GOOD MORNING. I THINK STILL AND
WELCOME THE SENATE BUDGET
COMMITTEE SUB BUDGET COMMITTEE
NUMBER FOUR ON STATE
ADMINISTRATION AND GOVERNMENT
WILL BE IN ORDER. LET'S FIRST
ESTABLISH A QUORUM. FOR PURPOSES
OF ESTABLISHING A QUORUM.
SENATOR PADILLA, PRESENT.
SENATOR NEAL, SENATOR SMALLWOOD
CUEVAS. MISTER CHAIR, YOU HAVE A
QUORUM. THANK YOU VERY MUCH.
APPRECIATE TODAY'S HEARING IS AN
INFORMATIONAL HEARING ONLY. WE
WILL NOT BE CONSIDERING ANY
ACTION ITEMS, BUT WE WILL BE
HEARING FROM TO SOME
DISTINGUISHED PANELISTS, DEALING
WITH LITHIUM EXTRACTION.
MULTIDIMENSIONALLY. ITS
POTENTIAL ECONOMICALLY AND
ENVIRONMENTALLY. AND CERTAINLY
IT'S A POTENTIAL ON THE
ADMINISTRATIVE DEPARTMENTS OF
GOVERNMENT INVOLVED IN THAT
COORDINATION OR NOT. SO I EXPECT
IT TO BE AN INTERESTING HEARING.
WE HAVE SOME, DISTINGUISHED
PANELISTS, THE FIRST PANEL IS
DEALING WITH THE TRANSFORMATIVE
POTENTIAL OF LITHIUM EXTRACTION
IN THE SALTON SEA AND IMPERIAL
VALLEY. AND I'D LIKE TO ASK
DOCTOR MICHAEL MCKIBBEN,
PROFESSOR èC RIVERSIDE. SYLVIA,
PAST CHAIR OF THE LITHIUM VALLEY
COMMISSION, AND NAOMI GALLARDO,
COMMISSIONER OF THE CEC, TO
PLEASE BE WELCOME AND COME
FORWARD, MAKE YOURSELVES
COMFORTABLE. AND I KNOW THAT WE
HAVE SOME ELECTRONIC
PRESENTATION HERE. SO PLEASE
PROCEED WHEN READY AND WELCOME.
SO GOOD MORNING. CAN YOU HEAR
ME? OKAY ALL RIGHT. SO I WAS
ASKED TO TALK ABOUT THE PROMISE
OF LITHIUM VALLEY AND ITS
GEOTHERMAL LITHIUM RESOURCES,
AND WAS GIVEN A LIST OF TOPICS
TO PRESENT. AND SO I'LL GO
THROUGH SLIDES FOR EACH OF THOSE
. SO BETTER. OKAY SO, ONE TOPIC
I WAS ASKED TO ADDRESS IS WHY
ARE THE BRINES IN THE LITHIUM
THERE IN THE FIRST PLACE? AND
THAT HAS TO DO, OF COURSE, WITH
THE GEOLOGY. AND IF YOU'RE
FAMILIAR WITH THE SALTON SEA,
AND HAVE BEEN DOWN THERE, YOU
MAY HAVE SEEN THE BATHTUB RING,
BATHTUB RING THAT'S AROUND THE
VALLEY, WHICH IS THE REMNANTS OF
OLDER, HIGHER LAKE STANDS AND
THEY'RE LITERALLY BEEN HUNDREDS
OF THOUSANDS OF ANCIENT SALT AND
SEAS THAT HAVE FORMED IN THAT
VALLEY. THEY'RE COLLECTIVELY
KNOWN AS LAKE CAHUILLA, AFTER
THE NATIVE AMERICAN TRIBES. AND
THESE LAKES HAVE FORMED AND
EVAPORATED IN THIS SALTON TROUGH
RIFT SINCE THE LATE PLIOCENE. SO
OVER SEVERAL MILLION YEARS AND
ON AVERAGE, A LAKE HAS FORMED IN
THAT VALLEY EVERY 200 YEARS.
OVER THE PAST SEVERAL THOUSAND
YEARS. AND THAT'S THE CHART
SHOWN AT THE TOP. SOME OF THESE
LAKES WERE QUITE LARGE. THEY
WERE 3 TO 4 TIMES THE AREA OF
THE MODERN SALTON SEA. AND YOU
CAN SEE THE OUTLINE OF THE
BATHTUB RING OR THE HIGH
SHORELINE FROM ONE OF THE
PREVIOUS LAKE, IS COMPARED TO
THE SIZE OF THE SALTON SEA. SO
WHEN PEOPLE TALK ABOUT THIS LAKE
, THEY NEED TO REALIZE IT'S
NEVER BEEN STABLE. IT'S ALWAYS
EITHER FILLING UP OR DRYING OUT.
THAT'S ITS NATURAL GEOLOGIC
CONDITION. AND EVERY TIME IT
FILLS UP AND THEN EVAPORATES, IT
LEAVES BEHIND LAYERS OF SALT.
AND SO THE NEXT TIME THE
COLORADO RIVER FLOODS THE
VALLEY, IT DISSOLVES THAT
PREVIOUS SALT AND PUMPS IT INTO
THE GROUND. AND IT'S DONE THAT
HUNDREDS OF TIMES OVER GEOLOGIC
TIMES. SO IT'S LITERALLY CALLED
A BRINE PUMP. AND IT'S PUMPED A
LOT OF THIS BRINE INTO THE
GROUND. IT'S NOW VERY RICH IN
LITHIUM, AND THIS BRINE IS NOW
BEING BROUGHT BACK UP TO THE
SURFACE, WHERE IT CAN BE
EXTRACTED BECAUSE OF THE IGNEOUS
ACTIVITY AT THE SOUTHEAST EDGE
OF THE SALTON SEA, THERE ARE
SOME VOLCANIC DOMES THERE, AND
THE HEAT FROM THAT IGNEOUS
ACTIVITY HAS MADE THE BRINE
EXPAND AND BUOYANT. AND YOU CAN
NOW FIND IT AS SHALLOW AS A HALF
A KILOMETER BENEATH THE SURFACE.
AND THAT'S WHAT THE COMPANIES
ARE DRILLING INTO TO PRODUCE THE
BRINE, TO MAKE STEAM FOR
GEOTHERMAL POWER. AND ALSO TO
EXTRACT LITHIUM FROM THAT BRINE.
SO IT'S A VERY UNIQUE GEOLOGICAL
SITUATION, THIS GEOTHERMAL FIELD
IS GOING TO HAVE TO BE EXPANDED
BECAUSE THERE'S A LEGISLATIVE
MANDATE, THAT'S TRIGGERED THE
PUBLIC UTILITIES COMMISSION TO
ORDER 1000MW OR A GIGAWATT
GIGAWATT OF ADDITIONAL RENEWABLE
BASELOAD ELECTRICITY, RENEWABLE
BASELOAD MEANS NOT JUST
RENEWABLE, BUT BASELOAD MEANS 24
OVER SEVEN, WHICH WIND AND SOLAR
ARE NOT 24 SEVEN. SO THEY'RE NOT
CONSIDERED BASELOAD, AND THAT'S
GOT TO HELP ME TO 60% RENEWABLES
PORTFOLIO BY 2030 AND 100%
RENEWABLES PORTFOLIO BY 2045 DUE
TO SENATE BILLS THREE, 50 AND
100. AND REALLY, THE SALTON SEA
GEOTHERMAL FIELD IS THE ONLY
MAJOR CALIFORNIA KNOWN
GEOTHERMAL RESOURCE AREA THAT
CAN EXPAND. SO THIS GEOTHERMAL
FIELD IS GOING TO HAVE TO DOUBLE
OR TRIPLE ITS CURRENT CAPACITY,
WHICH IS 400MW, OVER THE NEXT
DECADE AND IS ULTIMATELY CAPABLE
OF PRODUCING 3000MW TOTAL. WHY
IS THAT IMPORTANT? WELL, WE WANT
TO GET OFF FOSSIL FUELS FOR OUR
GRID, AND SO WE WANT TO GET RID
OF THE NATURAL GAS IN THE TINY,
TINY COAL COMPONENT. ON THIS
CHART AND REPLACE THAT WITH
RENEWABLE RESOURCES LIKE
GEOTHERMAL. IF WE'RE GOING TO
FIGHT CLIMATE CHANGE. SO RIGHT
NOW, THIS DEVELOPMENT AND
EXPANSION OF THE FIELD IS GOING
TO TAKE AT LEAST A DECADE TO BE
FULLY BUILT OUT. RIGHT NOW,
THERE ARE 11 POWER PLANTS DOWN
THERE. THEY PRODUCE 400MW, TOTAL
SHOWN ON THE LEFT, THERE ARE
THREE POWER PLANTS UNDERGOING
PERMITTING RIGHT NOW FROM THE
CALIFORNIA ENERGY COMMISSION.
MORTON BAY, ELMORE NORTH AND
BLACKROCK BY BERKSHIRE HATHAWAY.
AND THOSE ARE SHOWN IN THE BLUE,
THE BLUE SQUARES THERE ON THE
RIGHT AND RECENTLY PERMITTED WAS
THE FIRST PHASE OF HELL'S
KITCHEN FOR CONTROLLED THERMAL
RESOURCES, WHICH IS 50MW.
THEY'RE GOING TO DO SIX MORE
DUPLICATES OF THAT POWER PLANT
OVER THE NEXT DECADE, EVENTUALLY
REACHING 350MW. AND THAT'S THE
LARGE RED SQUARE IN THE TOP OF
THAT FIGURE, SO THOSE ARE THE
CURRENT PLANS FOR EXPANDING THIS
GEOTHERMAL FIELD. AND SO ONE
QUESTION IS HOW MUCH OF THE
LITHIUM CAN WE EXTRACT FROM THE
CURRENT FIELD AND THE EXPANDED
FIELD. AND THAT'S A PRETTY EASY
CALCULATION TO MAKE. WE DID THIS
FOR OUR REPORT THAT WAS PUT OUT
IN NOVEMBER, YOU JUST NEED TO
KNOW THE MASS OF THE BRINE, THE
LITHIUM CONCENTRATION AND THE
RECOVERY EFFICIENCY. AND IF YOU
DO THAT FOR THE CURRENT CAPACITY
OF 400MW, YOU CALCULATE, SINCE
WE KNOW THE BRINE PRODUCTION
HISTORY OVER THE LAST 20 YEARS,
WE CAN PREDICT THE FUTURE
PRODUCTION HISTORY FROM THAT.
AND SO FOR THE CURRENT CAPACITY,
WE KNOW WE CAN PRODUCE ABOUT
22,000 METRIC TONS OF LITHIUM
PER YEAR. THAT'S LITHIUM METAL.
AND THEN YOU CONVERT THAT INTO
THE COMMONLY USED UNIT CALLED
LITHIUM CARBONATE EQUIVALENT OR
LCA, WHICH IS HOW MOST LITHIUM
IS MARKETED AROUND THE WORLD.
THAT'S 115 METRIC TONS OF LCE
PER YEAR, AND THAT'S ENOUGH FOR
ALMOST 4 MILLION ELECTRIC
VEHICLES PER YEAR. IF WE DOUBLE
AND THEN TRIPLE THAT CAPACITY
FROM THIS FIELD AND THE NUMBERS
GO UP ACCORDINGLY. AND SO WE
COULD EASILY PRODUCE HALF OF THE
CURRENT GLOBAL PRODUCTION OF
LITHIUM BY TRIPLING THE
EXPANSION OF THIS FIELD. AND
THAT'S PRETTY SIGNIFICANT. THERE
ARE A LOT OF ENVIRONMENTAL
ADVANTAGES TO GEOTHERMAL LITHIUM
EXTRACTION. IT'S CALLED DIRECT
LITHIUM EXTRACTION. ONE IS THE
AERIAL FOOTPRINT IS IT'S THE
SMALLEST WAY OF PRODUCING
LITHIUM IN THE WORLD. IT'S A
CLOSED LOOP PROCESS BECAUSE THE
BRINE IS REINJECTED BACK INTO
THE RESERVOIR AFTER IT'S USED.
IT'S NOT DUMPED OUT ON THE
SURFACE. SO YOU DON'T HAVE ANY
EVAPORATION PONDS LIKE YOU HAVE
IN SOUTH AMERICA. YOU DON'T HAVE
OPEN PITS LIKE YOU HAVE IN
AUSTRALIA. YOU'RE NOT BLASTING.
YOU'RE NOT SMELTING, AND YOU'RE
NOT CONSUMING ALL THE
ELECTRICITY AND FOSSIL FUEL
POWER TO DO ALL THAT KIND OF
STUFF. AND PERHAPS EQUALLY
IMPORTANTLY, YOU'RE NOT EMITTING
ALL THE CO2 IT TAKES TO SHIP
THAT LITHIUM FROM SOUTH AMERICA
AND AUSTRALIA TO THE REST OF THE
WORLD. SO THIS SHOWS A
COMPARISON BETWEEN, EVAPORATION
POND OPERATION IN CHILE, WHICH
IS ABOUT 3000 ACRES, AND
AUSTRALIAN OPEN PIT HARD ROCK
MINE, WHICH IS ABOUT 5000 ACRES,
AND A GEOTHERMAL LITHIUM
EXTRACTION FACILITY, WHICH IS
ABOUT 50 ACRES. AND THAT'S
BECAUSE YOU'RE JUST ADDING A
LITHIUM FILTER ONTO AN ALREADY
EXISTING POWER PLANT. SO YOU'RE
YOU DON'T HAVE A LOT OF CAPITAL
EXPENSES AND A LOT OF
INFRASTRUCTURE TO BUILD THE
INFRASTRUCTURES ALREADY THERE.
ALSO DIRECT LITHIUM EXTRACTION
IS VERY EFFICIENT. YOU CAN GET
OVER 90% EXTRACTION. I'LL SHOW
YOU A MORE SPECIFIC EXAMPLE IN A
MOMENT. WHEREAS THIS EVAPORATION
PONDS ARE ONLY 4,050% OF THE
LITHIUM IS PULLED OUT. OTHER
ADVANTAGES ARE THAT DIRECT
LITHIUM EXTRACTION CAN BE
SELF-POWERED WITH RENEWABLE
GEOTHERMAL ENERGY INSTEAD OF
FOSSIL FUELS, AND YOU CAN
ACTUALLY USE THE STEAM
CONDENSATE FROM THE GEOTHERMAL
POWER PLANTS AS A SOURCE OF
FRESH WATER, RATHER THAN USE
COLORADO RIVER WATER. SO THE
COMPANIES HAVE BEEN TESTING
THEIR TECHNOLOGY FOR DIRECT
LITHIUM EXTRACTION. THEY'RE NOW
ALL FOCUSED ON THESE ILLUMINATOR
CLAY LIKE ABSORBENTS, AND THEY
BASICALLY USE THESE IN THESE
GIANT FLUIDIZED BED REACTORS.
YOU CAN THINK OF THOSE AS GIANT
BLENDERS OR FOOD PROCESSORS. AND
THAT ALLOWS A LOT OF ABSORBENT
TO CONTACT A LOT OF BRINE. VERY
QUICKLY. AND THIS TECHNOLOGY IS
CURRENTLY USED IN ARGENTINA ON
SOME SOLAR DEPOSITS. AND THEY
JUST STARTED USING IT LAST MONTH
IN THE RHINE VALLEY IN THE
EUROPEAN UNION, VULCAN ENERGY IS
NOW USING DLI ON THEIR
GEOTHERMAL BRINES THERE. SO IT'S
NEW TECHNOLOGY THAT'S APPLIED TO
GEOTHERMAL, BUT IT'S NOW BEING
USED COMMERCIALLY. SO THIS IS
CONTROLLED THERMAL RESOURCES,
STUDY OF THE EXTRACTION
EFFICIENCY OF THEIR PILOT PLANT,
WHICH THEY RAN AT 115 SCALE.
BERKSHIRE HATHAWAY IS CURRENTLY
RUNNING A DEMONSTRATION PLANT AT
110 SCALE. THEY'RE ALL TRYING
THIS. IT'S AT SMALL SCALES SO
THEY CAN LEARN WHAT THEY LEARN
AT THAT SCALE AND THEN SCALE UP
TO FULL COMMERCIAL SCALE. BUT
K¾T IS GETTING 95 TO 97% LITHIUM
RECOVERY, WHICH IS REALLY
OUTSTANDING. AND VERY HIGH
SELECTIVITY FOR LITHIUM OVER
OTHER METALS LIKE SODIUM,
CALCIUM AND MAGNESIUM. SO IT'S
VERY EFFICIENT PROCESS AND VERY
HIGH RECOVERY. LITHIUM ISN'T THE
ONLY METAL THAT PEOPLE ARE
INTERESTED IN THESE BRINES. THIS
BRINE CONTAINS MOST OF THE
PERIODIC TABLE, INCLUDING A LOT
OF VALUABLE CRITICAL ELEMENTS
LIKE MANGANESE, ZINC, POTASSIUM,
STRONTIUM, AND RUBIDIUM. YOU
THINK ABOUT THE POTASH MARKET
FOR FERTILIZER WAS TOTALLY UPSET
BY RUSSIA'S INVASION OF UKRAINE.
AND SO THERE'S AN OPPORTUNITY
FOR POTASH RECOVERY TO MAKE A
BIG DENT ON THAT MARKET. WE NEED
RUBIDIUM FOR THINGS LIKE QUANTUM
COMPUTERS. AND THESE ARE ALL
CRITICAL MINERALS BECAUSE
THEY'RE IMPORTANT IN TECHNOLOGY
OR DEFENSE. AND WE HAVE VERY
HIGH IMPORT RELIANCE AND SOME OF
THE COUNTRIES WE GET THESE FROM
ARE NOT OUR BEST FRIENDS. AND
THAT'S THE DEFINITION OF A
CRITICAL MINERAL. SO LITHIUM IS
NOT THE ONLY METAL OF INTEREST
IN THESE BRINES. AND THE
COMPANIES ARE ACTIVELY WORKING
ON RECOVERING THESE METALS AS
WELL. SO I WANT TO POINT YOU TO
A NEW REPORT THAT JUST CAME OUT
BY BENNER ET AL, IT WAS A UC
SANTA CRUZ, BERKELEY, ENERGY
NEXUS REPORT THAT PROJECTED,
SUPPLY CHAIN RELATED JOB
SCENARIOS FOR LITHIUM VALLEY. SO
THEY TOOK TWO SCENARIOS. THEY
TOOK THE CURRENT POWER
PRODUCTION IN THIS GEOTHERMAL
FIELD. NOW, THE AMOUNT OF
LITHIUM YOU COULD PRODUCE FROM
THAT AND WHAT THE BATTERY
PRODUCTION RATE IN GIGAWATTS PER
YEAR WOULD BE, AND HOW MANY EVS
YOU COULD PRODUCE PER YEAR. AND
THEN THEY MADE A SCENARIO THAT
WAS DOUBLE THAT. REMEMBER I SAID
WE COULD DOUBLE THE POWER, THAT
CAPACITY OF THAT FIELD AND
RECALCULATED THE SCENARIOS
ACCORDINGLY. AND THEN THEY
CALCULATED THE NUMBER OF JOBS
THAT WOULD BE GENERATED FOR THE
CURRENT OUTPUT AND THE DOUBLED
OUTPUT. AND THAT'S SHOWN IN THAT
LOWER TABLE. AND THEY SEPARATED
INTO JOBS RELATED TO LITHIUM
CARBONATE EXTRACTION AND THEN
JOBS RELATED TO CATHODE
MANUFACTURING. THAT'S C¢M JOBS
RELATED TO MAKING CELL PACKS FOR
ELECTRIC BATTERIES, AND THEN
JOBS RELATED TO MANUFACTURING
ELECTRIC VEHICLES. AND THEY USE
SEVERAL MODELS AROUND THE NATION
AND AROUND THE WORLD TO PROTECT
THESE JOBS. AND YOU CAN SEE THE
NUMBER OF JOBS PER GIGAWATT HOUR
AND THE TOTAL NUMBER OF JOBS
THAT THEY'RE FORECASTING ARE
ACTUALLY PRETTY SUBSTANTIAL. BUT
WHAT THEY DIDN'T FACTOR INTO
THIS, YOU KNOW, YOU SHOULD THINK
ABOUT IS RECYCLING JOBS. SO IF
WE CAN GET THE ENTIRE SUPPLY
CHAIN DOWN THERE FROM PULLING
THE LITHIUM OUT TO MAKING
BATTERIES, MAKING BATTERY PACKS
AND, AND BUILDING ELECTRIC
VEHICLES AND THEN RECYCLING THE
JOB POTENTIAL IS ACTUALLY QUITE
AMAZING. ACCORDING TO THIS
REPORT. THESE ARE THE KINDS OF
JOBS THAT ARE OCCUPATIONS THAT
WOULD BE GENERATED. AND THE
TITLES AND THE, ANNUAL MEAN WAGE
AND THE TYPICAL EDUCATION
REQUIREMENTS FOR ENTRY INTO
THESE POSITIONS. SO THESE ARE
GOOD JOBS, THEY'RE STEM JOBS,
BASICALLY, AND THEY, MOST OF THE
JOBS THAT WOULD BE GENERATED
WOULD BE IN, CATHODE
MANUFACTURING AND BATTERY PACK
MANUFACTURING, LITHIUM
EXTRACTION WILL NOT GENERATE
MORE THAN A FEW HUNDRED JOBS,
BUT THESE OTHER TYPES OF
ACTIVITIES WOULD GENERATE
HUNDREDS TO THOUSANDS OF JOBS.
SO I'LL LEAVE YOU WITH THESE TWO
LINKS, WHICH ARE THE REPORT THAT
I WAS A COAUTHOR ON THAT WAS
ISSUED IN 2023 BY LAWRENCE
BERKELEY LABORATORY, AND THAT
WAS OUR ESTIMATE OF THE LITHIUM
RESOURCES IN THIS GEOTHERMAL
FIELD. AND THE, ENVIRONMENTAL
AND WATER IMPACTS OF EXTRACTING
THOSE RESOURCES. AND IN THIS NEW
REPORT, I JUST MENTIONED THAT
JUST CAME OUT ON JOB SCENARIOS
FOR THE SUPPLY CHAIN AND LITHIUM
VALLEY. THANK YOU FOR YOUR TIME.
THANK YOU VERY MUCH, DOCTOR
MCKIBBEN. WE'LL MOVE TO SYLVIA.
PASS THE CHAIR OF THE LITHIUM
VALLEY COMMISSION. WELCOME.
THANK YOU. SO MICROPHONE. YEAH.
IT'S ON, THANK YOU, SENATOR
PADILLA, THANK YOU, MEMBERS OF
THE COMMITTEE FOR HAVING ME
HERE. MY NAME IS SYLVIA PAZ, AND
I WILL BE TALKING FIRST, A BRIEF
INTRODUCTION ABOUT MYSELF, MY
ORGANIZATION, HOW I ENDED UP IN
THE LITHIUM VALLEY COMMISSION.
BACKGROUND ON THE COMMISSION,
RECOMMENDATIONS IN THE REPORT
AND SOME REFLECTIONS. A COUPLE
OF YEARS AFTER THAT REPORT HAS
BEEN SUBMITTED. SO AGAIN, MY
NAME IS SYLVIA PAZ. I WAS RAISED
IN THE COACHELLA VALLEY, IN A
COMMUNITY, IN VERY CLOSE
PROXIMITY TO THE SALTON SEA, I
ACTUALLY IN A MOBILE HOME
COMMUNITY AND I NOW LEAD AN
ORGANIZATION CALLED ALIANZA
COACHELLA VALLEY THAT IS BASED
IN THE COACHELLA VALLEY WITH A
PURPOSE OF IMPROVING AND
CREATING REAL ECONOMIC
OPPORTUNITIES FOR THE PEOPLE,
MOSTLY FARM WORKING COMMUNITY
THAT LIVE SURROUNDING THE SALTON
SEA AND IMPROVING QUALITY OF
LIFE, SO I WAS APPOINTED BY
GOVERNOR NEWSOM, TO THE LITHIUM
VALLEY COMMISSION, AND I SERVED
AS THE CHAIR. AND OBVIOUSLY, MY
PERSPECTIVE WAS TO THINK ABOUT
WHAT WE WERE HEARING AT THE
LOCAL LEVEL AS THIS PROMISE, TO
NOT ONLY TRANSITION INTO A GREEN
ECONOMY, BUT ALSO TO CREATE JOBS
AND TO TRANSFORM THE LIVES OF
OUR RESIDENTS. RIGHT. AND WITH
SOME OF THE NUMBERS THAT, DOCTOR
MCKIBBEN'S MENTIONED AND THE
POTENTIAL THERE, IT'S REALLY
EASY FOR US TO BE THINKING
ABOUT, WELL, THIS IS GOING TO
TRANSFORM OUR COMMUNITIES. AND I
THINK A LOT OF THE CONVERSATIONS
IN THE LITHIUM VALLEY COMMISSION
IS, YES, AND ONLY IF WE CREATE
THE ENVIRONMENT SO THAT WE CAN
CAPTURE MORE THAN THE EXTRACTION
ITSELF. BUT THE SUPPLY CHAIN, AS
DOCTOR MCKIBBEN'S, WAS TALKING
ABOUT, SO, A LITTLE BIT OF
BACKGROUND ON THE LITHIUM VALLEY
COMMISSION, WE WERE ESTABLISHED,
THROUGH LEGISLATIVE BILL, AB
1657 BY ASSEMBLY MEMBER GARCIA,
WHICH CREATED THE LITHIUM VALLEY
COMMISSION UNDER THE CALIFORNIA
ENERGY COMMISSION, COMPOSED OF
14 MEMBERS, ALL APPOINTED AND,
AND WE WERE TASKED TO ANALYZE,
REVIEW AND PROVIDE A SET OF
RECOMMENDATIONS ON EIGHT TOPICS,
THE TOPICS OF RANGE ON A VARIETY
OF UNDERSTANDING, MORE HOW WE
ADVANCE LITHIUM RECOVERY AND THE
CO-BENEFITS, WITH GEOTHERMAL
EXTRACTION, WHAT DOES THAT MEAN
FOR GRID STABILITY, AND
UNDERSTANDING THE ENVIRONMENTAL
METHODS FOR EXTRACTION. AND WHAT
IS THE DIFFERENCE BETWEEN,
LITHIUM EXTRACTION VERSUS
LITHIUM MINING AND ITS
ENVIRONMENTAL EFFECTS, AS WELL
AS, ANY RECOMMENDATIONS FOR
LEGISLATIVE OR REGULATORY
CHANGES THAT WOULD BE NEEDED IN
ORDER TO ENCOURAGE A NEW
LITHIUM? LITHIUM EXTRACTION
INDUSTRY OUT OF THE GEOTHERMAL,
PLANTS? SO, WITH THAT, WE MET
ABOUT 26 TIMES OVER, THE
DURATION OF THE COMMISSION,
ENGAGED EXPERTS LIKE DOCTOR
MCKIBBEN'S, PEOPLE FROM THE
INDUSTRY TO UNDERSTAND MORE THE
CONTEXT OF LITHIUM EXTRACTION,
AS WELL AS, COMMUNITY
ENGAGEMENT. SO HEARING FROM
COMMUNITY MEMBERS AND OUR
TRIBAL, NEIGHBORS. THE REPORT
WAS SUBMITTED DECEMBER 1ST,
2022, WITH A TOTAL OF 15
RECOMMENDATIONS. AND AGAIN,
THINKING BACK WHEN I LOOK AT
THESE RECOMMENDATIONS JUST ON
THEMSELVES, THEY DON'T CAPTURE
REALLY THE ENTIRE ESSENCE OF THE
CONVERSATIONS. SO IT IS, AGAIN,
VERY IMPORTANT TO GROUND US IN
THE CONTEXT. AND I THINK THESE
COMMITTEE HEARINGS, HELP US DO
THAT. BUT TO GO INTO THE
RECOMMENDATIONS, I BROKE THEM
DOWN INTO SOME SIMPLE
CATEGORIES. SOME ARE WHAT ARE
THE NEEDS OF THE INDUSTRY, AND
THE INDUSTRY EXPRESSED A CLEAR A
NEED FOR A CLEAR, STREAMLINED
PERMITTING PROCESS, BOTH FOR
GEOTHERMAL AND FOR THE DIRECT
LITHIUM EXTRACTION, PROCESS. AND
AGAIN, THINKING ABOUT CAPTURING
THE ENTIRE SUPPLY CHAIN, WE
THINK, THIS, THIS, STREAMLINED
PERMITTING PROCESS ALSO NEEDS TO
APPLY TO RELATED MANUFACTURING,
YEAH. RELATED MANUFACTURING
EFFORTS. THE OTHER
RECOMMENDATION, THÀNH, WAS
INVESTMENTS IN R&D. SO THE
TECHNOLOGY IS NEW, THERE HAVE
BEEN INVESTMENTS FROM BOTH THE
FEDERAL GOVERNMENT AND THE STATE
TO TEST SOME OF THESE METHODS
THAT HAVE BEEN GIVEN TO THE
INDUSTRY AND THE IMPORTANCE OF
CONTINUING TO INVEST IN RESEARCH
AND DEVELOPMENT, BUT AGAIN, NOT
JUST IN THE EXTRACTION, BUT THE
BATTERY MANUFACTURING AND
RECYCLING PROCESS, THE ANOTHER
CATEGORY WAS UNDER,
ENVIRONMENTAL PROCESS. SO WE
HAVE LEARNED THAT THERE IS A
DIFFERENCE BETWEEN EXTRACTION
AND LITHIUM MINING, WITH DIRECT
LITHIUM EXTRACTION BEING A
CLOSED LOOP SYSTEM, YOU CAN
EXTRACT IT DIRECTLY FROM THE
BRINE THAT IT'S ALREADY COMING
OUT OF THE GEOTHERMAL PLANTS, SO
BECAUSE IT IS A CLOSED LOOP, IT
DOES HAVE, LESS ENVIRONMENTAL
IMPACTS, BOTH IN THE FOOTPRINT
THAT WE NEED IN ORDER TO CAPTURE
THE LITHIUM, BUT ALSO IN THE USE
OF WATER. HAVING SAID THAT,
THERE WAS A LOT OF DURING THE
TIME UNKNOWNS. AND WE HAVE A
LITTLE MORE DATA NOW. SO THERE
IS A REPORT, THAT DOCTOR
MCKIBBEN'S WAS INVOLVED WITH. IT
WAS FUNDED THROUGH THE
DEPARTMENT OF ENERGY, AND IT WAS
RECENTLY PUBLISHED. BUT THE
REPORT WAS LOOKING NOT JUST AT
HOW MUCH LITHIUM IS AVAILABLE IN
THE, KNOWN GEOTHERMAL RESOURCE
AREA IN THE SALTON SEA, BUT ALSO
TO BETTER UNDERSTAND THE IMPACTS
TO AIR AND WATER. WHEN WE'RE
TALKING ABOUT AIR, IT BECOMES
VERY IMPORTANT BECAUSE WE ARE A
RURAL COMMUNITY AND THE BORDER
ALREADY EXPOSED TO BAD AIR
QUALITY AND ADDING ANYTHING TO
IT, IT'S JUST A DOUBLING THE
IMPACT OR THE CUMULATIVE EFFECTS
, SOME OF THE NEW LEARNINGS IN
THE REPORT. AND I KNOW DOCTOR
MCKIBBEN'S KNOWS MORE ON THAT,
BUT MY TAKEAWAY FROM THE REPORT
WAS THAT THERE IS, SOME LEVELS
OF AMMONIUM AND WHAT IS IT,
SULFUR, HYDROGEN SULFIDE, THAT,
DOES COME OUT IN THE PROCESS AND
IT'S IN THE AIR. IT IS STILL
WITHIN. IT MEETS, THE STANDARDS
FOR THE STATE AND FEDERAL, BUT
ONE OF THE THINGS THAT WE DO NOT
HAVE RIGHT NOW IS A WAY TO
CAPTURE THE BASELINE. SO IF WE
ARE LOOKING AT INCREASING,
LITHIUM EXTRACTION AND
INCREASING THE NUMBER OF
GEOTHERMAL PLANTS THAT ARE GOING
TO BE THERE, IT'S VERY IMPORTANT
THAT WE HAVE A WAY TO CAPTURE A
BASELINE SO THAT THEN WE CAN
MEASURE AND CONTINUE TO MONITOR,
MONITOR ALONG THE WAY SO THAT WE
CAN MEASURE, ANY IMPACTS, WITH
RELATION TO WATER. AGAIN, IT HAS
BEEN SAID THAT IT'S MINIMAL
COMPARED TO OTHER EXTRACTION
METHODS, AND IT'S ALSO A
FRACTION OF, THE WATER THAT IS
USED, CURRENT ALLOWED FOR
AGRICULTURE AND, EVEN THAT IS
POSITIVE. BUT THERE ARE STILL
UNKNOWNS AND THERE'S MORE NEED
FOR UNDERSTANDING THE CUMULATIVE
USE. AGAIN, AS WE'RE THINKING
ABOUT BROADENING AND REALLY,
EXTRACTING MORE, LITHIUM, AND
THE OTHER THING, PUTTING IT IN
THE CONTEXT OF THE COLORADO
RIVER, IF THERE IS LESS WATER
AVAILABLE, EVEN THOUGH IT IS A
FRACTION OF WHAT IS CURRENTLY
USED FOR AGRICULTURE, WE NEED TO
BE WEIGHING DOWN HOW THIS WATER
IS GOING TO BE PRIORITIZED. IS
IT GOING TO BE PRIORITIZED FOR
THIS INDUSTRY? IS IT GOING TO BE
PRIORITIZED FOR AGRICULTURE OR
FOR OTHER RELATED NEEDS? THE
UNDER ENVIRONMENTAL,
RECOMMENDATIONS. SO THERE WAS
CONVERSATION AROUND, PUBLIC
HEALTH IMPACT ASSESSMENTS.
