Ten-day temperature forecast in Visalia shows 95 degrees or above every day and 105 for a number of them. That will bring down the snowpack in a hurry in the Sierra over the next two weeks with our dams already at capacity.What to watch for? -More stored water in Sierra than had been estimated with the Friant Kern Canal receiving uncontrolled spill from Friant Dam weeks longer than had been expected and now Friant contractors expecting a 5% Class 11 supply- cheap surplus water to add to their 100% contracted supply this summer. -Bakersfield, Fresno and Visalia could all match or set new record warm low temperature records.The first heat wave of 2024 is hitting inland California last week, and a spell of exceptionally warm nights.
–Tioga Road in Yosemite will finally open this summer on Monday, June 10 by 7 am after a huge snowpack was cleared along the key cross Sierra highway. -High flows on the Kaweah and Kings Rivers this month will offer the best chance for river rafting in a while, with at least three suppliers in Three Rivers offering regular rides down the waterway and several along the Kings River watershed as well.-But the flows will be dangerous, coming down colder and stronger. Tulare County gas prices are the lowest in the state, says GasBuddy this week.Fastrip in Lindsay is selling regular for $3.79 a gallon according to the fueling website and Valero in Linday is $3.80. Gasoline prices nationwide and in California have been dropping rapidly after the start of the Memorial Day driving season, usually when summer prices head higher. The average price for gasoline in California has come down $0.45 since May 8 says AAA.Nationwide the trend is our friend. “This drop in pump prices appears to have some sticking power for now,” said Andrew Gross, AAA spokesperson. “More states should see their averages dip below $3 a gallon in the coming weeks.” Tulare County dairy operators are enjoying better margins this summer as the Class III milk price nationwide has climbed to about $20 per hundred weight compared to $15 at the beginning of this year. Meanwhile their feed is cheaper with the price of corn at $4.49 a bushel compared to over six dollars in June 2023. Helping to boost prices, milk production nationwide is down.
Frozen Mexican food maker Ruiz Foods will close its Tulare city manufacturing facility on K St as an active production site this summer, the company said May 29.
Some 215 employees work in Tulare who will lose their job.
The plant opened in 2004 to complement their Dinuba plant and was originally intended to be a short-term additional capacity option according to a company statement.
The family firm was first launched in Tulare with a company history remembering “Ruiz Foods began in a small warehouse in Tulare, California, with two employees, a few appliances, and Grandma Rosie’s recipes for enchiladas, burritos, and tamales.”
They moved headquarters to Dinuba and now is based in Texas as of 2023. Ruiz Foods relocated its corporate office from Dinuba to Frisco, Texas talking about 125 jobs expected by 2026. The company has estimated annual sales of over $1 billion, Ruiz said during his 2021 UC Merced commencement speech.
“After 20 years of service, we have determined that the facility is too small and requires substantial capital investment to meet our manufacturing needs or remain a viable part of the Ruiz Foods network. Ruiz Foods has decided to retire the Tulare plant at the end of our fiscal year and will close between August 30 and Sept. 13, 2024.”
“While this is the right decision for our business, we recognize the impact on our valued Tulare team members and will be working to provide support and options during this transition including, for some, an option to transfer to our Dinuba plant.”
Ruiz Foods Products, Inc. is a privately-owned corporation co-founded by Fred Ruiz and his father, Louis, in 1964. Ruiz Foods sells prepared frozen foods to all channels of distribution: retail, convenience store, clubs, vending, industrial, and food service. Ruiz Foods’ El Monterey® brand is the #1 selling frozen Mexican food in the United States and Tornados®, the company’s snack brand, is a leader on the convenience store roller grill. Headquartered in Frisco, Texas, Ruiz Foods employs more than 4,000 Team Members and has five manufacturing facilities located in California, Texas and South Carolina.
