A new bill introduced in the California Legislature, AB 1083, proposes significant rollbacks to the environmental streamlining provisions for advanced manufacturing projects that SB 131 recently established. If enacted, this legislation would narrow the scope of projects eligible for California Environmental Quality Act (CEQA) exemptions, replacing the broad “advanced manufacturing” category with a highly restricted exemption solely for semiconductor facilities. Furthermore, the bill introduces new administrative burdens that could increase litigation risks and compliance costs for a wide range of development projects.

Executive Summary

While SB 131 was hailed as a key tool for creating a competitive “California offer” for industries like biotechnology, nanotechnology, and clean tech, AB 1083 seeks to dismantle much of this framework. The bill would:

1. Eliminate the general “advanced manufacturing” CEQA exemption.
2. Replace it with a exemption exclusive to semiconductor manufacturing that has a shelf life of about 4 years, subject to strict new labor and environmental mandates.
3. Expand the definition of “natural and protected lands,” effectively shrinking the map of eligible development sites.
4. Increase litigation exposure by requiring the inclusion of internal agency emails in the administrative record for most projects.

Key Provisions of AB 1083

1. Drastic Narrowing of Scope: From “Advanced Manufacturing” to “Semiconductors Only”

Under current law (SB 131), “advanced manufacturing” covers a broad spectrum of innovative industries, aligning with federal definitions in the CHIPS and Science Act. AB 1083 amends Public Resources Code § 21080.69 to delete “facility for advanced manufacturing” entirely.

• Who Loses Out: Projects in biotechnology, microelectronics (non-semiconductor), and nanotechnology would lose their statutory exemption eligibility.
• The New Limit: The exemption would apply exclusively to “semiconductor manufacturing” facilities.
• Sunset Clause: This narrower exemption would expire on January 1, 2030.

2. New “High Road” Labor & Environmental Hurdles

Even for semiconductor projects that remain eligible, AB 1083 attaches stringent new strings. To qualify, a project must meet the following criteria:

• Labor Standards: Applicants must demonstrate “high road employment standards,” including wages and benefits above regional prevailing standards.
• Skilled & Trained Workforce: Enforceable commitments to use a “skilled and trained workforce” for all construction and maintenance work.
• Environmental Restrictions: The project cannot involve the storage or use of “extremely hazardous gases” or PFAS (perfluoroalkyl and polyfluoroalkyl substances).
• Zoning Lock: The site must have been zoned exclusively for heavy industrial use on or before August 1, 2025.

3. Expanded “Natural and Protected Lands” Definitions

AB 1083 expands the definition of “natural and protected lands” in Section 21067.5, which serves as a disqualifier for many CEQA exemptions (including housing).

• New Inclusions: The definition now includes lands “identified for conservation” in adopted natural community conservation plans (previously limited to “preserve areas” or “reserve lands”).
• Habitat Protections: It explicitly adds “habitat for protected species,” including candidate, sensitive, or fully protected species under state/federal law.

4. Increased Litigation Risk: Internal Emails are Discoverable

The bill also introduces a significant procedural amendment to Section 21167.6 regarding the “record of proceedings.”

• The Change: The bill eliminates the exclusion of “internal agency communications” (staff notes, emails) for projects that are not distribution centers or oil/gas infrastructure.
• The Impact: For housing and manufacturing developments, lead agencies will now be required to include internal emails and staff notes in the administrative record. This will likely increase the cost of record preparation and provide project opponents with more material for litigation discovery.

5. “Tourism Facility” Carve-Out

The bill amends the definition of “housing development project” to explicitly exclude any project designated as a “tourism facility” (e.g., hotels, resorts, event centers >100k sq. ft., airports). This prevents mixed-use housing projects with significant tourism components from utilizing housing-specific CEQA streamlining.

Why This Matters

Industry coalitions have argued that the original SB 131 exemptions were critical for California to compete with states like Arizona, New York, and Texas for federal CHIPS Act funding. By removing certainty for non-semiconductor advanced manufacturing and adding complex labor and site restrictions to the remaining exemption, AB 1083 may fundamentally alter the cost-benefit analysis for locating new facilities in the state.

Bill Status and Timeline:

Pending in the Assembly Rules Committee. AB 1083 was introduced during the 2025-26 Regular Session. It did not receive a floor vote in 2025 and remains “alive” as a two-year bill.

Forecast for 2026:

• Committee Hearings: The bill will likely be set for committee hearings in early 2026.
• Amendments: Expect further negotiations regarding labor and environmental guardrails to attract necessary votes.
• Process: If it passes the Assembly committees and floor vote, it will move to the Senate for a second round of policy debates and potential amendments before reaching the Governor’s desk.

What To Do Next:

We are closely monitoring AB 1083 as it moves through the Assembly. Developers currently relying on SB 131 exemptions for upcoming projects should:

1. Assess Eligibility: Determine if your project site falls under the expanded “protected lands” definition.
2. Review Timelines: If you are in the “advanced manufacturing” sector (non-semiconductor), consider accelerating entitlement processing before potential enactment.
3. Audit Record Keeping: Anticipate that internal agency communications regarding your project may soon be public record in the event of a CEQA challenge.