California voters reject CEQA overhaul by 8.8 points as night falls

California Proposition 45 was trailing by 8.8 percentage points as of 10 p.m. Tuesday, with 65% of precincts reporting statewide. The measure, which aimed to accelerate construction of housing, energy, and infrastructure projects by modifying the California Environmental Quality Act, had 54.4% of votes cast against it and 45.6% in favor. The margin was widening as the night progressed, making passage less likely.

The proposal would have imposed a strict 365-day limit on environmental reviews for a wide range of projects. These included new water supplies, desalination plants, forest thinning, various types of housing, roads, bridges, hospitals, broadband, solar and wind farms, and battery storage facilities. Additionally, the measure required courts to rule on challenges to these projects within 270 days.

The vote was split geographically. Proposition 45 was passing in the Central Valley and many inland counties. However, it was failing in the state’s largest population centers, including Los Angeles, the Bay Area, and San Diego. This geographic divide reflected the different concerns of rural and urban voters regarding development and environmental impact.

Jennifer Barrera, president and CEO of the California Chamber of Commerce, supported the measure in late October. She stated that the proposal would help build needed projects faster and at a lower cost. Conversely, Woody Little, a spokesman for the No on 45 campaign, argued the measure provided shortcuts for data centers and would cost taxpayers at least $100 million annually. He cited a Legislative Analyst’s Office report that supported this cost estimate.

The Yes campaign raised $38.6 million through Oct. 22, with major contributions from groups like the California Building Industry Association. The No campaign raised $31 million, with Wendy Schmidt, wife of former Google CEO Eric Schmidt, listed as the largest individual donor. The measure had endorsements from business groups, clean energy organizations, and social justice groups. It faced opposition from the California Democratic Party, environmental groups, and labor unions.

The California Environmental Quality Act, or CEQA, was signed by Gov. Ronald Reagan in 1970. For 50 years, it has required agencies to study the effects of new projects on factors like wildlife, noise, and air pollution. Critics from both parties, including former Gov. Jerry Brown and Gov. Gavin Newsom, have argued in recent years that the law has been abused. Examples of this abuse include neighbors delaying a UC dormitory in Berkeley for three years over noise concerns and a gas station owner in San Jose suing a competitor in 2012 over new pumps.

Gov. Gavin Newsom and Democratic gubernatorial nominee Xavier Becerra did not take a formal position on the measure. Some Democrats, such as State Assemblywoman Buffy Wicks, supported it, while others, including Congressmen Ro Khanna and Jared Huffman, opposed it. A PPIC poll from Oct. 28 showed the race tightening, with 46% in favor, 50% opposed, and 4% undecided. The final results on Tuesday night showed the No side pulling ahead decisively in the major urban areas.