The California Chamber of Commerce ballot initiative, Building an Affordable California Act (BACA), has reached a key procedural milestone. After submitting close to a million signatures, almost double the required number of raw signatures, the initiative is currently undergoing a county-level signature verification process, which will determine whether it qualifies for the November 2026 statewide ballot.
Overview of the Building an Affordable California Act (BACA)
The initiative proposes significant changes to the California Environmental Quality Act (CEQA) for certain projects deemed "essential projects", including:
- Essential housing projects including residential and mixed-use housing serving families, seniors, students, and other populations
- Clean energy and electricity projects including renewable generation, energy storage, grid infrastructure, carbon capture and related facilities
- Water infrastructure projects including public drinking water systems and water reliability and resilience infrastructure
- Public health facilities such as hospitals, clinics and medical office buildings
- Public safety facilities including police stations, fire stations, and wildfire risk reduction and resilience projects
- Transportation infrastructure projects such as roads, bridges, and transit facilities (excluding high-speed rail)
- Broadband and telecommunications infrastructure
- Education facilities
Some project types are expressly excluded, such as new oil or gas production facilities and high-speed rail
New CEQA Timelines and Accelerated Permitting Requirements Under BACA
The initiative creates a new chapter of CEQA and would impose new strict statutory deadlines at nearly every stage of environmental review and permitting.
Lead agencies would be required to determine application completeness within 30 days of submittal. If no determination is made, the application would be deemed complete by operation of law. Agencies would then be required to identify the applicable CEQA document within 30 days. BACA applies these timelines consistently across all essential projects regardless of project type or location.
The initiative would require environmental documents to be completed on significantly accelerated timelines mandating that Environmental Impact Reports be prepared within 365 days, Negative Declarations and Mitigated Negative Declarations within 180 days, and determinations based on exemptions or prior environmental documents within 90 days. Additionally, agencies would be required to issue final decisions on all permits and approvals within 90 days after certification or adoption of the CEQA determination.
The initiative also establishes consequences when deadlines are missed, including mandatory public hearings and expedited agency action. Taken together, these provisions would establish a new framework for agency discretion over scheduling and sequencing of environmental review for essential projects.
Labor Requirements for Essential Projects Under BACA
BACA would apply labor standards to all “essential projects.” Essential housing projects would be required to comply with the labor requirements established under AB 130, while all other essential projects would be subject to the labor standards applicable to environmental leadership development projects pursuant to Public Resources Code section 21183.5.
Enhanced Tribal Consultation Requirements Under BACA
BACA establishes a two-step tribal consultation framework consisting of an early initial screening phase followed by formal consultation. The initial screening would begin before a project application is deemed complete and would require the lead agency to conduct early record searches and share relevant information with affiliated, federally recognized tribes.
Following initial screening, formal consultation would proceed largely consistent with AB 52 requirements but with enhanced provisions including earlier disclosure of technical studies and draft environmental documents during consultation as well as the requirement that any mitigation measures agreed upon through consultation be incorporated as enforceable conditions of project approval.
Accordingly, for essential projects, consultation would shift to an earlier stage in project review with defined timelines and outcomes that are directly linked to CEQA decisions.
Changes to Public Comment Periods and CEQA Participation Rules
The initiative would alter CEQA's public participation framework by shortening comment periods for key documents and imposing time-limited comment opportunities where none currently exist.
- Draft EIR comment periods would be standardized at 45 days.
- MND ND comment periods would be standardized, resulting in a reduction in many cases, to 20 days.
These public comment periods cannot be extended except by a court order. This is a sharp departure from the current practice where lead agencies have the discretion to extend comment periods in response to public comment or to accommodate holidays or other calendar concerns.
Late comments submitted after the close of the public review period would not be part of the administrative record. In addition, the initiative would establish strict timeframes for submitting comments on addenda exemptions and consistency determinations, which under current law generally do not require public review if the lead agency holds a public hearing or makes a noticed determination on the project. In these situations, commenters must submit comments at least 48 hours prior to the hearing or noticed meeting. Under the current CEQA process, last-minute comments are considered part of the administrative record and can be the basis for a lawsuit even if the comment period has closed. This limit on what is part of an administrative record under the initiative effectively eliminates same-day comments on a project, although individuals can still provide oral testimony. This represents a fundamental shift by both limiting discretionary participation and formalizing comment windows.
How BACA Changes Environmental Impact Evaluation Standards
New Judicial Review Standards for CEQA Challenges Under BACA
The initiative would also standardize the substantial evidence standard of judicial review for all essential projects, regardless of the type of CEQA document prepared. Under this approach, courts would be directed to uphold a lead agency’s determinations so long as they are supported by substantial evidence in the administrative record, whether the project is approved through an Environmental Impact Report, a Negative Declaration or Mitigated Negative Declaration, a categorical or statutory exemption, or reliance on a prior environmental document. This represents a notable shift from current CEQA practice, under which the applicable standard of review may vary depending on the specific CEQA document prepared.
Separately, in any action alleging violations of public participation procedures, the court shall only determine whether or not the action was arbitrary and capricious and resulted in prejudicial error.
Accelerated Judicial Review and Shortened Statutes of Limitation
The initiative would also establish an expedited judicial review process for CEQA challenges involving essential projects, significantly shortening timelines compared to typical CEQA litigation. Challenges would be required to be filed within 30 days of the filing of a Notice of Determination or Notice of Exemption, and both trial-level and appellate proceedings would be required to conclude within 270 days of case initiation. In addition, courts would be directed to apply a substantial evidence standard of review to specified determinations, further constraining the scope and duration of judicial review.
Limits on Court Remedies and Continued Construction Under BACA
Finally, the initiative would limit the remedies courts may impose when a CEQA violation is identified. Rather than decertifying an EIR, invalidating or setting aside all approvals for a project, the initiative generally directs courts to tailor remedies more narrowly. Explicitly allowing projects to proceed during remand where feasible and limiting relief to correction of specific deficiencies. This would allow construction to continue for certain projects, while the CEQA violation is remedied.
What Happens Next: Ballot Qualification and Timeline for CEQA Reform
If signature verification confirms that the initiative meets statutory thresholds, the following steps will occur:
- Qualification for the Ballot – The Secretary of State will certify the initiative for placement on the November 3, 2026 general election ballot.
- Ballot Materials and Analysis – The Legislative Analyst’s Office will prepare an official analysis, and ballot arguments for and against the measure will be submitted.
- Statewide Campaign and Voter Education – Proponents and opponents will begin full public campaigns outlining the perceived benefits and drawbacks of the proposal leading up to the election. A number of organizations have already signaled plans and set aside money to advocate both for and against the initiative.
- November 3, 2026, California voters determine the future course of CEQA.
What BACA Means for Developers, Agencies, and Project Approvals in California
The proposed initiative represents significant potential changes to CEQA. Supporters emphasize predictability and speed for infrastructure delivery, while critics raise concerns about reduced environmental review, public participation, and judicial oversight. Qualification of the initiative for the ballot would place CEQA reform squarely before California voters for the first time.
For now, attention remains on the signature verification process, which will determine whether California voters ultimately decide the fate of the Building an Affordable California Act later this year.
