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Lauren Rosenhall, Soumya Karlamanga, and Adam Nagourney for the New York Times, "California Rolls Back Its Landmark Environmental Law" (archive) (Part of an ongoing series on housing, mostly in California. Now also at theschism.) Other coverage is available from Eric Levitz at Vox, Henry Grabar at Slate, Ben Christopher at CalMatters, and Taryn Luna and Liam Dillon at the Los Angeles Times. Some of this work draws from Assemblymember Buffy Wicks' Select Committee on Permitting Reform, which issued its final report earlier this year.
In our last episode, there were three major reforms in play for this year's legislative season: zoning reform (SB 79), improving the CEQA exemption for infill housing (AB 609), and broad CEQA reform (SB 607). SB 79 is currently in the Assembly (it passed Assembly Housing 9-2, and now goes to Assembly Local Government, then the floor, then Senate concurrence, then the Governor's desk), but in a surprise move, Newsom, whose inaction I've previously complained about, pulled CEQA reform into this year's budget process, which essentially makes it a must-pass piece of legislation. There's some room for short negotiation, but it's fast-paced, and if the budget isn't passed, the legislators don't get paid until it is. (There is, as I understand it, no back pay, so it's a real penalty.)
CEQA is arguably the most significant non-zoning barrier to housing production (here's a short selection of shenaniganry, and I've covered it here and here); the CA YIMBY legislative director described this as "probably the most important thing California has done on housing in the present YIMBY moment" and explained how we got here.
The main opponents here were the usual Livable California NIMBYs, but also the State Building and Construction Trades Council of California (the "Trades"). On first glance, environmental review doesn't seem connected to labor, but because CEQA provides an all-purpose method of delay (and delay costs money), it's used to extract concessions, like the use of union labor, in exchange for not delaying the project. Note that nearly 90% of the construction workforce is non-union; the Trades are, in effect, taking work away from a lot of construction workers in order to ensure much higher pay for the few union construction workers, who mostly work on government projects or subsidized housing which mandates union labor.
There was, during this process, an intense argument, occurring mostly behind-the-scenes, about what labor standards should look like. The expected proposal was that projects skipping environmental review would have to pay higher, but nowhere near union rate, wages; this would probably not have had a significant effect on the bill's usefulness, since the required wages were close to the median wage for construction workers. This did not mollify the Trades, who claimed that it "will compel our workers to be shackled and start singing chain gang songs"; their official opposition letter described it as "a bill that masquerades as housing reform while launching an all-out assault on the livelihoods, health, and dignity of California construction workers".
But a few days later, the wage stuff was completely removed; the expanded CEQA infill exemption simply exempts most infill projects from environmental review, period. (Projects above eighty-five feet, which do require union labor, generally use more-expensive Type I construction anyway.)
In a bit more detail, one of the components of the originally proposed reform was removing a lowered standard for demanding a full environmental impact statement. Under existing law, if an agency makes a negative declaration (i.e., "there isn't a meaningful environmental impact here"), they can be forced to reconsider that under a "fair argument" standard, which is much lower than a "reasonable person" standard; this incentivizes agencies to do unnecessary EIRs to avoid the chance that some crank will force them to do one anyway. This reform has been removed; the "fair argument" standard remains.
For more deep dives, see Assemblymember Buffy Wicks and Senator Scott Wiener (the original authors of these reforms) being interviewed by David Roberts for Volts, "The fight to build faster in California", which is slightly outdated, as it was recorded before the final bill was passed; see also the same two legislators being interviewed by Derek Thompson for Plain English, "How Abundance Won in California". (For a contrast, see Roberts' 2023 interview with Johanna Bozuwa from the Climate and Community Project, "The progressive take on the permitting debate", which is a defense of complex, discretionary permitting.)
Thompson is, of course, Ezra Klein's coauthor on Abundance, as covered in the last installment, and Newsom, in the press conference announcing the signing, specifically gave a shout-out to the concept and to Klein (though not Thompson). (Note Senator Aisha Wahab, the Housing chair, at left wearing black, pulling some faces at that.) Newsom, understandably, made a meal of this; the full press conference is here.
It’s great to see political realignment in action. A lot of folks here are extremely blackpilled about politics, but this to me seems a perfect example of how democracy is supposed to work.
The Democrats ignored a major issue for a long time, lost popularity massively from it, then pivoted. Love to see it.
