County supes want input, representative at state lithium council
EL CENTRO — The Imperial County Board of Supervisors voted Tuesday 3-0 to send a letter to request amendments to a bill that seeks to create the Lithium Battery Production Council.
The bill was introduced last month by state Sen. Steve Padilla (D-San Diego).
Imperial County Executive Officer Miguel Figueroa wrote in a report to the board Senate Bill 1309 would direct the California Energy Commission, in consultation with other state agencies to establish the council that will be tasked with conducting analyses and developing a comprehensive strategy to secure California’s global leadership in lithium battery manufacturing in the Salton Sea area, as well as an economic analysis on workforce development needs, infrastructure needs, sewage and wastewater treatment, and housing needs for lithium battery production.
The bill also seeks to prepare the region to meet the demands of sustaining a global industry.
“There has been much progress that the County has made for the past several years with local, state, and federal partners to acknowledge the resource and potential that Imperial County can play in helping the state reach its climate and energy goals, and helping our nation increase its energy independence and national security,” Figueroa wrote in his report. “The bill in its current form, is still missing substantive language, but as a potential supporter of the bill, we look forward to working closely with the author on developing the legislation throughout the legislative process.”
In the approved letter, Imperial County Board Chair Luis Plancarte writes the county supports SB 1309.
The county, Plancarte adds, adopted its Lithium Valley Economic and Opportunity and Investment Plan in February 2022, which outlined a set of actions to increase economic opportunity for its residents by undertaking large planning forts, streamlining the permitting process for future development, developing the Lithium Extraction Excise Tax and setting a path to pursue federal and state investments in local infrastructure.
A recent report by the Lawrence Berkeley National Lab estimates the Salton Sea area has the potential to produce enough lithium for 375 million batteries for electric vehicles.
“The Salton Sea has one of the largest reserves of lithium in the world, which could fulfill over one-third of the global demand for lithium,” state Sen. Padilla wrote in the bill’s text. “With the world demand for lithium expected to grow as much as tenfold in the next decade, the development of a domestic supply of lithium around the Salton Sea has the potential to unleash billions in economic opportunity, however the surrounding area lacks critical infrastructure to support the emerging industry.”
However, Chairman Plancarte adds in the letter that the area surrounding the lithium deposits needs critical infrastructure, including roads and bridges, as well as communication and transportation infrastructure.
“As California seeks to power the future by producing lithium in a more sustainable and environmentally safer way than nearly anywhere else in the world, it is critical the state has a comprehensive strategy that secures California’s global leadership in lithium battery manufacturing by preparing the region to meet the demands of sustaining a global industry,” Plancarte wrote in the letter. “The State of California and the current Presidential Administration have invested in this initiative and confirming its capability, but there is a great need for a body within the structure of the State of California to take a lead in developing a comprehensive strategy for the State’s support of this vast effort.”
Imperial County Assistant Executive Officer Rebecca Terrazas-Baxter told board members language included in the bill still needs refining by including additional items related to the composition of the council.
The county official added that the bill needs to include provisions to have a county representative in the council.
“We need to see that language,” Imperial County Board Vice-Chairman and District 5 Supervisor John Hawk said.
Hawk, of Holtville, asked the bill does not include any hooks that surprise the county in the future.
Terrazas-Baxter emphasized the county’s support for the bill would depend on how it develops.
Padilla’s representative Guillermo Hernandez said the lawmaker’s office is open to collaborating in the refining of the bill.
District 4 Supervisor Ryan Kelley said the county should be engaged in the state’s lithium council.
Chairman Plancarte said while supporting this legislation some bills finished the legislative process in a completely different manner.
Plancarte requested to have an Imperial Valley representative — and especially an Imperial County official — sitting in the lithium council.
Supervisors Jesús Eduardo Escobar and Mike Kelley were absent from the meeting to conduct county business.
In a separate item, the board of supervisors approved sending another letter to Assemblyman Eduardo Garcia (D-Coachella), regarding the county’s support of AB 1373.
The bill establishes a new Central Procurement Entity at the California Department of Water Resources.
According to the letter, expeditious implementation of the CPE will be critical to ensure Black Rock, Morton Bay and Elmore North geothermal projects proposed in Imperial County are developed, and the County can reap the tremendous economic and community benefits the projects will provide.
The letter reads BHE Renewables, a subsidiary of Warren Buffet’s Berkshire Hathaway Company, owns and operates 10 existing plants in Imperial County. The company is proposing to double the capacity through development of the said projects.
The company currently employs 230 people and projects will create 200 additional permanent skilled jobs.
According to the letter, BHE Renewables is the largest property taxpayer in Imperial County by contributing over $85 million in the last 15 years. The three new projects are estimated to provide $24 million more in property taxes annually.
Terrazas-Baxter explained the bill was enacted in October and is as of today in implementation phase.
The letter calls the Public Utilities Commission to utilize local geothermal energy in its resource diversity portfolio.
The county official said local authorities are concerned with the procurement of geothermal energy from other states given the goal was to include California sources.
“It’s very important,” Supervisor Kelley said, adding that PG&E, Southern California Edison, and SDG&E are purchasing geothermal energy imported from Nevada instead of that produced in other areas like Imperial County. “Its implementation is not bringing real benefits to the people of California.”
The county’s letter also says development of projects could potentially double the amount of lithium produced from geothermal brine in the region.
“Without agreements in place for the purchase of the clean power produced from the Projects, there is significant risk they will not be developed,” the letter continues. “The CPE can now be a reliable purchaser.”
The board voted to approve a second letter of support in favor of SB 967, another state Sen. Padilla bill that would develop a three-day dust forecast and dust storm early warning system for the monsoon season along with the University of California for Imperial County and Coachella Valley.
The board also approved signing an agreement of services with Southwest Protective Services and an item to move the Mariluz Development in Heber.