San Jose Accelerates Diridon Station Transformation Under Newly Signed SB 1375 CEQA Exemption as VTA Advances 1,000 Homes

Governor Newsom Signs SB 1375 Granting CEQA Relief for Diridon Station Expansion

SAN JOSE, California — Delivering a decisive boost to Northern California's premier rail transit hub, California Governor Gavin Newsom signed Senate Bill 1375 into law in late September 2026, establishing a targeted statutory exemption from the California Environmental Quality Act (CEQA) for the modernization of Diridon Station. The landmark legislation removes protracted legal delays and expedites architectural engineering for the multi-billion-dollar transit megaproject connecting Caltrain, Amtrak, the Santa Clara Valley Transportation Authority (VTA) light rail, and the future BART Silicon Valley Phase II extension.

San Jose Mayor Matt Mahan and regional transit directors praised the bill as an indispensable catalyst for regional decarbonization and economic recovery. By expediting station concourse expansions and high-speed rail integration, the city clears the path for comprehensive transit-oriented developments that will integrate millions of square feet of workspace, green parklands, and high-density residential towers.

VTA Advances Almaden Crossing Relocation Unlocking 1,000 Transit-Adjacent Homes

Simultaneously, the VTA Board of Directors made substantial progress on its administrative headquarters relocation to Almaden Crossing, freeing up 200,000 square feet of prime agency-owned real estate in North San Jose. The site is being made available to non-profit and private development teams to construct over 1,000 transit-oriented homes directly alongside light rail platforms.

The project follows City Council approval of targeted multifamily tax and fee incentives for high-density corridors like Stevens Creek Boulevard. Council members also voted in late September to formulate tailored legislative requests seeking state flexibility for cities that consistently exceed Regional Housing Needs Allocation (RHNA) milestones.

Building a Connected, Walkable Innovation Capital

Urban planners and regional housing advocates emphasized that pairing regulatory modernization at Diridon Station with aggressive transit-oriented housing development establishes a viable blueprint for Silicon Valley's sustainable future. By focusing housing density at transit gateways, San Jose continues to lead California in urban innovation.