Governor Celebrates Clean Technology Investment In California, Welcomes Tesla Motors To The Golden State
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Today, Governor Schwarzenegger celebrated the state's dedicated efforts to bring clean technology businesses to California by welcoming a Tesla Motors production facility for its Model S, second-generation vehicle, to our state. California's landmark Global Warming Solutions Act of 2006, AB 32, is a testament to our state's solid commitment to fighting climate change while protecting our economy. And Tesla Motors proves, with its zero carbon-emitting, 100 percent electric roadster, that a marriage between environment and economy can be fast, functional, even sexy.
Where companies like Tesla inspire society's inventiveness, Sacramento will push for it. Last week, California Air Resources Board (CARB) released its AB 32 Draft Scoping Plan, the market based roadmap to guide California toward its emissions reduction goals. This roadmap will motivate companies like Tesla to flock to California and bring their innovation, reduced emissions and thousands of jobs with them - to prove to the world that economic prosperity needn't be sacrificed for environmental protection.
“The Wall Street Journal was correct in saying that our policies are creating California's New Gold Rush, because billions of dollars in clean technology investment are flowing into our state.”- Governor Schwarzenegger, Statement At Florida Climate Change Summit, 6/26/08
California Is The Perfect Partner For Clean Technology Industries. California's recognized green-friendly atmosphere spurs clean businesses from around the world to invest in California, creating jobs and contributing to the fight against global warming.
- California attracted over $1 billion in clean-tech venture capital in
2006.
Investment that created tens of thousands of jobs for California's workforce
while cutting greenhouse gas emissions.
- In 2006, approximately 40 percent of all clean-tech venture capital investment was made in California, just over $1 billion, with California's share of these dollars more than tripling from 1995-2007. ("Climate Change Draft Scoping Plan, June 2008 Discussion Draft," California Air Resources Board, 6/26/08)
- Each $100 million in venture capital funding helps create 2,700 jobs, according to the National Venture Capital Association. ("Venture Impact 2004: Venture Capital Benefits To The U.S. Economy," Global Insight, National Venture Capital Association, 2004)
Tesla's $300 Million Investment In California Is A Direct Result Of Our State's Commitment To Clean Technology. The high-performance electric car company chose to produce its new Model S, fully electric, five passenger sport sedan in California, thanks to our state's commitment to innovation and new incentives for Zero Emissions Vehicles (ZEVs).
- Tesla's new
production facility will be a $300 million investment in California's economy and
create an estimated 400 jobs.
- Tesla will not be paying sales tax on new manufacturing equipment. As of June 25, new ZEV manufacturers enjoy zero sales and use tax on new manufacturing equipment, allowing Tesla to save between $7 and $9 million on its projected $100 million investment in manufacturing equipment sold in California.
- Tesla, as a ZEV manufacturer, is eligible for millions more in tax credits. If Tesla chooses to break ground in an Enterprise Zone, they qualify for additional tax credits nearing $7 million. Tesla also qualifies for clean-technology workforce development funds, which will provide reimbursement for the training/retraining of clean tech employees.
- California is creating a market ripe for Zero Emissions Vehicles and clean-tech investment. With AB 32 and the Low Carbon Fuel Standard (LCFS) California is creating consumers for the innovation of clean technology.
Clean Tech Investment Will Multiply As California Moves Forward In Its Implementation Of AB 32. The recently released Draft Scoping Plan begins to lay the groundwork for this, and as California improves its green standards, not only will our environment become cleaner and healthier, but green investment will grow.
- Between 1990 and 2006 green technology businesses in California grew by 84 percent. By creating a policy landscape that favors low-carbon energy and efficient technology the implementation of AB 32 will accelerate this trend. ("California Green Innovation Index, 2008 Inaugural Issue," Next 10, 2008)
- Investments in green technologies produce jobs at a higher rate than investment in comparable conventional technologies. Meaning the more green-tech businesses California attracts the more jobs that will be created. (Kammen, D, Kapadia, K. & Fripp, M. "Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Generate?" Energy and Resources Group/Goldman School of Public Policy at University of California, Berkeley, 2004)
If AB 32 implementation efforts are stalled, California will be deprived the first fruits of the economy of the future, and the world, robbed of its green leader, will fall behind in the fight for a cleaner tomorrow.