It all started a few years ago when In-N-Out hamburgers announced they would replicate their Mooney Boulevard location in North Visalia in a new bare ground shopping center across from Target on Dinuba Boulevard. Pollo Loco followed with a duplicate of their South Mooney store. The pattern was set as big name retail and food outlets on the south end of town would now look to locate second locations on the north end of town where new home subdivisions continue to expand. More recently Grocery Outlet and Tractor Supply decided to open stores at Orchard Walk West as the development has been named. Now the latest is the developer of the shopping center has submitted building plans for a 54,000 square-foot in-line retail center located along on Riggin including anchor Burlington Stores, and Five Below along with Ulta Beauty supply and Daiso, the popular Japanese retailer that will also open this fall in the Packwood Creek shopping center. The biggest catch is Burlington who has a store on South Mooney already as well. Once considered a second tier retail store, the company has more recently caught fire in popularity and just reported record profits. Its stock has also skyrocketed. The latest financial report says the off-price retailer’s gross margin improved as it limited promotions and lowered freight costs. The company joined other discount retailers like Ross getting a boost on the stock market. Burlington reported quarterly net income of $78.5 million, more than double the same period in 2023. Adjusted earnings per share came in at $1.42, and revenue was up 11% to $2.36 billion. Both exceeded forecasts.Jounior anchor Five Below is another discount retailer from Mooney, a teen apparel store. Another popular store is Ulta Beauty who would open in the new northside center if plans are finalized. The new shopping center at Riggin and Conyer also includes Panera and Starbucks locations expected to open in August with two more available spaces for good size retail stores as yet unnamed. The developer is Robert Toro of Cal Gold Development from Seal Beach. The latest plan is said to be preliminary.
No matter how the November ballot measure on the Morro Bay battery plant turns out – the controversial power project may still be built.
Scores of ‘Yes on Prop A-24’ signs already dot the front yards of homes in Morro Bay allowing locals a chance to voice a up-or-down vote on the planned 600MW battery storage facility being proposed by Vistra Energy at the vacant 3-stack power plant site.
Some locals worry the renewable energy facility could hinder tourism, industrialize the waterfront and pose a danger of toxic fires and vow to “Save Estero Bay.” A citizen group collected more than 1000 signatures to put the issue on this November ballot, a measure designed to block construction of the battery plant by changing a proposed local zoning rule.
In the meantime, the company backing the project, Vistra has pushed forward with a full environmental impact report through the city that says the operation of the battery storage facility would not result in air, water or noise pollution. Comments on the draft EIR just closed a few days ago. The facility, located on 22 acres of the 107-acre mothball power plant site, would connect to a PG&E substation next-door and allow storage of renewable energy like wind and solar to be distributed across California. The vacant area where the 35 ft two-story battery buildings would be built was where the 1950s power plant stored oil in large oil tanks before they were removed.
Now proponents of ballot measure A-24 are actively campaigning to convince Morro Bay voters to vote yes in November to “keep the Embarcadero and beaches open for all to enjoy.” Those opposed say the city and county need the $10 million in annual tax monies and suggest negative impacts of the BESS- Battery Energy Storage System, have been overblown.
Opt-In provision
But what is not widely appreciated is the fact that back in 2022 the California legislature added an optional state level permitting process to qualify renewable energy and storage projects despite any barrier that had been erected by local jurisdictions. In June 2022 Assembly Bill 205 became a law, allowing developers of energy projects to apply to the California Energy Commission(CEC) for their permit to build and operate a renewable energy facility rather than going through local permitting.It is called the Opt-In provision that allows the CEC to fast-track certain energy projects and promise developers an environmental review decision within 270 days, much faster than most reviews are typically conducted.It eliminates the need to obtain local approval but requires oversight from state agencies responsible for protecting water, land use, endangered species and disadvantaged communities.
Reports at the time recall a number of local decisions that had thwarted renewable energy projects in different parts of the state, potentially threatening the California plan to generate 100% of our electricity from renewable sources, it was argued.The state now requires that all retail electricity sold must come from renewable resources and zero-carbon resources by 2045. A similar response came in the 1970s when local decision-makers delayed energy projects and it resulted in the actual formation of the California Energy Commission to approve large power plants despite “Not In My Backyard” sentiments. With the new 2022 legislation, the CEC expanded their jurisdiction to proposed battery storage facilities above 200 MW and other categories.
Examples of local campaigns that led to the new regulations include renewable project opposition in Humboldt County’s denial of the 200+MW Humboldt Wind Project on privately owned timberlands in 2019, Shasta County’s denial of the 200+MW Fountain Wind Project on privately owned timberlands in 2021, Shasta County’s pending amendment to its zoning ordinance to prohibit most new wind energy development in the County, Solano County’s moratorium on new wind development, San Bernardino County’s significant restriction on new PV solar energy and Los Angeles County’s prohibition on utility scale wind energy projects.This according to the Cox Castle law firm.
Not that the new legislation that appeared to usurp local decision making did not face opposition at the time.