DURING THE COMMISSION THÀNH
MEETINGS. I MEAN, THE STATE WAS
MOVING ON THEIR BUDGET AND
IMPERIAL VALLEY DID RECEIVE
FUNDING TO LOOK AT ENVIRONMENTAL
IMPACTS, THE NORTHERN END OF THE
SALTON SEA DID NOT RECEIVE ANY
FUNDING. SO THE WE MIGHT END UP
WITH A PLACE WHERE WE
UNDERSTAND, ENVIRONMENTAL BEALL
IMPACTS OF ONLY ONE SIDE OF THE
SALTON SEA, NOT THE OTHER,
UNLESS THERE IS AN EFFORT TO
FUND, THE OTHER SIDE OF THE OF
THE OF THE SALTON SEA, THERE WAS
ALSO A RECOMMENDATION ON THE
TOPIC OF WATER TO, FUNDED TO DO
A WATER STUDY, TAKING INTO
EFFECT, IN INTO CONSIDERATION
THE CUMULATIVE USE OF FUTURE,
GEOTHERMAL LITHIUM EXTRACTION
DEVELOPMENT, AND SO
TRANSITIONING INTO ANOTHER
CATEGORY, REGIONAL ECONOMIC
DEVELOPMENT AND INVESTMENTS.
THERE ARE SEVERAL
RECOMMENDATIONS UNDER THIS
CATEGORY. RECOMMENDATION THREE
TALKED ABOUT ECONOMIC ZONES.
AGAIN, IF YOU LIVE IN THAT
REGION, YOU WOULD UNDERSTAND HOW
IMPERIAL VALLEY, COACHELLA
VALLEY, PALO VERDE VALLEY HAVE
SO MANY THINGS IN COMMON
ALREADY, NOT JUST AN
AGRICULTURAL BASE OF WORKERS,
AND ENVIRONMENTAL CONCERNS DUE
TO OUR ENVIRONMENT, HOWEVER,
WHEN IT'S COME, TO BEING ABLE TO
CREATE EITHER AN ECONOMIC PLAN
THAT WOULD ADDRESS THEIR
SITUATIONS, WE ARE DIVIDED INTO
THE SOUTHERN BORDER REGION OR
THE INLAND EMPIRE REGION. SO THE
NEEDS OF THE SALTON SEA REGION
ARE REALLY DILUTED. WHEN WE GET
SEPARATED LIKE THAT. AND WE FELT
AGAIN THAT IF WE'RE TALKING
ABOUT CREATING THE ENVIRONMENT
FOR A FUTURE LITHIUM INDUSTRY,
IT WAS IMPORTANT THAT AS A
REGION, WERE INVESTING IN IT SO
THAT WE CAN BECOME MORE
COMPETITIVE, SO, AND THERE IS A
BILL THAT SENATOR BADIA DID
COAUTHOR WITH ASSEMBLYMEMBER
GARCIA, AB 2757, THAT IS,
ADDRESSING THAT, AND IT MOVED
OUT OF COMMITTEE LAST WEEK. SO
WE'RE VERY HAPPY ABOUT THAT, AND
INFRASTRUCTURE WAS NOT
NECESSARILY A TOPIC, THAT WE
WERE TASKED WITH EXPLORING, BUT
NATURALLY, GIVING OUR CONTEXT,
YOU COULDN'T HAVE A CONVERSATION
ABOUT A NEW INDUSTRY WITHOUT
TALKING ABOUT INFRASTRUCTURE. WE
ARE RURAL COMMUNITIES. WE LACK,
INFRASTRUCTURE JUST FOR BASIC
NEEDS. PEOPLE BEING ABLE TO GET
FROM THEIR HOUSE TO THEIR JOBS
TO SCHOOL OR TO THE DOCTOR, AND,
EVEN MORE, THINKING ABOUT ADDING
A WHOLE NEW INDUSTRY THAT WOULD
REQUIRE A NEW HOUSING OR OTHER
DEVELOPMENTS. JUST THE
INFRASTRUCTURE IS NOT THERE. AND
WHEN WE'RE TALKING ABOUT
INFRASTRUCTURE, WE'RE TALKING
ABOUT NOT JUST TRANSMISSION
LINES, WHICH ARE IMPORTANT
DIRECTLY FOR THE TRANSITION INTO
THIS, CLEAN ENERGY FUTURE. SO
THERE IS RECOMMENDATION NUMBER
TWO IN THE REPORT, TO INVEST IN
NEW AND UPGRADES FOR
TRANSMISSION LINES IN THE
IMPERIAL VALLEY. BUT THERE ARE
TWO OTHER RECOMMENDATIONS THAT
JUST BROADLY TALK, ABOUT THE
NEED FOR RESOURCES IN
INFRASTRUCTURE OVERALL FROM
ROADS TO RAIL TO AND SOMETIMES
IT'S WATER FOR, BROADBAND THINGS
OF THAT NATURE THAT ARE
IMPORTANT. AND THEN THE LAST ONE
THAT I'LL MENTION IS CAPACITY
DEVELOPMENT IN THE REGION, SO
WHEN WE'RE TALKING ABOUT, AGAIN,
WORKFORCE DEVELOPMENT, IT BECAME
VERY IMPORTANT THAT IF WE'RE
GOING TO BE CAPTURING THE
BENEFITS THAT WE NEED TO FOCUS
ON HIRING LOCAL, AND SO THEN
ENSURING THAT WE HAD A LOCAL
WORKFORCE THAT WAS READY WAS
IMPORTANT. SO RECOMMENDATION 11
DOES REQUEST FOR FUNDING FOR
STEM CURRICULUMS THAT WOULD
PREPARE PEOPLE TO ENTER, THE
WORKFORCE IN, IN THIS INDUSTRY.
AND, MORE BROADLY,
RECOMMENDATION 13 ON, JUST
CAPACITY DEVELOPMENT FOR OUR
LOCAL TRIBES AND COMMUNITY
COMMUNITIES TO BE ABLE TO LEARN
AND ENGAGE AND MOVE ALONG THE
PROCESS AS THESE DECISIONS ARE
BEING MADE, SO I WILL CLOSE NOW
WITH A FEW REFLECTIONS. I
MENTIONED. THERE WAS A LOT MORE
UNKNOWNS WHEN WE STARTED NOW
WITH THE DOCTOR VENUS REPORT AND
THE DEPARTMENT OF ENERGY REPORT.
WE DO UNDERSTAND, A LITTLE BIT
MORE OF THE IMPACTS, THINGS THAT
WE NEED TO CONTINUE TO TRACK.
AND, I WOULD ENCOURAGE YOU TO
THINK OF THIS REPORT AS, AGAIN,
A PLACE IN TIME WITH WHAT WAS
KNOWN THERE. BUT THIS INDUSTRY
CONTINUES TO CHANGE. THE NEEDS
CONTINUE TO CHANGE, AND THE
ADVANCEMENTS ALSO MIGHT CHANGE
WHERE WE NEED TO PIVOT TO IN
ORDER TO CAPTURE THIS. THE OTHER
THING IS, THAT IT WILL REQUIRE
THE MULTI-AGENCY COLLABORATION.
IT'S ESSENTIAL AGAIN, BECAUSE
WE'RE NOT IDEALLY NOT JUST
TALKING ABOUT EXTRACTION, WE'RE
TALKING ABOUT REALLY CREATING
THIS ENVIRONMENT THAT IS GOING
TO ALLOW US TO CAPTURE THE FULL
BENEFITS. AND WE CANNOT DO THAT
UNLESS WE'RE ADDRESSING IT FROM
THE VARIOUS OTHER ASPECTS THAT
WERE CAPTURED IN THE
RECOMMENDATIONS, SO WITH THAT,
THANK YOU FOR HAVING ME HERE.
THANK YOU, CHAIR PASS FOR YOUR
SERVICE AND FOR THAT SUMMARY AND
REITERATION OF THE MYRIAD OF
COMPLEX RECOMMENDATIONS, AS
THEY'RE HAPPY TO WELCOME NOEMI
GALLARDO, COMMISSIONER FOR THE
CALIFORNIA ENERGY COMMISSION.
WELCOME, COMMISSIONER. THANK YOU
SO MUCH. I APPRECIATE THE
INVITATION, WELL, THEY'RE
SETTING UP THE POWERPOINT. I
JUST WANTED TO, CLARIFY, I, I AM
I AM A COMMISSIONER AT THE
CALIFORNIA ENERGY COMMISSION,
AND THE LITHIUM VALLEY VISION IS
PART OF MY POLICY PORTFOLIO
.
YES. SPACEBAR OKAY. ALL RIGHT.
SO, I'M GOING TO FOCUS ON WHERE
WE STAND TODAY AND REALLY
APPRECIATE CHAIR PAZ'S
BACKGROUND INFORMATION THERE. SO
LEAN ON THAT A LITTLE BIT, MY
CHIEF OF STAFF, ERIC STOKES,
JUST GAVE YOU SOME MATERIAL
WHICH WE THOUGHT WOULD BE
HELPFUL, HELPFUL FOR YOU TO
REFERENCE, IT'S A LITTLE LONG,
SO YOU WON'T BE ABLE TO GO
THROUGH IT RIGHT NOW, BUT I'LL
SPEAK TO THAT IN A LITTLE BIT,
SO I DID WANT TO FOCUS ON SOME
ACTIONS THAT THE ENERGY
COMMISSION HAS TAKEN. SO MY
FOCUS TODAY WILL BE OUR
LEADERSHIP ROLE IN THE LITHIUM
VALLEY EFFORTS. SO FROM 2021 TO
2022, WHEN, THE LITHIUM VALLEY
COMMISSION WAS ACTIVE, THE
ENERGY COMMISSION WAS SUPPORTING
THE COMMISSION. SO, THERE WAS
LEGISLATION AS CHAIR PAZ
INDICATED, BUT THERE WASN'T ANY
RESOURCES ALLOCATED. SO ENERGY
COMMISSION, STEPPED UP TO
PROVIDE THAT SUPPORT TO PUT ON
THE MEETINGS, TO COORDINATE
EVENTS AND WORKSHOPS AND
WHATNOT. SO IT WAS A BIG LIFT,
BUT IT WAS A REALLY GREAT
EXPERIENCE TO BE ABLE TO WORK
WITH THE COMMISSIONERS
THEMSELVES ON THE LITHIUM VALLEY
COMMISSION, AND ALSO, YOU KNOW,
WE WORKED WITH THE COMMUNITY TO
BE ABLE TO FIND VENUES AND PUT
ON THESE VARIOUS EVENTS, WE,
ALSO DRAFTED MATERIAL AND
PUBLISHED MATERIAL THAT WAS
RELATED TO THE LITHIUM VALLEY
COMMISSION. AND THEN IN AFTER
THE LITHIUM VALLEY COMMISSION,
ENDED, THEY DECIDED TO, YOU
KNOW, TO CLOSE, WE DIDN'T HAVE
ANY OTHER LEGISLATION DIRECTING
US OR GUIDING US IN ANY WAY. SO
IN 2023, THAT'S WHEN I BECAME
COMMISSIONER AND I DECIDED THAT
WHAT WOULD BE REALLY EFFECTIVE
WAS FOR ME TO GET TO KNOW THE
PEOPLE AND THE PLACE OF THE
SALTON SEA REGION BETTER. AND SO
I FOCUSED THAT ENTIRE YEAR ON
VISITING AND ENGAGING LEARNING
AND GARNERING MORE INSIGHT FROM
ALL THE FOLKS THAT WERE LOCAL
THERE. SO WE MET WITH TRIBES,
THE LOCAL GOVERNMENTS, BOTH THE
COUNTY OF IMPERIAL AND THE
MAYORS AND CITY MANAGERS OF THE
CITIES THAT MAKE UP THE IMPERIAL
VALLEY, ALSO, YOU KNOW, ALSO
ENGAGED WITH THE UNINCORPORATED
AREAS AND, JUST TRIED TO DO OUR
BEST TO FIND OUT AS MUCH AS WE
COULD, ADDITIONALLY, WE WOULD
TAKE OUT, STATE REPRESENTATIVES
TO THE AREA TO HELP THEM GARNER
A BETTER UNDERSTANDING OF THE
VARIOUS DYNAMICS THERE, SO THAT
THEY WOULD BE WELL CONNECTED.
AND I DO WANT TO EMPHASIZE IN
THESE TWO PICTURES, I APPRECIATE
THAT TWO OF OUR COMMISSIONERS
ARE THERE, ASIDE FROM MYSELF,
OUR VICE CHAIR, SILVA, AND ALSO
OUR OTHER COMMISSIONER, PATRICIA
MONAHAN. AND I WANT I'M REALLY
PROUD OF MYSELF. I GOT ALL OF
THE COMMISSIONERS OUT THERE AT
LEAST ONCE. AND SO I WANTED TO
MAKE SURE THAT THEY HAD A FULL
UNDERSTANDING OF IF THEY HAD TO
MAKE ANY DECISIONS ON LITHIUM
VALLEY RELATED ITEMS, THAT THEY
WOULD UNDERSTAND WHAT IT MEANT.
WE ALSO TOOK THEM OUT THERE
DURING THE SUMMER, WHICH IS
EXTREMELY HOT. AND BECAUSE I
WANTED THEM TO GET THE FULL
EXPERIENCE OF WHAT THE RESIDENTS
GO THROUGH AS WELL, SO THAT WAS
PART OF MY FOCUS THAT YEAR. AND
THEN ALSO WE WERE DEVELOPING
RELATIONSHIPS WITH THE FEDERAL
GOVERNMENT. SO WE DID A
DELEGATION OUT THERE WITH THE
DEPARTMENT OF DEFENSE AND ALSO
DEPARTMENT OF ENERGY, AND THEY
FOUND IT REALLY HELPFUL BECAUSE
I THINK, YOU KNOW, BEING IN
WASHINGTON, DC, IT'S HARD FOR
THEM TO FULLY GRASP THE
POTENTIAL OF THIS AREA AND THE
INDUSTRY AND THE PEOPLE AS WELL.
AND SO THAT WAS HELPFUL TO THEM.
AND WE'VE DEVELOPED,
RELATIONSHIPS WITH SOME OF THE
DEPARTMENTS THAT WORK ON GRANTS
FOR MANUFACTURING FOR, BATTERY
SUPPLY CHAINS. WE ALSO ARE
DEVELOPING A RELATIONSHIP WITH
THE DEPARTMENT OF DEFENSE'S,
IT'S LIKE A COMMUNITY GRANTS
OFFICE. AND SO WE'RE THINKING
THAT THAT HAS POTENTIAL FOR
ADDITIONAL FUNDING AND
INVESTMENT IN THE AREA. AND THEN
IN 2024, WE ALSO DON'T HAVE ANY
LEGISLATION THÀNH GUIDING OR
DIRECTING US, BUT WE THOUGHT IT
WAS REALLY IMPORTANT TO START
TAKING ACTION. AND SO WE HAVE
BEEN FOCUSED ON, CONVENING THE
STATE ENTITIES THAT ARE INVOLVED
ALREADY WITH LITHIUM VALLEY
EFFORTS OR ARE INTERESTED IN
GETTING MORE INVOLVED. AND SO
WE'VE BEEN ENERGY COMMISSION HAS
TAKEN THE LEAD ON CONVENING
THOSE STATE ENTITIES. SO WE
STARTED THAT LATE 2023, AND
WE'RE CONTINUING NOW IN 2024 TO
DO THAT. AND THAT'S BEEN REALLY
HELPFUL AS WELL, BECAUSE WE'VE
BEEN ABLE TO FIND OUT FROM THEM
WHAT ARE THE RECOMMENDATIONS
THAT THE LITHIUM VALLEY
COMMISSION ADOPTED THAT ARE
BEING ADDRESSED BY THE STATE
ENTITIES? AND SO WE'RE TRYING TO
ALSO DO THAT. THAT'S A BIG
FOCUS. AND THEN IN ORDER TO HELP
ORGANIZE US AS WELL AND KEEP THE
ATTENTION ON LITHIUM VALLEY, WE
ESTABLISHED AN INFORMATIONAL
PROCEEDING ON THE LITHIUM VALLEY
VISION. SO THAT'S MOVING ALONG,
NOW, AND I'LL TALK A LITTLE BIT
MORE ABOUT THOSE IN A LITTLE BIT
. SO WE'LL GO TO THE NEXT SLIDE.
ALL RIGHT, SO WE DID, A BIG
EVENT, THE LITHIUM VALLEY
SYMPOSIUM, OUT AT IMPERIAL
VALLEY COLLEGE. THAT WAS ON
MARCH 29TH. AND THAT WAS KIND OF
LIKE OUR LAUNCH TO GET FOLKS
INTERESTED IN INFORMED ABOUT OUR
INFORMATIONAL PROCEEDINGS AND
ALL THE OTHER EFFORTS THAT WE'RE
WORKING ON, WE ALSO USE THAT AS
A WAY TO BE ABLE TO FIND OUT
WHAT WAS HAPPENING IN THE AREA,
ON LITHIUM VALLEY AND GET, YOU
KNOW, AS, AS MANY DIFFERENT
PERSPECTIVES AND PEOPLE
INVOLVED. SO WE CO-HOSTED THAT
SYMPOSIUM WITH OUR, WITH GO-BIZ,
WHO WE'VE BEEN WORKING ON
LITHIUM VALLEY REALLY CLOSELY
SINCE THE BEGINNING, AND ALSO
IMPERIAL VALLEY COLLEGE, WE HAD
OVER 130 PEOPLE IN ATTENDANCE.
AS YOU CAN SEE FROM THE TOP
IMAGE THERE, WE HAD
REPRESENTATIVES FROM ALL THE
LOCAL GOVERNMENTS, THE CBOS,
SOME TRIBES, INDUSTRY TRADES AND
UNIONS, ACADEMIC INSTITUTIONS,
RESEARCH LABS. SO TONS OF
INTERESTS FROM ALL DIFFERENT
ANGLES AND, IT'S HARD TO SEE IN
THAT IMAGE. BUT SENATOR ALEX
PADILLA, WASN'T ABLE TO ATTEND,
BUT HE'S VERY INTERESTED IN
LITHIUM VALLEY SUCCEEDING. AND
SO HE DID A RECORDING FOR US
EXPRESSING THAT MESSAGE TO THE
AUDIENCE. AND ALSO NOTE THERE
THAT WE HAD 17 REPRESENTATIVES
FROM THE STATE GO OUT IN PERSON
TO BE THERE FOR THE SYMPOSIUM.
SO THAT ALSO INDICATES THE
SUPPORT WE HAVE FROM OUR STATE
ENTITIES. THE PICTURE AT THE
BOTTOM SHOWS SOME OF THOSE FOLKS
, AND AN ARRAY OF DIFFERENT
STATE ENTITIES, INCLUDING FROM
THE GOVERNOR'S OFFICE. AND, OF
COURSE, ASSEMBLYMEMBER GARCIA
WAS THERE AS WELL, REPRESENTING
THE LEGISLATURE. ALL RIGHT. SO
WE'LL TALK A LITTLE BIT MORE
ABOUT THE LITHIUM VALLEY VISION
INFORMATIONAL PROCEEDING THAT WE
HAVE GOING, SO IT IS A LITTLE
NERDY RIGHT TO AND BUREAUCRATIC,
BUT THAT'S ONE OF THE MECHANISMS
THAT WE USE FOR STATE ENTITIES
TO BE ABLE TO GET TOGETHER, TO
BE ABLE TO DIALOG, GET THE
INFORMATION WE NEED, ESTABLISH A
RECORD, ETC. SO WE THOUGHT IT
WAS IMPORTANT TO DO THIS, AND WE
THOUGHT IT WOULD BE A BETTER WAY
TO ALSO HAVE A COORDINATED
APPROACH TO THE LITHIUM VALLEY
VISION, INSTEAD OF JUST HAVING
THE ENERGY COMMISSION TRYING TO
DO EVERYTHING, BECAUSE WE
WOULDN'T BE ABLE TO DO THAT VERY
WELL. AND SO, WE HAVE A PROCESS,
WE'RE GOING TO DO A SERIES OF
WORKSHOPS WHERE WE INVITE
EXPERTS AND, YOU KNOW, PEOPLE
INTERESTED TO PARTICIPATE AND
GIVE INFORMATION. SO WE HAD A
WORKSHOP ON APRIL 19TH TO
LAUNCH. WE INVITED THE COUNTY OF
IMPERIAL TO COME TALK TO US
ABOUT THEIR SPECIFIC EFFORTS ON
LITHIUM VALLEY US, WHICH WAS
REALLY HELPFUL TO HEAR. AND,
ALSO GARNERED A LOT OF INTEREST.
WE HAD OVER 100 ATTENDEES VIA
ZOOM, AND WE HAD ABOUT 20 PEOPLE
IN THE ROOM, 11 PEOPLE MAKING
COMMENTS. AND SO THERE'S STILL A
LOT OF EXCITEMENT AROUND THIS,
WE DON'T HAVE THE SECOND
WORKSHOP, SET UP YET. WHAT WE
WANTED TO DO IS GATHER
INFORMATION FROM THE AUDIENCE
AND OTHER FOLKS WHO ARE
INTERESTED IN LITHIUM VALLEY TO
DETERMINE WHAT WOULD BE THE NEXT
TOPICS THAT WE SHOULD COVER. SO
WE'RE, TRYING TO GATHER THAT
INPUT NOW, AND YOU ALSO HAVE IN
THE MATERIAL, I BELIEVE, A LIST
OF THE VARIOUS TOPICS THAT WE
WERE THINKING TO PUT FORWARD.
AND WE WILL GIVE YOU AN UPDATED
LIST AS WELL, IF YOU'RE
INTERESTED OF WHAT WE GATHER
FROM, THE PUBLIC, LET'S SEE, I
THINK WE CAN MOVE FORWARD. SO,
THE ON THE LITHIUM VALLEY
COMMISSION RECOMMENDATIONS, AS I
MENTIONED, WE DON'T HAVE OF, YOU
KNOW, ANY LEGISLATION TELLING US
YOU NEED TO FOLLOW UP OR YOU
NEED TO DO X, Y, AND Z, WE
THOUGHT IT WAS IMPORTANT, FOR US
TO, TO DO THE FOLLOW UP ON THE
RECOMMENDATIONS TO IDENTIFY AND
DETERMINE WHAT IS BEING
ADDRESSED, GIVEN THAT WE WERE
THE SUPPORT, FOR THE LITHIUM
VALLEY COMMISSION, THEY DID A
TREMENDOUS JOB. CHAIR PAZ DID AN
EXCELLENT JOB LEADING. AND THAT
WAS A REALLY DIFFICULT JOB TO
GIVEN ALL THE DIVERSE
PERSPECTIVES THAT WERE ON THAT
COMMISSION, SO WE THOUGHT IT WAS
OUR DUTY TO FOLLOW UP. SO
THAT'S, WE'VE BEEN WORKING ON
THAT. SO JUST A LITTLE BIT ABOUT
WHAT WE'RE, FINDING IS, YOU
KNOW, THE COUNTY IS WORKING ON A
LOT OF THINGS, AND WE DIDN'T
WANT TO DUPLICATE THEIR EFFORTS
OR, YOU KNOW, THROW THEM OFF
TRACK IN ANY WAY. SO IT'S BEEN
REALLY GOOD TO HAVE THE DIALOG
WITH THE COUNTY. SO THEY'RE ONE
OF THE KEY, PLAYERS IN LITHIUM
VALLEY. SO WE'RE DOING A LOT TO
STAY ALIGNED TO CONTINUE
COMMUNICATING AND CONTINUE
COLLABORATING. AND THEY ACTUALLY
HAVE BEEN ABLE TO ADDRESS SIX OF
THE 15 RECOMMENDATIONS. AND OUR
AGENCIES HAVE ALSO BEEN
ADDRESSING SOME OF THOSE. SO NOW
WE'RE, YOU KNOW, TRYING TO
ENSURE THAT WE'RE SUPPORTING
THEIR EFFORTS, REINFORCING THEIR
EFFORTS. ET CETERA. AND THEN THE
STATE ENTITIES HAVE ALSO BEEN
ADDRESSING OTHERS. SO TOTAL IS
ABOUT 12 OF THE 15 THAT ARE
BEING ACTIVELY ADDRESSED, SOME
CHAIR PAUSE EXCUSE ME. MENTIONED
THE ASSEMBLY BILL 2757. THAT'S
DIRECTLY ADDRESSING ONE OF THE
RECOMMENDATIONS IS TO ESTABLISH
THAT, ECONOMIC ZONE AND THEN TWO
OF THE RECOMMENDATIONS HAVE NOT
BEEN ADDRESSED. ONE OF THEM ON
THE HEALTH IMPACTS ON THE
COACHELLA SIDE OF THE SALTON SEA
REGION, CHAIR PAZ MENTIONED THAT
EARLIER, TOO, THAT, YOU KNOW,
THE ENTIRE REGION NEEDS TO HAVE
AN ASSESSMENT ON HEALTH, AND THE
COUNTY IS DOING A HEALTH
ASSESSMENT FOR THE COUNTY OF
IMPERIAL THAT AREA. BUT THERE
ISN'T ANYTHING, THAT THE STATE
IS DOING RIGHT NOW ON THE OTHER
SIDE, HOWEVER, WE HAVE HEARD
THAT THERE ARE ACADEMIC
INSTITUTIONS ACTIVELY INVOLVED
IN DOING SOME HEALTH STUDIES. SO
WE'RE THINKING ONE OF OUR NEXT
STEPS WILL BE TO FIND OUT WHICH
UNIVERSITIES ARE DOING THAT.
