SB 328 California Senate · 2025-2026 Regular Session

California Environmental Quality Act: exempt surplus land.

Summary

(1) Existing law requires a local agency to declare land either "surplus land" or "exempt surplus land," as supported by written findings, before the local agency may take any action to dispose of it consistent with an agency's policies or procedures and defines terms for these purposes. Existing law generally requires a local agency, before disposing or negotiating to dispose of surplus land, to provide a written notice of the availability of the surplus land to specified entities and housing sponsors. Existing law provides that an agency is not required to follow the requirements for the disposal of surplus land for "exempt surplus land." Existing law defines "exempt surplus land" to include certain types of land, including, surplus land totaling 10 or more acres, consisting of either a single parcel, or 2 or more adjacent or nonadjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute and certain surplus land that is a former military base, known as the Alameda Naval Air Station, if specified conditions are met. Existing law, the Planning and Zoning Law, requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Office of Land Use and Climate Innovation. This bill would revise the definition of "exempt surplus land" to remove the reference to buyers and instead mean 2 or more adjacent or nonadjacent parcels combined for disposition to one or more persons or entities, as specified. The bill would also exempt surplus land that is a former military base that was conveyed by the federal government to a local agency or a local reuse authority, and that is all or any portion of the Concord Naval Weapons Station, if certain requirements are met, including that the former military base has an aggregate area greater than 5 acres and that before disposition of the land, the local agency or local reuse authority has entered into a disposition and development agreement that stipulates that at least 25% of the aggregate residential units permitted to be developed will be restricted to lower income households with an affordable housing cost or affordable rent for a minimum of 55 years for rental housing and 45 years for owner-occupied housing, as specified. The bill would regulate actions challenging the disposition and would prescribe penalties for violations of these provisions. The bill would also regulate the actions of the local agency or local reuse authority, including, among other things, requiring the local agency or local reuse authority to include in the annual report the status of development of residential units on the former military base, as specified. (2) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. This bill would provide that specified environmental review documents satisfy the requirements of CEQA for any project within the portion of the Concord Naval Weapons Station included within the boundaries of the area plan for the Concord Community Reuse Project, as provided, that has land use types that are consistent with the area plan land use types and locations for those land use types that are consistent with the area plan diagram and the project does not cause the aggregate development in the area plan to exceed the area plan maximum planning areawide total, as specified. The bill would further provide that a project that contains land use types that are consistent with the area plan land use types in locations that are not consistent with the area plan diagram would be subject to review pursuant to CEQA, and would be limited to review of the location of land use types that are not consistent with the area plan diagram, as provided. In any action or proceeding challenging a project described above, the bill would require a project applicant to pay any additional costs incurred by the courts in hearing cases relating to the challenge of the project and would require a lead agency to lodge a copy of the certified record of proceedings with the superior court within 10 calendar days after being served with a complaint or a petition for a writ of mandate. Because the bill imposes new duties on local agencies, the bill would impose a state-mandated local program. The bill would require the Judicial Council, on or before July 1, 2027, to adopt rules of court that require any action or proceeding brought to attack, review, set aside, void, or annul the approval of any project within the plan area or any environmental impact review for any project within the plan area, including any potential appeals to the court of appeal or the California Supreme Court, to be resolved to the extent feasible within 270 calendar days of the filing of the certified record of proceedings with the court. The bill would make these provisions severable. (3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Concord. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (5) This bill would declare that it is to take effect immediately as an urgency statute.

Issues: ✓ Environment ✗ Housing

Bill status passed both 4 of 5 stages cleared

Introduction

Feb 2025

Committee Review

Aug 2026

Senate Passage

Aug 2026

Assembly Passage

Aug 2026

Governor

Introduced Feb 11, 2025 Last action Aug 30, 2026

Maddy AI version diff · 10 comparisons

What changed between versions

08/26/26 - Amended Assembly → SB328 · 1 edit

MINOR

The bill moved from its final Amended Assembly version (August 26, 2026) to enrolled status (September 1, 2026), indicating it was passed by both chambers on August 30, 2026 and formally enrolled. No substantive policy text changes are visible in this diff; the change reflects the bill's procedural progression to enactment rather than any modification of its provisions.

