Court gives more deference to an agency’s decision to use a categorical exemption, likely thwarting environmental opponents.

On Monday March 2, the California Supreme Court upheld the use of a California Environmental Quality Act (CEQA) exemption for a large single-family residence. The holding has broad implications for home builders and developers. The court confirmed the use of categorical exemptions to CEQA that avoid the need for preparing CEQA documents — such as a negative declaration or environmental impact report (EIR) — for certain projects that require discretionary approval.

Berkeley Hillside Preservation v. City of Berkeley, S201116, (Cal. Mar. 2, 2015) overturned a Court of Appeal decision that held that categorical exemptions did not apply to the construction of a single-family home (6,478 square feet) in the hills of Berkeley. The Court of Appeal based its decision on a determination that opponents presented a “fair argument” that the project would have a significant environmental effect, thereby making a CEQA exemption inapplicable.