An unusual coalition of Big Tech titans and major oil interests is pouring millions of dollars into a high-stakes ballot measure that could fundamentally reshape California’s environmental landscape. Proposition 45, which will go before voters this November, aims to bypass significant portions of the California Environmental Quality Act (CEQA), a landmark law that for 50 years has mandated rigorous reviews and public input for major construction and industrial projects.
Proponents of the measure, including the California Chamber of Commerce (CalChamber), argue that the current environmental review process acts as a form of “bureaucratic red tape” that stifles necessary development. Supporters assert that by streamlining these processes, the state can accelerate housing construction, advance clean energy initiatives, and boost overall affordability.
However, critics warn that the measure is a wolf in sheep’s clothing. “It’s always been about polluting projects they can get through under the guise of addressing the housing crisis,” said Woody Little, a spokesperson for the No on Prop 45 campaign. Opponents argue that the initiative is designed less to solve the housing shortage and more to clear a path for massive industrial projects—including carbon capture infrastructure—that would otherwise face significant public opposition or legal hurdles.
At the center of this financial firestorm is the California Resources Corp. (CRC), the state’s largest oil and gas well operator. The company has already funneled over $1 million into the “Yes on 45” effort. While the proposition explicitly excludes new oil and gas extraction from its streamlined provisions, it creates a fast track for carbon dioxide pipelines. CRC is currently developing carbon capture technology at its Elk Hills natural-gas plant, positioning the company to benefit from both state incentives for carbon management and reduced oversight for the infrastructure required to transport the captured gas.
The intersection of interests between Big Tech and Big Oil on this measure has drawn significant scrutiny. Tech developers, including those interested in building power-hungry AI data centers, have also contributed heavily. For instance, a committee backed by Google co-founder Sergey Brin has spent $10 million in support of the measure. There is ongoing legal and industry debate over whether the “essential broadband infrastructure” language in Prop 45 covers data center construction, but the financial backing from major developers suggests that companies believe the measure will indeed facilitate their expansion plans.
Further complicating the political landscape is the deep involvement of specialized law firms and political insiders. Nielsen Merksamer, a prominent law firm linked to past efforts to derail environmental regulation, is tied to multiple committees funding the Yes on 45 campaign. These same political networks are also influencing legislative races, directing funds toward business-friendly candidates who have historically prioritized deregulation over environmental protections.
The sheer scale of the investment is striking. Pacific Gas & Electric Co. (PG&E), Edison International, and Sempra have collectively contributed millions to the campaign, citing the need for faster approvals for transmission and grid infrastructure. These utilities stand to gain from reduced environmental oversight as they navigate the transition to cleaner energy—a transition that often requires vast networks of new infrastructure.
As California moves toward its climate goals, the debate over Proposition 45 highlights a growing friction between the need for rapid infrastructure development and the value of the democratic, transparent review processes established by CEQA. While supporters promise efficiency and progress, environmental advocates fear that the weakening of these protections will hand a blank check to industry giants, allowing them to bypass local concerns in the pursuit of carbon capture pipelines and industrial development. With millions of dollars still flooding into campaign coffers, the result of the November vote will set a critical precedent for how California balances industrial expansion with environmental accountability.
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