TIMELINE

The bill transitioned from 'Amended Assembly' status to 'Enrolled' status, meaning it was passed by both the Senate and Assembly on August 30, 2026 and enrolled on September 1, 2026, making it ready for the Governor's signature.

08/21/26 - Amended Assembly → 08/26/26 - Amended Assembly · 6 edits · Aug 26, 2026

MODERATE

SB 328 was substantially narrowed by removing its entire hazardous waste fee study provision (which would have required DTSC to report on fees imposed on affordable housing development projects). The remaining bill focuses solely on CEQA exemptions and surplus land provisions for the Concord Naval Weapons Station area. Additional changes include broadening who can receive exempt surplus land from 'buyers' to 'persons or entities,' adding a maximum areawide development cap to the CEQA exemption, and requiring annual reporting on housing development status at the former military base.

SCOPE

The entire hazardous waste provision was deleted. The bill no longer requires the Department of Toxic Substances Control to prepare and submit a report by December 31, 2029, analyzing generation and handling fees imposed on affordable housing development projects. The bill title and digest were updated to remove all references to hazardous waste.

Assembly Member Avila Farias was added as a principal coauthor alongside Assembly Member Wicks, reflecting expanded legislative sponsorship of the bill.

DEFINITION

In the definition of 'exempt surplus land' for parcels of 10 or more acres (subparagraph H), the term 'buyers' was replaced with 'persons or entities,' broadening who can be the recipient of a combined disposition under a plan or ordinance.

REQUIREMENT

The CEQA exemption provision now references the 'area plan diagram' rather than only the 'area plan land use map,' and adds a new condition that the project must not cause aggregate development in the area plan to exceed the 'area plan maximum planning areawide total.' This imposes a cap on total development that can benefit from the CEQA exemption.

A new annual reporting requirement was added for the Concord Naval Weapons Station: the local agency or local reuse authority must include in its annual report to the Office of Land Use and Climate Innovation the status of development of residential units on the former military base.

ELIGIBILITY

A new minimum area threshold was added for the Concord Naval Weapons Station exemption: the former military base must have an aggregate area greater than 5 acres.

08/13/26 - Amended Assembly → 08/21/26 - Amended Assembly · 8 edits · Aug 21, 2026

MODERATE

SB 328 was substantially restructured between these two Assembly amendments. It removed provisions that set DTSC oversight response timelines for housing development cleanup requests and capped hazardous waste generation fees at $100,000 (infill housing) and $250,000 (master development projects). In their place, the bill now adds a major new component granting exempt surplus land status to the Concord Naval Weapons Station with affordability requirements, and streamlining CEQA environmental review for projects within that area's adopted plan. The hazardous waste fee study/report requirement (due December 31, 2029) appears retained.

REQUIREMENT

Removed DTSC oversight response timeline provisions that required the department to provide written notice within 60 business days (projects with 25 or fewer units) or 120 business days (26 or more units) after receiving a housing development project's request for cleanup oversight.

Added CEQA streamlining provisions: specified environmental review documents satisfy CEQA requirements for any project within the Concord Community Reuse Project area plan that has land use types and locations consistent with the adopted area plan land use map. Additional or inconsistent land uses would trigger only supplemental review limited to those additions.

FISCAL

Removed fee limitation provisions that capped the hazardous waste generation and handling fee at $100,000 per fiscal year for infill housing projects (at least 66 percent residential) and $250,000 per fiscal year for master development projects, without regard to phase.

SCOPE

Added an exempt surplus land exemption specifically for the Concord Naval Weapons Station. Before disposition, the local agency or reuse authority must enter a disposition and development agreement requiring at least 25 percent of aggregate residential units to be restricted to lower income households for a minimum of 55 years (rental) or 45 years (owner-occupied).

The bill's legal scope expanded from adding sections to the Health and Safety Code and Government Code (hazardous waste provisions) to also amending Government Code Section 54221 (surplus land definitions) and adding a new Chapter 6.8 to Division 13 of the Public Resources Code (CEQA-related provisions).

