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Fresno Wins Federal Lawsuit over Diversity Language in Planning Documents
A federal judge ruled in favor of the City of Fresno, allowing the city to keep more than $250 million in federal grants threatened by the Trump administration over diversity-related language in city planning documents. The ruling ensures Fresno can move forward with major development efforts like the Fresno Yosemite International Airport expansion and affordable housing projects without risking the loss of federal support. The judge's injunction found the executive branch could not revoke funds already approved by Congress, protecting the city’s autonomy in integrating DEI principles into planning and infrastructure initiatives. With these funds secured, Fresno’s planning and public works departments can continue long-term efforts in housing, transportation and economic revitalization without diverting local resources. City officials emphasized the decision safeguards equitable, locally driven growth and shields municipal development from politically motivated federal interference.
Draft Guidelines for Major State Sustainability Programs Open for Comment
The Strategic Growth Council has released draft guidelines for two major grant programs — the Transformative Climate Communities (TCC) Program Round 6 and the Community Resilience Centers (CRC) Program Round 2 — and is inviting public comment from September 29, 2025, through January 2, 2026. These updates, informed by community feedback, legislative changes and lessons from prior funding rounds, aim to make the programs more accessible, inclusive and responsive to evolving climate and community needs. The draft guidelines incorporate input from previous applicants, new policy research and a spring 2025 request for input on a revised grant application process. SGC will host virtual community input sessions and small focus groups—including sessions specifically for Tribal and rural communities—to gather detailed feedback on proposed changes. Written comments are encouraged, and updated materials, including comparison sheets and key changes summaries, are available on the TCC and CRC program webpages for public review. (See related CP&DR coverage.)
Quino Butterfly Gets Candidate Status Under State Endangered Species Act
The California Fish and Game Commission has granted the Quino checkerspot butterfly “candidate” status under the California Endangered Species Act, giving it temporary legal protections while the state evaluates whether it should be formally listed as endangered. Once widespread across Southern California, the butterfly’s range has severely contracted due to habitat loss, with remaining populations limited to parts of San Diego and Riverside Counties. The designation prohibits any unpermitted “take” of the species—such as capturing, harming, or killing—during the 12- to 18-month review period conducted by the California Department of Fish and Wildlife (CDFW). This review will assess scientific data on the butterfly’s population and habitat needs and recommend long-term recovery and management actions. Depending on CDFW’s findings, the Commission may permanently list the butterfly as endangered, potentially influencing land use, development and conservation planning across Southern California.
State Leases 13 Geothermal Sites in Auction
Federal officials held the first geothermal lease auction in nearly ten years, selling all 13 available parcels across 23,000 acres in California. Most sites were in Imperial County’s Salton Sea Basin, with winning bids ranging from $2 to $247 an acre, reflecting interest in new geothermal technologies. New technologies create underground reservoirs instead of relying on natural hot water pockets, making the industry less risky and more appealing to developers and investors. Although geothermal remains more expensive than solar or wind, demand is growing due to its reliability and potential role in California’s push for carbon neutrality by 2045, with interest from companies like Google and Microsoft. The $2.75 million generated will be split between the state of California, the counties where leases are located and the U.S. Treasury, reinforcing both federal and state support for the sector despite concerns about seismic risks and regulation.
CP&DR Legal Coverage: Huntington Beach Housing Element; Norwalk Homeless Housing
Huntington Beach’s status as a charter city doesn’t get it out from under state housing law, including the provision that the city must adopt a compliant housing element within 120 days of a court order to do so. That’s the decision of an appellate court in the latest battle in Huntington Beach’s long-running war with the state over the Regional Housing Needs Allocation and the Housing Element. The Fourth District Court of Appeal ruled that San Diego Superior Court Judge Katherine Bacal, who has been overseeing the case, erred in her ruling by not requiring that Huntington Beach follow the 120-day rule.
As part of a settlement agreement with the state, the City of Norwalk has repealed a moratorium on homeless shelters and similar facilities. The city must also establish a housing trust fund and file regularly reports with the Department of Housing and Community Development. The state promised to recertify Norwalk’s housing element, which was revoked after the city adopted the moratorium.
Quick Hits & Updates
The Santa Barbara County Association of Governments has introduced a new Housing Data Dashboard, centralizing local housing, demographic, workforce and homelessness information into a single online platform. Designed to replace multiple disconnected data sources, the dashboard has interactive maps, charts and downloadable workbooks for tracking housing production, affordability, commuting patterns and regional trends by city or county area.
The Santa Clara County Planning Commission rejected, on a 5–2 vote, appeals for two South County housing projects that sought approval under California’s builder’s remedy, citing missed deadlines and incomplete applications. The decision requires the developer to follow local zoning and density rules, while environmental advocates warned of potential impacts to nearby wildlife habitats and commissioners debated the county’s strict interpretation of the law.
Environmental groups Comite Civico del Valle and Earthworks have filed an appeal with California’s Fourth District Court of Appeal challenging the environmental review of the Hell’s Kitchen lithium project near the Salton Sea, after a lower court dismissed their lawsuit earlier this year. The appeal argues the project’s environmental impact report failed to fully address potential effects on air quality, water resources, hazardous materials and tribal cultural sites. (See related CP&DR coverage.)
Los Angeles County supervisors sharply criticized a $1.9 million investigation into the Eaton fire, saying it failed to explain why evacuation alerts were delayed for residents of west Altadena, where most of the 19 deaths occurred. The report, mainly based on county data after several outside fire agencies declined to participate, was described as incomplete and lacking accountability. However, officials agreed to implement its recommendations to clarify evacuation authority, improve coordination and strengthen emergency management systems.
The City of San Jose and PG&E have entered a seven-year infrastructure and energy partnership designed to meet the region’s surging power demand, particularly from new data centers and manufacturers. The agreement commits $2.6 billion in grid upgrades, streamlined permitting and workforce training, aiming to add capacity, improve reliability and lower energy costs while generating tens of thousands of jobs, new tax revenue and supporting San Jose’s goal of becoming a leading hub for clean energy and data-driven growth.
Richmond’s long-struggling Hilltop Mall site is set for transformation under the proposed Hilltop Horizon Specific Plan, which outlines new housing, commercial space and transit-friendly design across 143 acres. The plan has sparked debate between city officials, who favor a high-density, mixed-use vision to guide decades of growth, and property owner Prologis, which supports a lower-density approach aligned with current market conditions; final consideration of the plan is expected in summer 2026 following technical studies and further community input.
Oakland has introduced a faster approval process for single-family homes and multifamily projects of up to 30 units, allowing them to move forward automatically if they meet clear design standards. By shifting these proposals to ministerial review, the city eliminates public hearings, appeals and environmental reviews, aiming to cut costs and speed up housing production.
Los Angeles has slipped to 90th place in a national ranking of city park systems, reflecting decades of underinvestment, aging facilities and a $2 billion maintenance backlog. With the 2028 Olympics approaching, city leaders are exploring lower-cost solutions such as opening schoolyards on weekends to expand access, though funding and staffing remain major hurdles.
San Diego officials are facing backlash after documents revealed a proposal to redevelop Marina Village on Mission Bay into a hotel-and-housing complex, even as the mayor insists housing is not allowed on parkland. The city wants to declare three parcels of Mission Bay property “surplus” under state law to seek new leaseholders, but critics fear the designation could legally force the city into negotiations with developers proposing housing, potentially opening the door to privatization of public parkland.
