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California Legislature Wraps Up 2025 Session – CDA Priorities Advance
After months of contentious debate over the budget, housing, climate policy and redistricting, the California State Legislature adjourned its 2025 session on September 13, sending hundreds of bills to Governor Gavin Newsom. The final weeks of session capped a politically charged year shaped by a $12 billion budget deficit, devastating wildfires across Los Angeles and Northern California and high-profile fights over energy policy and housing density.
CDA Delivers Results for Downtowns
Despite this challenging political climate, CDA had one of its strongest legislative sessions to date, advancing several high-priority measures that will directly benefit California’s downtowns. These successes underscore the impact of CDA’s government affairs program and the value of sustained advocacy on behalf of members.
Bills supported by CDA now on the Governor’s desk include:
Creates a streamlined, ministerial approval process for adaptive reuse projects statewide, provided projects meet labor, affordability and related criteria. This measure is a major step toward activating underutilized buildings in downtowns for new housing and mixed-use
Removes the sunset in current law and permanently codifies regulatory flexibility for expanded outdoor and patio dining. It also authorizes restaurants with open kitchens to continue operating with open sections—an important win for vibrant, flexible downtown dining.
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AB 1445 (Haney) – Downtown Revitalization & Economic Recovery Financing Districts
Authorizes cities and counties to create downtown revitalization districts funded with incremental tax revenues from commercial-to-residential conversions. This innovative financing tool will help unlock new housing while reinvesting directly in downtown recovery and growth.
Governor Newsom has until October 13 to act on these measures, and CDA is actively engaged with the Governor’s Office to ensure these priorities are signed into law.
Legislature Passes Energy Affordability Package & Reauthorizes Cap-and-Trade
In one of the most consequential policy outcomes of the year, lawmakers extended California’s Cap-and-Trade program through 2045, reaffirming the state’s long-term climate commitments. The Legislature also advanced an energy affordability package designed to lower utility costs, stabilize fuel supplies, and reduce pollution.
In direct response to this year’s catastrophic wildfires, lawmakers allocated $18 billion to strengthen the state’s wildfire insurance and recovery fund, helping utilities and local governments rebuild more quickly after disasters. Additional measures streamlined environmental reviews in Kern County to preserve in-state oil production and stabilize refinery operations to help keep consumer fuel prices in check.
Legislature Maintains Focus on Housing Policy
Housing once again dominated the 2025 legislative session, with lawmakers advancing several measures to accelerate production and increase affordability. Among the most debated was SB 79, which overrides certain local zoning restrictions to allow five- to six-story housing projects near public transit hubs, even in areas currently zoned for single-family homes.
CDA also supported SB 71 (Wiener), which exempts certain public transit projects—such as ferries, microtransit and paratransit services—from lengthy CEQA reviews. This change will reduce costs and speed up delivery of sustainable mobility options that connect people more efficiently to downtowns.
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