I'm pretty optimistic; at least these things are happening out in the open in some way, at least these debates are being had. See also some exciting arguments happening in the field of education. So, of course I'm going to write about what could go wrong, as well as what I think has gone wrong.
The downside to politics being so thermostatic is that it seems like no matter how bad your policies are, voters will flip power back to you in a few years regardless, and you can go back to believing that the other guys are so awful that you don't have to bother learning how to actually accomplish things because that would be hard.
The center-left has been here before! After the last time the Democrats lost the popular vote, Dan Savage wrote "The Urban Archipelago", some of which seems charmingly dated ("If coal is to be burned, it has to be burned as cleanly as possible so as not to foul the air we all have to breathe") or sadly dated ("Unlike the people who flee from cities in search of a life free from disagreement and dark skin, we are for contentiousness, discourse, and the heightened understanding of life that grows from having to accommodate opposing viewpoints. We're for opposition."), but at its core, it's a marvelously audacious vision: liberals win when cities grow, so we should grow cities and make them amazing, and the only reason red states are red is because their cities aren't big and amazing enough.
This vision failed, and there's an excellent interview that David Roberts did on Volts, "Dan Savage on blue America in the age of Trump". Savage describes what the YIMBYs call "the unholy alliance":
Five years ago, I wrote about what I think is the most likely path forward, and what is the ideal path forward. I think my idea of that is a lot more detailed now, and ties in well with the idea of the Urban Archipelago. Here's my idea of what the blue team has failed to provide, and if they want to regain power and credibility, they have to solve that.
The Four Failures
Safety and Order
Josh Barro, "Trump Didn't Deserve to Win, But We Deserved to Lose":
Noah Smith, "The Blue Cities Must Be Fixed":
Matt Yglesias, "A Common Sense Democrat Manifesto":
To be clear, the problem is not violence, so far as I can tell. Murder is back down to its pre-COVID numbers, and never reached the bloody peaks of the 1990s. It's petty disorder. It's visible homelessness, which makes people sick and drives people who can afford alternatives from the public square.
Inclusion
This is vibes, and I am not good at vibes, but I do appreciate that there's something wrong with white people insulting other white people by calling them white, with pushing language like "Latinx" despite it being really unpopular with the people it's supposed to be helping, and with gleefully signing off on microaggressions against men (and against women if you include the adjective "white").
I don't have much to say about this, as it's really not my area of expertise, but the perception is absolutely that the blue team cares more about how many marginalized identities you can tick off than about your material circumstances.
This is kind of an outlier, as you can't just fix this by fixing local governance. But it's a real thing that people are upset about.
TracingWoodgrains:
Sarah McBride, being interviewed by Ezra Klein (archive):
Public Goods
This is definitely more to do with city governance. tl;dr, La Sombrita, but in more detail...
Barro:
Smith:
Jennifer Pahlka, "Curiosity and Conflict":
And it's not just this stuff! It's the San Francisco public school system failing to teach their kids to read, and then banning eighth-grade algebra for "equity" reasons. It's a focus on process over outcomes.
Fundamentally, it's a decision to retreat to the idea that "we followed the correct process" rather than testing whether or not the outcome was successful. The results are shameful and devastating, and they are a key reason why we see so much poverty amongst so much plenty.
This all has a lot to do with nuts-and-bolts stuff, mostly insane permitting issues (Texas doesn't install more solar power than California because Texans love the environment more; it's because California makes everything more difficult), coalition politics that mean everyone gets a slice of the salami (and sometimes there's no salami left), and an insistent disinterest in trying to see if you're actually doing something that will help, as opposed to visibly trying to help.
Concretely, I think the best examples here are public schools ("Government: At long last, we have created Harrison Bergeron from classic sci-fi story (Don't Create) Harrison Begeron"), safe public spaces (kinda overlaps with point one), and public transit.
Affordability
The two biggest expenses for most people are housing and transportation, which are inexorably linked. Blue cities in blue states have self-inflicted housing shortages, which are well-known and well-understood, and yet remain seemingly intractable, even as they exacerbate every other problem.
Barro:
Smith:
Jerusalem Demsas, "Blue States Gave Trump and Vance an Opening" (archive):
Ezra Klein, on The Weeds in late August/early September 2020 (lost the link, my apologies):
And that sums up exactly what has now come home to roost.
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