WHAT ARE THEY FOCUSED ON AND
WHAT'S MISSING. AND THEN CAN THE
STATE PLAY A ROLE THERE? THE
OTHER ONE, THE OTHER
RECOMMENDATION THAT HASN'T BEEN
ADDRESSED IS, TO REQUIRE AND
FUND THE IMPERIAL IRRIGATION
DISTRICT TO CONDUCT A WATER
STUDY. AND SO, NONE OF THE STATE
ENTITIES ARE DOING THAT, THE
COUNTY ISN'T ACTIVE ON THAT.
HOWEVER, DURING OUR WORKSHOP, WE
DID HEAR FROM MEMBERS OF THE
PUBLIC WHO MENTIONED THAT THE
WATER IS REALLY IMPORTANT TO
THEM. CHAIR PAZ ALSO MENTIONED
THAT EARLIER. SO WE'RE NOT SURE
WHAT WE'LL DO THERE. BUT, JUST
NOTING IT FOR YOU THAT THAT, IS
SOMETHING THAT'S IMPORTANT, IN
HERE, I ALSO INCLUDED A LINK TO
THE SOME THE DETAILED SUMMARY OF
THE HOW WE'RE ADDRESSING THE
LITHIUM VALLEY COMMISSION
RECOMMENDATIONS, AND WE PROVIDED
THAT TO YOU IN THE MATERIAL AS
WELL FOR YOU TO REVIEW, BUT THAT
MOSTLY COVERS IT. I'M HAPPY TO
ANSWER ANY QUESTIONS, IF YOU
HAVE, IF YOU HAVE THEM,
COMMISSIONER. AND THANKS, PANEL.
I KNOW THAT SOME OF THIS IS
DENSE, AND I THINK FOR THOSE
THAT ARE CONCERNED, ABSOLUTELY
AND RIGHTLY SO, BECAUSE THE
POTENTIAL BENEFIT IS
SUBSTANTIAL. AND THAT'S UNDER
THAT'S AN UNDERSTATEMENT. BUT A
COUPLE THINGS I'LL TAKE. I HAVE
SOME QUESTIONS FOR EACH OF YOU.
FIRST, PROFESSOR, THANK YOU
AGAIN, YOU MENTIONED A COUPLE OF
THINGS, WE TALKED ABOUT THE
STATUS OF UNDERSTANDING THE
UNIQUE METHODOLOGY GIVEN THE
EXISTING GEOTHERM INFRASTRUCTURE
OUT THERE ON EXTRACTION AND
SEPARATION, AND YOU MENTIONED
THAT, I THINK IN YOUR PRIOR WORK
AND THE PRESENTATION THAT THE
SCALING OF THAT TO THE MASSIVE
PRODUCTION DEMAND IS ONE OF THE
KEY, ONE OF THE KEY CHALLENGES,
SHALL WE SAY, OR OPPORTUNITIES.
BUT BECAUSE GIVEN THE FACT THAT
A LOT OF THE BYPRODUCT THERE ON
SITE, RIGHT, IS ALSO A LOT OF
OTHER BYPRODUCT, BUT ONE OF
WHICH IS WATER, THAT IT DOESN'T
TAKE A LOT TO TREAT THAT TO A
CERTAIN STANDARD. AND THERE ARE
A LOT OF DIFFERENT POTENTIAL
APPLICATIONS. AS THE CHAIR
MENTIONED EARLIER, AND YOU
MENTIONED SO FIRST, WHAT DO YOU
THINK ARE, ARE YOU ENVISIONING
BECAUSE YOU ALSO MENTIONED
ONSITE, RIGHT, AND DOWNSTREAM
ECONOMIC POTENTIAL? ONE OF THE
THINGS THAT'S ALWAYS BEEN
DISCUSSED IN THIS CONVERSATION
THAT'S UNIQUE AND HAS GLOBAL
IMPACTS, FRANKLY, IS THAT THAT
IF THIS WERE APPROACHED
CORRECTLY, YOU HAD THE
OPPORTUNITY FOR ON SITE
EXTRACTION, SEPARATION AND
CO-PRODUCTION. RIGHT, DO YOU
THINK WE ARE LOOKING AT THIS IN
THROUGH THE LENS OF SEPARATED,
GEOGRAPHIC MODEL, A TRADITIONAL
MODEL OF THE CHAIN, OF
PRODUCTION OR ARE WE THINKING
ABOUT THIS IN TERMS OF DEALING
WITH THE INFRASTRUCTURE
CHALLENGES? DO YOU ENVISION,
SOMETHING THAT TAKES ADVANTAGE
OF THE OPPORTUNITY TO EXTRACT
SEPARATE C PRODUCE ON SITE AND
THUS REDUCE, DOWNSTREAM ECONOMIC
COSTS? SO ARE WE ARE WE
ENVISIONING A MODEL THAT'S
TRADITIONAL AND EXTENDED,
BECAUSE CALIFORNIA, JUST TO, YOU
KNOW, PREFACE IT HAS SOME ALWAYS
DISADVANTAGES WHEN LOOKING AT
THE GLOBAL COMPETITIVE PICTURE
FOR THIS RESOURCE, OTHER STATES
DO NOT HAVE THE LAND USE
ENVIRONMENTAL OR WORKFORCE
STANDARD AND STANDARDS THAT WE
PROUDLY EMBRACE IN CALIFORNIA.
BUT ON A PURELY ECONOMIC MODEL
THAT CAN BE A DISADVANTAGE. SO
WE HAVE TO LOOK TO OUR
ADVANTAGES, AND THAT IS WE HAVE
THE SUPPLY OF THE RAW MATERIAL.
WE'RE LITERALLY SITTING ON IT.
WE HAVE EXISTING INFRASTRUCTURE
THAT DOES IT IN A SUPERIOR WAY,
AND WE HAVE OPPORTUNITIES. WE'RE
SMART TO FIND A WAY FOR
CALIFORNIA TO COMPETE IN THAT
AGAINST FOLKS WHO SAY, YOU WANT
US TO BUILD A PLAN IN A BURIAL
GROUND TOMORROW? SURE. WHAT'S
WHAT'S ENVIRONMENTAL REVIEW?
WE'LL HAVE IT DONE IN A WEEK,
YOU KNOW, AND THAT'S WHAT WE'RE
COMPETING AGAINST, RIGHT? SO IF
YOU COULD JUST ADDRESS THAT IN
TERMS OF ARE WE THINKING ABOUT
THIS AS A DOWNSTREAM DISTRIBUTED
PRODUCTION MODEL. HAVE WE
THOUGHT ABOUT THIS, ABOUT ON
SITE ADVANTAGES. WHAT DO THOSE
LOOK LIKE AND WHAT IS THE REAL
RISK THAT THE EXTRACTION AND
SEPARATION MODEL CAN'T BE SCALED
UP? I MEAN, IT'S SCARY, BUT I
IMAGINE WE OUGHT TO ADDRESS IT.
SO I KNOW IT'S LOADED, BUT I
THOUGHT I'D GIVE YOU A CHANCE TO
QUESTION SO THERE IS SOME RISK
IN SCALING UP. THERE HAVE BEEN
EFFORTS TO EXTRACT METALS DOWN
THERE BEFORE THAT DIDN'T SCALE
UP. THERE WAS A ZINC EXTRACTION
EFFORT IN THE MID OH, ABOUT 2005
WHERE THEY MADE SOME TECHNICAL
MISTAKES, BUT THEY'RE PRETTY
CONFIDENT THAT THEY'VE OVERCOME
THOSE TECHNICAL BARRIERS. NOW,
AT LEAST ONE OF THE COMPANIES
HAS A TREMENDOUS VISION FOR
LITHIUM CAMPUS DOWN THERE, WHERE
THEY ARE MAKING PLANS TO NOT
ONLY DO LITHIUM EXTRACTION AND
THEN CONVERSION OF THAT
EXTRACTED LITHIUM CHLORIDE TO
LITHIUM CARBONATE EQUIVALENT,
WHICH IS WHAT THE BATTERY
MANUFACTURERS WANT, AND THEN
THEY'VE STRUCK AN AGREEMENT WITH
STATVOLT. IT WAS A BATTERY
MANUFACTURER TO DEVELOP BATTERY
MANUFACTURING CAPABILITIES DOWN
THERE. AND THEY'RE ALSO
ENVISIONING ADDITIONAL
FACILITIES DOWN THERE THAT WOULD
COVER, THE RECYCLING OF BATTERY
COMPONENTS, WHICH IS A VERY
COMPLICATED PROCESS. AND OUR BIG
COMPETITION, I THINK LOOMING IN
THE FUTURE IS THE NEVADA, I
DON'T KNOW IF YOU'RE AWARE OF,
THACKER PASS AND SOME OF THE
OTHER VERY LARGE, HARD ROCK
LITHIUM DEPOSITS THAT HAVE BEEN
DISCOVERED THERE. BUT THE WHOLE
AREA AROUND RENO AND THAT
PRODUCTION AREA FOR POTENTIAL
FOR LITHIUM IS NOW LOOKING AT
THINGS LIKE BATTERY
MANUFACTURING AND ESTABLISHING
AN ENTIRE SUPPLY CHAIN THERE. SO
I THINK THAT WILL BE OUR
ECONOMIC COMPETITION WITHIN OUR
OWN BORDERS IN THE VERY NEAR
FUTURE, SO I THINK THERE'S IDEAS
ABOUT DOING ALL OF THAT AND
ESTABLISHING THE, THE ENTIRE
SUPPLY CHAIN. IT'S NOT WITHOUT
RISK FOR THE REASONS THAT,
SYLVIA MENTIONED, WHICH ARE,
INFRASTRUCTURE. SO THERE'S A LOT
OF UNPAID ROADS DOWN THERE, A
LOT OF OLD BRIDGES THAT NEED TO
BE STRENGTHENED SO TRUCKS CAN
PASS OVER THEM. MORE HIGHWAY USE
DOWN THERE, AND SO YOU NEED
INFRASTRUCTURE TO, TO DRIVE ALL
THIS MANUFACTURING AND RAIL
LINES ARE REALLY IMPORTANT
TRANSMISSION LINES. THEY'VE ALL
BEEN MENTIONED HERE, AND SO
THAT'S WHY THIS COLLABORATION
AMONG DIFFERENT AGENCIES AND,
STIMULATION OF FUNDING FOR THOSE
KINDS OF ACTIVITIES, I THINK
WILL BE SO IMPORTANT IF WE'RE
GOING TO BE COMPETITIVE. I
APPRECIATE. AND TO THAT END, IN
ORDER TO ADDRESS THAT, AN
EFFECTIVE AND COMPETITIVE WAY,
THE COORDINATION IS A THEME
AMONG ALL YOUR PRESENTATIONS TO
THAT. TO CHAIR PASS, YOU KNOW,
THE RECOMMENDATIONS POINTED THAT
OUT IN MANY DIFFERENT ASPECTS,
CONTINUOUSLY AS AN IMPORTANT
COMMON THREAD. COULDN'T AGREE
MORE. CAN YOU GIVE US AN
ASSESSMENT NOW BECAUSE IT'S BEEN
A LITTLE BIT OF TIME SINCE THE
INITIAL RELEASE, BUT HOW WOULD
YOU ASSESS THE LACK OF OR THE
STILL THE CONTINUING NEED?
BECAUSE YOU KNOW, I'D LOVE TO
GET YOUR THOUGHTS ON THE DEGREE
OF COORDINATION THAT YOU SEE,
EITHER OCCURRING OR NOT
OCCURRING, SO REFERRING BACK TO
THE WORK THAT THE ENERGY
COMMISSION HAS BEEN DOING AND
THE LEADERSHIP OF COMMISSIONER
GALLARDO, IT IS REASSURING THAT
THAT WE HAVE THE AGENCIES
TALKING TO EACH OTHER AND THAT'S
HOW, IN THE HEARING OR
PROCEEDING YOU HAD LAST WEEK
WERE ABLE TO UNDERSTAND, OKAY,
WHERE UNDER THESE,
RECOMMENDATIONS, IS THERE AN
EFFORT? RIGHT, TO ADVANCE WHO'S
WORKING ON IT? I THINK THAT IS
THE BEGINNING. ONE OF THE
CHALLENGES THAT I HAVE SEEN, AND
IT'S PROBABLY JUST HOW
GOVERNMENT AND SYSTEMS ARE
NATURALLY CREATED, AND THAT'S
GOING TO BE OUR CHALLENGE, IS
THAT WE THINK ABOUT OUR FUNDING
AND MANDATES IN A VERY SILOED
APPROACH, AND WHERE WE NEED TO
GET AT IS TO THINKING, WHERE ARE
THE OPPORTUNITIES FOR THESE
SOURCES OF FUNDING? BECAUSE THE
STATE, AS A WHOLE, THE DIFFERENT
AGENCIES INVOLVED DO HAVE SOME
RESOURCES. WHERE ARE THE
POTENTIALS FOR THESE RESOURCES
TO START SUPPLEMENTING EACH
OTHER VERSUS SAYING, WELL, AIR
RESOURCES IS HERE AND THIS IS
OUR MANDATE, AND WE'RE GOING TO
DO THIS. AND THEY NEVER TALK TO
WHATEVER TRANSPORTATION IS
DOING, AND THEY USE THEIR
FUNDING, YOU KNOW, SO THAT LEVEL
OF HOW DO WE GET THROUGH MAYBE
SOME OF THE STRUCTURAL THINGS
AROUND HOW AGENCIES ARE USING
THEIR FUNDING AND HOW THEY CAN
LEVERAGE EACH OTHER'S FUNDING? I
DON'T SEE THAT HAPPENING, A LOT.
AND I THINK THAT'S GOING TO BE
KEY MOVING FORWARD. I WOULD
AGREE TO OUR CHALLENGE. AND,
COMMISSIONER, TO THAT POINT, I
MEAN, YOU TOUCHED ON IT IN YOUR
PRESENTATION. I APPRECIATE IT.
AND I KNOW THAT YOU YOUR AGENCY
IS AWARE OF 1309 THAT I
INTRODUCED TO ESTABLISH A
PRODUCTION COUNCIL. AND THE
THINKING THERE, IS SORT OF THAT
POINT, RIGHT? LIKE WHAT'S THE
ORGANIZING TEMPLATE THAT TAKES
THIS STUFF AND LOOKS FOR
COORDINATING, COMPLIMENT
ALIGNMENTS OR GAPS AND THEN
ACTUALLY HAS SOME ABILITY IN A
CONCRETE WAY TO DIRECT OUTPUTS.
RIGHT? I MEAN, AT THE END OF THE
DAY, IT'S IT CAN'T BE AN
ACADEMIC EXERCISE. SO WITH THAT
IN MIND, COMMISSIONER, TALK TO
ME BECAUSE I DON'T KNOW THAT IT
NECESSARILY REQUIRES STATUTE.
RIGHT? RIGHT. BECAUSE YOU
DESCRIBED SOME GOOD
COLLABORATING WORK THAT YOU'RE
DOING. I'D LOVE TO KNOW WHAT
WE'RE PREPARING TO DO AND YOUR
THOUGHTS ABOUT WHETHER THERE IS
THAT STRUCTURAL ELEMENT THAT'S
MISSING, THE COMPREHENSIVELY
MISSING, BECAUSE I THINK THAT'S
FUNDAMENTALLY THE CHALLENGE HERE
. RIGHT. SO LET ME SEE HOW I
TACKLE THIS. SO WE ARE YOU'RE
CORRECT. WE DON'T NEED A
LEGISLATION OR STATUTE TO ACT.
AND THAT'S, YOU KNOW, WHAT I'VE
BEEN DOING SINCE, YOU KNOW,
BECAME COMMISSIONERS, TRYING TO
TAKE ACTION, BUT IT HAS TO BE
VERY THOUGHTFUL, CAUTIOUS,
CAREFUL, AND MEANINGFUL. AND SO
THAT'S WHY I WANTED TO START
WITH, YOU KNOW, MEETING MORE
PEOPLE BETTER, UNDERSTANDING THE
DYNAMICS OUT THERE, FULLY
UNDERSTANDING THE NEEDS AND THE
PRIORITIES AND NOT STEPPING ON
TOES AND RESPECTING THE
LEADERSHIP THERE. AND YOU KNOW
THAT THE HISTORY IN THE PAST AND
THAT I AM AN OUTSIDER, SO I
THINK, IN GENERAL, I'VE, I'VE
DONE WELL IN ESTABLISHING, YOU
KNOW, VARIOUS RELATIONSHIPS AND
BEING ABLE TO OBTAIN THAT
INFORMATION. AND SO NOW WHAT I'M
DOING IS SHARING THAT WITH THE
STATE ENTITIES THAT I HAVE. AND
I'M TRYING TO DEVELOP A
PARTNERSHIP AMONG THE STATE
ENTITIES, SOME OF THEM ARE
EXTREMELY EXCITED TO WORK ON
LITHIUM VALLEY. CALRECYCLE FOR
EXAMPLE, IS ONE OF THOSE THEY'RE
REALLY INTERESTED IN THE FULL
LIFE CYCLE OF THE LITHIUM AND,
YOU KNOW, TRYING TO DO, YOU
KNOW, LIKE THE CAMPUS THAT,
DOCTOR KIMMONS DESCRIBED, YOU
KNOW, IS THERE POSSIBLE TO DO
RECYCLING THERE AND WHAT
DIFFERENT TYPES OF RECYCLING CAN
BE DONE. SO I THINK THERE IS A
LOT OF INTEREST. I THINK THERE'S
A LOT OF ENTHUSIASM FOR IT. IT'S
A MATTER OF BEING ABLE TO
COORDINATE. SO ONE OF THE
DIFFICULTIES IS IN NOT HAVING,
LIKE, YOU KNOW, IN STATUTE, OR
FUNDING, THAT'S ALLOCATED IS
THAT WE DON'T HAVE A TON OF
RESOURCES. SO WE WHEN WE DID THE
LITHIUM VALLEY COMMISSION, WHEN
WE SUPPORTED THAT, WE DIDN'T
HAVE WE WEREN'T ALLOCATED
RESOURCES. SO WE NEEDED TO TAKE
STAFF THAT WAS WORKING ON OTHER
PROJECTS AND PROGRAMS, AND MOVE
THEM OVER TO HELP US FULFILL THE
LITHIUM VALLEY COMMISSION
REQUIREMENTS. SO THAT'S
DIFFICULT. BUT WE ARE ALWAYS
GOING TO DO THE BEST JOB
POSSIBLE TO FULFILL THE
STATUTORY MANDATES WITH WHATEVER
RESOURCES WE HAVE. AND THEN NOW
WE DON'T HAVE THOSE RESOURCES.
SO REALLY IT'S IN MY OFFICE, YOU
KNOW, I'VE TAKEN IT ON AS MY
DUTY. IT'S AN AREA I LEAD, BUT
I'M VERY PASSIONATE ABOUT IT AND
WANT TO MAKE SURE THAT THE
COMMUNITY THERE THRIVES. AND SO
IT'S, MYSELF AND MY CHIEF OF
STAFF, ERIC STOKES, WHO'S
WORKING ON LITHIUM VALLEY. SO WE
DON'T HAVE OTHER STAFF MEMBERS
THAT ARE ALLOCATED TO IT BECAUSE
OF HOW WE HAVE TO BALANCE THE
RESOURCES. SO THAT'S JUST ONE OF
THE CHALLENGES THAT WE HAVE TO
WORK ON. AND THEN IN TERMS OF
WHAT YOU'RE TALKING ABOUT, THE
IDEA OF THE COUNCIL, I WON'T
COMMENT ABOUT IT OR, YOU KNOW,
GIVE MY OPINION, BUT THOSE ARE
THE TYPES OF MECHANISMS THAT CAN
HELP, YOU KNOW, BRING MORE
COHESION. I MEAN, THAT'S WHY THE
LITHIUM VALLEY COMMISSION WAS
ALSO ESTABLISHED TO HAVE THAT
COHESION, TO BE ABLE TO HAVE
THAT FORUM FOR DIALOG. SO WE'RE
TRYING TO DO THAT RIGHT NOW
THROUGH THE INFORMATIONAL
PROCEEDING, WHERE WE CAN
CONTINUE HAVING THAT DIALOG, AND
WE'RE HOPING THAT WE CAN GET TO
A PLACE WHERE WE HAVE ENOUGH
INFORMATION THAT WE CAN DEVELOP
AN ASSESSMENT TO POTENTIALLY
HAVE SOME STRATEGIC NEXT STEPS
FROM IT, OR SOME RECOMMENDATIONS
FOR THE LEGISLATURE. THE
GOVERNOR'S OFFICE ON HOW TO MOVE
CONTINUE MOVING FORWARD AND IN
AN EFFECTIVE WAY, BUT THOSE
THINGS, AGAIN, THEY REQUIRE A
LOT OF THOUGHT, INVESTMENT
STRATEGY AND PARTNERSHIP AND
COLLABORATION, YOU KNOW, BEING
THE KEY THING THERE. SO WE HAVE
TO CONTINUE DOING THAT. SO I
WON'T SAY THAT WE'RE WE'RE
PERFECT. WE'VE DONE IT. AS CHAIR
PAZ MENTIONED, IT IS THE
BEGINNING. SO WE SEE THAT AS YOU
KNOW, OUR OUR START POINT THAT
WE HAVE TO COORDINATE. MANY OF
US SEE THAT CHAIR PAZ, YEAH.
YES. IF I MAY ADD. SO WE'RE
TALKING WHETHER THERE IS A NEED
FOR LEGISLATIVE ACTION OR NOT.
WHAT'S GOING TO GET OUR AGENCIES
TO ALLOCATE FUNDING FOR THIS
REGION? AND I DON'T KNOW HOW WE
DO THAT WITHOUT DIRECTING THEM
TO DO SO, I KNOW THAT, THERE ARE
MODELS AND I CAN SHARE SOME
INFORMATION, THERE WAS A TASK
FORCE, FOR THE SAN JOAQUIN
VALLEY AT SOME POINT THAT
DIRECTED DIFFERENT AGENCIES TO
SAY YOU'RE GOING TO INVEST IN
THIS REGION. SO IT DIDN'T
REQUIRE THEM TO COME UP WITH
ADDITIONAL FUNDS, BUT IT WAS THE
MODEL, IF I UNDERSTAND IT
CORRECTLY, WAS AROUND LOOKING AT
THE MONEY THAT'S AVAILABLE FOR
THE AGENCIES AND HOW THEY INVEST
IT, COLLECTIVELY IN A
COORDINATED WAY INTO THE REGION.
SO THERE I DO THINK HOW WE GET
THERE, I'M NOT SURE, BUT THERE
DOES NEED TO BE SOME DIRECTION,
BECAUSE AT THE END OF THE DAY,
INVESTING IN THE INFRASTRUCTURE
IS EXPENSIVE. AND WITH THE
EXISTING, DOLLAR ALLOCATIONS
THAT EXIST RIGHT NOW, IT'S A
COMPETITIVE PROCESS. SO OUR
REGION, BECAUSE WE FACED A LOT
OF DISINVESTMENT, A LOT OF TIMES
WE'RE NOT EVEN READY TO BE AS
COMPETITIVE AS WE WOULD LIKE. SO
I WOULD, YES. AND SOME DIRECTION
FOR THE AGENCIES TO INVEST IN
THAT AREA. I APPRECIATE IT. AND
I KNOW I WANT TO GO TO SENATOR
NILO FOR QUESTIONS FOR THIS
PANEL, BUT I'LL JUST SAY TO THAT
POINT, I THINK THAT'S THE GREAT
IRONY HERE, ISN'T IT? I MEAN, IF
IN FACT, THIS IS A PRIORITY FOR
THE STATE FROM THE GOVERNOR ON
DOWN AND A PRIORITY FOR THE
NATION FROM THE PRESIDENT AND
THE WHITE HOUSE AND OTHERS,
BECAUSE, YOU KNOW, THE IRONY IS
THAT THIS HAS SUCH TREMENDOUS
POTENTIAL ECONOMIC IMPACT THAT
IT IS TRULY NATIONAL AND GLOBAL
IN SCALE, BUT YET IT IS SITED
AND LOCATED IN A COMMUNITY THAT
IS OFTEN OVERLOOKED, IGNORED,
INTENTIONALLY, DISINVESTED,
MISUNDERSTOOD, FOR A VARIETY OF
SOCIAL AND ECONOMIC FACTORS.
THAT'S THE GREAT IRONY, ISN'T
IT? AND I THINK THE CHALLENGE IS
THAT WE HAVE TO STOP THINKING
ABOUT THIS AS SOME KIND OF A
LOCAL DISTRICT THING. IT'S NOT
THE POTENTIAL OF THIS IN LITHIUM
VALLEY IS TRULY NATIONAL AND
GLOBAL IN SCOPE, AND IT'S LONG
PAST TIME THAT THE STATE
COORDINATE AND FIGURE OUT WHAT
OUR ROLE HERE IS, BECAUSE THE
IRONY IS, IF WE GET THIS WRONG,
WE WILL JUST NOT BE PLAYING AT
THE TABLE, THE GLOBAL TABLE, AND
THERE ARE NATIONAL SECURITY,
PUBLIC HEALTH RESOURCE, ECONOMIC
INFRASTRUCTURE AND ON AND ON
IMPACTS HERE. AND I THINK WHAT'S
ALWAYS BEEN FRUSTRATING TO ME IS
REPRESENTING PARTS OF MY
DISTRICT THAT ARE POOR,
EXPLOITED, UNDERINVESTED
COMMUNITIES OF COLOR. IT IS FOR
THOSE REASONS, FRANKLY, THAT WE
CONTINUE TO STRUGGLE TO MAKE
THIS UNDERSTOOD AND TO MAKE IT A
PRIORITY AND TO GET IT
COORDINATED, BECAUSE I WILL
PROMISE YOU, IF WE WERE SITTING
ON ALMOST A THIRD POTENTIAL OF
GLOBAL DEMAND FOR LITHIUM AND
OTHER PARTS OF THIS STATE, THIS
WOULD BE THE NUMBER ONE PRIORITY
IN THE STATE OF CALIFORNIA. FULL
STOP PERIOD. BECAUSE OF THE
POTENTIAL ON CALIFORNIA'S
ECONOMY AND THE NORTH AMERICAN
EXPORT ECONOMY AND NATIONAL
SECURITY IMPLICATIONS, AND ON
AND ON. BUT BECAUSE IT'S WHAT IT
IS, IT SOMEHOW IS SECOND AND
THIRD FIDDLE. AND I JUST CAN'T
EXPRESS ENOUGH IN WORDS HOW
FRUSTRATING THAT IS FOR SOMEONE
WHO NOT JUST REPRESENTS THIS
AREA, BUT HAS GROWN UP WITH
THESE DYNAMICS. AND I WANT YOU
TO BE BRIEF. BE BRIEF,
PROFESSOR, IF YOU COULD, BECAUSE
I WANT TO TURN IT OVER TO
SENATOR NILO. YEAH. I JUST WANT
TO EXPRESS ANOTHER CONCERN I
HAVE, WHICH IS THE HEALTH ISSUE,
BECAUSE, AS YOU MAY KNOW, WE NOW
KNOW THAT IT'S A BACTERIAL
COMPONENT IN THE PLAYA DUST
THAT'S TRIGGERING ASTHMA. AND WE
CAN'T EXPECT TO BRING IN A LARGE
WORKFORCE TO RUN AN ENTIRE
SUPPLY CHAIN IF THEY'RE ALL
GOING TO GET ASTHMA. SO WE'VE
GOT TO SOLVE THAT HEALTH PROBLEM
IN PARALLEL WITH DEVELOPING THE
ECONOMICS DOWN THERE. WE CAN DO
A WHOLE NOTHER SET OF PANELS ON
THAT. I'LL GO, SENATOR NEAL, IF
HE HAS QUESTIONS FOR THIS PANEL,
PANEL. SENATOR NEAL, NOT MANY
ANY MORE, TO YOUR LAST POINT,
THERE ARE, LOTS OF REGIONS IN
CALIFORNIA THAT, HAVE THE, SAME
SORT OF SELF-PERCEPTION AS YOU
INDICATED. I CALL IT THE RODNEY
DANGERFIELD COMPLEX. YOU KNOW,
RODNEY DANGERFIELD, I DON'T GET
NO RESPECT. RIGHT AND SO DON'T
FEEL LIKE THE LONE RANGER ON
THAT, BUT I CERTAINLY UNDERSTAND
WHAT YOU SAY. AND I, I GATHER
WHAT THE POTENTIAL IS FOR THE
ENTIRE STATE AS WELL AS THE
COUNTRY. BUT IF WE PURSUE IT,
HOPEFULLY IT WON'T BE LIKE THE
SILICON VALLEY, WHICH IS
CONCENTRATED IN THE SILICON
VALLEY, BENEFITS THE SILICON
VALLEY AND HAS VERY LITTLE
IMPACT ON AREAS OUTSIDE OF THE
SILICON VALLEY, BUT, IF I YOU
MENTIONED A THIRD OF WORLD
PRODUCTION AND THE ONE SLIDE,
STRUCK ME AND DOCTOR MCKIBBEN'S,
PRESENTATION, HOW MUCH DISSOLVED
LITHIUM BRINE MIGHT BE RECOVERED
EACH YEAR AND TRIPLING CAPACITY
IS FULLY 50% OF CURRENT GLOBAL
PRODUCTION. DO I HAVE THAT
RIGHT? YEAH. THAT. WELL, THAT
SORT OF GIVES YOU THAT'S WHY YOU
USE THE TERM A THIRD, OF GLOBAL
PRODUCTION. BUT, THE, THE
QUESTION THAT I HAD IN READING
THE MATERIAL IS THERE'LL BE A
SIGNIFICANT INCREASE IN THE
PRODUCTION OF ENERGY AS A RESULT
OF RAMPING UP TO GET MORE
LITHIUM, SO THAT, YOU KNOW,
CURRENTLY WE HAVE A PROCESS
WHERE LITHIUM IS A BYPRODUCT.
