Publication
Governor Newsom Issues Executive Orders N-4-25 and N-14-25 to Accelerate Fire Recovery
Quick Take
Executive Orders N-4-25 and N-14-25 attempt to alleviate procedural and regulatory approvals for rebuilding property damages by the Palisades and Eaton wildfires.
- Executive Order N-4-25 suspends CEQA and CCA to allow quicker redevelopment if the rebuild does not exceed 110 percent of the original size.
- Executive Order N-14-25 ensures a swifter rebuilding process by directing California Coastal Commission to avoid certain interference.
Since declaring a State of Emergency on January 7, 2025, Governor Gavin Newsom has issued Executive Orders supporting communities affected by the destructive fires that swept through Los Angeles and Ventura Counties. Executive Orders N-4-25 and N-14-25 each aim to address critical challenges in post-disaster recovery, including suspending environmental approvals and streamlining the building permitting process.
Key Provisions of Executive Orders N-4-25 and N-14-25
Suspension of Environmental and Coastal Regulations
To accelerate rebuilding efforts, Executive Order N-4-25 suspends both the California Environmental Quality Act (CEQA) and the California Coastal Act (CCA). These suspensions apply exclusively to properties damaged or destroyed by wildfires, provided that redevelopment does not exceed 110 percent of the original structure’s footprint and height. CEQA typically mandates extensive environmental assessments, public comment periods and regulatory approvals, which can significantly delay project timelines. By waiving these requirements, Executive Order N-4-25 seeks to remove common regulatory hurdles that could otherwise slow rebuilding. Separately, Executive Order N-14-25 directs the California Coastal Commission to avoid any actions that interfere with the rebuilding process allowed under Executive Order N-4-25. As a result, property owners and developers may rebuild swiftly without undertaking additional permitting under the CCA.
Expedited Permits and Regulatory Review
The California Department of Housing and Community Development (HCD), working with state and local agencies, is tasked with expediting the permit approval process for affected homeowners and developers. HCD and local governments must identify and recommend procedures to reduce permitting delays, aiming to process permits within 30 days. State agencies will also continue to review regulatory and permitting requirements to further streamline recovery efforts.
Extended Price Gouging Protections
To prevent economic exploitation during disaster recovery, restrictions on price gouging for essential materials and services, including building materials, will remain in effect until January 7, 2026. This measure is designed to ensure that individuals and businesses in the affected areas do not face unreasonable price inflation as they rebuild.
Implications
These Executive Orders reflect the state’s commitment to prioritizing disaster recovery by lifting certain regulatory barriers to expedite rebuilding. Nevertheless, significant questions and challenges remain:
- Ambiguity for Changes in Use: Executive Order N-4-25 specifies that eligible projects must be similar in size and on the same site, but it is unclear whether it covers alterations to a property’s use (e.g. adding an ADU or changing from single-family to commercial). Property owners considering substantial deviations from the original structure should monitor for further guidance.
- Continued Local Review: While CEQA and CCA requirements may be suspended, local zoning laws, permitting ordinances and approvals still apply. These procedures can be equally time-consuming, potentially undermining some of the time-savings intended by the Executive Orders.
Taken together, these considerations underscore the need for property owners and developers to stay informed of ongoing regulatory adjustments and to coordinate carefully with state and local agencies. We will continue to monitor the implementation of Executive Orders N-4-25 and N-14-25, providing updates on their impact and further regulatory developments.
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