Whenever California builds freeway lanes, flood-control levees or other major construction projects, the public gets a chance to review the plans and suggest changes to minimize the environmental impact.

Such input has paid off. It has resulted in replanted forests to compensate for trees lost when a levee is rebuilt or widened. Outside pressure has also prompted Caltrans to build stormwater basins to prevent highway runoff from damaging creeks or polluting beaches.

In an effort to speed up projects financed by state bond money, Gov. Arnold Schwarzenegger is now proposing to streamline these environmental reviews. Agencies such as Caltrans would have to obtain environmental permits for highway or transit projects, but opportunities for the public or regulators to shape the final product would be severely truncated.

It's easy to understand why the governor wants to fast-track the process. President-elect Barack Obama has asked states to identify billions of dollars in public works projects that could be started in the next 120 days. Since California voters have approved more than $50 billion in infrastructure spending in recent years, the state is in a prime position to leverage federal assistance for projects that could create thousands of jobs.

It's also easy to understand why the governor fears that unrestrained application of the California Environmental Quality Act could derail this opportunity. As this page has frequently noted, CEQA has a long history of litigious abuse by various interest groups, including unions that want to extract favorable labor terms for certain projects.

It is also fair to say that, when combined with the National Environmental Policy Act and the Endangered Species Act, CEQA can add years to the time it takes to build even the most beneficial project, such as a transit line or sewage treatment plant.

That said, the governor and lawmakers need to be extremely careful with plans to truncate certain environmental reviews, particularly for new highway lanes.

Many of these highway projects were on the books before the governor signed Assembly Bill 32, a state law that requires reductions in greenhouse gases. Some – such as the Kings-Tulare State Road 196 Expressway – will likely spur sprawl out toward valuable farmlands, adding to the carbon footprint of the Central Valley.

Clearly, the governor and lawmakers need to engage in a balancing act when considering stimulus proposals. Priority should go to projects that don't compromise the state's environmental goals and serve essential immediate needs, such as public safety.

To find this balance, both sides will have to give a little bit. Democrats and environmental groups will have to drop their insistence that CEQA can't be touched or that state agencies can't contract with "design-build" firms to speed up public works. The governor and Republicans will have to concede to environmental reviews for highway widenings that might conflict with the state's climate policies.

Somewhere in the middle could be a mix of projects that could include new hospitals, revamped levees, road rehabilitation, transit lines, school buildings and infrastructure for affordable housing. To find this middle ground, lawmakers of both parties need to come out of their corners, find an immediate solution to the state's fiscal crisis and come up with a stimulus package that stimulates green public works.