Hydrogen Dust-Up

File this one under “no good deed goes unpunished.” California, the nation’s pace car for climate policy and the push toward zero-emission vehicles, is getting the short end of the stick from a federal government more interested in incentivizing laggards and layabouts (we’re looking at you Wyoming). Case-in-point, the U.S. Treasury’s draft guidance for clean hydrogen projects to receive valuable tax credits under the Inflation Reduction Act. In a letter to Treasury Secretary Janet Yellen obtained by POLITICO’s E&E News, a host of California Democratic members of Congress took aim at the requirement known as “incrementality,” which dictates that hydrogen producers must add new, clean energy generation to the grid less than three years prior to using electrolyzers to split water to create hydrogen. The requirement disadvantages states that already have large amounts of renewables online and are looking for ways to use the grid’s excess clean energy, rather than adding new power. On sunny days, the lawmakers said, California struggles to offload excess solar electricity. The current 45V rules prevent hydrogen companies from receiving tax credits if they try to use that extra grid energy to make hydrogen — a policy that the lawmakers said could lead to clean energy going to waste.

LEARN MORE

🤫 Everything you should know

- The Sacramento City Attorney’s Office warned a Target store about potential public nuisance charges due to frequent calls reporting theft, highlighting a bizarre move where businesses seeking police help face legal threats. This has sparked legislative amendments to protect retailers from such penalties, emphasizing the need for clear crime data and effective responses to retail theft – not a head in the sand approach. That encourages residents and businesses to sweep crime under the rug. This situation raises questions about the balance between law enforcement resources and support for businesses combating crime. According to the Sacramento Police Department, retail crime at the area's three Targets have jumped 124 percent from 2021 to 2023 so there is definitely a spike in demand for law enforcement – but do they have the resources and support they need to address the issues? SacBee

- Costco is combining retail with residential solutions at a new site in South Los Angeles, aiming to provide affordable housing with 800 units, 184 of which are designated for low-income families. This novel approach by developer Thrive Living and architecture firm AO represents an innovative step towards addressing the housing shortage in a high-density urban area. The project includes amenities like a fitness area and community spaces, integrating living solutions above the retail space to create a multifunctional urban hub. This ambitious project exemplifies a scalable model for integrating commercial and residential development to tackle urban housing shortages – serving as an incredible example of how business can lead on major policy issues (if the state just reduces regulation and lets them). SF Gate

- California's new water policy, playfully dubbed "Making Conservation a California Way of Life," isn't just a suggestion – it's a mandate. Starting in 2025, retail water suppliers have to slash their usage by nearly 30% over the next 15 years, facing the wrath of a $10,000 daily fine if they falter. But let's not just tiptoe through the tulips here – conservation is only part of the hydration equation. As we tighten the taps, why not expand our reservoir of solutions? It's time to pump up our water infrastructure game by capturing stormwater, recycling wastewater, and getting salty with desalination. After all, a diverse water portfolio might just be California's best hedge against the dry spells to come. KTLA

🧑‍💼 Where are all the jobs?

A new analysis from the Legislative Analyst’s Office highlights significant declines in California's private-sector jobs, despite gains in public-sector and other publicly supported employment. Using data from the U.S. Bureau of Labor Statistics through April, the report reveals private industries in California have lost 340,000 jobs since their peak post-pandemic. The tech and finance sectors have been the hardest hit. Information sector jobs, including major employers like Google, Apple, Facebook, and Disney, dropped by 16% since their peak, with 98,000 positions lost. Additionally, business services, manufacturing, and transportation and warehousing industries each experienced a 3% job reduction. Even more bad news: California currently has the highest unemployment rate in the nation at 5.2%. Lopsided job growth could pose budget issues for the state and problems for residents for decades to come.  

⛽ Record low gas prices

There's a record heatwave and it’s fire season so…let's talk about the price of gas (since they have nothing to do with each other). Gas prices hit a 3-year low which is great for consumers who have experienced rising fuel prices thanks to the war in Ukraine, inflation, and just what it is to be a Californian facing higher than average gas taxes.

🐄 The harm of raw milk

Californians are known for our “natural” health trends but some things are just better with science. Californians please stop drinking raw milk.

‍