Governor Newsom Vetoes SB 954 Despite Broad Legislative and Public Support For Bill

SACRAMENTO – Governor Gavin Newsom today vetoed Senate Bill 954 (Blakespear), declining to approve legislation that would have narrowed the "advanced manufacturing" exemption from the California Environmental Quality Act (CEQA), restored baseline public health safeguards for communities near heavy industrial projects, and provided for endangered species protections.

The Legislature passed SB 954 to protect communities, air, and water from toxic industrial pollution. The bill cleans up a last-minute budget negotiation last year, SB 131, which exempted more than 75 categories of industrial facilities – including chemical, pesticide and plastics manufacturing – from environmental review, public disclosure and mitigation requirements. In response, 35 legislators signed a letter calling for this budget provision to be narrowed or removed in order to exclude high-impact industrial projects from the exemption.

SB 954 does not repeal this exemption, but rather refines it in ways consistent with last year’s legislative commitments while retaining a usable streamlining pathway for lower-impact manufacturing projects. Nothing in the bill affects housing policy.    

This veto comes despite the approval of nearly two-thirds of the Legislature and broad support among California voters. A statewide FM3 Research poll of likely November 2026 voters found that 72% approve of CEQA and nearly two-thirds oppose the advanced manufacturing exemption. Those numbers held across party lines, regions and age groups.

Supporters said they will continue to press the Legislature and the next Governor to restore environmental review for industrial facilities.

“I’m disappointed the Governor vetoed SB 954,” said Senator Catherine S. Blakespear, author of Senate Bill 954. “While some CEQA exemptions enacted last year are important to stimulate housing, economic development and encourage advanced manufacturing, California must provide basic protections for the environment and vulnerable communities — specifically with the inherent dangers that come with advanced manufacturing facilities. The near disaster at GKN Aerospace in Garden Grove earlier this year, and the evacuation of 50,000 residents there, illustrated the danger. We should not have to wait for another emergency before recognizing that sweeping — and rushed — exemptions from environmental review need reasonable guardrails. Protecting communities and workers is not an impediment to economic growth; it is part of responsible growth. We need guardrails to these CEQA exemptions to safeguard Californians and ensure the environment isn’t damaged. I will continue to work toward achieving this goal next year.”

"We are disappointed by today’s veto of SB 954,” said Howard Penn, Executive Director of the Planning and Conservation League. "The Legislature heard from voters and passed a bill to close a dangerous loophole in state law. We will continue to work with legislators and the next Governor to ensure that every Californian has the right to know what is being built next to their home, their school and their drinking water supplies."

"Vetoing this bill leaves communities vulnerable to harmful industrial pollution ," said Dr. Bonnie Hamilton, pediatrician in Vallejo. "I treat children whose asthma keeps them out of school and whose quality of life is shaped by the air they breathe. We hope the next Governor will work with us to stand up for those children."

"This veto de-prioritizes the health of frontline communities," said Jennifer Ganata, Legal Department Co-Director, Communities for a Better Environment. "Families living near refineries, chemical plants, and mines deserve notice, a public hearing and a real analysis of the risks before a project is approved. We have been waiting long enough for relief, and we are not going anywhere."

“With SB 954, the Legislature demonstrated their agreement that environmental protections should extend to people living and attending school near industrial development and neighborhoods already suffocated by pollution” said Phoebe Seaton with Leadership Counsel Action. “We look forward to working with the next Governor and other stakeholders to continue this work, and to make sure our economic development boosts and doesn’t burden lower income communities.” 

“Today’s decision is greatly disheartening and leaves California’s natural environment vulnerable to harmful pollution,” said Laura Deehan, State Director at Environment California. “Environmental protections must be restored for industrial projects that could harm our air, water, wildlife, and public lands. We will continue this urgent work under the next administration.” 

“Today’s decision is deeply out of touch with the overwhelming majority of Californians who want their air, water, and health protected from industrial pollution, and goes against the nearly two-thirds of state legislators who voted to protect them,” said Shannon Olivieri Hovis, Chief Strategy Officer, California Environmental Voters. “This veto endangers communities and leaves Californians exposed to industrial hazards, like strip mining and chemical manufacturing. We look forward to working with California’s next Governor to finish what SB 954 started.”

"SB 954 was designed to protect the health and safety of Californians while supporting a strong economy, and was supported by the vast majority of our state's legislators,” said Sean Hecht, Managing Attorney at Earthjustice. “We are immensely disappointed by this setback, but we will work to ensure the next administration will join our fight for bedrock environmental protections.”

“This veto leaves communities in the dark about industrial projects that could pose preventable risks, including explosions, fires, toxic releases, and long-term contamination,” said Victoria Rome, director of California government affairs at NRDC (Natural Resources Defense Council). “SB 954 would have guarded against toxic harms while supporting responsible economic growth. NRDC will continue to work with our coalition partners and state leaders to protect the health of Californians and address the environmental impacts from polluting industries.” 

“Frontline communities across California continue to face consequences from polluting industries that have damaged our air, and water for the sake of corporate profit,” said Asha Sharma, Deputy Director at Sierra Club California. “SB 954 was developed to ensure those same mistakes do not continue. With this veto, California loses an important opportunity to protect communities that are once again being asked to bear the risks of industrial development without the safeguards and public participation they deserve.”

About SB 954: Authored by Senator Catherine Blakespear (D-Encinitas), SB 954 was introduced to fix the "advanced manufacturing" exemption created by SB 131, a budget trailer bill signed in 2025. The exemption covers facilities that can release toxic pollutants such as arsenic, cyanide, hexavalent chromium and PFAS, and that were historically subject to environmental review. More than 30 legislators objected to its breadth when it passed and pledged to clean it up this year.

As passed by the Legislature, SB 954 would have preserved the exemption for a range of clean manufacturers while excluding facilities that emit components containing harmful chemicals like arsenic, cyanide, PFAS and other dangerous chemicals. The bill did not change CEQA rules for housing development.

SB 954 was supported by a broad coalition of more than 100 health, labor, environmental justice, and conservation groups, along with 78 legislators. 

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).