Multiple city and county governments protested the inclusion of the opt-in provision for certifying new types of renewable energy facilities that was included in AB 205, given that it took permitting power away from local governments and placed it into the hands of the Commission. The League of California Cities voiced opposition to AB 205’s “usurpation of local permitting authority,” and the Rural County Representatives of California criticized the bill as being “overly broad, usurp[ing] local control, [and] exclud[ing] local governments from meaningful involvement in major development projects within their jurisdictions,” among other things. Had the bill undergone the traditional legislative process and the County been afforded time to review AB 205, the County would have participated in the process and formally opposed AB 205.””
But the new legislation became law.
Under Opt In, the Commission is still required, among other determinations, to take into account the traditional ecological knowledge of tribes, hold extensive public outreach, and refrain from certifying an application unless the applicant has “entered into one or more legally binding and enforceable agreements with, or that benefit, a coalition of one or more community-based organizations.” The Commission must also find that the project has a net positive economic benefit.
Coastal Commission approval?
Jeff Eckles, a proponent of the Morro Bay measure argues in one press account that if the BESS facility is built it would turn their tourist town into an industrial hub.“I think most people that I’ve spoken with, myself included, in the city are all for renewable energy and we’re for battery storage plants in the appropriate location,” said Eckles. “We just feel that this is not the appropriate location at all.”
As far as the possibility that the Energy Commission may take the matter out of local hands and approve the project,Eckles is skeptical, since the proposed BESS is in the coastal zone under the jurisdiction of the California Coastal Commission. He says he doesn’t believe the Coastal Commission would approve the project, and the CEC would not move forward.
It happens at the California Coastal Commission is in Morro Bay this week to discuss other projects and A-24 advocates plan to speak against the BESS plan during public comment time.
The California Wind Energy trade group argues that the Opt-In legislation is good policy due to the crisis we are facing under climate change and the need to move quickly to reduce carbon emissions. In arguing for one project in Shasta County the group states that” 100,000 MW of other clean energy resources — including out-of-state wind and offshore wind, solar energy, and energy-storage projects – will also be needed to meet the state’s goals. This is a daunting task, one that demands that renewable energy projects be rejected only for various serious impacts.” The project, Fountain Wind, is expected to get a final OK from the CEC this coming July despite county opposition.
California grid operators claim that rapid expansion of battery storage statewide allows the storage of solar energy to meet consumer demand when the sun does not shine and help “keep the lights on.” Developers are set to install 6,813 MW of battery power storage within the California System Operators jurisdiction this year.
So now what?
Opposed by the Morro Bay citizens group is a planned Master Plan that would be developed in accordance with the requirements of Plan Morro Bay Policy LU-5.4 which would apply to the entire Power Plant Property and would change the land use designation of the BESS Site from Visitor Serving Commercial to General (Light) Industrial and the zoning from Visitor Serving Commercial to Industrial-General.Instead, changes would have to be approved by voters.
Proponent of the local measure Gail Johnson argues that industrialization of the site ignores the fact there are sensitive environmental areas impacted and there are “better places to put a BESS.” The site is not far from the local high school. A similar drama is playing out in a number of California communities including Vacaville. In San Diego County last month a battery fire at an energy storage facility in Otay Mesa continued to smolder, leaving firefighters contending with the blaze for a sixth days but there was no impact to the neighborhood.
Location?
But opponents to Prop A-24 say the battery plant location makes sense next to the big PG&E substation and connected to transmission towers already. There’s another location factor that is the battery storage plant and substation are directly in line to offshore wind cables coming ashore, expected to bring in more renewable power in the future. Many opponents of the BESS project also oppose offshore wind, fearing the same industrialization scenario. A Morro Bay group recently marched in town opposing offshore wind.
Writing in the Estero Bay News this month Morro Bay resident Marlys McPherson reasons that moving forward with the local proposition ignores the fact that Vistra can apply to the state for approval anyway eliminating local input on the future of the site through the city council.Marlys points out that the site is contaminated and may be unfit for visitors service uses unless contamination is removed. She worries any agreement in the works to remove the old power plant at Vistra’s expense could be in jeopardy. She also reminds us that PG&E has deed restrictions on the entire 107 acre site that prohibits visitor services to avoid liability. In the end, passage of A-24 could mean the site stays the way it is but with a battery plant on a part of it and no local input on what happens to the rest, she writes.McPherson was on the Morro Bay City Council from 2016 to 2020.
