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Environment Initiative 25-0023A1

CEQA Reform: Streamlined Environmental Review

Initiative Constitutional Amendment & Statute

What This Does in Plain English

California's environmental review law (CEQA) requires detailed studies before most major construction projects can begin. While important for protecting the environment, critics say the process is so slow and litigious that it blocks urgently needed housing, clean energy, and infrastructure. This measure would speed up environmental reviews for housing, transportation, water, and clean energy projects — setting deadlines for agencies and limiting how courts can delay approved projects.

The Problem It's Solving

  • CEQA reviews can take years, delaying housing construction during a severe statewide shortage.
  • Environmental lawsuits are frequently used not to protect nature, but to block competing businesses or projects neighbors simply don't want.
  • Clean energy and transit projects face the same slow process as polluting industries, slowing California's climate goals.

What Changes

  • Faster reviews: State agencies must complete environmental reviews within set deadlines for priority project types.
  • Limited court intervention: Courts would have fewer grounds to block or delay approved projects after review is complete.
  • Covered projects: Housing, public transportation, water infrastructure, healthcare facilities, and clean energy.
  • Existing protections remain: CEQA still applies — this reform speeds up the process, not eliminates it.

Who Is Behind It

Funded by a broad coalition including the California Chamber of Commerce, Edison International (a major utility), and the California Building Industry Association — representing business, energy, and construction interests.

Who It Affects

  • Developers, builders, and clean energy companies who currently face long review timelines
  • Environmental groups and community organizations that use CEQA to challenge projects
  • Future residents who would benefit from more housing and infrastructure
  • Neighbors and communities near planned projects

Arguments For

  • Speeds up housing construction during California's historic housing crisis.
  • Accelerates clean energy and transit projects critical for climate goals.
  • Reduces abuse of CEQA by bad-faith litigants seeking to delay competitors.

Arguments Against

  • Weakening CEQA could allow harmful projects to proceed with less scrutiny.
  • Communities of color near industrial projects rely on CEQA to protect their health.
  • Limiting court review removes a key check on government and developer power.

Fiscal Impact

Potential savings to state and local agencies in reduced review costs and faster permitting. Economic benefits from accelerated housing and infrastructure construction. Exact figures depend on implementation.