Schwarzenegger initiatives.

Gov. Arnold Schwarzenegger is about to get on the housing bandwagon with a major new initiative next year.

Sunne Wright McPeak, Schwarzenegger's Secretary for Business Transportation and Housing, said the governor intends to change state law to require each city and county to come up with plans to provide adequate housing for its residents.

"If we do not do this, the consequences will be very serious. Not only will we not provide decent shelter for all California residents, but we will be crippling our competitive advantage," said McPeak, who spoke to the Valley Industry and Commerce Association. "Adequate housing makes the difference on whether or not employers decide to keep their workforce here or go elsewhere."

McPeak did not say whether the state would earmark any more funds to help cities and counties boost their housing stock. She also said that Schwarzenegger intends to pursue reform of the landmark California Environmental Quality Act, the law that requires environmental impact reports on large construction projects.

Developers and other business interests have long complained that CEQA has become a tool opponents use to slow or stop major projects even if there is little evidence of potential damage the environment. They also say too much paperwork and time are needed to meet CEQA requirements.

However, environmental groups say CEQA is essential to ensure projects don't disrupt natural ecosystems or surrounding neighborhoods.

"When CEQA was passed in the 1970s, it was well-intentioned, but it's so misused now." she said. "It's time to tackle this and see how our resources that are now spent on environmental impact reports and lawsuits could actually go towards positive actions to protect the environment."

Staff reporter Howard Fine can be reached at [phone], ext. 227, or at [e-mail].