After eight years in elected office in California, I can tell you that I often fell into the same trap as everybody else: chasing revenue. When you're up against the wall on budget problems, any new revenue – especially a boost in property or sales tax revenue – looks like the solution to all your problems.
The premise behind the categorical exemptions in the California Environmental Quality Act for infill and single-family projects is that projects in relatively dense, established urban areas are unlikely to create major impacts. According to a recent decision, this premise has its limits.