Newsom sides with industry, vetoes bill on factories near homes and schools

Gov. Gavin Newsom vetoed a bill that would have required more polluting facilities built near homes and schools to undergo environmental review — a decision that keeps in place looser rules he championed to speed up development in California.

The bill authored by Sen. Catherine Blakespear, a Democrat from Encinitas, responded to fears raised by a chemical incident in Orange County that led to evacuation orders for 50,000 people.

It would have narrowed an exemption of the California Environmental Quality Act that covers a broad swath of advanced manufacturing sites. Only facilities handling the final stages of production would have kept the exemption.

In his veto letter on Friday, Newsom said Senate Bill 954 would have effectively repealed the advanced manufacturing exemption.

“Protecting communities and strengthening California’s advanced manufacturing economy are not mutually exclusive goals,” he said. “The exemption was designed to advance both and should be given a meaningful opportunity to work.”

Newsom added that if problems arise, the Legislature should address them through targeted changes “not by preemptively rolling back our progress.”

Blakespear in a statement said she’s disappointed by the veto and will raise the issue again next year.

She pointed to the near disaster GKN Aerospace in Garden Grove as an illustration of the danger.

“We should not have to wait for another emergency before recognizing that sweeping – and rushed – exemptions from environmental review need reasonable guardrails,” she said. “Protecting communities and workers is not an impediment to economic growth – it is part of responsible growth.”

Roots in last year's budget fight

The veto is a setback for legislators who advocated for fixing last year’s major overhaul of the state’s landmark environmental law, which Newsom had a heavy hand in shaping and pushed through by threatening to withhold budget funds if lawmakers refused to act.

Lawmakers went along with the overhaul, but expressed concerns about an unprecedented, broad exemption for polluting manufacturing sites from strip mines to clean energy projects.

Environmental advocates said the bill would have still allowed for manufacturing developments, with guardrails to protect communities.

“It's really unfortunate that we have to wait until something bad happens before we make an adjustment,” said Kim Delfino, a lobbyist for environmental justice groups. “A foundation of environmental law is the precautionary principle: that we try to protect instead of waiting for something bad to happen. This is flipping it on its head.”

Asha Sharma, deputy director at Sierra Club California, said California is losing “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.” .

Business and industry groups, including the Bay Area Council and the California Manufacturers & Technology Association, opposed the bill and praised Newsom’s veto, arguing it would stunt economic development.

“From autonomous vehicles and clean energy systems to revolutionary medical devices and digital technologies, advanced manufacturing is building the future and creating the good-paying, high-skilled jobs that California desperately needs,” said Libby Schaaf, chief executive of the Bay Area Council.  

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.