One local official acknowledges that Vistra could apply to the state if the November ballot measure outcome ties their hands although they are now working with the city.
Quoted in a recent Inside Climate News article “The applicant says they’re committed to the city’s process, and we’re working with them in good faith on that,” said Michael Codron, the city’s interim director of community development. “If the city’s process results in a denial or if the ballot measure precludes the ability of the city council to approve the application, I would think they would avail themselves of the CEC process.”
Existing combined solar,battery and hydrogen facility in Southern California
Proposed 3.1 million solar panel farm in Westside includes major hydrogen production plant and giant battery facility
Retail hydrogen blending coming to Orange Cove
Group sues to stop Pixley hydrogen plant
Plans for using hydrogen to fight climate change are sprouting all over the San Joaquin Valley this summer. Projects are in the works in western Fresno County, in Pixley in Tulare County and in Orange Cove where SoCal Gas will blend 5% hydrogen with natural gas for retail customers reducing overall greenhouse gases.
When hydrogen is injected into a fuel cell, hydrogen generates electricity but emits only heat and harmless water vapor and has great potential to cut global carbon emissions and keep toxic pollutants out. Experts say hydrogen could make the biggest difference in sectors now mostly powered by fossil fuels- trucking, shipping and aviation.
In the westside of the Valley, the Darden Clean Energy Project would cover 9500 acres owned by Westland Water District and include a trifecta of green technologies including a 3.1 million solar panel farm, a 1,150MW green hydrogen plant and a 4600MWE hour battery storage plant. An electrolyzer water treatment plant would be powered by solar power capable of producing 220 tons of gaseous hydrogen per day that could be used as zero carbon transportation fuel. To bring electricity to the grid the sprawling energy farm would be connected to a 15 mile transmission line to a PG&E substation near Highway 5.
Instead of seeking approval through Fresno County, the massive project is going direct to the California Energy Commission (CEC) for final permitting under a new provision approved by the legislature in 2022 called opt-in, the first in the state to do so.
Largest in world
The Darden Clean Energy Project more than rivals the largest solar battery storage combination in the world in Kern County at Edwards Air Force Base said to be about 4000 acres, 1.9 million solar panels and 3287MWh for the battery storage facility. The Kern County project also does not include a hydrogen manufacturing component.
In terms of the hydrogen plant at the Darden site, the capacity at 220 tons of hydrogen a day compares to just 3 tons a day at the largest existing hydrogen production plant on 324 acres also in Fresno County that started up last year led by a Spanish firm.
The CEC must find that Darden has submitted a complete application and then has 270 days to approve the project -considered a fast-track process in order to get more battery storage in California on-line sooner.
Hydrogen’s flexibility as a fuel source including for transportation, industrial, and power generation sectors and its ability to be stored is helped by new tax incentives under the Inflation Reduction Act. Producing only water as a byproduct hydrogen can be injected into the natural gas distribution system managed by utilities like SoCal Gas and PG&E. Add the synergy of combining solar power generation and hydrogen manufacturing – the process is given a big boost by the power from the sun typically on-site.
Lawsuit in Tulare County
In Pixley in Tulare County, another company is proposing to build a 1.2 million square-foot 28 acre hydrogen plant that will manufacture, store and distribute pressurized liquid hydrogen fuel for trucks and include 114 acres of solar power generation. The location of the $120 million plant is at the southwest corner of Avenue 120 and Road 120 near Highway 99.
Last summer the County of Tulare determined their project was allowed by right under the CEQA common sense exemption since the property was already located in a manufacturing zone. In March 2024 a citizen group with members from Pixley filed a lawsuit objecting that the county had not properly followed CEQA rules and should require a full impact report.
Oil company wants in
Also this spring,Chevron New Energies, a division of Chevron U.S.A. Inc., announced it is developing a 5-megawatt hydrogen production project in Lost Hills.
The project aims to create lower carbon energy by utilizing solar power, land, and non-potable produced water from Chevron’s existing assets at the Lost Hills Oil Field in Kern County. This low carbon intensity electrolytic hydrogen will be produced through electrolysis, which is the process of using electricity to split water into hydrogen and oxygen.
“Hydrogen can play a vital role in our journey toward a lower carbon future,” said Austin Knight, vice president for hydrogen at Chevron New Energies.
Blending hydrogen
Use of hydrogen will hit the retail market in Orange Cove says SoCalGas.
