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California May Waive Environmental Rules For Tesla

cartechboy writes: We all know Tesla is working on its Gigafactory, and it has yet to announce officially where it will be. But the automaker did announce a shortlist of possible locations, and California wasn't on it. The state has quickly been trying to lure Tesla to get back into contention. Now the state may waive environmental rules which would normally make construction of such a large manufacturing facility more difficult. Apparently, Governor Jerry Brown's office is currently negotiating an incentive package for Tesla that would waive certain parts of the nearly half-century-old California Environmental Quality Act. Not only that, but state officials are reportedly considering letting Tesla begin construction and perform damage mitigation later, along with limiting lawsuits that could slow down the project. Let's not forget some massive tax breaks, to the tune of $500 million. Is California stepping out of bounds here?

16 of 327 comments (clear)

  1. Screwed... by Type44Q · · Score: 4, Insightful

    Californians are stuck between a rock and a hard place when it comes to this shit: they've got state regulations that do a better job (at least better than anywhere else in the US, with the possible exception of Hawaii) of limiting their exposure to nasty, carcinogenic shit, environmentally-devastating corporate irresponsibility, etc etc... but as long as there are cheaper places with less regulations to run a business (Texas, Mexico, China...), that's where industry's going to go. And California will continue it's steady slide down the economic toilet.

    1. Re:Screwed... by Trepidity · · Score: 5, Informative

      Somewhat true, but the regulations really could use an overhaul in the efficiency department. I'm fine with high standards, but if the standard is met, it should be possible to get approval in a reasonable amount of time without spending an inordinate amount of money on the process, and with a reasonable degree of finality (rather than having a million different ways to reopen a court challenge). California's patchwork of regulations is kind of a mess in that department, which is even causing problems for the state itself; the high-speed rail plan has been mired in the process and lawsuits over the process that state law permits a very wide range of people to file. (Granted, it's not all CA law that's the problem in that case; there are also people trying to slow down the process using federal agencies and lawsuits.)

    2. Re:Screwed... by amicusNYCL · · Score: 5, Informative

      but as long as there are cheaper places with less regulations to run a business (Texas, Mexico, China...), that's where industry's going to go. And California will continue it's steady slide down the economic toilet.

      You think so? From here:

      California added almost 320,000 new jobs in 2013 and over 1.17 million new jobs since the end of the recession.

      California's GDP growth rate was 3.5 percent in 2012 – fifth best in the nation.

      Where other states have one or two main economic sectors, California has several -- all of which lead the nation. California is first in high tech, biotech, agriculture, entertainment, manufacturing, tourism and more.

      California is by far the number one state for manufacturing jobs, firms and output – accounting for 11.7 percent of the total output, and employing 9 percent of the workforce. CA manufacturing generates $229.9 billion, more than any other state.

      Information technology jobs have rebounded and exceeded pre-recession levels. California remains the top state for information technology jobs which drives venture capital investment, patents, innovation and ultimately the strength of our workforce.

      California’s 2,324 biomedical companies employ 269,976 people. This industry accounts for $115 billion in annual revenues – which is more than the annual Gross State Product of 18 U.S. states.

      Where's that "economic toilet" you're talking about?

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
    3. Re:Screwed... by roc97007 · · Score: 5, Insightful

      So the state (of which I am an unhappy citizen) can use environmental laws to harass the shit of out walmart, chevron and and other business not in favor, but simply be waived for favored industries ? In the name of money ? I hope someone sues the state

      Yeah, it's called picking the winners and losers. Someone always is suing the state for something or other, but I don't expect much movement on this issue. The state (most states, I suspect) will continue to favor the hip and trendy businesses at the expense of businesses they don't like.

      But you can't blame Musk for considering the deal. Because hey, free money.

      --
      Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
    4. Re:Screwed... by Trepidity · · Score: 4, Informative

      There are plenty of legitimate reasons you could oppose the HSR system, but tying it up in red tape and NIMBY lawsuits is not one of them, and that's one of the big things it's run into. I'm just using it as an example of how the red-tape and NIMBY-lawsuit problem is so bad in California that even California's own infrastructure projects get snagged in it.

  2. Yes by Anonymous Coward · · Score: 4, Funny

    "Is California stepping out of bounds here?"
    California is like breakfast cereal - what isn't fruits, or nuts, are flakes...

  3. Probably the Projects that Need It by Anonymous Coward · · Score: 5, Insightful

    It's kind of funny ... these big money, massive development sorts of projects are probably the ones that most need to have the environmental review that the law was put in place for.

    So Joe Blow with his small business needs to go through all the red tape, but big ol' money making Elon Musk can avoid them. I can understand the impetus behind it ... lets get that money and those jobs into our state. But isn't it selling out a little, as well unfairly burdening the little guy?

  4. How easily can the waiver be pulled? by mlts · · Score: 4, Insightful

    Yes, the rules are waived... for now.

    However, how easily can that waiver be pulled? Is Tesla standing with a just flick of a governor's pen between them and having to shutter the entire factory, or is there some due process in place so they can't be shut down if they don't toe the politicians' line exactly?

