Published on June 20th, 2014 | by Andrew Meggison
California Cuts Red Tape For Tesla Gigafactory
Originally California did not make the cut on Tesla’s list for potential sites for the Gigafactory, while states like Arizona, Nevada, New Mexico and Texas did. Tesla had concerns over being able to quickly secure permit in California to build what the company has called “a green field site”. Musk has even gone so far as to propose breaking ground on two different sites simultaneously in order to ensure the factory gets going ASAP.
According to Inside Bay Area News though, new legislation proposed by Sen. Ted Gaines, R-Roseville, and state Senate President Pro Tem Darrell Steinberg, D-Sacramento, those concerns have been eased opening the state up to house the $5 billion battery plant and the estimated 6,500 jobs that come with it.
The goal and the design of the Tesla Gigafactory is to reduce cell production costs and, by 2020, produce more lithium ion batteries annually than were produced worldwide in 2013. This means cheaper batteries and cheaper electric cars. Win, win.
Very quietly Tesla has already leased a 430,000 square foot facility in Lathrop east of the Bay Area. Interestingly enough, the leased building used to be a former distribution center for DaimlerChrysler, and is about an hour from Tesla’s HQ in Fremont.
The bill, SB1309, clears out long standing red tape and reduces fees to change the states regulatory and environmental process, introduces monetary incentives such as tax credits, investment credits, and hiring credits all with the goal getting Tesla to break ground in the Golden State.
Once again the state of California is looking forward and leading the way by doing away with old and outdated policies in order to welcome in modern progressive companies and reap the rewards.