At the direction of the California Public Utilities Commission, SoCalGas is proposing a local demonstration project that could safely blend up to 5% clean, renewable hydrogen into the natural gas system serving approximately 10,000 residents, along with commercial customers in the City of Orange Cove, in Fresno County.
SoCalGas is proposing a 18 month demonstration project that will blend clean, renewable hydrogen serving residents and businesses. This project would offer a real-world environment to better understand how clean hydrogen and natural gas can be safely delivered to customers in the future. This is part of a broader effort by California and utilities to develop a standard for safe hydrogen blending, which could reduce greenhouse gas emissions and improve air quality,says the company.
Last week, crews from the California High Speed Rail project worked late night and early morning to place 84 pre-cast concrete girders across Lacey Boulevard and over State Route 198 to extend the Hanford Viaduct over the highway.Girders ranged between 53 and 78 feet long and weighed as much as 79,000 lbs. each.The Hanford Viaduct spans more than a mile- 6,330 feet long and connects to the future Kings/Tulare Regional High-Speed Rail Station.
Hanford company sells just 4 cars in 23′
Start-up luxury car maker Faraday Future sold just four cars in the past year, the company reported recently. They leased six more.
The LA-based company has its only manufacturing plant in Hanford. But production at the million square feet facility has been slow. Faraday Future is facing delisting from NASDAQ as it looks to maintain its stock value above one dollar. Adding to woes, Faraday has withdrawn its production guidance for 2024, citing current market conditions and lack of funding. Last November, the company planned to assemble 1,000 vehicles this year, “subject to availability of requisite capital.” The company filed their annual report late with revenue of $0.8 million for 2023 and cost of goods sold of $43 million, compared with no revenue and cost of goods sold in 2022. This reflects that the company only began delivering vehicles in the third quarter 2023. Loss from operations was $286 million for 2023, as compared to a loss from operations of $437 million for 2022.
Last December Nasdaq notified the company that the bid price of its listed securities had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, did not comply with Listing Rule 5550(a)(2). The company was provided 180 calendar days, or until June 25, 2024, to regain compliance with this rule. On April 18, 2024, Nasdaq notified the company that since it had not yet filed its Form 10-K it no longer complied with Listing Rule 5250(c)(1).This deficiency is now an additional basis for delisting.Now that report has been filed.
On April 24, 2024, the Company received a letter from Nasdaq indicating that the company was not in compliance with Nasdaq Listing Rule 5810(c), as the company’s securities had a closing bid price of $0.10 or less for ten consecutive trading days. The letter indicated that, as a result, the Nasdaq staff had determined to delist the company’s securities from The Nasdaq Capital Market. On May 1, 2024, the company timely requested a hearing to appeal the Delisting Determination and requested an extended stay of the suspension pending such hearing with the Panel.
Faraday Future stock briefly climbed over a dollar in May for two weeks but since May 28 has been below that threshold at about 50 cents as of this writing.
Faraday’s future is uncertain
Williamson Act bill fails
A bill in the California Assembly to make it easier for farmers in the Central Valley to cancel their Williamson Act contract due to water shortage had divided the farm community. The California Land Conservation Act of 1965, otherwise known as the Williamson Act, authorizes a city or county to enter into contracts with owners of agricultural land to preserve the land for agricultural use, as specified, in return for reduced property tax assessments.To preserve farmland it imposes a 25 percent cancelation fee This bill proposed by Fresno Assembly member Joaquin Arambula would authorize a landowner landowner, if their land is located in the Counties of Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, or Tulare, with a water basin in condition of critical overdraft, to petition the board or council to cancel a Williamson Act contract or a farmland security zone contract without penalty if the land meets specified criteria, including, among other things, not having permanent access to sufficient water. That could speed its conversion to energy projects like solar farms and provide income to the land owner.
But now as of mid May the bill was placed in the “suspense file” as it did not garner enough support in committee to move forward.
BOS dumps green energy saving project
Kings County Board of Supervisors had been studying making substantial investments in energy savings at the county campus similar to a project that the same supplier had done in past years.The supplier,Engie Energy, promised net savingsover $4 million for the county.The County has completed four successful projects with ENGIE –a $3 million microturbine co-generationproject in 2005, an $8.4 million central heating and cooling plant upgrade in 2009, a $4.1 million solar project in 2011, and an $11.9 million solar project in 2020.This year an earlier staff report noted that the County has been seeing huge increases in its electricity cost recently, as high as 15% per year. They would like its energy consumption to be reduced as much as possible to reduce the effect of utility price hikes.
