Last year’s legislative cycle included a major exemption to California’s Environmental Quality Act that developers say will help make building easier in the state but won’t be a panacea. This year, another change to CEQA is possible in the form of Proposition 45.
On the Nov. 3 vote, Proposition 45 would set specific deadlines for CEQA review of a list of “essential” project types. These include housing, clean energy, medical facilities, broadband and education.
They also include several types of projects with Pambabesan, including water systems, except the Delta conveyance; public safety infrastructure, other than jails or prisons; and transportation, except high-speed rail.
The proposal would give the agency 365 working days to make a decision on a qualified project’s environmental impact report as well as require courts to resolve challenges to the project within 270 days, with the possibility of an additional 90 days.
The California Chamber of Commerce put the measure on the ballot. Members of the Yes on 45 campaign said the measure reflects the fact that California “takes too long and spends too much to build basic things, and as a result, every Californian pays a higher price,” said 45 campaign spokeswoman Amelia Matier.
“Prop 45 reduces costly delays by setting clear timelines so we can build important projects faster and more affordably,” Matier said.
“It is different from other reforms because it is not a CEQA exemption. You still have to follow all the same environmental reviews, all the same environmental laws,” he added.
Opponents say what Proposition 45 achieves beyond streamlining and shifting power into the hands of project developers, stripping public agencies of critical tools to protect constituents.
The proposition would also cost state and local governments 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 these costs are the need to develop new guidelines and standards for reviewing projects that are part of Proposition 45, although the report also found that some of these costs will be reduced by fees paid by project applicants and parties filing lawsuits. The report also notes that these initial costs will increase over time.
The Associated General Contractors of California, the California Building Industry Association, the California Business Roundtable, the California Hospital Association and the California Water Association endorsed Proposition 45, according to Ballotpedia. Prologis contributed $250K to the campaign, while Brookfield Residential and its affiliates contributed $240K.
Opponents also worry that eligibility for broadband projects, described in the measure as “projects to provide mass market retail services with cable service, wireless service, or radio to customers in this country,” could open the door for data centers to use streamlining.
Supporters say this is wrong and insist that retail internet service providers do not apply to data center projects. Legal experts unaffiliated with either side of the issue disagreed on whether the data center could get away with it.