ENFORCEMENT

Added a 270-calendar-day deadline for courts to resolve challenges to projects within the Concord plan area, measured from filing of the certified record of proceedings. The Judicial Council must adopt rules implementing this by July 1, 2027. Project applicants must pay additional court costs incurred in hearing challenges.

TIMELINE

Added an urgency clause declaring the bill takes effect immediately upon passage, rather than on the standard January 1 date.

TECHNICAL

The bill is now designated as imposing a state-mandated local program (changed from 'no' to 'yes'), reflecting the new duties imposed on local agencies related to the Concord Naval Weapons Station disposition and CEQA review.

06/25/25 - Amended Assembly → 08/13/26 - Amended Assembly · 6 edits · Aug 13, 2026

MODERATE

SB 328 was substantially amended to add a new mandatory study requiring DTSC to report to the Legislature by December 31, 2029 on hazardous waste generation and handling fees imposed on affordable housing development projects. The fee caps for qualifying housing projects were changed from lifetime total project caps to annual per-site caps, which could significantly increase total fees over a project's lifespan. The postentitlement phase permit category was removed from the DTSC response timeline provisions.

REQUIREMENT

New Article 9.1.1 (Section 25205.26) requires DTSC to prepare and submit a report to the Legislature by December 31, 2029, analyzing hazardous waste generation and handling fees imposed on affordable housing development projects. The report must include waste classification and amounts, project locations, project types (infill vs. master development), and fees assessed. It should cover at least 5 years of data to the extent feasible and may be incorporated into DTSC's existing periodic hazardous waste report.

TIMELINE

The new study article sunsets on December 31, 2033, and is repealed on January 1, 2034, per Government Code Section 10231.5.

FISCAL

Fee caps for qualifying housing projects changed from a total lifetime cap ('for the entire project') to an annual per-site cap ('for waste generated each fiscal year for each project site'). The $100,000 cap for 66 percent residential infill housing and the $250,000 cap for master development projects now apply per fiscal year rather than as a one-time total limit, potentially allowing significantly higher cumulative fees over multi-year projects.

SCOPE

The postentitlement phase permit category was removed from Section 65913.3.3. Previously the DTSC response timeline applied to both (1) requests for oversight of investigation/characterization/remediation activities and (2) postentitlement phase permits deemed complete by a local agency that required a department response. Now it only applies to the first category.

Assembly Member Wicks was added as principal coauthor of the bill.

ELIGIBILITY

The eligibility exclusion for fee caps was changed from 'generators that are not responsible for creating the hazardous waste' to 'generators that are not the responsible party, as defined in Section 78145,' providing a more precise statutory reference.

05/23/25 - Amended Senate → 06/25/25 - Amended Assembly · 8 edits · Jun 25, 2025

MODERATE

The Assembly amendment significantly narrows the bill's scope by removing all references to nonprofit entities, parks, and open-space projects, limiting it to housing development projects only. It also doubles the response timelines for the Department of Toxic Substances Control (from 30/60 to 60/120 business days), changes fee caps from a one-time project total to an annual per-site cap, and adds new procedural requirements including a formal application process and site history disclosure.

SCOPE

Removed nonprofit entities, park projects, and open-space projects from the bill's coverage. The bill now applies only to housing development projects seeking oversight of investigation, characterization, and remediation activities or postentitlement phase permits.

TIMELINE

Doubled the departmental response timelines: for housing developments with 25 units or fewer, written notice deadline changed from 30 to 60 business days; for 26 units or more, changed from 60 to 120 business days.

FISCAL

Changed the fee cap language from a one-time total for the entire project to 'waste generated each fiscal year for each project site.' This means the $100,000 and $250,000 caps now reset annually per site rather than being a lifetime cap on the whole project.

REQUIREMENT

Changed from simply 'certify its eligibility' to 'submit an application and certify its eligibility,' adding a formal application step. Also added a requirement to include a copy of the approved entitlement from the applicable local government with the application.

Added a new provision requiring any person or entity requesting information about a project to provide all information they may have about the site's history, including past ownership of the property.

Changed the language for providing additional information from 'may provide' to 'shall provide... within the timeframe established by the department in the notice,' making it mandatory rather than optional and adding a deadline component.

