1. CALIFORNIA:
Budget woes force CEQA exemptions

SAN FRANCISCO -- State Democratic leaders appear to be yielding to Gov. Arnold Schwarzenegger's plan for easing environmental restrictions as a way to kick-start job-generating construction projects. Schwarzenegger (R) proposed exempting certain infrastructure projects from the California Environmental Quality Act last month, saying policymakers had to be "creative" in stimulating job growth in light of the state's budget deficit. Since then, the state's unemployment rate and deficit projections have risen, prompting Democrats to start negotiating how many projects will get exemptions. Go to story #1