California's business community is accustomed to having its plans second-guessed by regulators seeking to determine whether a project or activity will harm birds, bugs, fish and plants. But a recent decision by the Coastal Commission appears to signal a dramatic shift in the state's regulatory environment, adding a global dimension to the list of potential impacts to be assessed.

If anything has become clear during the months since voters approved a $19.9 billion transportation bond last November, it's that freeways are still king. The first $4.5 billion allocated by the California Transportation Commission (CTC) was aimed solely at roads, mostly for expanding freeway capacity. Another $3 billion for pavement — including $1 billion for Highway 99 — is scheduled for allocation by June.

Increasingly, Gov. Arnold Schwarzenegger appears to be in the municipal bond business. Last fall, he championed the passage of almost $40 billion in bond measures on the state ballot, mostly for infrastructure. In his State of the State speech, he called for Californians to pass $29 billion in additional bonds over the next three years. And in the budget he proposed during January, he called for spending more than $11 billion of bonds during the next 18 months. >>read more