DEFINITION

The exclusion for generators responsible for creating hazardous waste now explicitly cross-references the definition of 'responsible party' in Section 78145 of the Health and Safety Code.

TECHNICAL

Added a new provision stating that in implementing the section, the department shall use its authority under Division 45 of the Health and Safety Code or the California Land Reuse and Revitalization Act of 2004.

04/07/25 - Amended Senate → 04/21/25 - Amended Senate · 5 edits · Apr 21, 2025

MODERATE

The April 21 amendment fundamentally weakens the bill's core requirement by replacing a detailed mandate that DTSC approve or deny postentitlement phase permit applications within set deadlines with a much narrower provision requiring only written notice of 'subsequent actions' within 30 or 60 business days. The new version explicitly states it does not require DTSC to make a final determination within any time period and does not limit the amount of comments or revisions DTSC may request. The fee cap provisions ($100,000 and $250,000) are retained with added definitions.

Scope change

The bill's scope narrowed significantly in practice. While the new Government Code section technically covers more types of requests (cleanup agreements, remediation oversight), the core obligation imposed on DTSC was reduced from a binding decision deadline with deemed-approval consequences to a non-binding notice requirement with no final determination deadline. The fee cap provisions remain substantively unchanged.

REQUIREMENT

The entire former Section 25204.8 (Health and Safety Code) is deleted. This section had required DTSC to determine completeness within 15 business days, approve or deny applications within 30 business days (25 units or fewer) or 60 business days (26+ units), provide an appeal process with 60/90 business day deadlines, and deemed applications complete if DTSC failed to act timely.

New Section 65913.3.3 (Government Code) requires DTSC to provide written notice of 'subsequent actions in the review process' within 30 business days for housing with 25 units or fewer, nonprofits, or parks/open-space projects, and 60 business days for housing with 26+ units. This is a notice requirement only, not a decision deadline.

The new section explicitly states it does not require DTSC to make a final determination within a specified time period (subdivision f) and does not limit the amount of comments, feedback, revisions, or requests for additional information DTSC may provide (subdivision e). This removes any effective deadline pressure on DTSC decision-making.

SCOPE

The new Government Code section expands coverage beyond postentitlement phase permits to include requests for oversight of investigation, characterization, and remediation activities, such as voluntary cleanup agreements, prospective purchaser agreements, California Land Reuse and Revitalization Act agreements, site mitigation completion, and No Further Action determinations.

DEFINITION

New definitions added to the fee section (25205.5.5): '66 percent residential housing' (multifamily in infill setting surrounded on at least three sides by urbanized uses with at least two-thirds of square footage residential), 'master development project' (governed by development agreement, contemplates multiple phases, requires new infrastructure), 'nonprofit project,' and 'open-space project/stand-alone park.'

02/11/25 - Introduced → 03/17/25 - Amended Senate · 9 edits · Mar 17, 2025

MAJOR

SB 328 was dramatically expanded from a bill that only made minor grammatical corrections to Section 25177 into one that adds two entirely new sections establishing processing deadlines for hazardous waste postentitlement phase permits tied to housing projects and capping hazardous waste generation fees for certain project types. The amendment introduces specific business-day time limits (30 days for small projects, 60 days for larger ones) for DTSC to approve or deny permit applications, and caps fees at $100,000 for infill housing, nonprofits, and parks, or $250,000 for master development projects.

Scope change

The bill expanded from making only nonsubstantive grammatical changes to DTSC's reporting authority into a substantive bill that adds processing deadlines for housing-related hazardous waste permits and imposes fee caps on certain project types, significantly broadening its policy impact on housing development and hazardous waste regulation.

REQUIREMENT

New Section 25204.8 requires DTSC to determine within 15 business days whether a postentitlement phase permit application is complete, and limits deficiency notices to items on a pre-published checklist.

TIMELINE

New Section 25204.8 sets a 30-business-day deadline for DTSC to approve or deny applications from housing projects with 25 units or fewer, and a 60-business-day deadline for projects with 26 units or more.

New Section 25204.8 establishes appeal deadlines: 60 business days for final written determination on projects with 25 units or fewer, and 90 business days for projects with 26 units or more.

