Development Agreement Ceqa

Development Agreement CEQA: Understanding the Environmental Review Process in California

If you are a developer in California, you have probably heard of the California Environmental Quality Act (CEQA). CEQA is a state law that requires all public agencies in California to evaluate and disclose the potential environmental impacts of their actions, including the approval of development projects. One of the ways in which developers can comply with CEQA is through a development agreement.

What is a Development Agreement?

A development agreement is a contract between a developer and a local government agency that establishes the terms and conditions of a development project. The agreement typically includes provisions related to project approvals, land use regulations, infrastructure, and public benefits. Development agreements can provide a level of certainty and predictability for developers, who can rely on the terms of the agreement rather than trying to navigate complex regulations and changing political environments.

How does CEQA relate to Development Agreements?

Under CEQA, a lead agency must prepare an environmental impact report (EIR) for any project that may have significant environmental impacts. The EIR analyzes the potential impacts of a project on the environment, such as air quality, water resources, and wildlife habitats. The EIR also identifies potential mitigation measures to reduce or avoid those impacts.

For projects covered by a development agreement, the lead agency can prepare a program EIR that covers all projects within the agreement. The program EIR evaluates the potential environmental impacts of the entire development program rather than individual projects, which can save time and resources. The program EIR must analyze the potential impacts of the development program as a whole, including any cumulative impacts of the program in combination with other projects in the area.

What are the benefits of a Development Agreement CEQA?

There are several potential benefits to using a development agreement to comply with CEQA:

1. Reduced uncertainty: By establishing the terms and conditions of the development project upfront, developers can avoid uncertainty and potential delays associated with the CEQA process.

2. Streamlined environmental review: A program EIR can be a more efficient way to address environmental impacts, as it covers all projects within the development agreement.

3. Increased public benefits: Developers can negotiate additional public benefits in the development agreement, such as affordable housing or open space, in exchange for project approvals.


Development agreements can provide a valuable tool for developers in California, allowing them to navigate complex regulations and secure project approvals in a more efficient and predictable manner. By incorporating environmental review requirements into the agreement, developers can also comply with CEQA and ensure that their projects are environmentally sustainable. If you are considering a development agreement for your project, it is important to work with an experienced legal and environmental team to ensure compliance with all applicable laws and regulations.

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