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Sramek Lays Out Expansive Vision for Manufacturing at California Forever
In a post on X, Jan Sramek, founder and CEO of California Forever, revealed a new vision for the company's proposed "new city" in Solano County. As the Trump administration is calling for manufacturing to "return" to the United States, Sramek envisions a high-tech manufacturing hub similar to the special economic zone in Shenzhen, China's. Sramek offered up land already owned by California Forever for industrial activities such as shipbuilding, and he argues that the location is ideal due to its proximity to Silicon Valley. He states that existing policy momentum, including bipartisan support for re-industrialization and the 73-0 passages of a resolution in the State Assembly to support shipbuilding, means the state is already shifting towards this possibility. Sramek envisions seamless travel between headquarters and manufacturing sites using autonomous vehicles and eVTOL aircraft, and states the project is already pre-zoning and pre-clearing manufacturing space so projects can break ground in 90 days. He concluded that successful manufacturing relies on geographic clustering of suppliers and innovators, advocating for a concentrated industrial zone in California to reclaim national competitiveness.

Major Infill Bill Passes in State Senate
The California’s Senate narrowly passed Senate Bill 79, a bill aimed at encouraging mid-rise housing development near high-frequency public transit to support both ridership and the state’s housing supply. The bill, authored by Sen. Scott Wiener and supported by YIMBY groups statewide, distinguishes between transit types and allows taller buildings near heavy rail while limiting development around lower-frequency lines. In a statement, California YIMBY referred to it as "the most important housing legislation in a generation." Critics argue the bill could displace vulnerable communities and weaken local control over land use, though supporters highlight existing affordability mechanisms built into the legislation. The bill allows cities to propose alternative density plans for specific transit areas to retain some planning flexibility. It now goes to the Assembly. (See related CP&D coverage.)

Revocation of Federal Funds Could Freeze High Speed Rail
The Trump administration plans to revoke $4 billion in federal funding for California’s high-speed rail project, jeopardizing the already-delayed and over-budget efforts. Without this funding, even the limited Central Valley segment between Merced and Bakersfield faces potentially decade-long delays due to a major funding shortfall. The Federal Railroad Administration cited missed deadlines, cost overruns and unrealistic projections in its justification, prompting criticism of the project's management. California officials remain committed to continuing construction using state funds and are likely to challenge the federal decision in court, though legal success is uncertain. The move has reignited political tensions and raises broader questions about infrastructure priorities, federal-state relations and the long-term viability of the high-speed rail vision.

2022 San Francisco Housing Law Results in Scant Development
San Francisco’s 2022 fourplex legislation, aimed at easing housing construction, has failed to deliver results, with only 11 applications submitted and no projects completed. YIMBY advocates had predicted its ineffectiveness, citing high construction costs, limited financing options and excessive bureaucracy as major barriers. The city’s permitting process has proven especially difficult for small-scale developers without the resources of larger firms, leading to project delays and cancellations. A city-commissioned report from 2022 confirmed that most small developments under current economic conditions are financially unfeasible. While officials defend the legislation as a step forward, critics argue that without substantial reform to permitting and financial incentives, San Francisco will continue to struggle with building “missing middle” housing.

CP&DR Coverage: How Lithium Extraction Could Transform the Imperial Valley
Under discussion since the 2022, the Lithium Valley Specific Plan would govern 51,785 acres of northern Imperial County, along the southeastern edge of the Salton Sea and just north of the City of Calipatria. Though the plan is on the verge of adoption—with companies including Controlled Thermal Resources, Berkshire Hathaway, and EnergySource eager to break ground or expand existing operations—portions of the plan face at least one legal threat from environmental justice advocates. The plan hopes to attract industries that would process lithium and manufacturing lithium-related products onsite (much of which currently takes place overseas). It envisions 70 million to 80 million square feet of industrial and related development, including data centers for major tech firms, and up to 82,000 workers. The goal is to develop a comprehensive energy-based economy rather than an isolated extractive activity.

Quick Hits & Updates

The California Air Resources Board issued a pre-proposal solicitation for six research projects focused on sustainable transportation, land use, housing and building practices for fiscal year 2025–26. With an emphasis on equity and climate goals, these projects—ranging from wildfire recovery in disadvantaged communities to examining the housing impacts of zero-emission regulations—invite multidisciplinary researchers to submit pre-proposals by July 14.

Researchers at Lawrence Livermore National Laboratory have developed a new method to monitor earthquakes with vastly improved precision by transforming fiber optic cables into thousands of virtual seismic sensors. Their approach, using a device called an interrogator, offers data 1,000 times more detailed than conventional methods and could significantly enhance early warning systems, uncover hidden fault lines and improve urban seismic safety across the Bay Area and beyond.

The Congress for the New Urbanism included I-980 in Oakland and US 101 in San Mateo County in its biennial Freeways Without Futures report. Selected by a jury, the report identifies harmful urban freeways to draw attention to their socioeconomic and environmental effects and advocate for the replacement of these highways.

The Peninsula Open Space Trust purchased nearly 2,500 acres of land south of Gilroy in Santa Clara County, representing about a third of the Sargent Ranch property, after controversy over the ownership group Sargent Ranch Partner's proposed plan to create a sand and gravel mine on the land.

Strada Investment Group has proposed two high-rise residential towers totaling 1,500 units in San Francisco’s South of Market area, marking the first major shift from office to housing under new Central SoMa rezoning rules. The project would include 150 affordable units, with the remainder market-rate, and reflects a broader move to repurpose stalled office developments for housing.

UC Berkeley Team Blue won the Council of Large Public Housing Authorities' 2025 Innovation in Affordable Housing Student Design and Planning Competition. Team Blue won $15,000 and will present their design for the 2025 theme “designing for disasters” at the CLPHA Summer Meeting.

Governor Newsom appointed Miranda Flores as Chief Deputy Director of Governor’s Office of Land Use, Climate, and Innovation. She comes to LCI from the California Natural Resources Agency where she served as Deputy Secretary of Legislation since 2020. Prior to her appointment at CNRA, she worked at Assembly Member Bill Quirk’s office.

The federal government is selling the historic 1930s US Courthouse in downtown Los Angeles, hoping to reduce its real estate footprint by offloading underused properties. While the office space market Downtown is weak, some see long-term potential in developing the building.

San Francisco is holding public hearings over the Prologis SF Gateway project, which if approved would be the city's largest industrial development deal in over a decade. Bayview-Hunters Point resident groups are advocating against the project, arguing that the area already suffers greatly from existing industrial polution and cannot withstand more development.

A Politico and UC Berkeley poll found that 37% of California voters support more aggressive measures to address homelessness, including arresting individuals who refuse shelter. Another 24% of voters somewhat support them, 38% oppose, highlighting a divide between public opinion and state leadership on handling the crisis.

San Francisco's Upper Great Highway, now known as Sunset Dunes, has been permanently closed to vehicles, transforming it into a 2-mile coastal park. Despite Proposition K passing with 54% voter approval, the decision remains contentious, with significant opposition from west-side residents who rely on the highway for commuting. In response, Supervisor Connie Chan is considering a ballot measure to reopen the highway to cars on weekdays while keeping weekend closures for recreation.

The Tijuana River, heavily polluted by raw sewage and industrial waste from Mexico, has been ranked as the second most endangered river in the U.S. due to its severe environmental and public health impact. Environmental groups are urging the U.S. government to provide more funding for wastewater treatment infrastructure and for both the U.S. and Mexico to collaborate on fixing pollution issues on both sides of the border.