ARTICLE
22 September 2026

Sustainable Development And Land Use Update

AM
Allen Matkins Leck Gamble Mallory & Natsis

Contributor

Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
California lawmakers advance legislation to narrow CEQA exemptions for advanced manufacturing while cities across the state grapple with housing mandates and development regulations. From Coachella's permanent data center ban to Costa Mesa's housing element revisions, local governments are navigating the complex intersection of environmental review, state housing requirements, and community development pressures.
United States Real Estate and Construction

Focus

CDFW issues comprehensive additional guidance for candidate bumble bee species

 Allen Matkins – August 28

On August 3, 2026, the California Department of Fish and Wildlife (CDFW) published Considerations for Conserving Crotch’s Bumble Bee, Franklin’s Bumble Bee, Western Bumble Bee, and Suckley’s Cuckoo Bumble Bee (the “2026 Guidance”) — a 44-page guidance document that substantially expands the agency’s prior June 6, 2023, Survey Considerations for CESA Candidate Bumble Bee Species (the “2023 Survey Guidance”). Importantly, the 2026 Guidance does not replace the 2023 Survey Guidance — it supplements it. Projects must comply with both documents, which together establish CDFW’s comprehensive expectations for projects in or near candidate bumble bee habitat.

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News

Bill narrowing CEQA exemptions for some manufacturing facilities heads to Newsom

The Sacramento Bee – August 28

California lawmakers sent Governor Gavin Newsom legislation Friday that would narrow a year-old exemption from the California Environmental Quality Act (CEQA) for advanced manufacturing projects. Environmental groups advocated for Senate Bill 954 over concerns that the CEQA exemption could allow heavily polluting facilities to bypass environmental review. Manufacturers, however, say SB 954 goes too far.

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Coachella City Council voted to permanently ban data centers citywide

 Patch – August 27

The Coachella City Council adopted an ordinance that permanently banned data centers in the city, with the ordinance set to take effect in 30 days. Other cities in the region, including Indio, Desert Hot Springs, and Palm Springs, have taken actions to temporarily block data center developments.

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Costa Mesa considering housing element changes

 The Orange County Register – August 29

Facing legal action from the state, Costa Mesa leaders are considering changes to the city’s housing element, which determines where and how 11,760 state-mandated units could be built by the end of the decade. The City Council will consider revising the city’s general plan, updating the list of housing opportunity sites that could accommodate new residential development at a variety of income levels, in addition to incorporating environmental justice policies.

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South San Francisco updates ADU rules to reflect state laws

 The San Mateo Daily Journal – August 30

Like many Peninsula cities, South San Francisco is updating its accessory dwelling unit policies to align with a bevy of recent state laws meant to spur housing production. Over the last several years, bills such as Assembly bills 462 and 1154 — as well as Senate bills 9 and 543 — have aimed to streamline ADU production amid the state’s housing shortage. For an overview of recent state legislation seeking to reduce the barriers to ADU development, see our recent alert here.

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Proposed development-related fee changes could add $1.5 million to Encinitas city coffers

 The San Diego Union-Tribune – August 30

Proposed increases to Encinitas’ development-related fees may result in nearly $1.5 million in additional city revenue in the coming year, if development continues at its current pace. However, the cost to appeal a city Planning Commission decision isn’t expected to increase as much as originally proposed. The City Council is scheduled to give final approval to the proposed changes Sept. 16th.

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