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This story — by reporters Yue Stella Yu and Alejandra Reyes-Velarde — was originally published by CalMatters. Sign up for their newsletters.

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In June, California Democrats rushed to significantly roll back the state’s landmark environmental law to clear the path for land development.

Environmental justice advocates weren’t happy. Because of changes signed into law by Gov. Gavin Newsom, certain developments now are exempt from environmental reviews, which advocates fear will cut out tribal community feedback, threaten endangered species and lead to more pollution for some of the state’s most at-risk residents. Facing backlash, Senate President Pro Tem Mike McGuire promised a fix.

“That is an issue that we’re going to need to continue to focus on in the weeks and months to come before we leave this session in September,” McGuire told his fellow senators in June.

He’s now run out of time. With just hours until the legislative session ends, Gov. Gavin Newsom, Assembly Speaker Robert Rivas and McGuire have not agreed on how to meaningfully address those environmental concerns, punting the discussion to the fall.

“This is a complex policy issue and we must get [it] right for Californians,” said Nick Miller, a spokesperson for Rivas, when asked why the talks stalled. “Our assessment is it needs to go through a public process with input and discussion.”

The differences laid bare the growing rift between the pro-development Assembly, which has pushed to cut red tape to build more housing faster, and the Senate, which has been more skeptical about private development without labor and environmental protections.

The lack of progress has angered environmental justice advocates and lawmakers, who said the leaders failed to make good on their promises.

“To say that the trust has broken is, I think, is a little bit of an understatement,” said Assemblymember Liz Ortega, a Hayward Democrat who was among 35 lawmakers to urge legislative leaders to fix the law in August. “Several of us have asked to have this fixed, and we were told that it was going to get fixed, and now we’re here and we’re told that it’s not.”

This week, California leaders negotiated and released a budget-related bill to implement the June updates with minimal changes. But the Senate’s budget committee shelved the bill Wednesday amid senators’ criticism that it didn’t go far enough to regulate pollution, and environmental groups called the bill “premature and harmful.”

‘To say that the trust has broken is, I think, is a little bit of an understatement.’
— Assemblymember Liz Ortega, a Hayward Democrat

In a symbolic move, Senate leaders announced Wednesday a separate, last-minute measure to reinstate environmental review requirements for some high-polluting manufacturing plants within 300 feet of homes and schools, despite knowing it did not have time to pass this year.

“We thought it was really important for the public to see that when we made that commitment, we meant it. That we were not just talking about it,” said Senate Budget Committee Chair Scott Wiener, a San Francisco Democrat and a major champion of the environmental review exemptions and housing construction.

“We would prefer to do it now,” he added. “But we need a three-party agreement to do anything.”

That going-nowhere proposal did not satisfy environmental groups. High-polluting plants have the potential to harm residents far beyond 300 feet, which amounts to half a city block, said Asha Sharma, state policy manager for Leadership Counsel for Justice and Accountability.

Adding to the chaos, Assemblymember Damon Connolly, a San Rafael Democrat, on Friday introduced an uber-last-minute measure that largely reflected what environmental groups say they want. The proposal would restore environmental scrutiny for projects like hotels and resorts, developments on habitats for protected species and most advanced manufacturing plants.

That proposal could not be voted on until next year.

Polluting facilities pose a ‘massive problem’

The June update exempts “advanced manufacturing” facilities such as hydrogen production facilities, plastic recycling facilities and lithium mining sites from environmental reviews as long as they are located in industrial zones and not on protected lands.

In the months after, several advanced manufacturing projects have been proposed, including facilities on the San Bruno Mountain and in Solano County.

Environmental justice groups say restoring environmental reviews for projects like these is a priority, because those facilities are some of the most hazardous and polluting facilities and are often located near low-income communities of color. The environmental review process is typically the only chance residents get to voice concerns about developments near their homes, Sharma said.

Some lawmakers said that’s why they won’t vote this week for the budget bill to allocate money to implement the June reform. Sen. Ben Allen, an El Segundo Democrat on the budget committee, called the manufacturing exemptions “incredibly expansive” and a “massive problem.”

“Most of us thought: ‘Why would we possibly want to vote for this bill … when the commitments in terms of cleanup legislation haven’t been met?” he told CalMatters.

Frustrations grow over last-minute dealmaking

Talks to tighten environmental regulations stalled amid the governor and legislative leaders’ fast-moving secret negotiations on major energy and climate deals this week, a common occurrence near the end of the legislative session.

The stifled effort contrasts how quickly California’s top Democrats scaled back the environmental rules in June. The governor at the time threatened to reject the state budget if the deal did not come through. The rollback was tucked into budget trailer bills — a tool leaders have increasingly used to rush major policies through with little public scrutiny.

“That is so ironic, because apparently it was totally fine to jam everyone on an exemption for advanced manufacturing … but God forbid you rush a cleanup bill,” Delfino said.

The rushed nature of the June deal, critics say, is why a “cleanup” is necessary.

“It was rammed down everyone’s throats,” Allen said. “It’s probably why we feel the need to push back on this particular issue because … this was a particularly aggressive and out-of-whack set of changes.”

“I continue to be extremely disappointed with anyone who takes advantage of this notion that delay gives leverage,” said Assemblymember Al Muratsuchi, a Torrance Democrat who said he didn’t cast a vote on the June rollback because of the manufacturing exemptions. “It prevents us from having a more open, transparent and democratic process to fully debate these important policy proposals.”

Even those who did vote for the rollback argue for more limits placed on manufacturing. Assemblymember David Alvarez, a Chula Vista Democrat, said he grew up next to a manufacturing plant and suffers from asthma to this day.

“It needs to be addressed immediately. …We are not in the 1970s and ‘80s anymore,” he said in a hearing Thursday.