Earlier this month, a state appellate court issued a ruling that could make it much more difficult to use the California Environmental Quality Act to stop projects that meet local zoning rules, CalMatters reported.

For years, the commercial real estate industry has said that the law, which was created to mitigate the environmental impacts of new developments, has also been used as an effective method to stop or delay new projects, especially new housing.

The case revolved around a proposed industrial facility in San Diego County. The project was planned on a site zoned for industrial uses, but neighboring residents and the adjacent city of Escondido came out against the facility, saying it would generate noise, traffic and other negative environmental impacts.

Neighbors and Escondido called for a full environmental impact report to be prepared for the project, even though the county had ruled the project exempt. Ultimately, the San Diego County Board of Supervisors ordered more environmental review for the project, citing CEQA.

The developer of the industrial facility, Hilltop Group, sued. San Diego County won at trial but lost at the appellate level, where a panel of judges concluded that “the Board of Supervisors’ decision denying the CEQA exemption and requiring the preparation of an EIR constituted a prejudicial abuse of discretion.”

The ruling could be overturned by the California Supreme Court. But if it is not, it would have a major impact on the ability of groups to use CEQA to delay projects that meet general plan requirements, CalMatters reported, citing University of California-Davis professor and development law expert Chris Elmendorf.

Last year, Gov. Gavin Newsom proposed some updates aimed squarely at cutting down on what many see as abuses of the law and has already signed some efforts into law.