California voters are weighing Proposition 45, a ballot measure that would shorten state environmental review timelines and limit court challenges to eligible projects. Supporters say it would speed housing construction and renewable energy development needed to meet rising electricity demand. Environmental groups and some legal experts warn that data center developers backing the measure could use it to avoid scrutiny.
Prop 45 would loosen standards under the California Environmental Quality Act, which requires state agencies to conduct environmental reviews, gather community input and consider public comment before approving projects. The measure would set a 365-day deadline for completing an environmental impact report and require legal challenges to be resolved within 270 days. It would allow 45 days of public comment and require consultation only with federally recognized Native American tribes, whereas CEQA currently sets a minimum rather than a maximum review period and mandates consultation with affected tribes even without federal recognition.
The measure would also make developers responsible for proposing a single alternative project plan for regulators, rather than having agencies develop alternatives. It would require regulators to specify all required information at the start of the application process, barring repeated requests for more detail. Courts would be prohibited from halting a project entirely over a CEQA compliance failure, though judges could pause specific problematic parts.
Prop 45 lists nine categories of essential projects eligible for streamlined review, including housing, clean energy and broadband internet access. Fernando Gaytan, a senior attorney at Earthjustice, which opposes the measure, said data center developers could fit their projects into the essential project definition and use the fast-track review, leaving communities out of the conversation. UC Davis School of Law professor emeritus Richard Frank and attorney Matthew McKerley wrote in a Daily Journal column that data centers including broadband transmission infrastructure might qualify, noting companies developing data centers have contributed hundreds of thousands of dollars to the supporting campaign. The measure excludes nuclear energy and dial-up internet service but does not explicitly bar data centers.
Attorney and lobbyist Kurt Oneto wrote in The National Law Review that data centers may support the internet but are not essential broadband internet access projects under Prop 45. The Yes on Prop 45 campaign did not immediately respond to a request for comment. The California and Hawaii chapter of the NAACP, which has opposed data center developments nationally and sued xAI over air pollution from gas turbines at its Colossus 2 data center, supports the measure. Chapter president Rick Callender said in a September 9th press release that working families and communities of color pay the highest price when essential projects take years longer and cost millions more, calling Prop 45 about accountability rather than shortcuts. Gaytan said the issue is public participation and democracy, and neighbors being able to ask for transparency about what is happening behind the wall.
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