05/21/2026
California leads the nation in manufacturing, and maintaining that leadership requires policies that encourage investment and growth. That is why the Legislature and Governor Newsom rightly created a CEQA exemption to help accelerate advanced manufacturing projects.
Unfortunately, SB 954 would effectively gut that exemption by imposing complex approvals and unattainable conditions on advanced manufacturing projects, leaving virtually no projects eligible for CEQA streamlining.
This is not just about large manufacturing facilities. Supply chain entities would also be excluded, as would expansions and renovations to existing manufacturing sites, even when those projects are designed to upgrade equipment and processes to meet California’s climate, energy, and environmental goals.
Given California's efforts to lead in manufacturing innovation and environmental progress, this policy doesn't make sense. It will drive up costs, slow project timelines, and discourage investment in the state.
CMTA encourages lawmakers to say NO to SB 954 and protect California's leadership in advanced manufacturing.