California's Proposition 45 is not just a wonky environmental review tweak. According to Rep. Ro Khanna, it's a gift to data centers and polluters, and he's not mincing words.

In a post on X on Monday, Khanna called the measure "a handout to allow for more data centers and more pollution." He added, "I am a strong No," and urged voters to "Join the firefighters, nurses, environmentalists, & working families fighting to stop Prop 45 from giving a green light to corporate polluters." The post included a video.

Khanna Targets PG&E

In the video, Khanna didn't hold back on who he thinks is pulling the strings. He said PG&E Corporation (PG&E (PCG)) "is behind it," and that "They're calling it an affordable housing bill, but that's just not true."

He continued: "We can't just give a green light to allow data centres to be built around the state and to give corporate polluters free rein." He closed with a simple directive: "Vote no on Proposition 45."

PG&E Corporation did not immediately respond to MarketDash's request for comment.

What Is Proposition 45?

On the surface, Prop 45 is about streamlining environmental reviews. It would amend the California Environmental Quality Act (CEQA) to speed up reviews for certain projects, including most housing, transportation, water, and health projects, by setting deadlines for reviews and related lawsuits, according to the state voter guide. Voters will decide on Nov. 3.

But Khanna and other critics worry that the faster process could also fast-track data centers, which are hungry for electricity and water, and potentially worsen pollution.

Khanna's Data Center Warnings

Data centers power AI systems and cloud computing services but can require substantial electricity and water, intensifying concerns about infrastructure capacity, utility bills, and environmental impacts. Khanna has warned that AI data center expansion is straining local infrastructure and the environment. His proposed Data Center Bill of Rights would give communities more power to oppose projects and restrict development in residential areas and farmland.

San Francisco has also temporarily halted data center development citywide under a 45-day moratorium signed by Mayor Daniel Lurie, as officials examine the potential impact on electricity costs, water resources, and surrounding communities.

Khanna's Proposition 40 Stance

California's voter guide describes Proposition 40 as a one-time tax of 5% on certain taxpayers with assets over $1 billion, with revenue primarily for health care.

Khanna has also pushed Democrats to back Prop 40, asking, "Are we going to stand with 250 billionaires in California, or with poor kids who need healthcare?" Voters will decide on the measure during the upcoming midterm elections.