Senate President Pro Tem Darrel Steinberg (D-Sacramento) and Ted Gaines (R-Roseville) have joined forces to push a bipartisan bill, SB 1309, that aims to deliver both financial and regulatory incentives “to expedite groundbreaking and construction” of the plant in California.
Although Tesla is based in California and operates a manufacturing plant in Fremont, the company has viewed the state’s maze of permitting processes and environmental reviews as a threat to quickly constructing the $5 billion battery factory.
“Everything is on the table – tax credits, investment credits, hiring credits,” said Gaines. “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.”
The company has promised to break ground at two sites and begin construction simultaneously to protect against any unforeseen delays. The strategy may also serve to fuel an incentive bidding war for the final two contenders, encouraging each state to sweeten its deal even after the facilities are being built.
SB 1309 is continuing to be refined as legislators hear input from businesses, environmentalists, local governments and other stakeholders. It will require a two-thirds majority vote to pass the Senate and Assembly.
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