California voters could soon be asked to usher in a major overhaul of the state’s landmark environmental law, a proposal aimed at expediting crucial infrastructure projects, including housing construction, by creating new deadlines for environmental oversight.
The California Chamber of Commerce on Tuesday introduced a ballot initiative that looks to “streamline and speed up approval” of essential projects, proposing stringent timelines for reviews under the California Environmental Quality Act, or CEQA — long considered a barrier to development. The proposal comes less than four months after state lawmakers, led by Gov. Gavin Newsom, pushed through some of the most expansive CEQA exemptions yet for home builders working in urban areas zoned for multifamily units.
But chamber leaders say this ballot measure, which could be considered as early as November 2026, would do more than just carve out another exception for what’s become known as the “Swiss cheese CEQ.” It would but revise the process entirely.
The “Building an Affordable California Act” seeks to establish “reasonable timelines” for environmental oversight on projects deemed essential, such as those focused on affordable housing, clean energy, secure water, healthcare and wildfire resiliency. It would still require that projects comply with the environmental law, but would enact new deadlines for public hearings as well as state and local approvals, in most cases, within 365 days.
“Californians deserve a law that recognizes prosperity isn’t the enemy of preservation,” Jennifer Barrera, the president and chief executive of the chamber, wrote in a statement. “Modernizing that law won’t just ease California’s affordability crisis and boost our economy — it will prove the naysayers wrong about our state. … It’s time to build an affordable California.”
In the measure, the chamber called CEQA an outdated system that is “too slow, too bureaucratic and too costly,” and a main driver of the state’s high cost of living.
CEQA supporters disagree, calling it key in protecting the state’s natural resources, wildlife and vulnerable communities.
“Developers have latched on to using CEQA as the boogeyman that they’re going to blame for a lot of things, specifically the affordable housing crisis,” said Frances Tinney, a staff attorney with the Center for Biological Diversity. She said that prior CEQA carve-outs have yet to jump-start affordable housing, while helping to increase developers’ profits and decrease accountability.
“To just keep hacking at CEQA before we even wait to see the consequences of the last time we hacked at CEQA is just not responsible,” Tinney said, noting the Legislature’s CEQA exemptions passed over the summer.
In theory, CEQA is relatively simple, requiring proponents of a project to disclose and, if possible, lessen their environmental effects. But in practice, it has often led to long environmental reports, studies and reviews, that are sometimes followed by lawsuits over possible inadequacies that can require a restart.
Overhauls and changes to the environmental law have for years faced fierce opposition from progressive lawmakers, environmentalists and labor unions — key factions in California’s Democratic majority.
The chamber’s proposal also would provide new timelines for legal challenges under CEQA, which has been repeatedly weaponized by unions, NIMBYs and project opponents to stop or delay certain development for reasons that often have nothing to do with the environment.
The California chamber’s introduction of the measure is the first step to appear on a ballot. It will now be reviewed by the state’s attorney general, including a fiscal analysis and public comment period, before the chamber needs to collect approximately 540,000 signatures in support of it.
“The initiative was carefully crafted to protect the environment while ensuring that plans for much-needed housing, clean energy, reliable water supplies, and public health and safety facilities are reviewed in a timely manner,” Barrera said. “Californians deserve a law that recognizes prosperity isn’t the enemy of preservation.”
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