Legis
Environment
AB 40, Chapter 864, Statutes of 2026 · Wednesday 30 September 2026

California Environmental Quality Act: environmental impact reports: coal handling, storage, and export

California requires tougher environmental review before approval of very large coal-handling, storage, or export facilities.

Facilities designed to handle more than 5 million short tons of coal yearly must receive project-specific analysis of coal volumes, types, and particulate-dust risks. The law prevents reliance on older reviews when key coal-related details changed or were never analyzed.

What the law does ​

  • Requires an environmental impact report before a lead agency initially approves a large-volume bulk coal facility.
  • Treats air-district permits authorizing construction or increased potential emissions at these facilities as discretionary approvals subject to CEQA.
  • Requires a new or subsequent environmental impact report when coal type changes, coal volume significantly rises, disclosed information is incomplete, or a project expands past 5 million short tons annually.
  • Requires facilities previously reviewed without specific analysis of coal handling, storage, and transportation to be treated as new projects for environmental review.
  • Requires reviews to identify coal types and volumes, assess related impacts and mitigation, and evaluate construction and operating emissions of PM2.5 and PM10 fugitive dust.
  • Bars approval unless mitigation prevents a significant increase in ambient PM2.5 and PM10 concentrations beyond the facility boundary.
  • Applies to qualifying discretionary approvals pending or made from June 4, 2026, through January 1, 2027.

Who it affects ​

  • Operators and developers of facilities designed to handle, store, or export more than 5 million short tons of coal per year.
  • Local lead agencies, air pollution control districts, and air quality management districts issuing project approvals or permits.
  • Communities near large coal facilities that may be exposed to particulate pollution.

Context ​

The law does not require new review for non-coal buildings, uses, or infrastructure included in a prior project review.