Lithium Valley: Imperial County big winner in California budget revision

California Gov. Gavin Newsom wants to add up to $400 million to the 2022-23 budget to accelerate development of a potential huge global supply of lithium and clean energy at the south end of the Salton Sea, and developers there could have access to $1 billion more in "green energy" tax credits in coming years.

The multi-pronged package would fund a new Brawley college campus, aid county and private planning with grants and tax incentives, construct large new transmission lines from the Salton Sea area across the Imperial and Coachella valleys, and could create a permanent lithium production fee, with most going to local coffers. It also includes proposals to streamline geothermal permitting in "Lithium Valley," a major development zone in Imperial County.

“Lithium Valley represents an extraordinary economic opportunity for the Imperial Valley and all of California, with the potential to power the transition to clean energy and zero-emission vehicles nationwide — and beyond,” Newsom said. “We’re doubling down on our progress with new investments to develop Lithium Valley while keeping our values of inclusive, green growth and sustainability front and center to ensure communities in the region share in the benefits.”

The proposals are part of major revisions to Newsom's proposed 2022-23 budget announced Friday morning, and will need to survive jockeying by legislators and interest groups across the state seeking more funds for their areas, too. The final budget must be approved by the legislature by June, where Senate leaders in late April identified an additional potential $68 billion in revenue, largely from wealthy taxpayers. Newsom said Friday the operating surplus was closer to $100 billion.

Still, elected area representatives said the governor's proposals are a welcome, huge step for a historically ignored portion of the state, which has among the highest unemployment rates and lowest average incomes in California, and where many suffer high asthma rates and other pollutant-related illnesses. Imperial County had 12.3% unemployment in March 2022, three times the statewide rate of 4.2%.

"Really good news"

"There's good news, really good news," said Assemblyman Eduardo Garcia, D-Coachella. "Because we have the support of the governor to address the inequities of decades-long impacts in a region like eastern Riverside County, and in this case, Imperial County. And now we have an amazing opportunity in front of us."

But he added, "we're going have to work really hard to garner the support of our colleagues in the legislature. You know, we have 80 assemblymembers and 40 senators who all want to see this type of investment in their corners of the state. So we're going to have to make our case, and demonstrate how this ties into the overall well-being of California's economy, California's environment, our nation's security, and more importantly, doing right by the people of eastern Riverside County and Imperial County."

An estimated $80 million is earmarked for a new Brawley expansion of San Diego State University specializing in STEM majors like mining, geology, engineering, construction and related workforce education. The package also calls for a new fee per ton of lithium produced, with 80% of the revenues going to Imperial County and 20% to state coffers to help restore the badly drying Salton Sea.

Garcia, who was briefed on the details and pushed for the requested funds, said another $150 million to $200 million could be allocated to build large transmission lines to carry geothermal steam power and renewable energy across Imperial County and the Coachella Valley, as part of a larger statewide energy plan. The budget revision requests up to $250 million for clean energy projects, with priority given to transmission lines from Salton Sea projects that also have private and U.S. Dept. of Energy backing.

Other measures include $45 million in possibly forgivable loans or sales and use tax exclusions for lithium research and development. Another $5 million would go toward a request from Imperial County for help in completing a specific plan and sweeping environmental impact report for the lithium and geothermal development area.