Politics1 min read

Prop 45 in California could be hiding a loophole for data centers

By · Via The Verge · Published by Everything Blog

In short

Proposition 45 seeks to accelerate essential infrastructure projects by restricting environmental impact reports to a 365-day limit and capping legal resolution windows at 270 days. Although supporters frame the reform around housing and renewable energy needs, critics argue data center operators could utilize the broadband Internet access clause to fast-track approvals. The measure also curtails the oversight powers of state agencies, shifting the responsibility of drafting mitigation alternatives directly onto developers. Furthermore, courts would lose the ability to halt entire non-compliant projects, leaving judges able to pause only isolated problematic components.

Key points

  • Data center developers could exploit provisions intended for broadband Internet access to…: Data center developers could exploit provisions intended for broadband Internet access to bypass comprehensive public environmental scrutiny.
  • Courts would be barred from halting entire development projects when regulatory agencies…: Courts would be barred from halting entire development projects when regulatory agencies fail to fully comply with CEQA requirements.
  • Shifting mitigation drafting responsibilities to developers threatens to limit local comm…: Shifting mitigation drafting responsibilities to developers threatens to limit local community participation and make environmental damage harder to reverse.

Sources checked by our analysis pipeline: 1

A high-stakes California ballot measure pitched as a fast track for “essential” infrastructure could wind up giving data center developers a loophole to evade public scrutiny, environmental advocates warn.

Prop 45 in California could be hiding a loophole for data centers

Proposition 45 makes it easier for developers to speed through environmental reviews.

Proposition 45 makes it easier for developers to speed through environmental reviews.

Proposition 45 would shorten timelines for state-mandated environmental assessments for eligible projects and make it more difficult for residents to challenge those projects in court. Proponents say passing the measure would help alleviate the state’s housing shortage and meet rising electricity demand with new renewable energy projects. Environmental groups and some legal experts, however, warn that data center developers backing the proposition could escape scrutiny if Prop 45 becomes law.

“The concern here is that data center developers will find a way to shoehorn their projects into the definition of an essential project and then get to take advantage of … the fast-track review that it’ll create,” says Fernando Gaytan, a senior attorney at the…

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