Chris Elmendorf Profile picture
Jan 2, 2024 16 tweets 6 min read Read on X
Whoa, the NEPA provisions tucked into the new "Clean Electricity & Transmission Acceleration Act" are like a wish list for greenmailers.

There's lots of good in the bill (⤵️), but the NEPA stuff is stunning. Come take a look.
🧵. 1/14.
1. The bill defines "enviro impact" to include not only enviro impacts, but also "aesthetic, historic, cultural, economic, social, or health" effects.

(Whereas CEQA is still about "physical environment"--even in the infamous Berkeley case.
)

/2
Image
2. The bill creates utterly open-ended authority for fed. agencies to demand a "community benefit agreement" as price of any permit for which an EIS was prepared.

This converts NEPA from procedural statute into grant of substantive reg / exaction authority.
/3 Image
In exercising the "community benefit agreement" authority, what is a federal agency supposed to consider?

Consideration #1 is the deepness of the permit-applicant's pocket. Seriously.
/4 Image
And in case the new, expansive definition of "enviro impact" wasn't clear enough, the bill adds that CBAs may be imposed to offset any *social or economic* (as well as enviro) impacts of the project.
/5 Image
In fact, the bill says an agency can impose a CBA not just to mitigate adverse effects of the project, but "to address legacy or historical harm" with, e.g., local-hire requirements.
/6 Image
3. The bill would also destroy the caselaw that limits scope of enviro review to scope of agency's regulatory discretion, not only via the CBA provision but also by expressly requiring analysis of effects "not within control of any federal agency."

/7 supreme.justia.com/cases/federal/…
Image
4. And the bill would send a torrent of federal dollars into the coffers of groups who'd exploit NEPA for labor or other side hustles.

- there's $3 billion of "community engagement" grants to arm nonprofits & others
/8 Image
- and there's a new statutory mandate that FERC reimburse NGO intervenors in regulatory proceedings (if intervenor affects the outcome)
/9 Image
5. And in case NEPA turned up to 11 isn't enough, there's also a new, judicially enforceable mandate for "community impact reports" if a project may affect an "environmental justice community."
/10


Image
Image
Image
Image
6. There's also a wild provision that seems to prevent federal agencies from considering any project alternatives in an EIS unless (a) the alternative would have no adverse impact on any "overburdened community," or (b) it serves a compelling interest *in that community.*
/11 Image
"Overburdened communities" are defined, in turn, not as communities burdened by the project, or by legacy pollution, but by race, poverty, or language-minority status.

(CJ Roberts & Co. may find the race piece unconstitutional, but the rest would stand.)
/12 Image
The biggest shocker for me is that this bill has the backing of the old "New Democrats," not just the left wing of the Dem coalition.

I don't pretend to understand the coalitional politics, but, wow.
/13

seec.house.gov/media/press-re…
I should add that I know NEPA less well than CEQA. Maybe I'm misreading or misunderstanding something in the bill.
Let's hope better minds will find my errors.
@nicholas_bagley @dfarber @jadler1969 @AA_Mance @CarolineCecot @EnergyLawProf @AlecStapp @TDuncheon
/end
One more observation: the bill subtly nudges NEPA toward super-statute status by directing conflicts b/t NEPA "and any other provision of law" to be resolved in favor of NEPA. Image
@drvolts, @robinsonmeyer: I'd love to hear your thoughts on the CETAA draft that dropped last month. (Apologies if I missed your coverage.)

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Chris Elmendorf

Chris Elmendorf Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @CSElmendorf

Dec 31, 2025
New decision from CA Court of Appeal on the fee-shifting provisions of AB 1633 has big implications for NIMBYs' incentive to challenge housing approvals under CEQA & beyond.

This one belongs in a Law of Abundance casebook.

🧵/24
law.justia.com/cases/californ…Image
Context: As part of the 1970s revolution in admin law, states & the federal gov't actively encouraged self-appointed "private attorneys general" to sue, via attorneys' fee bounties.

