California suspends some permitting and environmental review to expedite rebuilding after Southern California fires

Following the devastating fires in Los Angeles and Ventura Counties, California Governor Gavin Newsom issued Executive Order N-4-25 to expedite recovery and rebuilding efforts. Released on January 12, 2025, the Order suspends certain California Environmental Quality Act (CEQA) review and Coastal Act requirements. 

City of Los Angeles Mayor Karen Bass then issued Emergency Executive Order 1, which waives certain local permitting requirements. 

Coupled with the Governor’s issuance of a formal State of Emergency for both counties, these efforts aim to streamline redevelopment and deliver aid to support recovery from one of the most destructive fires in California history. 

Key provisions of the Executive Order

The Order sets out measures designed to streamline the rebuilding process and support affected communities. Key provisions include:

• Suspension of environmental review and Coastal Act compliance: To expedite recovery from the disaster and streamline the rebuilding process, the Order suspends the application of CEQA and Coastal Act permitting to certain projects “to repair, restore, demolish, or replace property or facilities substantially damaged or destroyed as a result of this emergency.” 

• Covered properties and facilities: The Order applies only to properties and new buildings that are in substantially the same location as, and do not exceed 110 percent of the footprint and height of, buildings that were legally established and existed immediately before the emergency. 
  
  
• Streamlining permitting processes: The California Department of Housing and Community Development, in collaboration with other state agencies, must deliver periodic reports to identify other permitting requirements that should also be considered for suspension. HCD must also coordinate with local governments to identify and recommend streamlined permitting processes, including rapid permitting, particularly for residential properties, to significantly reduce the permitting timeline. 
  
  
• Review of building standards: HCD, in consultation with other state agencies, is tasked with reviewing and potentially suspending certain technical building standards.
  
  
• Extended price gouging protections: The Order extends the provisions of Penal Code section 396, which prohibits price gouging in times of emergency, until January 7, 2026, for Los Angeles County. 
  
  
• Legislative collaboration: The administration will work with the legislature to propose statutory amendments to address barriers to rebuilding.

Legal implications and strategic considerations

The Order has significant legal implications for businesses, developers, and other stakeholders involved in the rebuilding process, and its practical effects are nuanced. The Order suspends certain state-level regulatory hurdles that have historically caused delays in development projects, but there is some uncertainty regarding the breadth and scope of the suspension, including procedural requirements associated with certain approvals and applicable standards, particularly for properties in the Coastal Zone subject to the California Coastal Act. In addition, other environmental compliance is likely required, such as ensuring proper site remediation where fire-related contamination exists. 

California Environmental Quality Act

The suspension of CEQA will significantly reduce the regulatory burden on the “discretionary” private and public projects that are subject to the statute. Though an exemption from CEQA already exists for single-family homes, homes located in the Coastal Zone subject to Coastal Act permitting requirements and other buildings that are subject to discretionary approvals will, under the Order, avoid requirements for potentially extensive environmental study and the risk of third-party challenges and lawsuits common under CEQA, thus facilitating a more streamlined rebuilding process. However, there is some ambiguity regarding the extent and duration of these suspensions, which will likely be clarified by decisionmakers, and stakeholders are encouraged to factor that uncertainty into their development planning. 

California Coastal Act

Coastal Act permitting is generally required for Coastal Zone properties within 1,000 yards of the mean high tide line, though the Coastal Zone often deviates from this standard. Certain cities including the relevant areas subject to the Order have delegated permitting authority under an approved Local Coastal Program or otherwise through Coastal Zone-compliant local regulations, which includes parts of Pacific Palisades and the entire City of Malibu. These plans and regulations govern the issuance of Coastal Development Permits, which are explicitly suspended by the Order, but also include applicable zoning and development standards, which are left in place by the Order. 

For single-family home rebuilds that would otherwise be subject to the Coastal Act, the Order provides significant streamlining benefits, likely avoiding discretionary entitlement processes entirely. For developments requiring other “discretionary” local approvals and entitlements not impacted by the Order, local entitlements and public-notice and hearing requirements may still apply.

Environmental remediation of fire debris

Wildfire debris is often contaminated with household hazardous waste and other hazardous materials, including but not limited to remnants from batteries, household chemicals, paints, fertilizers, aerosol cans, asbestos siding, and pipe insulation. Redevelopment therefore requires proper handling, removal or remediation, and disposal by qualified professionals. The California Department of Toxic Substances Control Emergency Response Unit often oversees the efforts, working with local, state, and federal agencies on addressing contamination left in place by fires, and has published a Clean-Up Dashboard detailing cleanup progress for the recent fires. Properly managing and remediating sites prior to redevelopment to ensure safety for construction and future occupants is a necessary step in the rebuilding process, which entails engagement with the local permitting agency in the first instance and may, in some, instances require cleanup or soil management plans to be approved by state or county environmental oversight agencies. 

Next steps

Businesses, developers, and stakeholders are encouraged to closely monitor changes associated with the Order to ensure rebuilding projects align with land use requirements and potential environmental liabilities. Given the legal risks in relying on the Order, companies and individuals are encouraged to stay informed when navigating a regulatory landscape that is likely to continue developing.

Our Real Estate Land Use and Environmental teams are available to provide strategic advice and navigate the complexities of the Order and associated regulatory frameworks. To understand how the Order might affect your business or development, please contact the authors.