California ballot measure speeds infrastructure reviews

California voters face a decision on November 3 regarding a measure that would alter state environmental review procedures for specific infrastructure projects.

Proposition 45 would establish a 365 day deadline for state agencies to complete environmental impact reports. The measure also sets a 270 day limit for resolving legal challenges and reduces the public comment period to 45 days. Currently, the California Environmental Quality Act, or CEQA, sets minimum timeframes for review rather than maximum caps.

The proposal changes how agencies interact with developers during the review process. Under current law, agencies can request additional information from developers repeatedly. Prop 45 would require regulators to specify all required information at the start of the application. The measure also shifts the burden of proposing mitigation alternatives. Instead of agencies developing options to limit harm, developers would submit a single alternative project plan for regulatory consideration.

Legal experts and environmental groups warn that the streamlined process could benefit data center companies. Fernando Gaytan, a senior attorney at Earthjustice, said data center developers might classify their projects as essential to access the fast track. He noted that communities would be excluded from the conversation under the new rules. Richard Frank, a professor emeritus at UC Davis School of Law, and attorney Matthew McKerley wrote in the Daily Journal that data centers with broadband transmission infrastructure could fit the definition of essential projects.

The measure defines nine types of eligible projects, including housing, clean energy, and broadband internet access. The language for broadband includes projects that provide mass market retail service and the capability to transmit data to internet endpoints. Proponents argue that data centers are not automatically included. Kurt Oneto, an attorney and lobbyist, wrote in The National Law Review that playing a role in supporting the internet does not make a project an essential broadband internet access project. The Yes on Prop 45 campaign did not immediately respond to a request for comment.

Data center developers have contributed hundreds of thousands of dollars to support the measure. The proposition excludes specific projects such as nuclear energy and dial up internet service but does not explicitly ban data centers. Gaytan pointed out that the measure limits a court's ability to stop a project entirely if an agency fails to comply with CEQA. Judges would only be able to pause specific problematic parts of a project rather than forcing a full stop to construction. He stated that it is hard to undo harms once a project has already started.

Rick Callender, president of the NAACP California and Hawaii State Conference, said the measure aims for accountability rather than shortcuts. In a September 9 press release, he stated that working families and communities of color pay the highest price when essential projects take too long. The NAACP has opposed data center developments in other states, including filing suit against xAI over air pollution in Texas. Gaytan described the core issue as public participation, saying neighbors need transparency about what is happening behind project walls.