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That is a restrictive clause..
And it is not required when a different subject is used.. see below for more explaination..
4. Omitting “that” • You can omit “that” in a relative clause when the subject of the clause is different from the word or phrase the clause refers to. Thus, you can say either The book that I was reading (or) The book I was reading
• You can also omit “that” when it introduces a subordinate clause Ex: I think we should try again.
• You should NOT omit “that”, however, when the subordinate clause begins with an adverbial phrase or anything other than the subject: Ex: She said that under no circumstances would she allow us to skip the meeting. The book argues that eventually the housing supply will increase. This last sentence would be ambiguous if that were omitted, since the adverb eventually could then be construed as modifying either argues or will increase.
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