Easing the Permitting Process for Clean Industrial Projects in California
Summary
California's industrial permitting process is described as long and complicated, creating 'nonproductive friction' that can delay or cancel clean industrial projects. The document argues that because industry accounts for 23% of the state's emissions, streamlining these processes is essential for meeting climate goals. It suggests a dual approach: permit-seekers should prioritize industrial-zoned sites and proactive community engagement, while policymakers should standardize processes through GO-Biz, investigate centralized permitting for first-of-a-kind technologies, and reform the California Environmental Quality Act (CEQA) to remove redundancies.
Key insights
- California's industrial permitting is highly decentralized, involving local, state, and federal levels. Local permits are managed by hundreds of city and county authority-having jurisdictions (AHJs), while state permits are split among 35 local Air Districts, nine local Water Boards, and 81 Certified Unified Program Agencies (CUPA).
- The permitting process creates 'nonproductive friction' that can lead to project failure or cause companies to deploy projects outside of California. This is particularly burdensome for startups and 'insurgent technologies' that lack the financial resources to hold land for years while awaiting approvals.
- The California Environmental Quality Act (CEQA) is identified as a major source of delay, often taking over a year and sometimes three or more years for approval. The document suggests reducing this friction by eliminating redundancies with Title V Air Quality Permits and the California Industrial General Permit, or by expanding categorical exemptions to align with the National Environmental Policy Act (NEPA).
- To reduce delays, permit-seekers are advised to prioritize sites already zoned for industrial use, engage in community communication beyond legal requirements, and utilize third-party engineering firms to validate safety for novel technologies.
- The document recommends that the Governor's Office of Business and Economic Development (GO-Biz) develop more industry-specific guidebooks for emerging technologies, such as carbon dioxide removal and hydrogen production, to standardize processes across the state.
- There is a proposal for the state to study the feasibility of allowing local jurisdictions to outsource permitting to state agencies or private contractors, specifically when local staff capacity is insufficient or the technology is unfamiliar.
Cite the original document
- APA
- RMI (2025). Easing the Permitting Process for Clean Industrial Projects in California. https://rmi.org/resources/easing-the-permitting-process-for-clean-industrial-projects-in-california/
- Chicago
- RMI. Easing the Permitting Process for Clean Industrial Projects in California. 2025. https://rmi.org/resources/easing-the-permitting-process-for-clean-industrial-projects-in-california/.
- Wikipedia
- {{cite report |author=RMI |title=Easing the Permitting Process for Clean Industrial Projects in California |date=2 January 2025 |url=https://rmi.org/resources/easing-the-permitting-process-for-clean-industrial-projects-in-california/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{rmi2025easing, author = {{RMI}}, title = {{Easing the Permitting Process for Clean Industrial Projects in California}}, institution = {RMI}, year = {2025}, month = jan, url = {https://rmi.org/resources/easing-the-permitting-process-for-clean-industrial-projects-in-california/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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