California voters to decide whether to reform key environmental law
California voters are considering Proposition 45, a ballot measure that would accelerate environmental reviews for certain housing, energy, water and infrastructure projects. The measure’s potential application to data centers is disputed, with supporters saying they may be excluded and opponents warning the initiative could enable faster approval of projects with major water and energy demands.
Proposition 45 would amend the California Environmental Quality Act to shorten environmental reviews and limit the scope and timing of related lawsuits for certain essential infrastructure projects. Supporters, including the California Chamber of Commerce, say the changes would reduce construction costs, expand housing and infrastructure, and lower energy bills. Opponents argue the measure would weaken environmental and public participation protections and create long-term public health and environmental costs.
Data centers are a central point of controversy because the measure excludes some high-profile projects from expedited review but does not explicitly exempt data centers. Supporters of the initiative say that omission does not bring data centers under the faster process, while community groups and some legal experts believe it could. They anticipate legal challenges if data centers are proposed under the revised framework. The measure has drawn support from business and development groups and opposition from environmental, labor and public health organizations, with spending favoring supporters by roughly $40 million to $20 million.