/2
Asymmetric fee-shifting provisions were written into scores of public laws: If a plaintiff challenging a gov't decision wins, the gov't has to pay for the plaintiff's attorney; if the plaintiff loses, they don't have to pay for the gov's attorney.

/3 Image
Read 25 tweets
Dec 30, 2025
"For a typical mid-rise apartment in San José, construction costs can exceed $700k–$900k per unit."

I 💯% agree w/ @MattMahanSJ that reducing construction costs should be a top priority for 2026 -- and that this is mainly a job for the state legislature.

🧵/22
Reason #1. CA's fiscal constitution + local political incentives push local govs to extract "value" from development w/ impact fees, IZ & transfer taxes.

This drives up the cost of building enormously.

/2
The state leg should preempt most such fees, IZ, & taxes, ***and create a substitute source of local revenue.***

My preferred alternative: a state parcel tax assessed on the "net potential square feet" or "net potential units" created by upzoning pursuant to state law.

/3
Read 22 tweets
Dec 28, 2025
Could L.A. really land in the Builder's Remedy penalty box, just for f'ing around with a single low-income housing project which a nonprofit developer wants to build on city-owned land?

Yes.

A quick explainer🧵.
In October, @California_HCD sent L.A. a sharply worded letter, warning that the city's housing element had relied on the Venice Dell project both as a "pipeline project" and as part of the city's strategy to "affirmatively further fair housing."

/2

hcd.ca.gov/sites/default/…Image
Image
The HCD letter also flagged five "policies" and two "programs" in L.A.'s housing element that per HCD should "facilitate the project."

The city's course of action has been "inconsistent with these policies."

/3 Image
Image
Image
Read 11 tweets
Dec 20, 2025
Cooking in San Diego: A turquoise, 23-story test of the Permit Streamlining Act's new-and-improved "deemed approved" proviso.

This could turn into a big constitutional battle.

🧵/22 Image
Image
Enacted in 1977, the PSA put time limits on CEQA and other agency reviews of development proposals.

If an agency violated the time limits, the project was to be "deemed approved" by operation of law. Wow!

It proved wholly ineffectual.

/2
As @TDuncheon & I explained, courts first decided that the Leg couldn't possibly have meant for a project to be approved before enviro review was complete.

Ergo, CEQA review must be finalized before the deemed-approval clock starts ticking.

/3

papers.ssrn.com/sol3/papers.cf…
Read 23 tweets
Dec 5, 2025
In the topsy-turvy world of CA Density Bonus Law:

- San Francisco almost certainly must approve this 25-story project on a site zoned for 4 stories

- The city's new ordinance deregulating density in "well-resourced areas" will operate as de-facto downzoning of such sites

🧵 Image
This project's site is zoned for retail use and is currently occupied by the Marina Safeway.

The zoning classification also allows residential use at density of 1 unit per 600 sqft of lot area or density of nearest residential district, whichever is greater.

/2 Image
The nearest residential district, RM-4, allows density of 1 unit per 200 sqft of lot area.

That translates into 567 units on site.

Developer proposes to build 790 units, which requires a 39% density bonus (790/567 = 1.39).

/3 Image
Read 21 tweets
Nov 19, 2025
Bharat's substack response ⤵️ to my thread about his & @nealemahoney's op-ed has brightened my day.

So refreshing compared to the snarks (and vivid expressions of desire for my assassination) conveyed on this platform.

A few notes on possible paths forward.

🧵/13
By describing the credible commitment problem (the need to reassure developers of new housing or energy that their project won't face price controls for a very long time) I didn't mean to imply, as some critics on the right insist, that the problem is insurmountable.

/2 Image
I think the problem can be greatly mitigated:

1. By offering DC-style "certificates of assurance" to developers, i.e., recordable contracts for compensation if the project is subjected to price controls within a defined period of time.

/3

Read 14 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(