WHAT WE'RE GOING TO HAVE IS A
PROCESS TO EXTRACT LITHIUM, AND
POWER IS THE BYPRODUCT, MY
UNDERSTANDING IS THAT CURRENTLY
THE ENERGY IS CONSUMED LOCALLY,
AND WITH A SIGNIFICANT INCREASE,
THERE'LL BE POTENTIALLY THE NEED
TO, TRANSFER ENERGY TO OTHER
AREAS TO THE USERS. HOWEVER, YOU
SPOKE TO A RATHER ELABORATE
HORIZONTAL, PRODUCTION, INDUSTRY
IN THE LOCAL AREA, TAKING
LITHIUM, HAVING BATTERY
MANUFACTURING FACILITY THERE.
AND ONCE YOU MAKE THE BATTERY,
HAVE AN ACTUAL AUTOMOBILE
MANUFACTURING, ENTITY THERE,
THAT IS CERTAINLY A GRAND IDEA.
POSSIBLE, BUT OBVIOUSLY QUITE A
GRAND IDEA. I DON'T KNOW WHAT
THE CONCENTRATION OF LITHIUM IS
IN THE FINAL PRODUCT OF A
BATTERY. I, I KNOW IT'S
SIGNIFICANT, BUT OTHER MATERIALS
WOULD HAVE TO BE BROUGHT IN, AND
AS FAR AS VEHICLE MANUFACTURING
IS CONCERNED, CERTAINLY A
BATTERY IS A MAJOR COMPONENT,
BUT A CAR TAKES SIGNIFICANT
OTHER RAW MATERIALS SO THAT,
ESSENTIALLY, CONCEPTUALLY, WHAT
YOU'RE TALKING ABOUT IS, NO,
WE'RE NOT GOING TO TRANSFER THE
ENERGY, TO OTHER USERS. WE'RE
GOING TO BRING THE USERS HERE
AND CONTINUE TO USE THE ENERGY,
LOCALLY. THAT'S AN
OVERSIMPLIFICATION, THÀNH, BUT
IT'S CERTAINLY POSSIBLE. HOWEVER
FOR SENATOR PADILLA TALKED TO,
THE ISSUE OF THE REGULATORY
BURDEN IN THE STATE OF
CALIFORNIA AND, THIS IS AN
EDITORIAL ON MY PART, IN ORDER
FOR US TO ATTRACT THAT LEVEL OF
PRIVATE BUSINESS MANUFACTURING
TO THE STATE, GIVEN THAT MOST
MANUFACTURING, LARGE
MANUFACTURING HAS LEFT THE STATE
THAT WE HAVE TO BEGIN TO LOOK AT
THE REGULAR IF WE'RE REALLY
GOING TO BE AGGRESSIVE ABOUT
THIS, WE HAVE TO BEGIN TO LOOK
AT THE REGULATORY PROCESS WHERE,
THE COST OF THE BURDEN OF THE
REGULATION HAS TO BE COMPARED TO
AND EQUATED TO THE BENEFIT OF
THE REGULATION. AND TO THE
EXTENT THAT THE BENEFIT OF THE
REGULATION, OF THE EXCUSE ME,
THE COST OF THE REGULATION
EXCEEDS THE BENEFIT, WHICH IN
MANY CASES IS THE CIRCUMSTANCE
THAT WE HAVE NOW, WHICH IS WHY
MANY PEOPLE LIKE MYSELF, ARE
CRITICAL OF THE REGULATORY
BURDEN THAT IT WILL BE VERY
DIFFICULT TO RECRUIT THAT TYPE
OF INDUSTRY TO THE STATE, AS I
SAID, THAT'S KIND OF AN
EDITORIAL ON MY PART, BUT, WE
HAVE TO MAKE SURE AND I'M NOT
SAYING WE CAN'T HAVE
REGULATIONS. REGULATIONS SERVE A
GOOD PURPOSE, BUT TO THE EXTENT
THAT, WE PAY MORE ATTENTION TO
THE PROTECTED CLASS OF THE
BENEFIT, THAN WE DO THE PAYER OF
THE BENEFIT, IT WILL MAKE IT
VERY DIFFICULT TO ACHIEVE WHAT
IS A GRAND. BUT POTENTIALLY
POSSIBLE, A GOAL FOR THIS AREA.
AND IN THE MEANTIME, THOUGH,
THERE WOULD BE SIGNIFICANTLY
GREATER, POWER GENERATED OUT OF
THERE THAN WOULD BE USED,
LOCALLY. SO I'M WONDERING IF YOU
HAVE THOUGHTS ON HOW THAT MIGHT
BE UTILIZED BECAUSE IT COULD BE
SOLD, OBVIOUSLY, BUT THERE'S GOT
TO BE TRANSMISSION IN ORDER TO
GET IT ELSEWHERE FOR PEOPLE TO
PAY FOR IT, FOR IT TO, TO COME
BACK TO ECONOMIC DEVELOPMENT AND
HELP TO FUND A LOT OF THE THINGS
THAT NEED TO BE, FUNDED TO GET
TO THAT LOFTY GOAL. YEAH. SO
GETTING THE POWER TO THE REST OF
THE GRID, WHETHER IT GOES INTO
THE CALIFORNIA GRID OR INTO
ARIZONA, SOME OF IT DOES, IS A
BIG CHALLENGE GETTING RIGHT AWAY
FOR THE TRANSMISSION LINES. AND
NAOMI COULD ADDRESS ALL THAT
BETTER THAN ME. BUT, I THINK
THERE'S PRECEDENT FOR STATES AND
COMMUNITIES TRYING TO RAMP UP
THESE KINDS OF LOFTY IDEAS ABOUT
ELECTRIC VEHICLE MANUFACTURE.
YOU LOOK AT THE STATE OF
ARKANSAS AND THEIR PLANS WITH
THE SMACKOVER FORMATION TO
PRODUCE LITHIUM OUT OF THE OIL
FIELD BRINES THERE LOOK AT
STATES LIKE KENTUCKY AND
GEORGIA, WHICH HAVE GIVEN A LOT
OF INCENTIVES TO AUTO
MANUFACTURERS TO COME IN OR
BATTERY MANUFACTURERS TO COME
IN. SO I THINK THERE'S MODELS
AND PRECEDENT THAT CALIFORNIA
COULD USE. AND YOU'RE RIGHT THAT
OUR REGULATORY FRAMEWORK IS NOT
ALWAYS TO OUR ADVANTAGE. BUT
AGAIN, COORDINATING AMONGST ALL
THE INTERESTED PARTIES AND THE
AND GETTING THE LEGISLATURE
INVOLVED IS THE WAY TO APPROACH
THAT, AND, YOU KNOW, THE JOB
BENEFITS AND THE TAX REVENUE
BENEFITS SHOULD BE THE ARGUMENT
TO THE GOVERNOR AND THE
LEGISLATURE FOR DOING THESE
KINDS OF THINGS. SO THERE'S
EXAMPLES AROUND THE US AS TO HOW
TO DO THIS AND HOW WE COULD DO
IT, WELL, I HAVE TO SAY, I THE,
THE LOFTY IDEA TRULY DOES APPEAL
TO ME, BUT GIVEN THE, THE
MAGNITUDE OF THE EFFORT AND THE
MAGNITUDE OF THE BENEFIT, WE
REALLY NEED TO THINK LONG AND
HARD ABOUT HOW WE REGULATE
PRIVATE INDUSTRY IN THIS STATE.
THANK YOU. THANK YOU. SENATOR.
WELCOME, SENATOR. SMALL CUEVAS.
AND JUST WANT TO GIVE YOU AN
OPPORTUNITY, IF YOU HAD ANY
QUESTIONS FOR PANEL ONE, WE WENT
THROUGH IT OR WE'RE READY TO
MOVE TO THE NEXT ONE. I WAS
WATCHING IN MY IT IS A THANK
YOU, MA'AM. IT'S CRAZY TIME FOR
ALL OF US. AS YOU WELL KNOW. I'D
LIKE TO THANK YOU FOR YOUR
PATIENCE AND FOR YOUR
PRESENTATION AND THE Q&A VERY
MUCH. I'D LIKE TO INVITE PANEL
TWO, WHICH FOCUSES ON INVESTING
IN THIS VISION, ECONOMIC SUPPORT
OF THE LITHIUM EXTRACTION
INDUSTRY AND SURROUNDING
COMMUNITIES. ERIC STOKES, WHO'S
BEEN REFERENCED MANY TIMES, THE
CHIEF OF STAFF TO THE
COMMISSIONER, TYSON ECKERLE,
SENIOR ADVISOR TO CLEAN
INFRASTRUCTURE MOBILITY AND THE
GOVERNOR'S OFFICE OF BUSINESS
AND ECONOMIC DEVELOPMENT. PLEASE
COME FORWARD AND WELCOME. MAKE
YOURSELVES COMFORTABLE. I'M TOLD
WE NEED A MINUTE TO SWITCH OUT
PRESENTATIONS, POSSIBLY. SO
WE'LL GIVE YOU A SECOND TO DO
THAT. EXCUSE ME. JUST. OKAY.
GREAT THANK YOU. AND PLEASE
PROCEED WHEN READY. WELCOME,
CHIEF. GREAT. YEAH. THANK YOU,
SENATOR PADILLA, FOR INVITING ME
TO COME SPEAK TODAY, MY NAME IS
ERIC STOKES. I'M THE CHIEF OF
STAFF TO COMMISSIONER GALLARDO,
WHO SPOKE JUST A SECOND AGO. I
ALSO SERVE AS HER LEAD ADVISOR
FOR LITHIUM VALLEY, MY
PRESENTATION TODAY WILL PROVIDE
AN OVERVIEW OF THE ENERGY
COMMISSION'S INVESTMENTS INTO
LITHIUM VALLEY. AS WELL AS THE
BROADER STATEWIDE LITHIUM
ECONOMY. AND USER. AND IF WE
NEED A MINUTE TO GET THAT
SORTED, THAT'S PERFECTLY FINE, I
APOLOGIZE. NO PROBLEM.
IS THIS. DOES NOT CONTINUE ON
YOURS. OKAY. THANKS, TIM. FROM
THERE. WHICH ONE? TIM. SORRY OH.
THE INVITE. OKAY. YEAH ALL
RIGHT, SO I THINK WE HAVE THE
SLIDES UP, SO I WANTED TO START
OFF BY QUICKLY GOING OVER THE
FIGURE ON THE RIGHT, THIS IS
FROM THE DEPARTMENT OF ENERGY'S
NATIONAL BLUEPRINT ON LITHIUM
BATTERIES, DOCTOR MCKIBBEN WENT
INTO THIS A LITTLE BIT IN HIS
PRESENTATION, BUT IT KIND OF
SHOWS THE KEY STAGES IN THE
OVERALL LITHIUM BATTERY SUPPLY
CHAIN, STARTING WITH THE
EXTRACTION OR THE MINING OF THE
RAW MATERIALS, GOING THROUGH ALL
THE STAGES INTO EV AND
STATIONARY STORAGE,
MANUFACTURING, AND THEN FINALLY
THE END OF LIFE. AND THE REASON
I KIND OF BRING THAT UP IS THE
CÁC. WE'VE REALLY FRAMED OUR
INVESTMENT STRATEGY AROUND KIND
OF THESE KEY STAGES IN THE
LITHIUM BATTERY VALUE SUPPLY
CHAIN, THE BULLETS ON THE LEFT
SHOW THE INVESTMENTS. WE'VE
MADE, SOME OF THESE KEY STAGES
AND, THERE'S A NUMBER OF REASONS
WHY THIS IS IMPORTANT. YOU KNOW,
ONE OF THOSE IS, IF WE'RE
EXTRACTING IF WE'RE RECOVERING
THE LITHIUM OUT OF THE SALTON
SEA, ONLY TO HAVE THAT SHIPPED
OVERSEAS AND THEN SHIPPED BACK
TO CALIFORNIA IN THE FORM OF
BATTERY PACKS, WE'VE MISSED A
REAL OPPORTUNITY TO REALIZE THE
FULL VISION OR THE FULL BENEFITS
OF THE LITHIUM VALLEY VISION,
INCLUDING SOME OF THE SECURITY
BENEFITS THAT, YOU HIT ON
EARLIER. SENATOR PADILLA, SO OUR
FUNDING SOURCES, WE DON'T HAVE A
DEDICATED FUNDING SOURCE, FOR
LITHIUM VALLEY AND LITHIUM
RELATED ACTIVITIES. INSTEAD, IT
COMES FROM THREE OF OUR EXISTING
PROGRAMS. ONE OF THOSE PROGRAMS
BEING THE ELECTRIC PROGRAM
INVESTMENT CHARGE, THIS IS ONE
OF OUR RESEARCH AND DEVELOPMENT
PROGRAMS. AND THROUGH THIS
PROGRAM, WE'VE SUPPORTED A LOT
OF TECHNOLOGY INNOVATION AND A
LOT OF STARTUPS THAT ARE WORKING
ON AND COMMERCIALIZE NEW
TECHNOLOGIES IN THE LITHIUM
VALLEY, AS WELL AS THE BROADER,
LITHIUM RELATED SPACE, THE OTHER
FUNDING SOURCE FOR A LOT OF OUR
WORK HERE IS THE CLEAN
TRANSPORTATION PROGRAM, THIS
PROGRAM IS MOSTLY ASSOCIATED
WITH FUNDING A LOT OF THE
INFRASTRUCTURE REFUELING
INFRASTRUCTURE FOR ZERO EMISSION
VEHICLES, BUT THEY HAVE HAD A
LARGE FOCUS ON MANUFACTURING,
INCLUDING ELECTRIC VEHICLE
MANUFACTURING, AS WELL AS
RECENTLY BATTERY MANUFACTURING
AS WELL. AND THEN THE LAST
FUNDING SOURCE IS A SMALL
PROGRAM. IT'S THE GEOTHERMAL
GRANT AND LOAN PROGRAM. REVENUE
FOR THIS PROGRAM COMES ON
ROYALTIES AND LEASE PAYMENTS
FROM GEOTHERMAL DEVELOPERS, AND
THE ACTIVITIES THEN SUPPORT
FUNDING FOR ACTIVITIES TO
SUPPORT NEW GEOTHERMAL
DEVELOPMENT IN THE STATE, PART
OF OUR INVESTMENT STRATEGY IS TO
THINK ABOUT HOW WE USE OUR STATE
FUNDS TO SECURE FEDERAL
INVESTMENT, SEVERAL YEARS AGO,
WE CREATED A PROCESS WHERE
CALIFORNIA COMPANIES AND
ORGANIZATIONS, THEY CAN APPLY TO
US, IT GOES THROUGH A SHORT
APPLICATION PERIOD IN REVIEW.
AND THEN IF IT MEETS OUR
REQUIREMENTS, WE PROVIDE A
LETTER OF COST SHARE COMMITMENT
FOR THESE APPLICANTS TO INCLUDE
IN THEIR FEDERAL PROPOSAL. SO
THEY ARE SELECTED BY, THE
FEDERAL GOVERNMENT. WE PROVIDE,
YOU KNOW, A CERTAIN AMOUNT OF
FUNDING TO HELP THEM MEET THOSE
COST SHARE REQUIREMENTS, WHICH
CAN BE A CHALLENGE FOR A LOT OF
THESE, CALIFORNIA COMPANIES TO
MEET, TO DATE, WE'VE WE'VE
PROVIDED A LITTLE OVER $5
MILLION FROM OUR EPIC PROGRAM,
AND THAT'S HELPED US SECURE $26
MILLION IN FUNDING FOR LITHIUM
RELATED ACTIVITIES. SO MOVING ON
QUICKLY TO SOME OF OUR ACTIVE
FUNDING OPPORTUNITIES, ONE OF
THE ACTIVE FUNDING OPPORTUNITIES
WE HAVE IS FROM OUR EBCLC
PROGRAM. IT'S GOT A LONG TITLE,
SO WE'VE SHORTENED IT TO D¯ÚI.
AND THIS SOLICITATION IS FOCUSED
ON SOME OF THE NEW TECHNOLOGY
INNOVATIONS TO ADDRESS SOME OF
THE TECHNICAL CHALLENGES TO
RECOVERING LITHIUM FROM THE
GEOTHERMAL BRINE, ONE OF THOSE
CHALLENGES AROUND SCALING AND
CORROSION, ONE OF THE GOOD
THINGS ABOUT THE BRINE IS IT IS
VERY MINERAL RICH. ONE OF THE
CHALLENGES IT DOES CAUSE A LOT
OF CORROSION AND SCALING, THAT'S
A MAJOR PAIN POINT FOR THE
GEOTHERMAL DEVELOPERS. SO WE'RE
LOOKING AT POTENTIAL NEW
TECHNOLOGY SOLUTIONS THAT CAN
OVERCOME SOME OF THOSE
CHALLENGES. WE ALSO HAVE A
RECENT FUNDING OPPORTUNITY OUT
FROM OUR CLEAN TRANSPORTATION
PROGRAM. IT'S CALLED POWER
FORWARD. IT WILL PROVIDE FUNDING
FOR DOMESTIC BATTERY
MANUFACTURING IN CALIFORNIA.
THERE IS A THERE IS A KIND OF A
FOCUS ON THE CATHODE AND THE
CATHODE ACTIVE MATERIALS,
THERE'S A COUPLE REASONS FOR
THIS. THE CATHODE IS KIND OF
THAT NEXT STAGE AFTER LITHIUM IS
MINED AND PROCESSED. AND IT'S
ALSO THE BIGGEST COST COMPONENT
IN LITHIUM BATTERIES, IT ALSO
HAPPENS TO BE A SIGNIFICANT GAP
IN THE LITHIUM BATTERY SUPPLY
CHAIN. BOTH IN THE US AS WELL AS
CALIFORNIA, I MIGHT HAVE
OUTDATED INFORMATION ON THIS,
BUT TO THE BEST OF MY KNOWLEDGE,
THERE'S NO ACTIVE CAN
MANUFACTURING CURRENTLY IN THE
US. I THINK THERE ARE SEVERAL
PLANNED, BUT NOTHING ACTUALLY
ACTIVE. AND THEN THE THIRD
FUNDING OPPORTUNITY COMES FROM
OUR GEOTHERMAL GRANT LOAN
PROGRAM. I THINK ONE OF THE
THINGS THAT'S UNIQUE ABOUT THIS
PROGRAM IS THAT WE'RE PROVIDING
TECHNICAL ASSISTANCE TO LOCAL
JURISDICTIONS AND TRIBES, AND
THIS WILL HELP THEM BE ABLE TO
PLAN AND KIND OF PREPARE FOR
LITHIUM AND GEOTHERMAL
DEVELOPMENT, AS COMMISSIONER
GUERRERO MENTIONED, WHEN WE WERE
HAVING A LOT OF OUR DISCUSSIONS
WITH THE COMMUNITY MEMBERS, THE
LOCAL JURISDICTIONS, THEY DO
HAVE A LOT OF CAPACITY
LIMITATIONS. ÓRDENES JUST TO BE
ABLE TO PLAN FOR KIND OF THIS
EMERGING INDUSTRY. AND SO, PART
OF THIS FUNDING WILL HELP THEM
WITH SOME OF THE ACTIVITIES FOR
THAT. AND JUST KIND OF JUST KIND
OF AN UPDATE ON THE FEDERAL COST
SHARE FRONT, THE DEPARTMENT OF
ENERGY IN MARCH, THEY CONCLUDED
THEIR SECOND ROUND OF THESE BIG
BATTERY MANUFACTURING AWARDS. I
THINK THERE WAS ABOUT $3 BILLION
THAT THEY'RE LOOKING TO AWARD IN
THIS NEXT ROUND, WE HAD ONE
COMPANY APPLY FOR OUR FEDERAL
COST SHARE PROGRAM. THIS IS
SPARK, THEY'RE PARTNERING WITH
ONE OF THE LOCAL TRIBES DOWN THE
SALTON SEA REGION, THE
TORRES-MARTINEZ TRIBE, AND SO WE
WERE ABLE TO PROVIDE $5 MILLION
IN COST SHARE IF THEY'RE
SELECTED BY THE DEPARTMENT OF
ENERGY. AND THEN, JUST LASTLY, I
JUST WANTED TO HIT ON A COUPLE
OF OUR OUR EFFORTS TO BETTER
DISSEMINATE INFORMATION ON
LITHIUM VALLEY, INCLUDING SOME
OF THE INVESTMENTS, ONE OF THESE
EFFORTS IS A LITHIUM VALLEY
DASHBOARD, THAT WILL SHOW THE
INVESTMENT GOING INTO LITHIUM
VALLEY, AS WELL AS KIND OF THE
BROADER STATE LITHIUM ECONOMY.
WE'RE PLANNING TO START WITH
STATE INVESTMENTS. AND, AND THEN
EVENTUALLY MOVE ON TO FEDERAL
INVESTMENTS AND THEN PRIVATE
SECTOR INVESTMENTS SUCH AS
NONPROFITS THAT OR THAT
INFORMATION IS PUBLICLY
AVAILABLE, YOU KNOW, CÁC IS JUST
KIND OF ONE SLICE OF THE OVERALL
FUNDING PIE FOR THIS. I KNOW
TYLER IS GOING TO GET INTO A
COUPLE OF THE OTHERS. AND SO,
THROUGH THE DASHBOARD, WE'RE
HOPING TO BE ABLE TO PAY A MORE
COMPLETE PICTURE OF THE TYPE OF
INVESTMENT CALIFORNIA, AS WELL
AS OTHER ENTITIES ARE MAKING
INTO TO LITHIUM VALLEY, THE
SECOND THE SECOND EFFORT WE HAVE
IS OUR LITHIUM VALLEY
SUBSCRIPTION PAGE, THIS WAS
CREATED AS PART OF THE LITHIUM
VALLEY VISION WEB PAGE. WE DID
BACK IN FEBRUARY 2024. AND
HAVING THE SUBSCRIPTION PAGE,
PEOPLE CAN SIGN UP AND THEY CAN
GET, WE CAN PUSH OUT INFORMATION
ON LITHIUM VALLEY, INCLUDING
STATE FUNDING OPPORTUNITIES, AS
WELL AS FEDERAL FUNDING
OPPORTUNITIES, JUST AS AN
EXAMPLE OF THIS, THE DEPARTMENT
OF ENERGY LAST WEEK ANNOUNCED A
NEW FUNDING OPPORTUNITY AND TWO
OF THE TWO OF THE FUNDING GROUPS
ARE SPECIFICALLY TARGETED
TOWARDS THE SALTON SEA REGION.
AND SO THIS PROVIDES A MECHANISM
, LIKE I SAID, JUST TO MAKE SURE
WE DISSEMINATE THESE
OPPORTUNITIES TO KIND OF A
BROADER, BROADER AUDIENCE. AND
THAT CONCLUDES MY PRESENTATION.
I'M HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU VERY MUCH,
MR. STOKES. APPRECIATE YOUR
WORK. WE'LL NOW, WE'LL MOVE OVER
TO, MR. ECOLI, WELCOME. ALL
RIGHT. WELL, THANK YOU. IT'S
GREAT TO BE HERE. THANK YOU,
CHAIR, AND THANK YOU. COMMITTEE
MEMBERS. AND JUST BEFORE I JUMP
IN, I THINK THE DASHBOARDS THAT
CÁC DO ARE INCREDIBLE, RIGHT? I
THINK A LOT OF TIMES FINDING
INFORMATION ON STATE GOVERNMENT
WEBSITES IS VERY DIFFICULT.
THESE DASHBOARDS ARE GREAT
CONSOLIDATION. SO I GO THERE ALL
THE TIME FOR LIKE ZERO EMISSION
VEHICLE STATS AND THE ENERGY
STORAGE STATS. AND IT'S SO
ANYHOW THAT'S REALLY, REALLY
HELPFUL. SO COMMEND THE ENERGY
COMMISSION FOR EVERYTHING
THEY'RE DOING. BUT I'M TYSON
ACKERLY I'M A SENIOR ADVISOR FOR
CLEAN INFRASTRUCTURE AND
MOBILITY AT GO-BIZ. AND NORMALLY
WE'D HAVE TREY BRADLEY, OUR
DEPUTY DIRECTOR FOR SUSTAINABLE
FREIGHT AND SUPPLY CHAIN
DEVELOPMENT, HERE, TO TESTIFY.
BUT HE SENDS HIS REGRETS THAT HE
COULDN'T BE HERE BECAUSE HE HAS
AN OUT OF STATE ENGAGEMENT AND
WANTS TO EXPRESS HIS DEEP
APPRECIATION FOR THE STAFF AND
STAKEHOLDERS INVOLVED IN WORKING
WITH THEM. AND BUT I REALLY WANT
TO SHOWCASE IT IS A TEAM EFFORT
ACROSS GO-BIZ. AND WE'RE REALLY
EXCITED ABOUT LITHIUM VALLEY. WE
ALL FILL IN WHERE WE CAN. AND I
WANTED TO, YOU KNOW, THERE ARE A
LOT OF REASONS TO BE EXCITED
ABOUT LITHIUM VALLEY. I THINK
YOU'VE HEARD ABOUT A BUNCH OF
THEM, YOU KNOW, JOBS, ECONOMIC
DEVELOPMENT, CREATING
SUSTAINABLE SUPPLY CHAINS. BUT I
THINK CENTRAL TO ALL OF THAT, AS
WE KNOW, WE NEED A LOT OF
LITHIUM. AND I PERSONALLY FOCUS
ON ZERO EMISSION VEHICLE MARKET
DEVELOPMENT, OBERNOLTE AND
HYDROGEN MARKET DEVELOPMENT. AND
BOTH CASES, THE NEED FOR LITHIUM
IS CLEAR. I WAS JUST DOING, YOU
KNOW, RIGHT BEFORE THE PANDEMIC
IN 2019, OUR ZERO EMISSION
VEHICLE MARKET PENETRATION, WE
WERE AT ABOUT 6.8% OF NEW CAR
SALES. AND NOW WE'RE AT 25. SO
ONE IN CARS, 1 IN 4 CARS SOLD IN
CALIFORNIA ARE ZERO EMISSION.