ENFORCEMENT

New Section 25204.8 provides that if DTSC misses its deadlines, the application is deemed complete, and once a permit is found compliant it cannot be subjected to additional appeals or hearing requirements.

FISCAL

New Section 25205.5.5 caps the total hazardous waste generation and handling fee at $100,000 for infill housing (at least 66 percent residential), nonprofit projects, and stand-alone park or open-space projects.

New Section 25205.5.5 caps the total hazardous waste generation and handling fee at $250,000 for master development projects regardless of project phase.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has a fiscal impact due to the new fee caps.

ELIGIBILITY

The fee cap in new Section 25205.5.5 only applies to generators that are not responsible for creating the hazardous waste.

SCOPE

The bill's scope expanded from a single nonsubstantive amendment to Section 25177 to also adding Sections 25204.8 and 25205.5.5, covering permit processing timelines and fee caps for housing-related hazardous waste projects.

Floor votes · Senate May 29, 2025 · Assembly Aug 30, 2026

How they voted

38–0

Passed · 2 other

Total votes 40

May 29, 2025

D Democratic30

28 Yea 2

93% Yea

R Republican10

10 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 30, 2026

Assembly · Passed

Assembly Vote: pass (73-0-5)

assembly

Aug 30, 2026

Upper · Passed

Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling.

upper

Aug 30, 2026

Upper · Passed

Urgency clause adopted.

upper

Aug 30, 2026

Introduced

In Senate. Concurrence in Assembly amendments pending.

upper

Aug 30, 2026

Lower · Passed

Read third time. Urgency clause adopted. Passed. Ordered to the Senate.

lower

Aug 27, 2026

Lower · Passed

From committee: Do pass. (Ayes 14. Noes 0.) (August 27).

lower

Aug 27, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on NAT. RES. (Ayes 8. Noes 0.) (August 27). Re-referred to Com. on NAT. RES.

lower

Aug 26, 2026

Lower · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV.

lower

Aug 26, 2026

Committee

Re-referred to Coms. on L. GOV. and NAT. RES. pursuant to Assembly Rule 77.2.

lower

Aug 26, 2026

Committee

Action rescinded whereby bill re-referred to Com. on L. GOV. on August 24.

lower

Aug 24, 2026

Committee

Re-referred to Com. on L. GOV. pursuant to Assembly Rule 77.2.

lower

Aug 21, 2026

Lower · Passed

Read third time and amended.

lower

Aug 13, 2026

Lower · Passed

Read second time and amended. Ordered to second reading.

lower

Aug 13, 2026

Lower · Passed

From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 13).

lower

Aug 29, 2025

Lower · Passed

August 29 hearing postponed by committee.

lower

Jul 15, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14). Re-referred to Com. on APPR.

lower

Jul 2, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 7. Noes 0.) (July 1). Re-referred to Com. on REV. & TAX.

lower

Jun 25, 2025

Lower · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.S & T.M.

lower

Jun 5, 2025

Committee

Referred to Coms. on E.S & T.M. and REV. & TAX.

lower

May 29, 2025

Upper · Passed

Read third time. Passed. (Ayes 38. Noes 0. Page 1337.) Ordered to the Assembly.

upper

May 23, 2025

Upper · Passed

Read second time and amended. Ordered to second reading.

upper

May 23, 2025

Upper · Passed

From committee: Do pass as amended. (Ayes 5. Noes 0. Page 1196.) (May 23).

upper

Apr 29, 2025

Upper · Passed

Read second time and amended. Re-referred to Com. on APPR.

upper

Apr 28, 2025

Upper · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 872.) (April 23).

upper

Apr 21, 2025

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.

upper

Apr 7, 2025

Upper · Passed

Read second time and amended. Re-referred to Com. on REV. & TAX.

upper

Apr 3, 2025

Upper · Passed

From committee: Do pass as amended and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 0. Page 634.) (April 2).

upper

Mar 26, 2025

Committee

Re-referred to Coms. on E.Q. and REV. & TAX.

upper

Mar 17, 2025

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

upper

Feb 19, 2025

Committee

Referred to Com. on RLS.

upper

Feb 11, 2025

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 3 co-sponsors