  5. This isn't 'nam! by jtownatpunk.net · · Score: 5, Insightful

    There are rules. Either you have environmental protection laws or you don't. If you have them, don't start making exceptions to them because anyone who didn't get an exception and lost money as a result can (and should!) sue the everlasting shit out of you. If there's a problem with your laws, repeal them and replace them with more sensible ones.

  6. The CA State Legislature needs to learn ... by perpenso · · Score: 4, Interesting

    Is California stepping out of bounds here?

    Maybe, maybe not ... the devil is in the details.

    California does go overboard on regulations. I'm saying this based on conversations with a friend who has an environmental remediation business cleaning up other people's industrial messes or preventing the messes in the first place. He's quite the environmentalist, an environmentalist of the scientific school of thought not the political school of thought. The State Legislature is more of the later. If it "sounds" pro-environment "pass it" is their approach. If its useless or counterproductive it doesn't matter, it just has to sound like a good thing.

    If Tesla is only getting breaks on the sillier stuff it may be a good idea.

    Now on the legal side, California is a nightmare. The State Legislature is bought and paid for by the trial lawyers.

  7. Weight it by population, or area, or ... by Ungrounded+Lightning · · Score: 4, Informative

    California is by far the number one state for manufacturing jobs, firms and output â" accounting for 11.7 percent of the total output, and employing 9 percent of the workforce.

    I'd love to see that in per-capita or per-acre terms.

    It's also the largest state in population, with 11.91% as of the 2010 census. That's half again as many as Texas, a pinch under twice as many as New York or Florida, almost three times that of Illinois or Pennsylvania, and by then you've used up more than a third of them.

    11.7% of the output jobs vs. 11.91% of the population says the AVERAGE of the rest of the states has it beat. Some of the others are REALLY depressed, so the best of them beat it into the ground.

    Similarly, it's the third largest state in area - with the largest amount of COMFY area.

    It has resources, the best ports for trade with Asia, decent roads and railroads to the rest of the continent, etc. And it's got some capital-intensive industries and lots of access TO capital. It SHOULD be a nova to the rest of the country's furnaces. So why isn't it?

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  8. Re:So, such rules are bad for keeping people worki by spasm · · Score: 4, Informative

    That particular regulation (prop 65) was voter initiated, not legislature initiated. All it requires is: the state must publish a list of chemicals known to cause cancer or reproductive harm (defined as having a 1 in 100,000 chance of causing cancer or birth defects or other reproductive harm); businesses must label products and areas, like workplaces or apartments, that contain or release *significant amounts* of those poisons; and businesses are prohibited from knowingly releasing listed chemicals into drinking water sources. Many businesses have taken the position that they're better off posting warnings when any amount of a carcinogenic substance is present.

    Given that semiconductor manufacturing is one of the more hazardous and polluting industries out there, I'm not surprised fab plants have a difficult time meeting environmental regulations in CA and have been willing to deal with the costs associated with moving to states or coutries who don't care as much about the health of workers or the cost of environmental cleanup. The solution to lost jobs isn't to drop regulation so employers can go back to putting employee health at risk, it's to improve the standards of the rest of the world so there isn't an unregulated bolt-hole for fab plant owners to run off to.

  9. Re:Impact assesment by rahvin112 · · Score: 5, Insightful

    It doesn't mean it's irrelevant, it means impacts won't be prevented (which isn't the purpose of an impact study anyway) but they can still be mitigated later. You might not understand this difference but it's significant. We have a serious problem with environmental groups abusing the process not to prevent environmental damage, but to prevent development at all. Even when developers or state agencies go out of their way to protect sensitive sites/species groups like Greenpeace will still sue, not to get additional protections or to protect anything but simply to raise the costs in the hope the agency/company will abandon the project because in Greenpeace's view all new development is bad. They aren't alone, there are dozens of groups who are abusing the courts and our environmental laws as some campaign to end all new development.

    This is not the purpose these environmental rules were created to satisfy. The laws are being heavily abused and if it's not reigned in it's going to get so bad people will support abolishing the protections all together, which is a far worse outcome.

  10. Re:Don't take the bait! by Anonymous Coward · · Score: 5, Informative

    Apparently he's learned his lesson, given that Spacex is building it's new spaceport in Texas.

    SpaceX is mostly sending satellites to geosynchronous orbits. That means launching due east. East of Brownsville, TX, is the Gulf of Mexico. In California, anywhere east is land, much of it populated. In addition, the closer to the equator you launch the rocket from, the more of a boost you get from earth's rotation. This lets you put more payload into space or use a smaller rocket.

    I don't think that Elon is abandoning California. I think the lesson Elon has learned is some basic rocket science.

  11. Re:So, such rules are bad for keeping people worki by ShanghaiBill · · Score: 4, Informative

    A perpetually drought-stricken state is not the place for a water intensive industry like semiconductors.

    Growing rice in the Central Valley uses a thousand times as much water as the semiconductor industry ever did. But the semiconductor industry employed a hundred times as many people. If making semiconductors was dumb, then growing rice in the desert is 100,000 times dumber.