Prop 45 Could Change Who Controls California Building

Proposition 45, headed for the November ballot, would reshape California’s environmental review system for housing and major infrastructure. CEQA, enacted in 1970, currently puts public agencies in charge of deciding whether a project needs deeper study. Agencies compare several options, may update environmental standards when new information appears, and must consider public feedback. Reviews can also be challenged in court.

Applicants could elect to use Prop. 45’s procedures for projects categorized as essential, including housing, broadband, wildfire mitigation, roads and water infrastructure. An agency would receive 365 business days to approve or reject an environmental impact report, while related court cases would face a 270-calendar-day limit. Applicants could provide one alternative instead of multiple choices, and standards would be fixed when an application is submitted. Public feedback would have a 45-day cutoff; comments arriving afterward could not become part of the court record. A judge could halt only the noncompliant portion of a project.

Supporters, led by sponsor California Chamber of Commerce, argue that shorter reviews would reduce building expenses. California Building Industry Association chief executive Dan Dunmoyer estimates the average home would cost $75,000 less. Opposition includes the California Democratic Party, environmental organizations and certain labor unions. They contend the proposal would weaken community participation and agencies’ enforcement authority while potentially producing more litigation. For Simi Valley, the rules could affect housing outside the exemptions enacted in 2025 as well as road and water projects. Public agencies might have less flexibility while reviewing private proposals but greater predictability when constructing their own projects.