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ARTICLE · 28 OCTOBER 2026

Essential Projects Under Proposition 45

California voters will soon decide on Proposition 45, the Building an Affordable California Act, which aims to streamline the California Environmental Quality Act (CEQA) for specific development categories. The proposition's application hinges on whether a project qualifies as an "essential project," a designation that encompasses eight distinct categories ranging from housing and clean energy to transportation and education facilities. Understanding these definitions and their specific carve-outs is crucia

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In less than two weeks, when California voters go to the polls, in addition to voting on who should be governor they will also vote on Proposition 45.

Also known as the Building an Affordable California Act, this proposition has been described as providing some much needed streamlining to the California Environmental Quality Act (CEQA), while others have decried the proposition as a gutting of CEQA. Without delving into this debate, it is clear that Proposition 45 applies to “essential projects.” But what are “essential projects”?

Not every development will qualify as an “essential project.” As such, should Proposition 45 pass, the first thing to ask is whether your project would qualify as an “essential project.”

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