AND WE'VE HAD ABOUT 1.8 MILLION
SOLD TO DATE, EXCEEDING OUR 2025
TARGET OF 1.5 MILLION TWO YEARS
AHEAD OF TIME. AND THIS NUMBER
WILL CONTINUE TO GROW THROUGH
2035 AS YOU WORK TOWARDS THAT
100, 100, AND THEN ESPECIALLY
WHEN YOU ADD HEAVY DUTY VEHICLES
WILL INCREASE THIS DEMAND, YOU
KNOW, THROUGH ALL DRIVETRAINS,
NOT JUST BATTERY ELECTRIC, BUT
ALSO HYDROGEN FUEL CELL ELECTRIC
, WHICH INCLUDES LITHIUM
BATTERIES AS WELL. AND THEN THE
STATIONARY SIDE, THERE'S ANOTHER
GREAT, YOU KNOW, DATABASE ON THE
ENERGY COMMISSION. WE HAVE
66,000MW OF BATTERY STATIONARY
STORAGE. AND IT'S NOT ALL
LITHIUM, BUT A LOT OF IT IS. AND
WE'RE PROJECTING A NEED FOR
52,000MW BY 2045. SO THIS IS A
GIGANTIC JUST IN CALIFORNIA. AND
YOU FIGURE THAT'S THAT'S JUST A
SLICE OF THE GLOBAL ECONOMY. AND
SO IT'S REALLY KIND OF A WIN WIN
WIN THING. CLEANER SUPPLY
CHAINS, FAMILY SUPPORTING JOBS,
CLEANER AIR, CLIMATE CHANGE AND
MORE. AND SO JUST WANT A LITTLE
BIT ABOUT GO-BIZ AND HOW WE FIT
INTO THIS. SO WE'RE AN ACTIVE
MEMBER OF THE LITHIUM VALLEY
STATE WORK GROUP THAT'S BEING
COORDINATED BY CEC. AND WE'RE
VERY GRATEFUL FOR KECK'S
LEADERSHIP IN THIS. AND SINCE
THE ESTABLISHMENT OF THE LITHIUM
VALLEY COMMISSION, WE'VE BEEN
ACTIVELY WORKING WITH CEC AND
OTHER AGENCY TEAMS TO SUGGEST
RECOMMENDATIONS AND IDENTIFY
WAYS TO BETTER SUPPORT THE
REGION. AND AT GO-BIZ ORGANIZED
INTO MANY TEAMS THAT HAVE TOUCH
POINTS ON LITHIUM VALLEY. AND
I'LL JUST GO THROUGH A FEW OF
THOSE. WE HAVE OUR CALIFORNIA
BUSINESS INVESTMENT SERVICES.
CAL BIZ AND COMMUNITY PLACE
BASED SOLUTION TEAMS. WE HAVE
SPECIALISTS DEDICATED TO THE
SOUTHERN BORDER REGION WHO ARE
ACTIVELY ENGAGED WITH THE
IMPERIAL COUNTY AND IMPERIAL
VALLEY ECONOMIC DEVELOPMENT
CORPORATION TO PROVIDE INCENTIVE
AND RESOURCE PROGRAM NAVIGATION
SUPPORT, THESE PROGRAMS CAN
ASSIST BUSINESSES IN LOCATING
WITHIN THE LITHIUM VALLEY AND
PROVIDE SUPPORT TO THE COMMUNITY
TO DEVELOP THE INFRASTRUCTURE
SUPPORT NEEDED TO ATTRACT MORE
BUSINESS AND DEVELOPMENT
PROJECTS WITHIN THE LARGER
REGION. SO THAT'S ONE. AND THEN
OUR SUPPLY CHAIN TEAM, WHICH IS
LED BY TREY, FOCUSES ON
SUPPORTING THE SUPPLY CHAIN
DEVELOPMENT OF NEW MARKETS SUCH
AS CRITICAL MATERIALS, CRITICAL
MINERALS, ALONG WITH OTHER
RESHORING EFFORTS. THIS TEAM HAS
LED STATEWIDE ENGAGEMENTS ON ALL
CRITICAL MINERALS NECESSARY FOR
ZERO EMISSION VEHICLES,
INCLUDING LITHIUM, BUT ALSO RARE
EARTHS, BORON, NICKEL, ETC. THIS
TEAM ALSO ASSISTS ON GOODS
MOVEMENT, INFRASTRUCTURE AND THE
DEVELOPMENT OF THE RESOURCE
WITHIN THE COUNTY SO WE CAN,
TRANSITION ALL THAT, ALL THE
STUFF FROM IMPERIAL VALLEY TO
THE MARKETS THAT NEEDS TO GET
TO. THEN WE HAVE THE GÓMEZ ZERO
EMISSION VEHICLE MARKET
DEVELOPMENT TEAM THAT SCOPES THE
FUTURE OF THE ZEV MARKET IN
CALIFORNIA AND FACILITATES
PROGRAMS ON PERMITTING, GETTING
INFRASTRUCTURE INTO THE GROUND
EQUITY. WE DO A LOT OF
INTERAGENCY COORDINATION, AND WE
WORK ON MATCHING VARIOUS
DEVELOPERS AND PROVIDERS IN THE
BROADER MARKET, REALLY JUST
BUILDING CONFIDENCE IN THE
MARKETPLACE, AND THIS IS A HUGE
OPPORTUNITY WITH LITHIUM VALLEY,
WE HAVE AN ENERGY UNIT THAT
SUPPORTS TRANSMISSION EFFORTS
AND DISCUSSIONS WITH ASSET
HOLDERS OF RENEWABLE ENERGY
INFRASTRUCTURE IN IMPERIAL AND
WORKING SUCH AS GEOTHERMAL, TO
FACILITATE INFRASTRUCTURE
DEVELOPMENT. GÓMEZ I BANK, OUR
INFRASTRUCTURE BANK, WE'VE
SUPPORTED TRANSMISSION
FINANCING. SO YOU TALK ABOUT
GETTING ENERGY TO AND FROM OUT
OF THE REGION AND IS ALSO
ENGAGED WITH INDIVIDUAL
COMPANIES IN THE REGION ON
INFRASTRUCTURE BONDS, SMALL
BUSINESS LOANS AND NEW AND
EMERGING CLIMATE FINANCING
TOOLS. AND FINALLY, OUR
CALIFORNIA COMPETES HAS PROGRAM
HAS BOTH TAX CREDIT AND GRANT
PROGRAMS THAT ARE ABLE TO
SUPPORT BUSINESSES THAT WANT TO
LOCATE, STAY AND GROW IN
CALIFORNIA. THE APPLICANTS ARE
ANALYZED ON BASED ON A NUMBER OF
DIFFERENT FACTORS OF EVALUATION,
INCLUDING A NUMBER OF NUMBER OF
FULL TIME JOBS BEING CREATED,
AMOUNT OF INVESTMENT AND
STRATEGIC IMPORTANCE TO THE
STATE OR REGION. THE CALIFORNIA
COMPETES PROGRAM HAS ALREADY
MADE AWARDS TO EXISTING LITHIUM
ION BATTERY MANUFACTURING
COMPANIES LOOKING TO LOCATE OR
EXPAND IN CALIFORNIA, AND SO IN
ADDITION TO CAL COMPETES AND CÁC
PROGRAMS, WHICH ERIC TALKED
ABOUT, THE TREASURER'S OFFICE
HAS THE CALIFORNIA ALTERNATIVE
ENERGY AND ADVANCED
TRANSPORTATION FINANCING
AUTHORITY. VERY RARELY SAY THAT
FULL THING OUT LOUD. OUR PROGRAM
, AND THOSE PROGRAMS HAVE BEEN
REALLY INSTRUMENTAL IN
SUPPORTING THE INDUSTRY TO
DEVELOP IN CALIFORNIA,
SPECIFICALLY, THIS PROGRAM
OFFICE OFFERS A SALES AND USE
TAX EXCLUSION FOR MANUFACTURERS
THAT PROMOTE ALTERNATIVE ENERGY
AND ADVANCED TRANSPORTATION, AND
THESE MANUFACTURERS CREATE
PERMANENT JOBS THAT BOLSTER THE
STATE'S ECONOMY. ELIGIBLE
BUSINESSES TO, PLANNING TO
CONSTRUCT A NEW FACILITY IN
CALIFORNIA OR EXPAND OR UPGRADE
AN EXISTING FACILITY CAN APPLY
FOR CADE FOR THE SALES AND USE
TAX EXCLUSION AWARD AND, IF
APPROVED, PURCHASES OF QUALIFIED
PROPERTY FOR THE PROJECT ARE NOT
SUBJECT TO STATE AND LOCAL SALES
TAX. SO PHÐ RECEIVES ABOUT 115,
NOT ABOUT. THEY RECEIVE $115
MILLION IN SALES AND USE TAX
EXCLUSION AUTHORITY A YEAR,
WHICH IS AVAILABLE TO AWARD TO
APPLICANTS. BUT THERE'S ALSO A
$15 MILLION SET ASIDE JUST FOR
LITHIUM EXTRACTION OR RECOVERY
PROJECTS IN THEIR, AND THEN, YOU
KNOW, PROGRAMS LIKE THESE NOT
ONLY ASSIST WITH TARGETED
BUSINESS DEVELOPMENT OPERATIONS
IN LITHIUM VALLEY, BUT SUPPORT
THE LARGER ADVANCED LITHIUM ION
BATTERY MANUFACTURING INDUSTRY
IN CALIFORNIA. IN ADDITION, MANY
OF THESE COMPANIES ARE ALSO
PURSUING R&D TAX CREDITS,
PARTIAL SALES AND USE TAX
EXEMPTIONS, UTILITY DISCOUNT
SAVINGS AND WORKFORCE TRAINING,
GRANT PROGRAMS TO SUPPORT THEIR
OVERALL EXPANSION EFFORTS. WE'RE
FINDING A NEED FOR THESE
COMPANIES TO BE ABLE TO PACKAGE
ALL OF THESE INCENTIVES TOGETHER
TO PROVIDE STRONGER FINANCING
STRUCTURE, CAPABLE OF SUPPORTING
THE OVERALL COSTS OF OPERATING
IN CALIFORNIA, AND THEN JUST
WANT TO HIT A LITTLE BIT ON
WORKFORCE. SO WE'VE BEEN WORKING
WITH EMPLOYMENT TRAINING PANEL
TO HELP THE REGION ACCESS FUNDS
TO SET UP LOCALLY DRIVEN
TRAINING PROGRAM THAT WILL
ENSURE THAT THERE'S A PIPELINE
OF TALENT FOR THE INDUSTRY AND
TO ACCESS WITHIN THE REGION AND
FOR QUALITY JOBS AND THE
ESTABLISHMENT OF STABLE, LONG
TERM EMPLOYMENT PATHWAYS FOR THE
RESIDENTS OF LITHIUM VALLEY. WE
HAVE OUR CALIFORNIA JOBS FIRST
INITIATIVE, WHICH WAS PREVIOUSLY
KNOWN AS SURF AND WHICH SUPPORTS
THE INCLUSIVE REGIONAL PLANNING
AND DEVELOPMENT OF HIGH PRIORITY
ECONOMIC DEVELOPMENT PROJECTS
THAT BENEFIT DISADVANTAGED
COMMUNITIES, CREATE HIGH ROAD
JOBS AND TRENDS IN THE REGION TO
A NET ZERO EMISSION ECONOMY, THE
2021 STATE BUDGET ACT HAD ABOUT
600 MILLION FOR THAT PROGRAM.
AND THEN JUST QUICKLY FOR TO
DATE, YOU KNOW, THERE'S ABOUT 53
MILLION HAS BEEN AWARDED THROUGH
THE PROGRAM, 41 MILLION THROUGH
CAL COMPETES GRANT PROGRAM AND 5
MILLION THROUGH THE CAL COMPETES
TAX CREDIT PROGRAM. AND THEN
TODAY, 58 MILLION ACTUALLY LATER
TODAY IS GOING TO BE DISCUSSED
AT THE CAL COMPETES TAX CREDIT
MEETING, ALL TOLD THIS IS
EXPECTED TO CREATE OVER 6000
JOBS AND $2.6 BILLION IN
INVESTMENT. AND SO THERE'S A LOT
OF WORK THAT'S BEEN DONE, A LOT
MORE TO DO TO GET THERE. AND
ERIC TOUCHED BRIEFLY, JUST
BRIEFLY ON THE FEDERAL FUNDING.
SO WE'RE SUPPORTING ALL SORTS OF
PROGRAMS, LETTERS OF SUPPORT,
COST SHARE, ALL THAT TYPE OF
STUFF. THERE'S, YOU KNOW, A
LITANY OF PROGRAMS. WE'RE HAPPY
TO SHARE THE LIST, DOWN THERE.
AND THEN, YOU KNOW, MANY OF THE
MANY OF THE PROGRAMS ARE STILL
IN PROCESS OF THE FEDERAL
GOVERNMENT. SO WE HAVE HIGH
HOPES FOR THIS. THERE'S BEEN
SOME SOME GREAT AWARDS ALREADY.
SECURED. AND WITH THAT, I WILL
CONCLUDE MY REMARKS HERE. I KNOW
, SORRY, WENT THROUGH A LOT OF
DIFFERENT THINGS, BUT THERE'S A
LOT OF THINGS HAPPENING ALL AT
ONCE, AND WE'RE VERY EXCITED
ABOUT IT. AND THANK THANK YOU
VERY MUCH, MR. ERCOLE AND I JUST
SAY, I THINK THAT AND I WANT TO
BE CAREFUL HOW I CHOOSE MY WORDS
HERE. I THINK THAT'S
TREMENDOUSLY VALUABLE AND
POSITIVE AND APPROPRIATE AND
GOOD TO HEAR. AT THE SAME TIME.
THERE ARE CHALLENGES WITH THAT.
I MEAN, IT'S THE OLD SAYING,
RIGHT? IT'S LIKE EVERYBODY'S IN
THE ROOM AND THAT'S THE
WONDERFUL ASSET. AND THE PROBLEM
IS EVERYBODY'S IN THE ROOM RIGHT
AT THE SAME TIME. THERE'S JUST
THAT'S THE CHALLENGE, RIGHT? AND
SO I WANT TO JUST BRIEFLY,
CERTAINLY TO MR. STOKES
DASHBOARD IS AMAZING. YOU'RE
JUGGLING A LOT. I'M STILL AND I
BEAT THIS LIKE A DEAD HORSE AND
I APOLOGIZE, BUT I'M ALWAYS
LOOKING FOR BECAUSE OF THE SCALE
AND POTENTIAL AND RISKS AND THE
URGENCY OF THE SCENARIO OUT
THERE AND ALL THE IMPLICATIONS
FOR CALIFORNIA, THE NATION
BEYOND. IT'S SUBSTANTIAL. SO A
STRATEGIC FRAME, A COLLABORATIVE
FRAMEWORK, WORK THAT'S NOT
THEORETICAL. YOU KNOW, ON THE
FINANCING SIDE. RIGHT, BECAUSE
BECAUSE HOW IS THAT LOOK BETWEEN
WHAT WE'RE LOOKING AT ON
LEVERAGING POTENTIAL OUTSIDE
RESOURCES, FUNDING, HELPING
INVESTMENT. HOW WHAT IS THE
LEVEL OF STRATEGIC FRAMEWORK
SPECIFICITY WITH THAT AROUND
WHERE RESOURCES ARE ALLOCATED,
WHERE THEY'RE NOT, AND WHEN AND
WHY? RIGHT. BECAUSE, YOU KNOW,
TO BE HONEST, I MEAN, SOMETIMES
A FRESH PAIR OF EYES IS A GOOD
THING, RIGHT? AND IT'S AN HONOR
TO REPRESENT THIS PART OF THE
STATE, BUT IT'S VERY UNIQUE IN
THE CHALLENGE. AND MY
OBSERVATION IS SOME, YOU KNOW,
NOT EVERYONE MAY KNOW THEY'RE
SUBSTANTIAL AND EVEN
INTERNATIONAL INVESTMENT
OCCURRING OUT HERE. PEOPLE ARE
BUYING UP INFRASTRUCTURE LIKE
IT'S CANDY AND A CANDY STORE,
AND THEY'RE NOT DOING THAT
BECAUSE THEY THINK IT'S FUN.
THEY'RE DOING IT FOR A REASON
BECAUSE THEY'RE LOOKING AHEAD,
BUT IT SEEMS TO ME TO BE VERY
SILOED PROGRAMMATICALLY, YOU
KNOW, THEIR SET OF TAX CREDITS,
THEIR SET OF GRANT FUNDING,
EVERYBODY AND THEIR UNCLE WANTS
A PIECE OF THE ACTION. EVERYBODY
WANTS A PIECE OF THE MONEY.
WHERE'S THE STRATEGIC FRAMEWORK
COLLABORATION ON THE INVESTMENT
SIDE. SO, MR. STOKES AND I'LL
LET YOU BOTH TAKE A SHOT AT THAT
ONE. YEAH. SO I THINK SENATOR
PARKER, THAT'S MAYBE THAT'S ONE
OF THE OUTCOMES. I THINK WE'RE
HOPING TO GET OUT OF OUR
INFORMATION PROCEEDING. WHAT IS
THAT FRAMEWORK? HOW DO ALL THESE
DIFFERENT FUNDING POTS COME
TOGETHER AT THE STATE SIDE TO
REALLY MOVE THIS THING FORWARD,
AND THEN I THINK THE MISSING
PIECE IS THE FEDERAL INVESTMENT,
THERE IS A LOT OF LARGE FEDERAL
INVESTMENT. WE HAVEN'T HAD THE
GREATEST SUCCESS IN BRINGING
THAT TO CALIFORNIA, ESPECIALLY
AROUND SOME OF THESE BIG BATTERY
MANUFACTURING AWARDS, SO I THINK
A LOT OF OUR EFFORTS HAVE REALLY
, REALLY LEND THEMSELVES TO TRY
TO, MAKE THE DEPARTMENT OF
ENERGY MAKE THE DEPARTMENT OF
DEFENSE, UNDERSTAND THE
OPPORTUNITY, BE ABLE TO SEE IT,
BE ABLE TO MEET THE PEOPLE. AND
HOPEFULLY THAT THEY'LL TAKE A
LOT OF THAT INFORMATION BACK
WITH THEM WHEN THEY'RE MAKING
SOME OF THESE LARGER FEDERAL
FUNDING DECISIONS, AT THEIR END,
JUST. ONE OF THE, ONE OF THE
CHALLENGES IS, AS I MENTIONED IN
MY PRESENTATION, THÀNH, THERE'S
NOT A DEDICATED FUNDING SOURCE.
INSTEAD, WE TRY TO FIND THESE,
YOU KNOW, I WON'T SAY CARVE
OUTS, BUT THESE BUCKETS WITHIN
THESE EXISTING FUNDING PROGRAMS,
ALL THAT HAVE THEIR OWN SPECIFIC
REQUIREMENTS, HAVE THEIR
SPECIFIC PROCESSES ON HOW THEY
COME UP WITH HOW THEY'RE GOING
TO ALLOCATE FUNDS FOR A
SPECIFIC, SPECIFIC PERIOD. SO
THERE'S A LOT OF INTERNAL
COORDINATION THAT GOES ON, AT
LEAST AT THE COMMISSION THROUGH
THESE PROGRAMS, MAKING SURE THAT
THE STAFF, THE TEAMS THAT ARE
WORKING ON THESE ARE AWARE OF
SOME OF THE CHALLENGES, SOME OF
THE OPPORTUNITIES WITH LITHIUM
VALLEY AND THE LITHIUM ECONOMY,
AND THAT THEY'RE THINKING
THROUGH THAT AS THEY'RE
DEVELOPING SOME OF THESE FUNDING
OPPORTUNITIES ON THE REGULATORY
SIDE FOR A SWITCH IT OVER, JUST
JUST WANT TO PLAN IT FOR YOU
SOON. I WANT TO KEEP GOING BACK
AND FORTH ON THE REGULATORY
SIDE. IMPERIAL COUNTY, OF
COURSE, IS PUSHING ALWAYS FOR
GREATER LATITUDE AND AUTHORITY
AND SITE PERMITTING FOR THIS
INFRASTRUCTURE. AND IT'D BE GOOD
AT SOME POINT YOU KNOW, IF YOU
WANT TO TOUCH ON THAT, ABOUT
WHAT THE CHALLENGES AROUND THAT
ARE AND WHAT THE OPPORTUNITIES
POSSIBLY ARE. AND I'M IMAGINING
WOULD TAKE STATUTE, BUT IT WOULD
TAKE A STATUTORY CHANGE. BUT
IT'S SOMETHING I HEAR. YEAH, I'M
NOT SURE I CAN COMMENT BECAUSE I
KNOW THERE IS A LEGAL CHALLENGE
TO THEIR PROGRAMMATIC EIR. THEY
DID PRESENT LAST WEEK, AT OUR
INFORMATIONAL WORKSHOP. I THINK
THEY'D PROBABLY BE BETTER ABLE
TO KIND OF RESPOND TO SOME OF
THOSE REGULATORY CHALLENGES THAT
THEY'RE SEEING THROUGH THEIR
PROCESS. ALL RIGHT. I FIGURED
YOU'D SAY THAT, BUT I JUST HAD
TO TRY. YEAH. YEAH. JUST IN
TERMS OF FUNDING, I THINK THAT'S
ONE OF THE GREAT ONGOING
CHALLENGES. NOT FOR THIS, BUT
JUST NOT JUST THIS, BUT EVERY
EVERY SILO WITHIN THE STATE. YOU
KNOW, IN TERMS OF THINGS, WHAT
GO-BIZ IS, IS KIND OF LIKE WE
LOOK THROUGH ALL THE DIFFERENT
FUNDING MONEYS. IT'S ALMOST LIKE
HAVING A CHEESECAKE FACTORY
MENU. AND THEN GO-BIZ SERVES AS
THE WAITER OR WAITRESS AND THEN
THEY ALSO KNOW YOUR TASTE
PREFERENCES. AND SO THEY TRY TO
MAKE IT EASY AND LOOK LIKE ONE
TYPE OF STATE THING. AND
ALIGNING ALL THESE PROGRAMS
TOGETHER, KNOWING THE INS AND
OUTS. SO THAT'S, YOU KNOW, KIND
OF WITHOUT OTHER, YOU KNOW,
HIGHER LEVEL STRATEGIC
INVESTMENTS. THAT'S KIND OF WHAT
WE'RE LEFT WITH. IT'S LIKE,
OKAY, LET'S MAKE SURE YOU'RE
GETTING THE KATE FILE. LET'S
SUPPORT YOU ON THE FEDERAL
FUNDING. LET'S MAKE SURE THERE'S
IF THERE'S A CDC PROGRAM NOW.
AND THAT'S KIND OF HOW WE PIECE
IT ALL TOGETHER. BUT THERE ARE
CERTAIN, YOU KNOW, I THINK PART
OF THE WORK OF THE CDC AND THE
COMMISSION AND THE WORKING GROUP
IS, YOU KNOW, WHAT ARE THOSE? NO
REGRETS. THINGS LIKE, YOU KNOW,
UPGRADING THE BRIDGES, FOR
EXAMPLE, AND THE TRANSMISSION,
YOU KNOW, THOSE TYPES OF THINGS
THAT BENEFITS EVERYBODY. I THINK
A LOT OF THE WORK CAN COME OUT
OF THE INTERAGENCY WORK THERE.
APPRECIATE THAT. VERY MUCH.
OKAY, I WANT TO BRING IT BACK TO
THE MEMBERS. I SEE THE
COMMISSIONER JUMPING UP AND
DOWN. IF YOU WANT TO ADD
SOMETHING, FEEL FREE. I TAKE
ADVANTAGE OF YOU WHILE WE HAVE
YOU HERE. THE WHOLE POINT, I
WANTED TO CLARIFY A COUPLE
THINGS. ONE, ON THE PRIOR
PRIORITIES IN PRIORITIZING THE,
YOU KNOW, WHAT TO FINANCE, WHAT
TO INVEST IN, ETC. WE ARE BEING
REALLY RESPECTFUL OF THE COUNTY
OF IMPERIAL. THEY ARE GOING
THROUGH A PROCESS RIGHT NOW
CALLED THE LITHIUM VALLEY
STRATEGIC PLAN, WHERE THEY WILL
BE GATHERING A LOT OF COMMUNITY
INPUT. USING THEIR OWN
EXPERTISE, APPLYING ALL THESE
THINGS TO DETERMINE WHAT OF THE
INFRASTRUCTURE SHOULD BE
PRIORITIZED. YOU KNOW, WHAT
INVESTMENTS ARE NEEDED. AND THIS
IS WHERE WE'RE EXCITED TO HEAR
WHAT THEY'LL HAVE TO SAY,
BECAUSE THAT CAN ALSO HELP US AT
THE STATE DETERMINE WHERE WE CAN
BEST SUPPORT SUPPLEMENT, WHERE
ARE THERE GAPS, WHERE MAYBE WE
HAVE TO GO AFTER OTHER TYPES OF
FUNDING POSSIBILITIES, LIKE THE
FEDERAL GOVERNMENT AND SO WE ARE
TRYING TO EXPLORE ALL THOSE
THINGS. BUT AGAIN, BEING
RESPECTFUL AND COLLABORATIVE AT
THE SAME TIME, REALLY THOUGHTFUL
ABOUT HOW WE, YOU KNOW, GO ABOUT
THAT APPROACH. AND THEN I ALSO
WANTED TO TALK ABOUT THE
PERMITTING REALLY QUICKLY, THE
ENERGY COMMISSION DOES HAVE A
NEW PERMITTING PROCESS CALLED
OPT IN THAT IS SPECIFICALLY
MEANT TO ENABLE MORE CLEAN
ENERGY TO COME THROUGH AND
FASTER. SO THE, AND ALSO
INCLUDES, POSSIBILITY FOR
BATTERY MANUFACTURING, ASSEMBLY
LINES, THINGS OF THAT SORT. SO
THAT COULD BE A WAY FOR, FASTER
PERMITTING THAT'S, YOU KNOW,
DONE DILIGENTLY. WE HAVE THE
SEQUA PROCESS. WE HAVE, ALSO
REQUIREMENTS FOR, COMMUNITY
BENEFITS AGREEMENT, PROJECT
LABOR AGREEMENTS OR PREVAILING
WAGE AND ALSO, ECONOMIC BENEFITS
TO THE LOCAL GOVERNMENT THAT
WOULD HAVE OTHERWISE DONE THE
PERMITTING. SO THERE ARE THOSE,
YOU KNOW, POSSIBILITIES AS WELL.
SO WE'RE GRATEFUL THAT WE HAVE
THIS OPPORTUNITY OF OPT IN TO BE
ABLE TO MOVE THINGS ALONG FASTER
AS WELL. I APPRECIATE THAT
YOU'RE PROBABLY WELL AWARE THAT
I'M WORKING DEEPLY IN THAT SPACE
AND ON THAT STATUTE, ACTUALLY.
SO WE'LL COME BACK TO THAT
ANOTHER TIME. THANK YOU.
COMMISSIONER, I WANT TO BRING IT
TO AN OPPORTUNITY FOR MY
COLLEAGUES ON THE SUBCOMMITTEE
TO ASK QUESTIONS OF THIS PANEL.
SENATOR NILO. I'M GOING TO
REVISIT THE ISSUE THAT I TALKED
ABOUT AT THE PREVIOUS PANEL,
BECAUSE I AM QUITE INTRIGUED BY
THE, THE GRAND VISION THAT WE
HAVE AS FAR AS THIS BECOMING A
MANUFACTURING CENTER. AND IT
WOULD BE ENTIRELY APPROPRIATE
FOR GO-BIZ TO LOOK AT THE
REGULATIONS THAT WOULD IMPACT,
MANUFACTURING, TO, CONVENE
REPRESENTATIVES OF RELEVANT
BUSINESS GROUPS, LIKE THE
MANUFACTURERS ASSOCIATION, AND,
THE MANUFACTURERS THEMSELVES,
BOTH BATTERY AS WELL AS
AUTOMOBILE, PERHAPS ASK WHY,
TESLA ESTABLISHED THEIR BATTERY
MANUFACTURING FACILITY IN NEVADA
AS A SO CLOSE TO CALIFORNIA. WHY
NOT CALIFORNIA FOR SPECIFIC
THINGS THAT NEVADA OFFERS THAT
MADE THAT ATTRACTIVE, A
COMPREHENSIVE LOOK AT THAT WOULD
GIVE A MUCH BETTER CHANCE FOR
SUCCESS OF THAT VERY GRAND
VISION. YEAH, I THINK ON THE
REGULAR, WE'RE INTERACTING WITH
BUSINESS GROUPS AND BUSINESS
COMMUNITIES AND TRYING TO FEED
THAT IN. AND SO I THINK YOUR
POINT IS WELL TAKEN. YEAH.
SENATOR SMALL CHÁVEZ, THANK YOU
SO MUCH FOR THE FOR THE
PRESENTATION. AND INFORMATION.
