California Voters Weigh Proposition 45 Environmental Review Reform

California voters will decide on November 3 whether to pass Proposition 45, a ballot initiative that would amend the 1970 California Environmental Quality Act (CEQA). The measure seeks to accelerate the construction of housing, roads, power, and broadband infrastructure by requiring local governments to set fixed review standards, limiting public comment periods to 45 days, and restricting judicial review to compliance with objective laws.

Tejon Ranch Company, the California Chamber of Commerce, and the California Building Industry Association back the measure to combat the state's housing shortage. Supporters argue the reform would prevent the weaponization of environmental laws and lower new home costs by an average of $75,000. Corporate backing includes over $10 million in contributions, with PG&E Corporation providing $3.05 million and Prologis contributing $500,000.

Opponents, including the Center for Biological Diversity and the Greenbelt Alliance, warn the measure would gut environmental protections and trigger an explosion of sprawl. Critics and legal scholars also argue the text contains loopholes that could allow data centers to bypass local scrutiny, potentially overriding recent regulations signed by Governor Gavin Newsom. While the Data Center Coalition and the California Office of Legislative Counsel maintain that data centers are not eligible for the streamlining, opponents suggest the ambiguity will lead to protracted legal battles.

The initiative has split the state along political and socioeconomic lines. The California Republican Party endorses the measure, while the California Democratic Party opposes it. Renters and lower-income voters generally favor the initiative, whereas affluent homeowners and building unions remain opposed.