.32. (

c) A marine protected area, as defined in

Section of the Fish and Game Code. (

d) The national park system, as defined in

Section of Title 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 of Title 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 of Division 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 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 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 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 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 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 of this code or

Section of the Government Code, as applicable.

(2) Section 4290.

(3) Chapter 7A (commencing with

Section 701A.1) of Part of Title 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 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with

Section 1900) of Division of the Fish and Game Code).

SEC.

Section 21069.5 is added to the Public Resources Code , to read: 21069.5. “Tourism facility” means either of the following: (

a) A hotel, resort, or other transient lodging facility. For purposes of this subdivision, “other transient lodging” does not include either of the following:

(1) A residential hotel, as defined in

Section of the Health and Safety Code.

(2) After the issuance of a certificate of occupancy, a resident’s use or marketing of a unit as short-term lodging, as defined in

Section 17568.8 of the Business and Professions Code, in a manner consistent with local law. (

b) An event center, as defined in

Section 40717.8 of the Health and Safety Code, that is at least 100,000 square feet or has a seating capacity of at least 10,000 seats.

SEC.

Section 21080.085 of the Public Resources Code is amended to read: 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 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) Except as provided in paragraph (2), a rezoning that would allow for construction to occur within the boundaries of any natural and protected lands. (

C) A rezoning that does either of the following: (

i) Authorizes a tourism facility use that was not permitted on the site before the rezoning. (ii) Authorizes an increase in the allowable floor area, height, density, intensity, or development capacity for a tourism facility use beyond that permitted under the site’s zoning designation in effect before the rezoning or before January 1, 2027, whichever is later. (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.

SEC.

Section 21080.69 of the Public Resources Code is amended to read: 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 of the United States Code, or a federally qualified health center, as defined by

Section 1396(d)(l)(2) of Title 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.

SEC. 5.

Chapter 8 (commencing with

Section 21189.100) is added to Division of the Public Resources Code , to read: 8. Environmental Leadership Program for Advanced Manufacturing 21189.100. (

a) The Legislature finds and declares both of the following:

(1) California is first in the nation in manufacturing output and remains the global center for innovation, technology, and entrepreneurship.

(2) The state’s manufacturing sector spans advanced electronics, semiconductors, clean energy technologies, decarbonization, and climate resilience. These industries are essential to economic resilience, supply chain security, and climate progress. (

b) It is the intent of the Legislature to streamline manufacturing for advanced manufacturing that deploys cutting-edge technologies to significantly reduce environmental impacts, to increase resource use efficiency compared to existing industry standards in California, and to promote development of clean energy and other manufacturing industries that lead to an abundant future for all Californians. 21189.101. 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. (1)<xhtml:span class="EnSpace"/>____.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>____.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>____.</xhtml:p>"?> (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 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 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, recycling, or conservation of materials into fuels, feedstocks, or raw materials. (

B) The production of equipment designed and used primarily for the activities described in subparagraph (A). (B)</xhtml:p>"?> (

C) 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 of the Government Code. 21189.102. Subject to

Section 21189.105, this division does not apply to an advanced manufacturing facility project that is certified by the Governor pursuant to

Section 21189.104 and meets all of the following criteria: (

a) The project is located on a site zoned exclusively for heavy 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 exceed any of the following operational or construction emissions limits:

(1) Fifty-four pounds per day or tons per year of reactive organic gases, whichever is lower.

(2) Fifty-four pounds per day or tons per year of oxides of nitrogen, whichever is lower.

(3) Eighty pounds per day or 14.6 tons per year, whichever is lower, of particulate matter less than microns in diameter.

(4) Fifty-four pounds per day or tons per year, whichever is lower, of particulate matter less than 2.5 microns in diameter.

(5) Ten pounds per day or less of methane.

(6) One hundred thirty-seven pounds per day or tons per year, whichever is lower, of oxides of sulfur.

(7) Five hundred forty-eight pounds per day or tons per year, whichever is lower, of carbon monoxide. (

e) The project is compliant with a quality community risk reduction plan or demonstrates an increased cancer risk of no more than in one million and an increase in noncancer risk of less than 1.0 on the hazard index for both chronic and acute exposure for receptors within 1,000 feet radius of the fence of the advanced manufacturing facility. (

f) 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. (

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

h) The project uses zero-emission backup generation. 21189.103. An advanced manufacturing facility project is eligible for certification by the Governor if the project meets both of the following: (

a) The advanced manufacturing facility is certified as Leadership in Energy and Environmental Design gold or better by the United States Green Building Council. (

b) The applicant demonstrates that the project has significant improvements over the current industry standards for energy and water consumption, water quality impacts, specifically including reducing perfluoroalkyl or polyfuoroalkyl substances effluent as compared to industry baselines, and air quality impacts. 21189.104. (a)

(1) The Governor may certify a project under this

chapter if the project meets the requirements of

Section 21189.103. An applicant may apply for certification of a project by the Governor under this

chapter by submitting an application to the office. The applicant shall provide evidence and materials deemed necessary by the Governor demonstrating that the project meets the requirements of

Section 21189.103. The applicant shall also submit the business case on why the project should be implemented.

(2) The office may charge a fee on an applicant seeking certification under this

chapter for the reasonable costs incurred by the Governor’s office in implementing this chapter.

(3) The office shall make evidence and materials submitted by the applicant in support of the application publicly available on its internet website at least days before the Governor’s decision on the application. (b)

(1) If the Governor determines to certify the project, the Governor shall submit the proposed certification and any supporting information to the Joint Legislative Budget Committee for review and concurrence or nonconcurrence.

(2) Except as provided in paragraph (3), within days of receiving the determination, the Joint Legislative Budget Committee shall concur or nonconcur in writing on the determination.

(3) If the Joint Legislative Budget Committee fails to concur or nonconcur on the determination within days of the submittal, the project is deemed to be certified. 21189.105. 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 21189.106. (

c) Ensure that the applicant complies with

Section 21189.107. 21189.106. (

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). (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. 21189.107. 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 of Division 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 of Division 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 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 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 of the Labor Code, which may be reviewed pursuant to

Section of the Labor Code, within 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 or 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 of Division 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 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 of Division 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 months of completion of the project using the same procedures for issuance of civil wage and penalty assessments pursuant to

Section of the Labor Code, and may be reviewed pursuant to the same procedures in

Section 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). 21189.108. For purposes of

Section 21189.107, 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 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 of Division of the Public Contract Code.

SEC. 6. No reimbursement is required by this act pursuant to

Section of

Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of

Section of the Government Code. REVISIONS: Heading—Line 4.

Document details

CollectionCalifornia Bills
CitationSB 954
Date2026-05-14
Typebill
Languageen
SourceCA_BILL
Identifier20250SB95496AMD