AND I FEEL LIKE I WANT TO GET
MORE INTO THE WEEDS ON SOME OF
THE, THE POINTS. ONE, I WANT TO
SAY IT'S EXCITING TO BE LOOKING
AT THE FUTURE AND REALLY
POSITIONING CALIFORNIA AS A
LEADER IN THIS SPACE. AND I
REALLY WANT TO THANK THE CHAIR
FOR BRINGING THIS TO ALL OF US
AND BUILDING OUR CAPACITY TO
UNDERSTAND THESE ISSUES BETTER,
I THINK ABOUT THE IMPERIAL,
VALLEY AREA, AND I THINK ABOUT
SOUTH CENTRAL LOS ANGELES. AND
THOUGH TOPOGRAPHIC IS IT
TOPOGRAPHICALLY, GEOGRAPHICALLY
VERY DIFFERENT. BUT WHEN WE
THINK ABOUT THE SOCIOECONOMIC
CONDITIONS AND WHO LIVES THERE,
AND THOSE MOST IMPACTED BY,
ENVIRONMENTAL INJUSTICE, YOU
KNOW, I AND I AND I HEARD THE
COMMISSIONER SPEAK ABOUT, YOU
KNOW, THE LOCAL COMMUNITY GOING
THROUGH A PLAN. BUT I'M CURIOUS
HOW HOW ARE THOSE COMMUNITIES
BEING CENTERED IN THE
CONVERSATION THAT THE STATE IS
HAVING, PARTICULARLY THROUGH THE
GO-BIZ WORK? RIGHT, BECAUSE IT'S
NOT A SMALL BUSINESS. IT'S NOT
THE, THE GREEN, TECH COMPANIES
THAT ARE EXPLORING HOW TO TURN
THIS INTO A MANUFACTURING
CENTER. IT'S THE FOLKS WHO LIVE
IN THE COMMUNITY. AND, I'M
COAUTHOR ON A BILL, SB 150. I
DON'T KNOW IF YOU ALL ARE
FAMILIAR WITH IT. IT IS LOOKING
AT WAYS FOR US TO EMBED, LABOR
AND COMMUNITY BENEFITS STANDARDS
INSIDE OF OUR GREEN
INFRASTRUCTURE FUNDING,
PARTICULARLY THE FEDERAL FUNDING
THAT COMES DOWN AND WHATEVER
STATE MATCHING FUNDS ARE
INVOLVED. AND, YOU KNOW, THE
REASON FOR THAT BILL WAS JUST
OUR EXPERIENCE OF HISTORICALLY
RECOGNIZING WHO HAS NOT BEEN A
PART OF THE INFRASTRUCTURE
SECTOR, WHETHER IT'S, YOU KNOW,
ON THE MANUFACTURING SIDE,
WHETHER IT'S ON THE CONSTRUCTION
SITE SIDE, YOU KNOW, WOMEN ARE
SEVERELY ABSENT, BLACK COMMUNITY
MEMBERS ARE SEVERELY
UNDERREPRESENTED. AND,
IMMIGRANTS, UNDOCUMENTED FOLKS
SEVERELY UNDERREPRESENTED IN
THOSE SPACES. BUT THEY ALSO
HAPPEN TO BE THE MOST VULNERABLE
COMMUNITIES. SO I'M CURIOUS IF
YOU COULD SHARE MORE ABOUT HOW
THIS CAN HOW ARE YOU ALL IN
THESE CONVERSATIONS? AND I
APPRECIATE HOW YOU TALKED ABOUT
THE DIFFERENT SILOS, HOW ARE YOU
ALL SORT OF SEEING THE
INTERSECTION OF SORT OF THIS AS
AN ANTI-POVERTY EFFORT, WHAT IS
HAPPENING NOW FOR, YOU KNOW,
GOING BACK TO THE SIMILARITIES
OF SOUTH CENTRAL, ONCE A
REDLINED COMMUNITY, NO
INVESTMENT, VERY LITTLE
DEVELOPMENT NOW IS EXPLODING
WITH INTERNATIONAL, YOU KNOW,
CORPORATIONS LIKE BLACKSTONE
BUYING UP HOMES, LOCAL FOLKS
DISPLACED AND THE OPPORTUNITY OF
WHAT SOUTH LA WILL BECOME. IT'S
QUESTIONABLE WHETHER THESE
COMMUNITIES WILL EVEN BE THERE
TO PARTICIPATE. SO I THINK IT'S
REALLY IMPORTANT THAT THAT PIECE
IS CENTERED IN HOW WE HOW WE
ENGAGE FOLKS WHO ARE COMING INTO
THE REGION AS A STATE TO
UNDERSTAND WE HAVE A
RESPONSIBILITY FOR THE MOST
VULNERABLE WHO ARE IN THE REGION
NOW AND WHO'VE LIVED THERE AND
PROTECTED COMMUNITY. SO I'M
CURIOUS HOW HOW IS HOW ARE THOSE
COMMUNITIES BEING CENTERED,
PARTICULARLY WHEN IT COMES TO
WORKFORCE? AND HAVE YOU THOUGHT
ABOUT HOW SB 150 CAN BE APPLIED
TO THIS WORK? WELL, YEAH, JUST
JUST TO START AND I DON'T HAVE
MUCH DEPTH TO GO INTO BECAUSE
NOT MY AREA. BUT I THINK WHAT
YOU JUST DESCRIBED IS THE
THINKING BEHIND THE CALIFORNIA
JOBS FIRST INITIATIVE. RIGHT
REALLY REGIONAL LED, MAKING SURE
THAT WE'RE INTEGRATING ACROSS
AND WORKING AT EVERY LEVEL. YOU
KNOW, HIGH SCHOOL COMMUNITY
COLLEGE, STATE COLLEGE, èC,
APPRENTICESHIPS, TRAINING AND
ALL THAT TYPE OF STUFF. AND THEN
ONE THING THAT COMMISSIONER
GALLARDO MENTIONED WAS THE IDEA
OF PROJECT LABOR AGREEMENT.
RIGHT. AND SO I THINK THOSE ARE
KIND OF THE UNSUNG HEROES A LOT
OF TIMES. RIGHT. BECAUSE WITHIN
THOSE PLANS, YOU CAN PUT
PROVISIONS FOR LOCAL HIRE AND
TRAINING AND LIKE AND WITH
PARTNERSHIP WITH ORGANIZED LABOR
WHEN THAT WHEN THAT'S
APPROPRIATE. THERE'S A LOT OF
BENEFIT THERE BECAUSE YOU CAN
START TO DRAW IN AND TARGET THE
COMMUNITIES WE'RE REALLY TRYING
TO REACH. AND SO WE'RE SEEING
THAT THROUGH A LOT OF FEDERAL
PROGRAMS LIKE I'M WORKING ON THE
HYDROGEN HUB. THAT'S EXACTLY
WHAT WE'RE DOING, YOU KNOW, AND
FOCUSING IN ON THAT. LOCAL
PROVISIONS FOR LOCAL HIRE AND
MAKING SURE THAT THOSE FOLKS
HAVE THE PRIORITY WHEN THE JOBS
COME UP. YEAH. AND I THINK THAT
JUST SPEAKS TO THE POINT THAT
THE CHAIR WAS SAYING IN TERMS OF
FRAMEWORK AND I YEAH, I HEAR ALL
THESE DIFFERENT PIECES, BUT IS
THAT HOW DOES IT BECOME CENTERED
IN ORDER FOR THIS WORK? I THINK
EVEN THOUGH THIS IS NOT MY
COMMUNITY, WE ALL HAVE
RESPONSIBILITY FOR OUR MOST
VULNERABLE. AND I AND I HOPE TO
SEE IN THE PLANS THAT PART OF
THE FRAMEWORK IS, IS, IS JUST
THAT, OH, DID YOU WANT TO ADD
I'LL JUST ADD ONE THING,
COMMISSIONER GEIER MENTIONED THE
OPT IN PROGRAM, ONE OF THE
TENANTS OF THAT PROGRAM IS THE
DEVELOPERS HAVE TO HAVE A
COMMUNITY BENEFITS AGREEMENT. SO
THAT'S THAT'S A MECHANISM TO
BRING BENEFITS TO THE COMMUNITY
FROM THESE PROJECTS, THE OTHER
THING THE COMMISSIONER MENTIONED
IN HER PRESENTATION, WE SPENT
MOST OF 20, 23 JUST ON THE
GROUND TALKING TO PEOPLE,
HEARING WHAT THEIR CONCERNS WERE
, WHAT SOME OF THE CHALLENGES
THEY FACE. AND SO WE'VE REALLY
TRIED TO BRING THAT INFORMATION
BACK INTO OUR THINKING AND THEN
A FEW WEEKS AGO, WHEN WE HAD
OUR, LITHIUM VALLEY SYMPOSIUM,
YOU KNOW, A COUPLE OF THE PANELS
WERE, YOU KNOW, WE'RE REALLY TO
TRY TO MAKE SURE THEIR VOICES
WERE HEARD IN THIS. WE HAD
REPRESENTATIVES FROM A LOT OF
THE LOCAL COMMUNITY BASED
ORGANIZATIONS, A LOT OF THE
MUNICIPALITIES IN THE REGION,
JUST SO THAT THEY CAN
COMMUNICATE WHAT KIND OF WHAT
THEY WANT OUT OF LITHIUM VALLEY,
WHAT WHAT THEIR CONCERNS AND
WHAT THE CHALLENGES THEY SEE
GOING FORWARD ARE GREAT. I'M
GLAD TO HEAR THAT AND HOW THESE
BUSINESSES THAT ARE COMING, AND
THIS IS A QUESTION BECAUSE I
THINK WHEN WE TALKED ABOUT THE
CEC FUNDING AND, AND THE WAYS IN
WHICH THESE GRANT FUNDS ARE, ARE
BEING BROUGHT IN, I'M CURIOUS
WHAT WHAT ARE THESE ALL WHERE
ARE THESE COMPANIES FROM? ARE
THEY CALIFORNIA? ARE THEY
INTERNATIONAL? I'M TRYING TO GET
A SENSE OF WHO'S IN THIS
ECOSYSTEM, AND HOW IS CALIFORNIA
, PRIORITIZED IN THAT PROCESS?
SO ARE WE GIVING PRIORITY TO
CALIFORNIA FIRMS IN THIS SPACE,
OR IS IT A SITUATION WHERE THE
TECHNOLOGIES ARE SO ADVANCED
THAT THERE'S ONLY CERTAIN
COUNTRIES OR COMPANIES THAT MAY
NOT BE CALIFORNIA BASED, WE THAT
WE HAVE TO BRING AND SUBSCRIBE
TO THOSE KINDS OF FIRMS MOST
OFTEN. YEAH. SO I MEAN, JUST ON
THE LITHIUM KIND OF GEOTHERMAL,
THERE'S ONLY THREE COMPANIES
THAT ARE CURRENTLY ACTIVE IN
THAT SPACE, TWO OF THOSE
COMPANIES HAVE A PRETTY, PRETTY
LONG HISTORY IN IMPERIAL VALLEY.
JUST AROUND THE GEOTHERMAL
DEVELOPMENT, THAT'S, BERKSHIRE
AND ENERGY SOURCE MINERALS, THE
THIRD COMPANY CONTROLLED THERMAL
RESOURCES, THEY COME FROM
AUSTRALIA, WHERE THERE IS A LOT
OF LITHIUM PRODUCTION. SO I
THINK THEY'RE BRINGING A LOT OF
THEIR THEIR EXPERTISE AND THEIR
KNOW HOW TO KIND OF THE, THE
SPECIFIC SALTON SEA OPPORTUNITY.
GOT IT, GOT IT. I HAVE MORE
QUESTIONS, BUT MAYBE WE'LL
FOLLOW UP LATER AND LEARN LEARN
MORE ABOUT, THIS AMAZING WORK AS
WE FIGURE OUT WAYS TO ENSURE
THAT WE KEEP GROWING THIS SECTOR
AND GROWING THE OPPORTUNITIES.
SO THANK YOU FOR THE
PRESENTATION. THANK YOU VERY
MUCH. THANKS TO THE PANEL FOR
YOUR PATIENCE, YOUR
PRESENTATION, YOUR PARTICIPATION
VERY MUCH. AND NOW I'D LIKE TO
INVITE UP THE THIRD PANEL TO
PARTICIPATE, TO FOCUS ON
CHALLENGES AND OPPORTUNITIES.
JOHN GAY, DIRECTOR OF IMPERIAL
COUNTY DEPARTMENT OF PUBLIC
WORKS SILVIA PRISCILLA LOPEZ,
DIRECTOR, IMPERIAL COUNTY
WORKFORCE AND ECONOMIC
DEVELOPMENT DEPARTMENT, AND CHEN
TÊ, REGIONAL RESEARCH MANAGER,
CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION. PLEASE COME
FORWARD, MAKE YOURSELVES
COMFORTABLE. AND IF WE HAVE A
TAKE A MINUTE TO SWITCH OVER
PRESENTATIONS, WE'LL DO THAT.
MEMBERS OF THE DELEGATION
APPRECIATE YOU BEING HERE. THANK
YOU. THAT WILL GO UP. I WILL
START WITH MR. GAY. AND YOU
KNOW, PROCEED WHEN READY. THANK
YOU. IT'S AN HONOR TO BE HERE
TODAY BEFORE THIS COMMITTEE, A
LITTLE BIT ABOUT MYSELF, I WAS
RAISED IN THE IMPERIAL VALLEY. I
GREW UP IN BRAWLEY, AND I ALSO
HAD CHILDHOOD ASTHMA. LISTENING
TO. OH, SORRY ABOUT THAT,
LISTENING TO, THE COMMENTS HERE.
AND I REALLY APPRECIATE,
CHAIRMAN PAZ AS WELL AS NAOMI'S
COMMENTS, IT'S BEEN REFRESHING
TO BE ABLE TO SEE A LOT OF
ACTIVITY IN OUR COMMUNITY, FROM
DIFFERENT STATE AND FEDERAL
AGENCIES COMING TO VISIT, AND
SEEING OUR WONDERFUL VALLEY.
THERE'S A LOT OF CONVERSATION
AROUND INFRASTRUCTURE AND, YOU
KNOW, FOR THOSE OF US THAT THAT
HAVE LIVED THERE, FOR THOSE OF
YOU THAT HAVE BEEN ABLE TO SEE
OUR AREA, IT IS VERY RURAL IN
NATURE. WE ARE PRIMARILY AN AG
COMMUNITY, IF YOU LOOK BACK
THERE ON THE MAP, THAT'S, THAT'S
A ZONE. THAT'S OUR, OUR SPECIFIC
PLAN AREA THAT WE'RE STUDYING
RIGHT NOW. IF YOU LOOK AT THAT,
WHAT YOU'LL SEE, YOU'LL SEE
PRIMARILY A LOT OF GREEN, WE
HAVE ROUGHLY THE 50,000 SQUARE
ACRE AREA THAT WE'RE STUDYING AT
THIS POINT IN TIME, IT'S UP AND
AGAINST THE, THE SALTON SEA, AT
AND YOU CAN SEE, KIND OF A GRID
PATTERN IF YOU LOOK AT THAT GRID
PATTERN, THOSE ARE ESSENTIALLY
ROADS AND ROADS IN THE AREA.
MANY OF THOSE ROADS ARE DIRT
ROADS, THEY ARE MOSTLY TWO LANE
ROADS, AND, WE HAVE, A TOWN SITE
COMMUNITY OF NILAND. AND SO IT'S
UP IN THE CORNER, THE NORTH
EASTERLY CORNER. IT'S KIND OF
CARVED OUT THERE. BUT THAT
COMMUNITY HAS BEEN UNDER EXTREME
STRESS, BACK IN 2019, WE THE
COUNTY HAD ITS A MAJOR FIRE.
ACTUALLY, IT'S AS LARGEST FIRE
DESTROYED 40 HOMES, AND THEN IN
SEPTEMBER, WE HAD, MASSIVE
FLOODING IN THAT COMMUNITY, AS
WE, AS WE MOVED INTO THIS
PROCESS, WE ARE VERY THANKFUL
THAT SB 125 PROVIDED FOR, MONIES
TO UNDERTAKE, THIS SPECIFIC PLAN
AND PROGRAMMATIC EIR, FOR, FOR,
FOR LITHIUM VALLEY, IT'S
IMPORTANT TO NOTE THAT AS PART
OF THAT FUND, THERE WAS A
SIGNIFICANT, SOURCE OF PUBLIC
OUTREACH I'VE BEEN DEVELOPING IN
THIS COMMUNITY FOR MORE THAN 20
YEARS, DEVELOPS A LOT OF
FARMLAND INTO COMMERCIAL AND
INDUSTRIAL SPACE AND RESIDENTIAL
SPACE, AND THIS IS A FIRST TIME
THAT I'VE BEEN DEVELOPING THAT
THERE'S BEEN A SIGNIFICANT LEVEL
OF, OUTREACH TO DIFFERENT
STAKEHOLDER GROUPS, AND IT'S
BEEN A CHALLENGE. BUT IT'S ALSO
BEEN REFRESHING AND REWARDING.
PART OF PART OF THE, MONIES THAT
CAME THROUGH SB 125 NOT ONLY
PAID FOR, THIS PROCESS WE'RE IN
RIGHT NOW, THIS PROGRAMMATIC
EIR, WHICH WE'VE JUST FILED, I
THINK WE'RE IN OUR PROCESS OF
OUR NOTICE OF PREPARATION, AND
SO, IT'S A IT'S A VERY GOOD STEP
FOR US, BECAUSE WE'VE DONE A LOT
OF PUBLIC OUTREACH. WE ALSO, AS
PART OF THAT FUNDING, HAD AN
INFRASTRUCTURE ASSESSMENT THAT
WAS DONE. AND SO THAT'S PLAYING
INTO THIS AS WELL. AND IT TELLS
US A LOT OF WHAT WE ALREADY KNOW
ABOUT OUR COMMUNITY, THAT IT'S
LACKING A LOT OF INFRASTRUCTURE
FOR TO DEVELOP A, TO DEVELOP
THIS VALLEY, IT'S GOING TO NEED,
A SIGNIFICANT AMOUNT OF, ROAD
IMPROVEMENT, A SIGNIFICANT
AMOUNT OF BRIDGE IMPROVEMENTS,
PROBABLY IN THE FUTURE,
CENTRALIZED WATER AND SEWER
TREATMENT PLANTS, DRAINAGE,
THERE WAS A MENTION OF
CONVEYANCE OF POWER, THAT WILL
BE REQUIRED AS WELL. AND THEN,
OF COURSE, BROADBAND, AND SO ALL
THOSE DIFFERENT ELEMENTS ARE
BEING LOOKED AT AS WE SPEAK,
AND, THERE'S PATHWAYS TO GET
THAT DONE, IT WILL TAKE A LOT OF
COLLABORATION WITH NOT ONLY OUR
LOCAL ENTITIES, WHICH WE'RE
FAMILIAR WITH, AND, AND I THINK
WE HAVE A GOOD, BASE OF
COMMUNICATION. I THINK, AT LEAST
AT A LOCAL PUBLIC AGENCY LEVEL,
THERE'S A LOT OF MOVEMENT IN THE
SAME GENERAL DIRECTION, BUT, WE
ALSO ARE LOOKING FORWARD TO,
STATE AND FEDERAL, COLLABORATION
AS WELL. I CAN TELL YOU
HONESTLY, WITHOUT A DIME COMING
TO OUR AGENCY THERE CAN STILL
BE, YOU KNOW WHAT? JUST DEALING
WITH HAVING TO DEVELOP IN THE
PAST, JUST FROM THE REGULATORY
STANDPOINT AND THE PERMITTING
STANDPOINT, WITH INTEREST
OUTSIDE OF OUR AREA,
PARTICULARLY AT A STATE AND
FEDERAL LEVEL, HAVING SOME SOME
BETTER FORM OF PRIORITIZATION
WOULD HELP OUR VALLEY MOST
CERTAINLY. WE HAVE, AN AREA THAT
I VIEW AS SIMILAR TO THIS THAT'S
SMALLER IN SIZE AND SCOPE, AND
IT'S NEAR OUR BORDER. AND IT'S A
SECOND IT'S A BORDER CROSSING.
THE GATEWAYS OF AMERICA, AND
THAT STARTED IN THE LATE 1990S,
AS A RESULT, REALLY, OF NAFTA,
AND SO WHAT'S TRANSPIRED FROM
THAT AT THIS TIME, WE SEE A LOT
OF, OF, DEVELOPMENT, THAT'S
ONGOING THERE, BUT IT'S TAKEN 20
YEARS TO GET TO THAT POINT. AND
A LOT OF THAT FUNDING WAS REALLY
, GENERATED LOCALLY. WHAT DO I
MEAN BY THAT? HOW DID HOW DO WE
GET TO THE POINT WHERE WE CAN
DEVELOP, A NEW BORDER CROSSING?
REALLY WITH, WITH LOCAL FUNDING,
AND WE DID IT THROUGH DIFFERENT
MEANS, WE DID PUBLIC PRIVATE
PARTNERSHIPS, FOR OUR
INFRASTRUCTURE FOR. SO, WHEN I
CAME ON BOARD WITH THE COUNTY,
WE HAD TO EXPAND THE WATER AND
SEWER TREATMENT PLANT THERE, SO
WORKING WITH THE DEVELOPERS, WE
ENDED UP, PARTNERING SO WE CAN
ACTUALLY, EXPAND THAT TREATMENT,
WE USED OUR OWN, SOURCE OF
TAXES, SO WE HAVE A SELF-HELP
TAX FOR OUR ROADS. WE CALL IT
OUR LOCAL TRANSPORTATION
AUTHORITY TAX. AND SO WE
ACTUALLY PUT, MONIES INTO THE
ROAD PROGRAM THERE TO HELP BUILD
OUT ROADS, GRANTS. SO OUR LOCAL
COG, IMPERIAL COUNTY
TRANSPORTATION COMMISSION, THEY
WERE ABLE TO, BRING IN FEDERAL
DOLLARS. SO GRANTS ARE ALWAYS
SOMETHING THAT WE WORK TOWARDS,
AND, THEY WERE ABLE TO, TO WIDEN
THE MAIN ACCESS IN, INTO, INTO
THE GATEWAY, FROM MEXICALI, FROM
MEXICO. AND THAT'S ONGOING RIGHT
NOW. THAT WAS, I BELIEVE THEY
CALL IT TIGER FUNDING. I THINK
NOW IT'S RAISED FUNDING, AND SO
THAT'S AN ONGOING PROJECT. THE
THOSE ARE GOING TO BE SOME OF
THE TOOLS WE LOOK AT HERE IN
LITHIUM VALLEY. THOSE ARE MORE
REALLY KIND OF LOCALLY BASED,
WITH THE EXCEPTION OF GRANTS.
BUT TO YOUR POINT, IN TERMS OF
COLLABORATION, THERE NEEDS TO BE
A FOCUS AND A PRIORITY, AROUND
THAT. I'D BE REMISS TO SAY THAT
AS PART OF OUR INFRASTRUCTURE
ASSESSMENT, WE DIDN'T CONSIDER
QUALITY OF LIFE. IT'S IMPORTANT,
PARTICULARLY WITH REGARDS TO
COMMUNITIES IN AND AROUND
LITHIUM VALLEY, THEY NEED VERY
BASIC AMENITIES. ONE OF THE MORE
REWARDING PROJECTS THAT WE DO IN
MY DEPARTMENT ARE VERY SIMPLE
SIDEWALK, CURB AND GUTTER
PROJECTS JUST FOR AREAS THAT
DON'T HAVE ANY PATHWAYS, OUR
CHILDREN HAVE TO WALK TO SCHOOL
IN, IN, IN AREAS THAT, THAT,
WERE IN DIRT. SOME OF THEM WILL
WALK IN THE STREET AFTER IT
RAINS BECAUSE THEY DON'T WANT TO
GET THEIR SHOES MUDDY. IT'S A
VERY REAL SITUATION FOR OUR
COMMUNITIES HERE. AND SO, WHEN
WE ARE ABLE TO LAND THOSE GRANTS
FOR SIDEWALK, CURB AND GUTTER,
IT CHANGES THE COMMUNITY. I CAN
TELL YOU FIRSTHAND. AND, THE 617
MONEY THAT WE RECEIVED, WE'RE
DOING THE LARGEST SIDEWALK
PROGRAM IN HEBER. IT'S PART OF
A, A ZONE FOR THAT FUNDING
THAT'S AVAILABLE, AND IT
TRANSFORMS THE COMMUNITY, AS
PART OF THIS, WE'VE LOOKED AT
THAT AS WELL, THE LACK OF
PARKLAND, IS ANOTHER, YOU KNOW,
IS ANOTHER ISSUE, BUT AS PART OF
THIS SPECIFIC PLAN, THERE'S A
LOT OF DIFFERENT USES WITHIN
THAT AREA, AND SOME OF THOSE,
DIFFERENT LAND USES. WE'RE
LOOKING AT, THERE'S GOING TO BE
SYNERGY BETWEEN THE DIFFERENT
USES. I THINK, LISTENING TO SOME
OF THE QUESTIONS. SO OF COURSE,
GREEN INDUSTRY IS WHAT WE'RE
LOOKING AT. AND AS PART OF THAT
GREEN INDUSTRY, WE'LL HAVE
MANUFACTURING, WE'RE LOOKING
RIGHT NOW TO MAKE SURE THERE'S A
LOT OF FLEXIBILITY IN OUR
SPECIFIC PLAN TO WHERE WE CAN
HAVE, NOT ONLY LITHIUM
EXTRACTION AND BAD BATTERY.
EXCUSE ME? BATTERY MANUFACTURE,
BUT ALL THE WAY TO END OF LIFE
TO RECYCLING. SO IT'S ALL IN ONE
PLACE. THAT WILL HELP REDUCE
SOME OF THE INFRASTRUCTURE
STRESS THAT WE RECEIVE. BY
CO-LOCATING, THESE DIFFERENT
USES, IN THE SAME SPACE. I THINK
THERE'S BEEN A LOT OF
CONVERSATION AROUND WATER AND
IT'S AN IMPORTANT CONVERSATION,
I THINK IT'S AN IMPORTANT JUST
IN TERMS OF SCALE TO UNDERSTAND,
HOW MUCH WATER IS USED IN OUR
VALLEY WITH REGARDS TO
AGRICULTURAL VERSUS EVERY OTHER
USE, AND SO WHEN YOU'RE LOOKING
AT THE 2.6 MILLION ACRE FEET
THAT WE GET A YEAR, 97% OF THAT
GOES TOWARDS AG, WE ARE AG
CENTRIC AND 3% GOES TOWARDS
EVERYTHING ELSE. SO IT GIVES YOU
KIND OF A SCALE, IT GIVES YOU A
PICTURE, OF WHAT WE HAVE TODAY.
THE IMPERIAL IRRIGATION
DISTRICT, IS AN IMPORTANT
PARTNER WITH US IN THIS AS WELL,
WE HAVE ACTIVE AND ONGOING
CONVERSATIONS AS WE'RE GOING
THROUGH THIS PROCESS. MÁS, WITH
OUR EIR, AND, THEY HAVE SET
ASIDE ALREADY, THIS IS BEFORE,
LITHIUM VALLEY WAS EVEN ON THE
RADAR. THEY HAVE 25,000 ACRE
FEET FOR INDUSTRIAL USE, AT THIS
POINT IN TIME, WE'RE LOOKING AND
THIS IS GENERALLY. AND THESE
NUMBERS CAN CHANGE BECAUSE WE
ARE STILL IN THIS PROCESS WITH
OUR EIR. AND I DO WANT TO PAUSE
AND JUST NOTE, THERE WAS A,
THERE WAS, I THINK, CONCERN AND
A COMMENT MADE WITH REGARDS TO
LITIGATION, IT IS NOT WITH
REGARDS TO THE PROCESS THAT THE
COUNTY IS GOING THROUGH ALREADY.
IT WAS A PROJECT LEVEL EIR, FOR
ONE OF THE DEVELOPMENTS. SO IT
HAS NOTHING TO DO WITH WHAT
WE'RE HERE TODAY FOR, BUT, THE,
THE BUILD OUT IN TERMS OF WHAT
WE'RE LOOKING AT, WE'RE PHASING
OUR GROWTH. AND SO WHILE WE'RE
LOOKING AT 50,000 ACRES ON THAT
FOOTPRINT RIGHT NOW FOR, THE
FIRST PHASE, WHICH WE THINK IS
PROBABLY GOING TO BE CLOSER TO
MAYBE A 20 YEAR BUILD OUT, MAYBE
30, IS ABOUT A THIRD OF THAT. SO
12 TO 15,000 ACRES. AND I
APOLOGIZE, I DIDN'T SHOW THAT
SHAPE, BUT IT'S A SHAPE THAT'S
MOVING BASED UPON SOME OF THE
INPUTS THAT WE'RE RECEIVING FROM
OUR COMMUNITY. K¾T. THE LAND USE
WITHIN THE SPECIFIC PLAN IS NOT
ONLY GOING TO BE DRIVEN BY, SAY
GREEN INDUSTRY. THERE'S GOING TO
BE CONSERVATION LAND THERE.
