California Lawmakers Create Incentives to Get Tesla Motors Gigafactory
In a last-ditch effort to get Tesla Motors to open their much-anticipated electric car battery factory in California, the state's lawmakers along with the governor's office are making the company an offer they hope it won't refuse.
On Thursday, Senate President Pro Tem Darrell Steinberg (D-Sacramento) and Senator Ted Gaines (R-Rocklin) announced that they are co-sponsoring "urgency" legislation with the "intent to provide financial and regulatory incentives to expedite groundbreaking and construction of the plant in the California, The Los Angeles Times reported.
According to the newspaper, Senate Bill 1309 doesn't list any of those incentives, however, experts have said that tax credits, workforce training grants, streamlined permitting and environmental reviews would likely be included.
Gaines said in a statement that the motor company, which currently manufactures its vehicles near the San Francisco Bay Area, would not have to go through the same bureaucratic red tape other companies have to go through.
"Everything is on the table," Gaines said. "We need to show Tesla that we'll cut through the knot of red tape that frustrates companies in this state and prove that California is open for business."
Tesla Chief Executive Elon Musk said last month that he plans to break ground on one of the battery factories as early as this month. He added that construction on the second plant would come the following month or two, The Times reported.
Earlier this year, Musk essentially ruled California out of the running and was considering opening up the gigafactory in Arizona, Nevada, New Mexico and Texas. Permit delays and red tape are what has concerned him, he said, when he brought up those issues with the governor's office.
"We are making our intentions crystal clear," Steinberg said. "We have a strong commitment to do everything in our power to create good-paying jobs and to attract and retain clean industry."
Mike Rossi, a senior advisor to Gov. Jerry Brown regarding jobs and business development, said in a statement that SB 1309, which currently acts a legislative placeholder, is the state's way of showing businesses that it's ready for creating jobs. The bill is in sync with the "administration's efforts to encourage business to expand in California and demonstrates that the state is serious about finding creative solutions to spur job growth," Rossi said.
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