Proposition 45, aimed at speeding up infrastructure development in California, may inadvertently allow data center projects to avoid comprehensive environmental review and public challenge.
- Prop 45 limits environmental review timelines and public comment periods.
- Data centers may qualify under Prop 45’s ‘essential’ broadband projects category.
- Legal challenges could be restricted, reducing project stoppages.
What happened
However, the proposition has raised concerns among environmental groups and legal experts who fear the measure's broad definitions could include data centers. This could allow data center developers to bypass the comprehensive environmental review process and public engagement required under the California Environmental Quality Act (CEQA). The law currently requires iterative agency-developer collaboration to identify alternatives that lessen environmental harm, but Prop 45 shifts all responsibility to developers to present a single project alternative upfront.
Why it matters
Moreover, Prop 45 proposes to restrict judicial authority by prohibiting courts from halting entire projects if CEQA compliance is found lacking, instead only permitting partial pauses. This limits the ability to prevent irreversible damage since construction could proceed while challenges are litigated, sparking criticism from environmental advocates who highlight the difficulty of undoing harms once projects advance.
What to watch next
The outcome of California’s vote on Prop 45 will be pivotal for how infrastructure projects, especially data centers, are regulated in the state moving forward. Stakeholders should monitor developments in the implementation of streamlined review procedures if the proposition passes, particularly how agencies interpret the definition of ‘essential’ broadband projects and enforce new consultation requirements with Native American tribes.