THERE'S ALREADY CONSERVATION
LAND IN THAT FOOTPRINT. IN AND
AROUND THE SEA. THERE'S GOING TO
BE PLAYA RESTORATION LAND. SO AS
PART OF THE, SPECIFIC PLAN,
WE'RE LOOKING ALSO AT MAKING
SURE WE'RE SETTING ASIDE A
MECHANISM TO REHABILITATE, AND
TO MITIGATE THE PLAYA, THE PLAYA
BEING EXPOSED AS ONE OF THE KEY
CONSIDERATIONS, IN TERMS OF AIR
QUALITY, AND THEN I THINK REALLY
INTERESTING IN TERMS OF OUR LAND
USE PLAN, WE'RE ALSO DOING
COMMUNITY OPPORTUNITY ZONES AND
THOSE ZONES, WE REALLY WANT A
LOT OF PUBLIC ENGAGEMENT IN
BECAUSE THEY CAN BE A LOT OF
DIFFERENT THINGS. THAT WOULD
HELP THE COMMUNITIES, WE WANT TO
HAVE THEIR VOICE IN TERMS OF
HEARING WHAT THEY WOULD LIKE TO
SEE IN THE DEVELOPMENT. IS THERE
IS THERE A COMMUNITY OPPORTUNITY
ZONE GOING TO BE A PARK? IS IT
GOING TO BE SOMETHING THAT'S OF
SPECIFIC NEED TO THAT COMMUNITY?
MAYBE IT'S A LACK OF, OF A OF A
OF A OF A FOOD MARKET. I WANT TO
BRING THE FOCUS BACK TO THE
LITHIUM RELATED STUFF. I
APPRECIATE THE COMPREHENSIVE
OVERVIEW OF THE GENERAL PLANNING
ACTIVITIES OF THE COUNTY. IT'S
IMPORTANT. IT'S IMPORTANT
PARTNERSHIP. BUT IN THE INTEREST
OF TIME, I WANT TO MAKE SURE I
GIVE EVERY PANELIST AN
OPPORTUNITY TO PRESENT, IF WE
COULD JUST WRAP UP REAL QUICK
AND THEN I WILL, I WILL GO TO
MISS LOPEZ AND THEN MR. C¯.
SURE. I THINK FROM A STANDING
FROM A STANDARD PLAN, PLANNING
STANDPOINT WITH REGARDS TO
MOVING FORWARD, I THINK, THE
FUNDING IS, IS A KEY
CONSIDERATION WITH REGARDS TO
THE INFRASTRUCTURE, SO, THE,
WE'RE LOOKING ALSO AT ENHANCED
INFRASTRUCTURE FACILITY
DISTRICTS. WE'VE ALREADY STARTED
THAT PROCESS AT A LOCAL LEVEL,
AS WELL AS, THE LITHIUM TAX,
WHICH IS GOING TO BE VERY
IMPORTANT FOR OUR COMMUNITY. SO
WE SEE THOSE AS BEING TOOLS TO
HELP US. GROW THAT COMMUNITY.
THANK YOU VERY MUCH, MR. GAY.
MISS LOPEZ, WELCOME. THANK YOU,
GOOD AFTERNOON, MY NAME IS
PRISCILLA LOPEZ. I'M THE
DIRECTOR FOR, IMPERIAL COUNTY
WORKFORCE AND ECONOMIC
DEVELOPMENT. I WANT TO THANK
YOU, CHAIRMAN PADILLA AND
MEMBERS OF THE COMMITTEE FOR
ALLOWING ME THIS OPPORTUNITY TO
TALK TO YOU ABOUT WORKFORCE. IT
IS A TOPIC THAT WE'VE HEARD ON
EVERY SINGLE PANEL. IT IS OF KEY
IMPORTANCE, IMPORTANCE FOR
LITHIUM VALLEY AND FOR OUR AREA
IN GENERAL, SO JUST FOR SOME
BACKGROUND, ALL OF OUR PROGRAMS
CURRENTLY UNDER THE WORKFORCE,
ARE FUNDED THROUGH WORKFORCE
INNOVATION AND OPPORTUNITY GRANT
FUNDS, SO THE QUALIFICATIONS FOR
THE DIFFERENT PROGRAMS JUST KIND
OF DEPEND ON WHAT PROGRAM WE'RE
LOOKING AT. SO, FOR THIS, I'M
GOING TO CONCENTRATE ON OUR
BUSINESS SERVICES BECAUSE THAT'S
WHAT WE'RE LOOKING TO EXPAND, TO
ADDRESS SOME OF THE NEEDS THAT
ARE COMING IN TO THE COUNTY FOR
BUSINESSES THAT WILL DEVELOP OUR
WORKFORCE. OBVIOUSLY SOME OF
THOSE BUSINESS SERVICES THAT WE
PROVIDE, ARE VARIOUS TRAINING
SERVICES OR TRAINING,
COMPONENTS. SO, JUST TO GIVE YOU
AN EXAMPLE, WE HAVE AN INCUMBENT
WORKER TRAINING THAT TRAINING
ALLOWS FOR UPSKILLING OF CURRENT
EMPLOYEES. SO LET'S SAY A
COMPANY COMES IN AND HAS AN
EMPLOYEE THAT WANTS THAT NEEDS
TO BE UPSKILLED. WE CAN PAY FOR
THAT TRAINING, WE ALSO HAVE,
WORK EXPERIENCE. AND ON THE JOB
TRAINING, THESE ARE GOING TO BE
VERY IMPORTANT BECAUSE WE CAN
OFFER THAT TO THE BUSINESS
COMING IN. AND IT WILL HELP WITH
BUILD THEIR OWN JOB BANK. AND
THAT'S KIND OF WHAT WE WANT TO
DO. WE WANT TO MAKE SURE WE'RE
BUILDING THAT FOUNDATION UP, WE
ENCOURAGE LOCAL HIRING AT EVERY
LEVEL, WE, WE, WE SUPPORT IT,
RECRUITMENT, EVENTS, JOB FAIRS,
POSTINGS, WHATEVER IT IS WE NEED
FOR, FOR A BUSINESS NEEDS, THEY
CAN COME TO US AND WE CAN
ADDRESS IT WITHIN OUR FUNDING
SOURCE AND WITHIN OUR SERVICES,
ALSO, WE RECENTLY DID EXPAND OUR
BUSINESS SERVICES WITH LITHIUM
VALLEY IN MIND. WE PROCURED, A
MOBILE UNIT. SO IF YOU'VE BEEN
TO THE COUNTY OF IMPERIAL, WE'RE
WIDELY RURAL AND I'D LIKE
DIRECTOR GABE MENTIONED OUR
INFRASTRUCTURE NEEDS ASSISTANCE,
OUR TRANSPORTATION NEEDS
ASSISTANCE. SO WE, THE
WORKFORCE, HAVE THREE CO-LOCATED
JOB CENTERS, ONE IN EL CENTRO,
ONE IN CALEXICO, ONE IN BRAWLEY,
AND A FEW, SATELLITE SITES, ONE
IN THE COMMUNITY OF CALIPATRIA,
ANOTHER IN THE COMMUNITY OF
WINTERHAVEN, AND THEN ANOTHER A
SECOND JOB SITE, A SATELLITE
SITE IN EL CENTRO, IF SOMEBODY
IN, FOR EXAMPLE, THE SALTON SEA
AREA WANTS TO GO INTO A JOB
CENTER TO APPLY FOR A JOB OR TO
A RECRUITMENT EVENT, THEY NEED
TO HAVE TRANSPORTATION AND IT'S
NOT IT'S NOT AN EASY TASK. THEY
WOULD NEED TO DRIVE 45 MINUTES
TO INDIO OR 45 MINUTES TO
BRAWLEY. SO WITH THAT IN MIND,
PLUS THE KNOWN GEOTHERMAL
RESOURCE AREA AND THE AND THE
WHAT? LITHIUM VALLEY, THE
DEVELOPMENT WHERE IT'S LOCATED
IS UP IN THE NORTH END. SO WITH
THAT IN MIND, WE PROCURED A
MOBILE UNIT THAT HAS EIGHT
WORKSTATIONS, ONE ADA COMPLIANT
STATION AND SOME WORKSPACE FOR
STAFF. YOU KNOW, INTERNET
CAPABILITIES. TRAINING
CAPABILITY TO GO OUT TO THE WORK
SITES. SO LET'S SAY A RECRUITER,
A JOB NEEDS OR AN EMPLOYER NEEDS
A RECRUITMENT EVENT. WE CAN TAKE
THE MOBILE UNIT OUT TO THEM. WE
CAN TAKE THE MOBILE UNIT OUT TO
AN OUTLYING COMMUNITY. WE WANTED
TO MAKE SURE THAT WE WERE
ADDRESSING THE EQUITY ISSUE. WE
WANTED TO MAKE IT EASIER FOR THE
COMMUNITY TO USE OUR SERVICES AS
, AS APPLIED TO, TO LITHIUM
VALLEY AND TO ANY TRAINING
THAT'S COMING IN. SO THAT'S,
THAT'S ONE OF THE WAYS THAT
WE'RE ONE OF THE WAYS THAT WE'RE
MAKING IT EASIER FOR THE
COMMUNITY TO PARTICIPATE. WE
ALSO DEVELOPED A BUSINESS
CENTER, SOME OF THE
ORGANIZATIONS COMING IN, WILL
THERE BEING ESTABLISHED. SO THEY
NEEDED A WORKSPACE. WE HAVE JOB
CENTERS FOR JOB SEEKERS, BUT WE
DIDN'T HAVE A BUSINESS CENTER
FOR BUSINESSES. WE ESTABLISHED A
BUSINESS CENTER WITH A
MULTI-PURPOSE ROOM, FULLY
CAPABLE FOR TRAINING AND
RECRUITMENT EVENTS. THERE'S
CONFERENCE ROOMS, OFFICE ROOM,
AVAILABILITY, AND THERE'S ALSO
AN INCUBATOR SPACE, WE ALSO
PROCURED OR NOT PROCURED. WE
WERE LUCKY ENOUGH TO HOST THE
IMPERIAL VALLEY SMALL BUSINESS
DEVELOPMENT CENTER RECENTLY, AND
THEY'RE HOUSED UNDER OUR OUR,
BUSINESS DEVELOPMENT CENTER. SO
THEY ALSO PROVIDE THESE
ENTREPRENEURSHIP SERVICES, WE'RE
SMALL BUT MIGHTY SBDC. AND
WITHIN A YEAR, THEY THEY THEY'RE
ASSISTANCE HAS, THE LOCAL SBDC
HAS PROVIDED SERVICES THAT HAVE
RESULTED IN OVER $630,000 IN
CAPITAL INFUSION, WHICH HAVE
RESULTED IN AN IMPACT OF OVER $8
MILLION IN ECONOMIC IMPACT.
THAT'S A BIG NUMBER FOR A SMALL
BUSINESS DEVELOPMENT CENTER, WE
HAVE USED IT FOR SOME OF THE
COMPANIES COMING IN FOR MEETING
SPACES, RECRUIT EVENTS, AND IT'S
A GREAT HUB FOR, FOR THESE
BUSINESSES TO USE WHILE THEY'RE
GETTING ESTABLISHED, WE ALSO
ASSIST IN GUIDING BUSINESSES ON
CERTAIN, TAX CREDITS. FOR
EXAMPLE, ONE OF THE TOPICS THAT
I WAS ASKED TO PRESENT ON WAS
THE NEW EMPLOYMENT AND NEW
EMPLOYMENT TAX CREDIT. AS YOU
KNOW, REPLACEMENT IN THE FORMER
ENTERPRISE ZONE. OUR AREA
CURRENTLY, IF YOU LOOK AT THE
FRANCHISE TAX BOARD, OUR
BUSINESSES DON'T REALLY QUALIFY
FOR IT. SO THEY'RE NOT MAKING
USE OF IT. HOWEVER, WITH THE
NEW, SB 131, WHICH AMENDS IT TO
INCLUDE SEMICONDUCTOR, ELECTRIC
AIRPLANE AND LITHIUM INDUSTRY,
THAT WILL BE A BIG, A BIG PLUS
TO THE INDUSTRIES COMING INTO
THE COUNTY. SO THAT'S SOMETHING
THAT WE'RE LOOKING AT, FOR THE
COMPANIES TO, TO LOOK AT IS THAT
AS AN, AN OPPORTUNITY FOR THEM,
WE REALLY THOSE NUMBERS REALLY
DON'T COME THROUGH OUR
DEPARTMENT, BUT WE DO HELP
ASSIST PUSH THESE THROUGH, WE
HAVE WORKED QUITE A BIT IN, IN,
CREATING JOBS AND TRAINING FOR
THIS INDUSTRY COMING IN. IT'S
IMPORTANT THAT WE'RE READY FOR
WHATEVER'S COMING INTO THE
COUNTY. THAT'S WHAT THEY'RE
LOOKING FOR WHEN THEY'RE LOOKING
TO US TO ESTABLISH AN INDUSTRY.
SO ONE OF THE STEPS THAT WE
TOOK, WAS TO PROCURE OR NOT
PROCURE TO LOOK FOR FUNDING FOR
A LITHIUM NEEDS, A LITHIUM
WORKFORCE AND ECONOMIC NEEDS
ASSESSMENT. SO OUR LEADERSHIP
WANTED TO KIND OF CREATE A
TEMPLATE TO ROADMAP TO SUCCESS.
WE WANTED TO MAKE SURE WE WERE
DOING THINGS RIGHT. SO WE
APPLIED TO THE EDD FOR THEIR 25%
ADDITIONAL ASSISTANCE FUNDS. WE
WERE AWARDED $750,000 FOR WHAT
WE'VE TITLED THE VALLEY WORKS
NEEDS ASSESSMENT. SO IT'S
LITHIUM VALLEY WORKFORCE AND
ECONOMIC NEEDS ASSESSMENT. WHAT
WHAT THIS WILL TELL US IS THIS
IS WHERE YOU'RE AT TODAY. AND
THIS IS WHERE YOU WANT TO BE IN
TEN YEARS. WHAT ARE THOSE GAPS
AND HOW CAN YOU FILL THEM? AND
WHAT ARE OTHER INDUSTRIES THAT
YOU NEED TO BE LOOKING AT SO
THAT YOU'RE PREPARED WITH A
TRAINED WORKFORCE, TO, TO BE
ABLE TO, TO RECEIVE THIS, THIS
INDUSTRY AND TO BE ABLE TO, TO
ADDRESS THOSE NEEDS. WE HAVE
178,000 APPROXIMATELY, PEOPLE
LIVING IN THE COUNTY. OUR AREA
IS SURROUNDED BY MEXICO TO THE
SOUTH, ARIZONA, 45 MINUTES TO
THE EAST, SAN DIEGO TO THE WEST,
AND THEN OF COURSE, RIVERSIDE,
AN HOUR AND A HALF, UP NORTH. SO
THE COMMUNITY IS, IS SURROUNDED
BY LARGER AREAS. WE HAVE A
WORKFORCE THAT COMES IN FROM ALL
OVER THE PLACE, SO WE CAN TRAIN
A PREPARED WORKFORCE FROM
WHEREVER, WHEREVER WE NEED. AND
WE PUT TOGETHER A STEERING
COMMITTEE. WE BROUGHT TOGETHER
STAKEHOLDERS FROM ACROSS THE
COUNTY, AND WE WANTED TO MAKE
SURE IT WAS TRANSPARENT AND OPEN
TO EVERYONE SO WE COULD RECEIVE
FEEDBACK AND BE ABLE TO BUILD
THIS, THIS RFP AND THIS REPORT,
ULTIMATELY, WITH THE COMMUNITY
IN MIND AND WITH NOT JUST
LITHIUM VALLEY, BUT ALSO ANY
OTHER INDUSTRY THAT MIGHT BE
COMING IN AS A RESULT OF THIS
ECONOMIC DEVELOPMENT, WE BUILT A
STEERING COMMITTEE OF 12 PEOPLE,
INCLUDING LOCAL GOVERNMENT,
EDUCATION, OAN, TRAINERS, CBOS,
AND THEY DEVELOPED AN RFP. WE
RELEASED IT. WE GOT 13
SUBMISSIONS, VERY, VERY
NATIONALLY RECOGNIZED THINK
TANKS. AND WE SELECTED RAND
CORPORATION. AND SO THAT IS
UNDERWAY STARTING MAY 7TH. AND
WE ARE VERY EXCITED TO BRING
THAT TO YOU AND BRING THAT TO
PUBLICATION AS SOON AS IT'S
DONE. SO YOU WILL BE HEARING A
LOT MORE OF THAT IN THE COMING
MONTHS, WE ALSO WANT TO KNOW
THAT LET YOU KNOW THAT WE HAVE
ADDRESSED THE TRADES, TRAINING.
WE ARE IN DISCUSSIONS CURRENTLY
WITH, IVC, IMPERIAL VALLEY
COLLEGE, WHO'S ACTUALLY IN THE
AUDIENCE, AND, THE SAN DIEGO
WORKFORCE PARTNERSHIP TO BRING
IN THE MC3 CURRICULUM TO THE
COUNTY. SO THAT ALLOWS FOR
APPRENTICESHIPS AND IT ALLOWS
FOR PRE APPRENTICESHIPS TO START
TRAINING WITHIN OUR AREA,
INDUSTRY HAS ALWAYS BEEN AT THE
TABLE. SO ANYTHING THAT WAS
BUILT TO, TO TRAIN FOR THEM WAS
WITH INDUSTRY AT THE TABLE. WE
ADDRESSED WORKFORCE WHEN THIS
STARTED ABOUT WELL AS FAR AS OUR
PARTICIPATION IN THE DEVELOPMENT
ABOUT THREE YEARS AGO, A LITTLE
MORE MAYBE, BY BRINGING TOGETHER
K-12. HIGHER ED VOCATIONAL
TRAINERS, IMPERIAL VALLEY
COLLEGE, GOVERNMENT TO AND
INDUSTRY TO SEE WHAT WE COULD DO
TO DEVELOP TRAINING THAT WAS
SPECIFIC TO THE INDUSTRY, THAT
WAS FAST TRACKED BECAUSE PEOPLE
WANT JOBS TODAY, NOT IN FOUR
YEARS, AND THEY WANT SUSTAINABLE
JOBS. SO SO, AFTER THE
DISCUSSION, IMPERIAL VALLEY
COLLEGE, TOOK THE INFORMATION
AND BUILT THREE CLASSES, THREE
CURRICULUM THAT WAS SPECIFICALLY
, FOCUSED ON TRAINING FOR THE
WORKFORCE THAT LITHIUM VALLEY
WILL NEED, THESE ARE FAST
TRACKED CLASSES. PLANT OPERATOR
CLASS WAS, OPEN AND STARTED IN
THE FALL OF LAST YEAR. 2023
COHORT OF 60 INDIVIDUALS, TWO
CLASSES OF 30 EACH, AND IT WAS
FILLED WITHIN TWO HOURS OF
OPENING. SO THAT GIVES YOU AN
IDEA OF HOW MUCH PEOPLE WANT TO
GET TRAINED FOR THIS INDUSTRY,
THIS CLASS WAS BUILT WITH, THE
SKILLS NEEDED TO ENTER INTO
MANUFACTURING. SO IT'S NOT JUST
PLANT OPERATOR. THE SKILLS ARE
MATCHED ACROSS THE INDUSTRY TO
BE ABLE TO JUST KIND OF, YOU
KNOW, GET YOU IN A JOB TODAY.
THE OTHER TWO CLASSES ARE
CHEMICAL LAB TECHNICIAN AND
PANEL OPERATOR. THOSE WILL OPEN
IN THE FALL OF THIS YEAR. AND
AGAIN, THEY'RE 12 MONTH CLASSES.
SO IN 12 MONTHS YOU'LL GET AN
INDUSTRY RECOGNIZED CERTIFICATE.
AND INDUSTRY WILL BE WAITING TO
GET YOU INTO THE DOOR, SO WE'RE
REALLY EXCITED ABOUT THE LIFT
PROGRAM. AND, AND, AND WANT TO
ALSO BRING TO THE TO YOU THE
TRAININGS THAT WE HAVE
TRADITIONALLY UNDER WIOA THOSE
ARE, YOU KNOW, LOGISTICS. WE
TALKED ABOUT IT QUITE A BIT.
TRUCK DRIVERS, SECURITY GUARDS,
CNAS, CONSTRUCTION, ALL OF THESE
ARE ALREADY HAPPENING IN THE
COUNTY OF IMPERIAL. WE HAVE
ABOUT 800 PEOPLE REGISTERED
TODAY ON OUR, CASELOAD. AND THAT
INCLUDES OUR YOUTH PROGRAM. IT
INCLUDES OUR ADULT AND OUR
ADULT, DISLOCATED AND THAT'S
ONLY IN TRAINING OR SERVICE
THAT'S REGISTERED ON OUR
CASELOAD. THAT'S NOT TO COUNT
THE NUMBERS THAT WE HAVE ON A
DAILY BASIS. COMING IN TO USE
OUR JOB CENTER, WITH THAT SAID,
I DON'T WANT TO TAKE UP ANY MORE
OF YOUR TIME, BUT I THANK YOU
FOR THE OPPORTUNITY AND I'M
AVAILABLE FOR ANY QUESTIONS.
APPRECIATE THE WORK YOU DO, AND
THANK YOU, MISS LOPEZ. AND WE'LL
BRING IT, TO MR. BRONCO.
WELCOME. THANK YOU FOR YOUR
PATIENCE. OF COURSE. THANK YOU,
MR. CHAIRMAN. MEMBERS OF THE
COMMITTEE, THANK YOU SO MUCH FOR
INVITING ME TODAY. AND I'LL TALK
ABOUT TAXATION CONSIDERATION
RELATED TO LITHIUM EXTRACTION.
AS WE KNOW, SENATE BILL 125
ESTABLISHES A THREE TIER TAX
BASED ON CUMULATIVE METRIC TONS
OF LITHIUM CARBONATE. AND THIS
TAX WAS EFFECTIVE IN 2023.
JANUARY 1ST, 2023. THE FIRST
YEAR THE, THE FIRST YEAR,
ESTABLISHED A $400 PER METRIC
TON FOR UP TO 20,000 METRIC
TONS. THAT AMOUNT INCREASES TO
$600 BETWEEN 20,000 AND 30,000
METRIC TONS. AND THE THIRD YEAR
ESTABLISHED, A TAX RATE OF $800
PER METRIC TON, OVER 30,000
METRIC TONS. BEGINNING IN
JANUARY 2024, 2025. THE RATES
WILL BE ADJUSTED ACCORDING TO
CALIFORNIA CONSUMER PRICE INDEX.
IN ADDITION, THE LAW REQUIRES
CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION TO PREPARE A
STUDY OF REPLACING THE VOLUME
BASED TAX. THE CURRENT EXCISE
TAX, WITH A GROSS RECEIPTS TAX.
SPECIFICALLY, THE LAW REQUIRED
CDFA TO EVALUATE THE FOLLOWING.
THE ADMINISTRATIVE FEASIBILITY
OF BOTH OF THESE TAX STRUCTURES.
THE REVENUE STABILITY. THE TAX
BURDEN RELIABILITY OF GROSS
RECEIPTS DATA IN TERMS OF
DETERMINING LITHIUM PRICING, AS
WELL AS EVALUATING ALTERNATIVES
TO VOLUME, OTHER ALTERNATIVES,
OR VOLUME BASED TAXES. I'LL
BRIEFLY SHARE SOME OF THE
FINDINGS RELATED TO EACH OF
THESE SPECIFIC AREAS WITH YOU
TODAY IN TERMS OF ADMINISTRATIVE
FEASIBILITY, OUR STUDY FOUND
THAT WHEN VOLUME BASED TAX WOULD
BE LIKELY EASIER TO ADMINISTER
THAN A GROSS RECEIPTS TAX, THERE
IS. THE MAIN REASON FOR THAT IS,
IS BECAUSE IT DOES NOT WOULD NOT
REQUIRE US TO, TO EVALUATE
PRICES. HOWEVER, IN TERMS OF
ADMINISTRATIVE COSTS, THE
DIFFERENCE BETWEEN BOTH OF THESE
TAXES IN TERMS OF COSTS ARE NOT
SIGNIFICANT. REVENUE STABILITY.
AGAIN, THE VOLUME BASED TAX
SYSTEM COULD BE SLIGHTLY MORE
STABLE THAN A GROSS RECEIPTS TAX
SYSTEM. THE MAIN REASON FOR THAT
IS THAT A WE HAVE WHAT WE HAVE
EXPERIENCED, WE HAVE SEEN IS
THAT PRICES LITHIUM PRICES HAVE
BEEN QUITE VOLATILE OVER THE
LAST COUPLE OF YEARS, AND THE
GROSS RECEIPTS TAX SYSTEM WOULD
REFLECT THAT VOLATILITY IN
PRICES. ON THE OTHER HAND, THE
VOLUME BASED TAX STRUCTURE, THE
CURRENT EXCISE TAX WAS NOT WOULD
NOT BE AS PRONE TO THOSE, VERY
TO THOSE FLUCTUATIONS IN PRICES.
HOWEVER, AS WE ALL KNOW, PRICES
ARE ULTIMATELY RELATED TO
VOLUMES. SO ANY VOLUME BASED TAX
WOULD NOT BE IMMUNE TO ANY PRICE
FLUCTUATION, BUT THE FREQUENCY
OF THOSE FLUCTUATIONS WOULD BE
LESS LESS FREQUENT. IN ADDITION,
THE CURRENT YEAR TAX SYSTEM
PROVIDES A BENEFIT BECAUSE THE
ENTRY LEVEL IS AT $400, WHICH
PROVIDES SOME TAX BENEFITS TO,
ESPECIALLY AS THOSE PRODUCERS
START THEIR PRODUCTION PROCESS
AND HAVE A LOT OF UPFRONT COSTS.
RELIABILITY OF GROSS RECEIPTS.
SORRY. SO GROSS RECEIPTS TAX
COULD BE MORE RELIABLE MEASURE
OF PRICES AS IT WILL ACCURATELY
REFLECT THE LITHIUM PRICE
TRENDS. HOWEVER, WHAT WE FOUND
IS THE ACTUAL PRODUCTION PRICE
OF LITHIUM CAN BE QUITE OPAQUE.
SOME OF THE ONE OF THE REASONS
FOR THIS IS THAT, BATTERY
MANUFACTURERS, COULD ENTER INTO
JOINT VENTURE OR PURCHASE FOR
PRODUCERS OF LITHIUM AND THEN
THEY WOULD NOT NECESSARILY BE A
MARKET TRANSACTION. ARM'S LENGTH
TRANSACTION. BUT WE HAVE ONE ARM
OF THE SAME ENTITY SELLING TO
THE OTHER ARM OF THIS ENTITY.
ANOTHER ANOTHER REASON FOR THIS.
WE FOUND THAT THE CURRENT, THE
CURRENT SPOT PRICES, WHICH ARE
BASED IN CHINA, ARE THE BEST
PUBLIC AVAILABLE LITHIUM PRICES
THAT WE COULD FIND. AND THOSE
PRICES HAVE BEEN QUITE VOLATILE
OVER THE LAST COUPLE OF YEARS.
THE AVERAGE THEY HAVE VARIED AS
HIGH AS $80,000 PER METRIC TON
IN LATE 2022, AND DROPPED TO
ALMOST $15,000 IN NOVEMBER 2023.
WHEN WE WERE RAMPING UP OUR,
REPORT. AND THEN CURRENTLY THERE
ARE $15,000, WE ALSO LEARNED
THAT TYPICALLY PRICES IN
NEGOTIATED PRICES ARE TYPICALLY
NEGOTIATED CONTRACT, AND THEY
TEND TO BE SLIGHTLY LOWER OR
DIFFERENT THAN SPOT PRICES. SO
IT'S A LITTLE BIT HARD FOR US TO
EVALUATE THE EXACT PRICE OF
LITHIUM, CONSIDERING ALL OF
THESE FACTORS. THE TAX BURDEN.
NOW, WE DON'T HAVE ANY RELIEF
FROM TAXES, THUS FAR. SO WE HAVE
TO COME UP, WE HAVE TO COME UP
WITH SOME SCENARIOS AND EVALUATE
THE COMPARE BOTH THE CURRENT
EXCISE TAX AND COMPARE THAT TO
GROSS RECEIPTS TAX. SO WE,
CREATED SOME HYPOTHETICAL
SCENARIOS. I WILL NOT BORE YOU
AT THIS LUNCH TIME WITH THOSE
SPECIFIC SCENARIOS. THEY ARE IN
OUR REPORT. BUT WHAT WE FOUND IS
THE SUMMARY OF FINDING WHAT WE
FOUND WAS THAT, AT THE LOWER
TIER, WHEN THE TAX RATE IS ABOUT
$400 PER METRIC, TONS, BOTH THE
IMPACT OF BOTH OF THESE TAX
STRUCTURES IS NEGLIGIBLE. THEY
DO NOT DIFFER A LOT, HOWEVER, AS
THE PRODUCTION INCREASES AND
PRODUCERS REACH THE TOP TIER
$800 PER METRIC TON, THEN WE DO
SEE PRICE BECOME DETRIMENTAL IN,
DETRIMENTAL IMPORTANT. I'M
SORRY, I TAKE THAT BACK. PRICE
CAN BECOME VERY IMPORTANT IN
WHEN WE COMPARE THOSE TWO
DIFFERENT TAX STRUCTURES. JUST
TO GIVE YOU A VERY QUICK
EXAMPLE, THIS TO ILLUSTRATE THAT
POINT IS, IF A PRODUCER WERE TO
PRODUCE 300,000 METRIC TONS OF
LITHIUM CARBONATE A YEAR, AND
SOME OF THEM HAD INDICATED THEY
WOULD RAMPED UP PRODUCTION AT
THOSE LEVELS, THEN THE CURRENTLY
UNDER THE CURRENT TAX STRUCTURE,
WE WOULD COLLECT $240 MILLION IN
TAX REVENUE IF THE PRICE OF
LITHIUM WERE EIGHT $80,000 PER
METRIC TON. IN TERMS OF GROSS
RECEIPTS TAX, THAT WOULD BE
ABOUT 1% OF THE GROSS RECEIPTS.
