The Boring Co. has big ambitions to dramatically change Los Angeles' nearly nonexistent transit network—but that objective may prove to be more dream than reality. The company had announced plans to build a transit line along the 405 Freeway, but scrapped the idea last month after a CEQA lawsuit came forward. While Boring publically said that it wanted to focus on its Dodger “Dugout Loop transit line project, CEQA lawsuits and challenges could be an ongoing obstacle for the tech and development company.

“As I understand it, the Boring Co. hasn't scrapped the project altogether. It has scrapped one of the originally proposed locations for the project,” Kristina Lawson, partner at Hanson Bridgett, tells GlobeSt.com about the project. “While CEQA may have been one of the reasons the project isn't moving forward in this location, there were likely cost and infrastructure concerns as well.”

The firm could potential struggle with CEQA lawsuits because it is deferring CEQA analysis while it tests the project. “Under CEQA, a project must be evaluated for potentially significant impacts at the earliest possible time,” she explains. “The Boring Co.'s “test” project had been exempted from CEQA by the lead agency, with full analysis under CEQA deferred to a future time.  This type of deferral of analysis can be problematic. Ultimately, a comprehensive CEQA review will determine whether or not there are any impacts that need to be mitigated.”

It is not unusual to face intense inspection under CEQA in California, especially for high profile projects like this. While these transit lines are in high demand and generate community excitement and support, Boring will still face critical CEQA review. “Most high profile construction projects face significant scrutiny under CEQA— especially when those projects involve new or innovative technology or technological advances,” says Lawson. “I expect the Boring Co.'s projects to continue to face a high level of scrutiny both under CEQA and under the various planning and zoning laws.”

In addition to the standard scrutiny that developers face, Lawson says that environmental justice is a new aspect to the CEQA process. “Environmental justice principles and priorities are relative newcomers to the CEQA conversation,” she explains. “In order to ensure fair treatment and meaningful involvement in all communities, a complete CEQA review should be conducted regardless of location.”

While there may be some hurdles ahead for the Boring Co., Lawson believes that the project will ultimately be successful. “In my opinion, a public private partnership between Boring Co. and local and regional agencies has the real potential for success in the Los Angeles area,” she explains. “Mobility and circulation in Los Angeles has room for improvement, and the Boring Co.'s innovative idea does have merit.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.