Proposition 45 Would Set Deadlines For Some Projects' CEQA Reviews

Last year's legislative cycle included key exemptions to the California Environmental Quality Act that developers have said will help make building easier in the state but will not be a cure-all. This year, yet another change to CEQA could come to fruition in the form of Proposition 45.

On the Nov. 3 ballot, Proposition 45 would set definite deadlines for CEQA reviews for a set list of "essential" project types. They include housing, clean energy, medical facilities, broadband and education.

They also include some project types with exemptions, including water systems, except the Delta conveyance; public safety infrastructure, except jails or prisons; and transportation, except high-speed rail.

The proposition would give agencies 365 business days to make a decision on a qualified project's environmental impact report as well as require that courts resolve challenges to these projects within 270 days, with the possibility of a 90-day extension.

The California Chamber of Commerce put the measure on the ballot. Members of the Yes on 45 campaign say this measure addresses the fact that California "takes too long and spends too much to build a lot of our basic things, and that as a result, everyday Californians are paying higher prices," Yes on 45 campaign spokesperson Amelia Matier said.

"Prop 45 cuts those costly delays by setting clear timelines so that we can build essential projects faster and more affordably," Matier said.

"It's different than other reforms because it's not a CEQA exemption. You still have to follow all the same environmental reviews, all the same environmental laws," she added.

Opponents say what Proposition 45 achieves goes beyond streamlining and shifts power into the hands of project developers, stripping public agencies of a critical tool to protect constituents.

The proposition would also likely cost state and local governments from tens of millions to potentially $100M in the first few years, according to a report from the nonpartisan California Legislative Analyst’s Office.

Some of those costs would be from having to develop new guidelines and standards to review projects that fall under Proposition 45, though the report also found that some of these costs would be mitigated by fees paid by project applicants and parties filing lawsuits. The report also noted that these initial costs would likely decline over time.

The Associated General Contractors of California, California Building Industry Association, California Business Roundtable, California Hospital Association and California Water Association endorsed Proposition 45, according to Ballotpedia. Prologis donated $250K to the campaign, while Brookfield Residential and affiliates donated $240K.

Opponents are also concerned that the eligibility of broadband projects, described in the measure as "a project to provide mass-market retail service by wire service, wireless service, or radio to customers in this state," could leave the door open for data centers to utilize the streamlining.

Supporters say this is false and underscore that the provision of retail internet service requirement does not apply to data center projects. Legal experts unaffiliated with either side of the matter disagree about whether data centers could qualify.

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