NOW, IF FOR THE SAME PRODUCTION
VOLUME, IF THE PRICE OF LITHIUM
WERE TO DROP TO $10,000, THE
EQUIVALENT GROSS RECEIPTS TAX
WOULD BE 8. SO BOTH OF THESE ARE
KIND OF A LITTLE EXTREME VALUES.
BUT BOTH OF THESE WHAT WE FOUND
FALL WITHIN, THE SAME, GENERALLY
IN THE SAME BALLPARK. AND WHAT
WE HAVE SEEN SOME OTHER STATES
AND ENTITIES THAT WHEN THEY HAVE
USED GROSS RECEIPTS TAX TO, FOR,
FOR EXTRACTION, OTHER HARDCORE
MINERALS IN TERMS OF,
ALTERNATIVE TO VOLUME BASED
TAXES. WE LOOKED AT A LOT OF
ALTERNATIVES AND WE CAME, WE
CAME BACK WITH AS THE ONLY
PRACTICAL ALTERNATIVE THAT WOULD
BE FOR US IS A IS EITHER A GROSS
RECEIPTS TAX OR A NET RECEIPTS
TAX. HOWEVER A GROSS RECEIPTS
TAX WOULD BE EASIER TO
ADMINISTER, BECAUSE BECAUSE IT
AVOIDS US, THE COMPLEXITY OF
LOOKING AT DEDUCTIONS,
EXCLUSIONS, EXEMPTIONS, ETC. SO
CURRENTLY, THE CURRENT LITHIUM
ENVIRONMENT, NO TAX TAXABLE
LITHIUM HAS BEEN EXTRACTED IN
CALIFORNIA. WE HAVE NOT
COLLECTED ANY ANY TAX DOLLARS
FROM LITHIUM, WE ARE NOT AWARE
OF ANY CONTRACT PRICES THAT IS
PUBLICLY AVAILABLE, SO WE CAN
LOOK AT SOME OF THOSE PRICES AND
COMPARE THEM WITH SPOT MARKET
PRICES. AS I MENTIONED,
TYPICALLY WE FOUND THAT CONTRACT
PRICES IN LITHIUM ARE DIFFERENT
AND OFTEN A BIT LOWER THAN SPOT
MARKET PRICES. BUT CURRENTLY,
THE CHINESE SPOT MARKET PRICES
IS THE BEST PUBLICLY AVAILABLE
DATA THAT WE COULD FIND. AND WE
HAVE WE LOOK EXTENSIVELY, AND AS
I MENTIONED, THOSE SPOT MARKET
PRICES WOULD BE QUITE VOLATILE,
HAVE CHANGED QUITE A LOT OVER
THE LAST COUPLE OF YEARS.
CURRENTLY, THEY STAND AT AROUND
$15,000 PER METRIC TON AND HERE,
JUST TO ILLUSTRATE BASICALLY
WHERE THE CHINESE SPOT LITHIUM
SPOT MARKET PRICES HAS BEEN OVER
THE LAST 2 OR 3 YEARS, I
MENTIONED THEY VARY QUITE A LOT
FOR CLOSE TO $10,000 IN 2021, AS
HIGH AS OVER $80,000 IN LATE
DECEMBER OF 2022, AND SEEM TO
HAVE DROPPED AROUND $15,000 AT
THE CURRENT RATE. MY LAST SLIDE
IS A RECAP. BY BEING SENSITIVE
TO THE LUNCH HOUR, I'LL JUST
KEEP THAT RECAP AND THEN OPEN UP
FOR ANY QUESTIONS THAT YOU MIGHT
HAVE. FOR ME. I APPRECIATE THAT
AND ALL THE PANELS PRESENTATION.
SO BRING IT TO THE SUBCOMMITTEE
FOR QUESTIONS. ANYTHING, MISTER,
YOU LARGELY ANSWERED MOST OF MY
QUESTIONS. I WAS GOING TO FOCUS
ON THE OBVIOUS FACT THAT WE
DON'T HAVE A LOT OF, BASIS FOR
VOLUME BASED ASSESSMENT AS YET,
AND THAT'S A DIFFERENT ISSUE,
AND YOU'VE LAID OUT PRETTY
CLEARLY THE RELATIVE ADVANTAGES
AND DISADVANTAGES OF THE
DIFFERENT STRUCTURES AND, AND
THEN I WAS GOING TO ASK YOU IF
THERE'S ANY EXAMPLE OF
TRANSITION ANYWHERE, THAT'S
RELATIVE HERE, BUT I DON'T THINK
THERE IS. AND YOU ADDRESS IT A
LITTLE BIT IN YOUR COMMENT. BUT
THAT WOULD BE THE ONLY QUESTION
I HAD, TRANSITIONING FROM VOLUME
AWAY FROM VOLUME INTO ONCE YOU
HAD PRODUCTION, WE HAVE WE HAVE
NOT BEEN AWARE OF IT ANYWAY, WE
DO KNOW THE LAST YEAR, SOUTH
DAKOTA, THERE WAS A PROPOSAL FOR
A GROSS RECEIPTS TAX THERE, AND
THE LEGISLATURE VOTED THAT DOWN
BECAUSE OF THE OPAQUE, YOU KNOW,
PRICE, YOU KNOW, BEING OPAQUE.
AND WE COULD NOT THEY COULD NOT
DETERMINE THE EXACT PRICING OF
LITHIUM. IT'S UNLIKE A LOT OF
OTHER MATURE METAL MARKETS WHERE
THERE IS A LOT OF BUYERS AND,
AND, AND SELLERS AND ARM'S
LENGTH TRANSACTIONS. WE HAVEN'T
SEEN THAT IN THE LITHIUM MARKET.
SO THAT'S A CHALLENGE. SO OPAQUE
AROUND. THANK YOU VERY MUCH TO
THE SUBCOMMITTEE MEMBERS. ANY
QUESTIONS, SENATOR NEIL. EXCUSE
ME. WITH REGARD TO THE, TAX, THE
PRICE, HAS BEEN FLUCTUATING
SIGNIFICANTLY. ALMOST LOOKS LIKE
BITCOIN, BUT NOT QUITE, HOWEVER,
GIVEN THE POTENTIAL INCREASE IN
VOLUME, THE FIRST PRESENTATION,
SHOWED THAT THE POTENTIAL
INCREASE IN VOLUME FROM THIS
AREA COULD INCREASE WORLDWIDE
PRODUCTION BY HALF, THAT'S
SIGNIFICANT INCREASE IN SUPPLY,
WHICH WOULD CONTRIBUTE OBVIOUSLY
, TO THE PRICE, BUT PRESUMABLY
TO, LOWER THE PRICE SOMEWHAT AND
PERHAPS MAKE IT MORE STABLE. SO
MAYBE THE MARKET MIGHT BE HEADED
IN THAT DIRECTION. BUT HAVING
SAID THAT, I ALWAYS BELIEVE THAT
THE BEST TAX OR THE LEAST WORST
TAX IS SOMETHING THAT'S BASED
ACTUALLY ON A TRANSACTION AND
THAT WOULD POINT TO A NET AS
OPPOSED TO A GROSS AND A, A
VALUE TAX AS OPPOSED TO A
PRODUCTION TAX, BECAUSE AS THE
TAXING ON THE GROSS OR TAXING ON
THE PRODUCTION DOESN'T TAKE INTO
ACCOUNT THE ACTUAL ABILITY TO
PAY THE TAX, WHICH IS THE AMOUNT
OF MONEY YOU END UP AFTER ALL OF
YOUR EXPENSES, SO THAT WOULD
SEEM TO MAKE, MORE SENSE, TO ME,
YOU CAN COMMENT ON THAT, BUT I
JUST WANT TO MAKE A COMMENT WITH
REGARD TO ECONOMIC DEVELOPMENT,
YOU'RE YOU'RE TAKING A LOOK AT
WHAT YOUR WHAT, WHAT JOBS YOU'RE
GOING TO NEED TO HAVE AVAILABLE
FOR POTENTIAL COMPANIES COMING
IN OUT INTO THE FUTURE. AND I
COMPLIMENT YOU FOR THAT, THE,
THE SUCCESS OF LOCAL ECONOMIC
DEVELOPMENT DEVELOPMENT EFFORTS
ARE GOING TO BE THE LOCAL
COMPANIES CAPABILITY TO PROVIDE
WHAT THEY NEED. AND TYPICALLY
THAT'S MOSTLY WORKERS AND
FACILITIES AND. OBVIOUSLY
FACILITIES ISN'T IN YOUR,
BAILIWICK. BUT THE WORKERS ARE.
SO THAT I COMPLIMENT YOU FOR
LOOKING OUT AS AS WAYNE GRETZKY.
GRETZKY SAID, YOU YOU PASS THE
BUCK THE PUCK TO WHERE THE
PLAYER IS GOING TO BE, NOT
WHERE, NOT WHERE HE IS, BUT IT
IT IF YOU HAVE ANY COMMENTS ON
WHAT I'VE SAID WITH REGARD TO
THE TAX, BEING THE BEST STATE
DEPARTMENT, IN CALIFORNIA WOULD
COLLECT ANY TAX, ANY FORM THAT,
THAT, YOU KNOW, LEGISLATURE
PASSED, BUT, MY BOSS IS BEHIND
ME, SO THAT MEANS I'M CRAZY. BUT
TO A POINT, THAT ONE ONE THING
THAT WE FOUND IN TERMS OF IS THE
PRICING, THE TRANSACTION
PRICING, THAT IT SEEMS TO BE A
LITTLE BIT OPAQUE IN TERMS OF
YOU KNOW, WHAT THE TRANSACTIONS
ARE AND HOW WE GET THOSE, THOSE
TRANSACTIONS KNOWING THE ARM'S
LENGTH TRANSACTIONS IN TERMS OF
PRICING, THAT HAS BEEN A LITTLE
CHALLENGING. IT DOESN'T MEAN
THAT'S NOT GOING TO CHANGE, BUT
IT'S NOT A LITHIUM. MARKETS ARE
NOT AS MATURE AS THAT DEEP AS
SOME OTHER PRECIOUS OTHER
MARKETS OUT THERE. METAL
MARKETS, WHEN IT'S EASY TO
VALIDATE AND VERIFY PRICING IN
OTHER WORDS. NET IS HARDER TO
VALUE THAN GROSS. IS THAT WHAT
YOU'RE SAYING? YES I WOULD SAY,
AT LEAST ON THE CURRENT
CONDITION. YES. AND I WOULD
GRANT THAT. BUT, THE, THE
ABILITY TO PAY A TAX BECOMES
VERY DIFFICULT IF IT'S NOT BASED
AS MUCH AS POSSIBLE ON THE MONEY
THAT YOU'RE GOING TO END UP WITH
AFTER ALL OF YOUR EXPENSES. WE
TAX BUSINESSES, USUALLY BASED
UPON THEIR NET PROFIT, NOT BASED
UPON THEIR GROSS SALES FOR THAT
VERY REASON. SO I JUST I'M I'M
THROWING THAT OUT AS A SORT OF A
CAUTION, RELATIVE TO THE DESIGN
TO, TO MAKE IT MORE SIMPLE IN
TERMS OF COLLECTING THE TAX, ONE
HAS TO MAKE SURE THAT WE'RE
MAKING IT, AFFORDABLE FOR THE
ENTITY THAT'S GOING TO PAY THE
TAX. COMPLICATIONS OF DEFINITION
NOTWITHSTANDING. THANK YOU.
SENATOR. SENATOR SMALL CUEVAS.
THANK YOU, MR. CHAIR. AND I
WANTED TO ECHO, SENATOR NELLO'S
POINT ABOUT THE WORKFORCE. THAT
WAS, THE ASSESSMENT THAT YOU ALL
ARE IN THE MIDST OF IS SUCH AN
IMPORTANT ONE. AND I THINK IT'S
A MODEL FOR WHAT WE HAVE TO DO
ACROSS OUR CLIMATE RESILIENT,
ECONOMY THAT WE'RE BUILDING
TOGETHER, YOU MENTIONED WIOA
FUNDS AND, HAVING SERVED ON THE
WORKFORCE DEVELOPMENT BOARD FOR,
FOR MANY YEARS, IT'S A SET OF
FUNDING THAT KIND OF TIES THE
HANDS. YOU CAN'T BE VERY
FLEXIBLE AND CREATIVE WITH THOSE
FUNDS, AND I'M CURIOUS IF YOU
ALL HAVE LOOKED AT OUR, HIGH
ROAD TRAINING PARTNERSHIP MODELS
WHERE, IT'S NOT SORT OF THE
GENERAL TRAINING, BUT IT REALLY
IS SPECIAL RISING IN BRINGING,
THE EMPLOYERS WHO HAVE VERY
PARTICULAR NEEDS AND WORKERS AND
BUILDING IT TOGETHER. SO THERE'S
A PLANNING PIECE OF IT IN TERMS
OF THE CURRICULUM, AND THEN IT'S
THE ACTUAL IMPLEMENTATION AND
IT'S A MODEL THAT I'VE SEEN WORK
IN SOME PLACES. AND IT JUST
GIVES MORE FLEXIBILITY TO
WORKFORCE DEVELOPMENT, AGENCIES
FOR, TO BUILD THOSE
PARTNERSHIPS. AND IT'S ALSO
ABOUT THE RELATIONSHIPS THAT GET
BUILT THROUGH THE PROCESS. SO
I'M CURIOUS ABOUT HOW YOU'RE
THINKING ABOUT ONCE THAT
ASSESSMENT COMES IN, WHAT ARE
SOME OF THE TOOLS THAT YOU WILL
NEED FROM THE STATE TO SORT OF
THINK ABOUT, PUTTING THAT PLAN
INTO PRACTICE, AND THEN I HAVE A
QUESTION TO ON THAT. AND ON THE,
AND YOU'RE RIGHT, IT'S, IT'S SO
COMPLEX. BUT I JUST WANT TO SAY
YOUR PRESENTATION IS FROM A
STATE PERSPECTIVE IS THE MOST
IMPORTANT ONE OF THE DAY,
BECAUSE AT THE END OF ALL OF
THIS, WE'VE GOT TO REGULATE,
WE'VE GOT TO MONITOR, AND WE'VE
GOT TO MAKE SURE THAT OUR
WORKFORCE IS BEING TRAINED.
WE'VE GOT TO MAKE SURE THAT,
EXTERNAL FORCES ARE NOT
SPECULATING AND EXPLOITING OUR
CALIFORNIA RESOURCES. AND ALL OF
THAT TAKES MONEY, THAT THE STATE
CURRENTLY DOES NOT HAVE. AND SO
THIS IS GOING TO BE HOW, THE
STATE ACTUALLY FUNDS OUR ABILITY
TO GROW, AND CREATE STANDARDS IN
THIS SPACE SO THAT WE DON'T
CREATE SOME OF THE HARMS OF THE
PAST. AND THAT'S WHERE I WANTED
TO GO TO IN MY QUESTION. I KNOW
THIS IS A VERY TECHNICAL PROCESS
OF LOOKING AT, YOU KNOW, VOLUME
VERSUS RECEIPTS. AND BUT I'M
ALSO CURIOUS, HAVE YOU LOOKED AT
OUR EXISTING ENERGY SOURCE WHERE
LAST YEAR WE HAD THE WINDFALL
TAX PENALTY CONVERSATION WHERE
THE STATE WASN'T ALLOWED TO LOOK
UNDER THE HOOD OF THE FOSSIL
FUEL INDUSTRY TO UNDERSTAND HOW
THEY SET THEIR PRICES AND, WHERE
THEIR REVENUES WENT AND HOW
COULD WE ENSURE THAT WHAT WE
WERE TAXING TO COVER ALL THAT IT
TAKES TO REGULATE THAT INDUSTRY
VÆ THAT WE HAD ENOUGH OF THE
UNDERSTANDING OF THE PROFITS TO
MAKE SURE THAT WE WERE HAVING A
FAIR AND REAL TAXATION
STRUCTURE. SO I JUST AM CURIOUS
HOW MUCH YOU'RE LOOKING AT THE
FOSSIL FUEL INDUSTRY AND WHAT
ARE THE CHALLENGES CALIFORNIA
HAS HAD IN REALLY TRYING TO MAKE
SURE THAT AT THE END OF ALL OF
THIS, WE AREN'T HERE 40 YEARS
FROM NOW TALKING ABOUT WINDFALL
TAX AND PRICE GOUGING AND THE
INABILITY TO HAVE THE REVENUES
GENERATED FROM AN INDUSTRY COME
BACK INTO OUR COMMUNITY SO THAT
THE GOVERNMENT CAN BENEFIT AND
NOT HAVE TO BE CHASING, THE
SECTOR. SO I'M CURIOUS WHAT SORT
OF IN THIS STUDY AND ASSESSMENT,
WHAT WAS LEARNED FROM THE
EXISTING ENERGY SECTOR AND
TAXATION AND PRICING AND HOW WE
APPLY IT HERE FOR THIS SPECIFIC
PROJECT? WE DID NOT LOOK AT
THAT. WE CERTAINLY CAN GO BACK
AND LOOK AT THAT. BUT WE ARE
COMING UP WITH A REPORT THE
DEPARTMENT WITH, IN
COLLABORATION WITH THE ENERGY
COMMISSION, ABOUT GAS PRICES. SO
I THINK THAT WOULD BE PUBLIC
SOMETIME IN THE NEAR FUTURE. AND
THAT, DISCUSSES SOME OF THOSE
ISSUES AND QUESTIONS THAT YOU
HAVE. YEAH, I JUST HOPE THAT IN
THAT STUDY IT'S NOT TOO SEPARATE
, BUT IT IS HELPING TO INFORM
HOW WE DON'T COMMIT SOME OF THE
SAME MISTAKES, IN THE PROCESS
AND WHAT GUARDRAILS. AND I'M
THINKING MORE FROM A POLICY
PERSPECTIVE THAT WOULD BE
HELPFUL FOR US. WHAT ARE THE
POLICIES WE NEED TO BE THINKING
ABOUT TO PUT IN PLACE SO THAT,
YOU KNOW, WE AREN'T REPEATING,
RIGHT. SO I HOPE THAT'S
SOMETHING THAT THE STUDY CAN
CONTINUE TO EXPAND AND THAT
THERE ARE SOME LESSONS LEARNED
THAT CAN BE DOCUMENTED AND
REPORTED BACK TO US AS THE
LEGISLATURE SO THAT, YOU KNOW,
WE ARE DOING THIS IN A WAY. SO
WE CAN FUND LONG TERM, RIGHT,
OUR WORKFORCE THAT WE CAN FUND
LONG TERM. SORT OF THE ISSUES
THAT YOU'RE TALKING ABOUT, ABOUT
BROADBAND AND MAKING SURE
COMMUNITIES THAT ARE IN AND
AROUND THIS RESOURCE HAVE THE
BASIC NEEDS THAT IS GOING TO
RELY ON THE TAXATION SYSTEM, SO
I JUST WANT TO MAKE SURE THAT
THAT, THAT WE LOOK BACK AND THAT
WE COME OUT WITH LESSONS
LEARNED, THAT THAT WILL INFORM
THE LEGISLATURE ON THAT. SO
THANK YOU FOR ALL YOUR WORK, IF
I MAY ADDRESS YOUR QUESTION JUST
VERY QUICKLY. YES, WE Ó Ã DOES
TIE OUR HANDS A LOT. WE DO HAVE
A HEALTHY WE FUND RIGHT NOW. AS
YOU KNOW, IT'S CURRENTLY BEING,
REAUTHORIZED AT THE FEDERAL
LEVEL AND IT'S BEING REWORKED
INTO THE STRONGER WORKFORCE FOR
AMERICA ACT, AND ALTHOUGH RIGHT
NOW THE STATE OF CALIFORNIA DOES
HAVE A TRAINING, COMPONENT THAT
WE HAVE TO MEET 30% OF THE
TRAINING REQUIREMENTS FEDERALLY
ARE LOOKING AT A 50% TRAINING,
WHICH THEY DIDN'T HAVE BEFORE,
THAT MIGHT PUT THAT FUNDING AT
RISK. NOT TOTALLY, BUT IF YOU'RE
LOOKING AT 50% OF PEOPLE SITTING
IN CHAIRS DOING CLASS TRAINING,
YOU'RE NOT LOOKING AT SUPPORTIVE
SERVICES THAT PEOPLE MIGHT NEED
A SUPPORTIVE SERVICE. SO
ALTHOUGH RIGHT NOW CURRENTLY WE
PROBABLY SPEND ABOUT $3 MILLION
ON TRAINING YEARLY, THAT
ADDITIONAL 1 MILLION THAT WE
HAVE THAT WOULD TAKE US UP TO
THAT 50% THAT GOES TO SUPPORTIVE
SERVICES THAT WOULD BE WIPED
OUT. SO THAT'S SOMETHING THAT
MAYBE WE CAN WE CAN ADDRESS WITH
OUR, YOU KNOW, FEDERAL, CONGRESS
AND SENATORS. AND WE'RE WE'RE
DOING THAT WITH THROUGH OUR
ASSOCIATIONS. BUT BECAUSE OF
THAT, WE ARE WE ARE DIVERSIFYING
OUR FUNDS. WE'RE LOOKING AT
HTTP, WE'RE LOOKING AT MC3.
WE'RE TRYING TO FIGURE OUT HOW
WE'RE GOING TO GET THESE
TRAININGS PAID FOR, AND THAT'S
ALWAYS SOMETHING THAT, THAT WE
NEED TO, TO MAKE SURE THAT WE
KEEP ALL OF OUR NETWORK OPEN AND
INFORMED SO THAT WE CAN ADDRESS
THOSE GAPS AND FIGURE OUT WHERE
THAT FUNDING IS GOING TO COME
FROM, LOCALLY, WE'VE BEEN VERY
GOOD ABOUT OUR STAKEHOLDERS AND
MAKING SURE THAT WE INVOLVE
THEM. WE HAVE A QUARTERLY
MEETING WHERE WE OPEN THE FLOOR
TO STAKEHOLDERS ACROSS THE
COUNTY, CBOS, NONPROFITS, LOCAL
GOVERNMENT. AND IT'S VERY WELL
ATTENDED. SO EVERYBODY CAN SAY,
THIS IS WHAT WE NEED, THIS IS
WHAT WE CAN DO, AND THIS IS HOW
WE CAN BRING THAT TOGETHER SO WE
CAN HELP OUR COMMUNITY, BECAUSE
THAT'S WHAT WE'RE HERE FOR. AT
THE END OF THE DAY. WELL, THANK
YOU FOR THAT. AND, AND REMINDING
US THAT SOMETIMES THE TRAINING
FUNDING IS SO NARROW THAT IT
DOESN'T ADDRESS THE THINGS THAT
PEOPLE NEED TO ACTUALLY BE
SUCCESSFUL IN THE TRAINING, LIKE
CHILD CARE, LIKE TRANSPORTATION,
AND I JUST WANT TO SAY THANK YOU
FOR INCLUDING THAT IN YOUR
ASSESSMENT. AND MAKING SURE THAT
WHATEVER RESOURCES COME DOWN
REALLY HELP FOLKS BE SUCCESSFUL
IN, IN THIS OPPORTUNITY. SO
THANK YOU FOR WHAT YOU'RE DOING.
THANK YOU, SENATOR, THANK YOU TO
ALL THE PANELISTS FOR YOUR
PARTICIPATION, YOUR INPUT, BEING
PATIENT. APPRECIATE IT VERY,
VERY MUCH. AND APPRECIATE A LOT.
WE WILL MOVE QUICKLY TO SEE IF
THERE'S ANY PUBLIC COMMENT.
ANYONE THAT WANTS TO ADDRESS THE
SUBCOMMITTEE ON ANY OF THE
PANELS TODAY, IF SO, COME
FORWARD. STATE YOUR NAME FOR THE
RECORD, AND PROVIDE YOUR
COMMENTS IF YOU HAVE ANY,
PLEASE, IN THE INTEREST OF TIME,
LIMIT YOUR COMMENTS TO ABOUT ONE
MINUTE, HELLO AGAIN. JUST WANTED
TO CLARIFY ONE OF MY RESPONSES.
PLEASE FEEL FREE. I SAID THAT
THE LAWSUIT WAS AGAINST THE
COUNTY'S PROGRAMMATIC EIR. IT'S
ACTUALLY AGAINST A SEPARATE
PROJECT THAT THE COUNTY APPROVED
BACK IN JANUARY. SO I JUST
WANTED TO CLARIFY THAT THAT'S
ALL RIGHT. THANK YOU. HI.
WELCOME. HI. THANK YOU, MR.
CHAIR. MEMBERS OF THE COMMITTEE,
JEREMY SMITH, HERE ON BEHALF OF
THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL, WE
ARE WORKING QUITE HARD THROUGH
OUR IMPERIAL COUNTY BUILDING AND
CONSTRUCTION TRADES COUNCIL TO
GET AT A LOT OF WHAT WAS TALKED
ABOUT TODAY, JOB QUALITY, LOCAL
HIRE, WE'RE ALSO WORKING. WITH
OUR FRIENDS AT THE, AT GO-BIZ
AND THE WORKFORCE DEVELOPMENT
BOARD DOWN THERE, IT'S IMPORTANT
TO REMEMBER THAT THIS IS A NEW
INDUSTRY OUT HERE IN A PLACE
THAT NEEDS INDUSTRY, THAT NEEDS
JOBS. AND IF WE CAN SHAPE THIS
AT THE FRONT END TO MAKE SURE
THAT THOSE JOBS ARE NOT NOT JUST
JOBS, BUT CAREERS, I THINK WE'LL
DO A SERVICE TO THE FOLKS IN
THAT AREA OF THE STATE WHO ARE
IN DESPERATE NEED OF A, AN
INDUSTRY DOWN THERE TO, TO, TO,
TO, TO BE FOUNDED AND TO START,
WE DO HAVE A PROJECT LABOR
AGREEMENT WITH ONE OF THE
COMPANIES, CONTROLLED THERMAL
RESOURCES, AND WE ARE WORKING ON
THE OTHER INDUSTRY, THE OTHER
COMPANY, BERKSHIRE HATHAWAY, TO
DO THE SAME SO THAT THE
CONSTRUCTION OF THESE FACILITIES
IS DONE WITH LOCAL WORKERS AND
THEY'RE PAID LIVING WAGES
THROUGH THE PREVAILING WAGE.
THANK YOU. THANK YOU. GOOD
AFTERNOON. MY NAME IS VINCE,
SIGNORE. I'M WITH ENERGY SOURCE
MINERALS, AND I WOULD JUST LIKE
TO THANK YOU, CHAIRMAN PADILLA,
FOR, HOLDING THIS THIS HEARING.
AND TO THE ESTEEMED COMMITTEE
MEMBERS, THANK YOU VERY MUCH, WE
ENCOURAGE YOU TO CONTINUE TO
STAY ENGAGED IN THIS PROCESS AND
TO MAKE THIS VISION A REALITY
THAT'S ULTIMATELY ULTIMATELY
WHAT WE ALL WANT TO SEE HAPPEN.
I WOULD ALSO LIKE TO JUST TAKE
THE OPPORTUNITY TO THANK, THE
CALIFORNIA ENERGY COMMISSION AND
SPECIFICALLY COMMISSIONER
GALLARDO, WHO HAS BEEN DEEPLY
INVOLVED IN WHAT, ENERGY SOURCE
IS DOING AT THE SALTON SEA. AND
WE ARE GRATEFUL FOR THAT
SUPPORT. AND LIKEWISE, SOMEONE
JUST MENTIONED GO-BIZ. GO-BIZ
HAS BEEN VERY SUPPORTIVE, AND
WE'RE GRATEFUL FOR THAT SUPPORT.
AND KAFKA, WE RECEIVED A KAFKA
AWARD. SO, THANK YOU VERY MUCH.
AND AS I SAID, I URGE YOU TO
CONTINUE TO STAY ENGAGED AND TO
MAKE THIS THIS VISION A REALITY.
SO THANK YOU. THANK YOU. ANYONE
ELSE LIKE TO ADDRESS
SUBCOMMITTEE ON THE PANELS TODAY
? SEEING NO ONE COME FORWARD, I
WANT TO GIVE MY THANKS AGAIN.
ANYONE WHO OBSERVED, WOULD LIKE
TO PROVIDE COMMENT CAN DO SO
THROUGH THE WEBSITE OR WITH THE
STAFF. AT THIS TIME, THE BUDGET
SUBCOMMITTEE NUMBER FOUR WILL BE
ADJOURNED. THANK YOU.