Activist Jane Fonda and Wendy Schmidt, the wife of Google co-founder Eric Schmidt, are leading the opposition to California's Proposition 45, a ballot measure intended to reform the California Environmental Quality Act (CEQA) and make housing more affordable. The campaign, spearheaded by the environmental PAC Clean and Healthy California, which Schmidt seeded with over $5 million, launched its "No on 45" effort in Sacramento.
CEQA, enacted in the 1970s, allows for environmental reviews and challenges to a wide range of projects, including housing, mass transit, and infrastructure. Critics argue that its extensive review processes and potential for litigation significantly delay development and increase costs, contributing to California's housing crisis. Proponents of Proposition 45 contend that reforming CEQA will streamline the approval process for new housing, ultimately making it more affordable for renters and homebuyers.
Fonda has voiced strong opposition, characterizing Proposition 45 as a plot by polluters to harm the environment. "This measure would gut the law that stands between reckless development and the air we breathe, the water we drink, and the health of our communities," Fonda stated in June.
The "No on 45" coalition, which includes groups like the Building and Construction Trades Council, argues that the proposition would allow fast-tracking of projects like data centers, potentially harming community health and safety by limiting environmental and public review. A spokesperson for the campaign stated, "This isn't about affordable housing, and Californians are smart enough to see through that."
Proposition 45 proposes to set limits on environmental reviews for housing, infrastructure, water, healthcare, and clean energy projects, aiming to reduce court-imposed delays. Supporters of the measure, including the California Chamber of Commerce and Building a Better California, a committee backed by Google co-founder Sergey Brin, argue that CEQA's current structure allows for its misuse by opponents seeking to block projects, regardless of their environmental merit.
Assemblymember Buffy Wicks, a supporter of Proposition 45, has cited examples of lengthy approval processes, such as a solar company allegedly taking 12 years and requiring 72 permits from 28 agencies to build a single transmission line.
Despite reforms signed into law by Gov. Gavin Newsom in recent years to exempt certain projects from lengthy CEQA reviews, housing affordability in California remains a significant issue. Renters need to earn nearly $53 per hour to afford a typical two-bedroom home, and median home prices reached a record high of $930,000 in May.
Wendy Schmidt, who resides in a large estate in Holmby Hills, and Jane Fonda, who owns a home in Century City, are among the wealthy figures opposing the proposition, a stance that has drawn criticism from some who view it as hypocritical. Critics suggest that while they advocate for environmental protections, their opposition to housing reform overlooks the needs of those struggling with housing costs.