Proposition 45 aims to fast-track CEQA reviews for housing and clean-energy projects

Proposition 45 proposes major changes to California’s landmark environmental law, CEQA, by imposing a 365-day limit on reviews for projects classified as essential—housing, clean-energy facilities, transportation, broadband access and others—while requiring courts to decide CEQA lawsuits within 270 days. The initiative is sponsored by the California Chamber of Commerce, whose CEO Jennifer Barrera says the reform will speed affordable-housing construction and reduce costly legal delays.

Proponents, including some housing advocates and industry groups, claim the “shot-clock” will help address the state’s housing crisis and promote clean-energy infrastructure. Opponents such as environmental justice groups, health organizations, teachers’ and firefighters’ unions, and Senator Catherine Blakespear argue the measure is overly broad, could open fire-prone wildland-urban areas to development, and may weaken long-standing environmental safeguards.

A contentious point is whether the broadband provision could be interpreted to include data centers, a debate that has coincided with a drop in support from 73 % to 49 % among likely voters. Campaign financing shows more than $40 million backing the measure, largely from Silicon Valley figures like Eric Schmidt, while opponents have raised about $15 million, including $5 million from Wendy Schmidt.