Advancing Environmental Mitigation in California: An Update on the Statewide Mitigation Bank

To support responsible development while protecting California's natural resources, the state is updating how it approaches environmental mitigation. This update outlines recent progress on the Statewide Mitigation Bank (Mitigation Program) and what it means moving forward.

In June 2025, Governor Gavin Newsom signed into law Assembly Bill 130, enacting policies designed to accelerate housing development in California. Among its provisions, AB 130 established a statewide framework enabling California Environmental Quality Act (CEQA) lead agencies to use affordable housing and related infrastructure to mitigate significant transportation impacts. AB 130 creates a standardized, state-administered option that allows lead agencies to satisfy mitigation obligations by contributing to the Transit-Oriented Development Implementation Fund (TDIF), with investments made through the Transit-Oriented Development Implementation Program (TDIP).

To support the rollout of the Mitigation Program and effective management of administrative workload, the program will be implemented in phases, beginning with publicly funded projects. This phased approach is intended solely to support effective early implementation and is not intended to alter or limit lead-agency authority over CEQA determinations or mitigation decisions.

Learn more about the development of a draft programmatic framework for the Mitigation Program through the full program update and the program fact sheet.

Please reach out to [email protected] if you have any questions or comments.