Also, the HVAC units at many of the facilities are well past their useful lives and the County would like to use this project to replace its old HVAC infrastructure without dipping into the General Fund.But in late May the staff and Board decided not to move forward with the green energy project.
A staff report says “Essentially, this project is viewed as being cash neutral, providing more of a benefit in the way of allowing the County a vehicle to replace aging infrastructure, not necessarily providing the County with additional cash on hand, due to project savings, that could be used for other County initiatives and priorities. Additionally, the County recently initiated a comprehensive debt analysis which looked at all current and potential future debt, which included this project, to identify the financial health of the County if it were to take on debt for this project.
At the conclusion of the debt analysis, staff recommended not to incur long-term debt for this project at this time.The Board agreed.
Egg farmers worried about new bird flu
The current avian influenza outbreak is the “greatest threat” to American egg producers, according to United Egg Producers President and CEO Chad Gregory.
“On-farm biosecurity is at its most stringent levels, and despite these robust precautionary measures, the egg industry has lost flocks to [bird flu] in recent weeks,” Gregory said in a statement.This is a sad and difficult time for affected farmers, who must act swiftly to prevent the spread of the disease and go through an extensive recovery process.”
A massive flock of over 4.2 million egg-laying chickens in Iowa was detected to have bird flu last week.
Walnut Acreage down 4%
California’s 2023 walnut acreage is estimated at 420,000 acres, with 385,000 acres bearing and 35,000 acres non-bearing.
Bearing acreage was down 4% from 2022.
Strong summer outlook as clean energy grows
Elliot Mainzer – California Independent System operator president- says CAISO is in a stronger position heading into the summer compared to previous years.The agency manages the grid and guides energy investment in the Golden State.
CAISO expects its resources will be able to meet forecasted demand plus an 18.5% reserve margin for all summer months, according to its summer assessment. The grid operator anticipates it will have more than 3,500 MW of surplus supplies over forecasted demand plus the reserve margin during key early evening peak net load hours in September, Mainzer said in the memo.
Texas wants to launch their own stock market to clamp down on what they see as “woke” policies. While Texas can brag they stole Tesla from California and is now its most valuable firm,Texas can also point to big oil companies Exxon-Mobil, Phillips 66, and Valero Energy as three of their five top companies; they also have AT&T and McKesson in their top five by value as Tesla is not in the latest ranking.Texas number one company as of ealy 2024 is Exxon Mobile at $484 billion in revenue.
But it is hard to argue with California and specifically the Bay Area as the world leader in the number of high value companies headquartered here and several with market caps in the trillions of dollars – not billions, mostly in technology. Forty one of the top 50 most valuable companies in California are headquartered in the Bay Area as of May 2024 and amazingly, 80 of the top 100 companies in the state have their corporate offices in the greater SF area showing the breadth of the area’s dominance. Led by Nvidia,Apple and Alphabet (Google) these companies are also number 2,3 and 4 in the United States with Microsoft, based in Minnesota, listed as number one. Meta (Facebook) is in the top 10, based in Palo Alto.Other top 10 companies are also from the West Coast based in Seattle including Microsoft,Amazon and Costco. Besides computer companies – California sports top financial firms Visa and Wells Fargo – both based in San Francisco. Nationwide 4 of the top 10 companies in the US are based in the Bay Area. Another ranking adds Broadcom also hailing from the Bay Area. As of June 2024 S- based Chevron has a market cap of $285.43 Billion ,the world’s 33th most valuable company by market cap. Fortune report Just this month, Fortune magazine announced that California was home to 57 of the nation’s 500 largest companies. A higher number than every other state in the country.
The news is getting the attention of Governor Gavin Newsom, who took to X to brag about the state’s lead over rivals Texas and Florida.
Of the 57 companies statewide, 44 of them are based here in the Bay Area – with the vast majority of them being tech-related. The Chronicle wrote a story.
Experts say the Bay Area’s economic ecosystem is unique with everything from high levels of investment, innovation and a highly qualified workforce.”
“There was another release that San Franciscans have the highest level of educated employees in the country. And that’s another piece where academia is so important,” said Rodney Fong, of the San Francisco Chamber of Commerce.
One of the biggest contributors to California’s performance this year was the growth of artificial intelligence companies.
Nearly all of the big players in AI are based here in the Bay Area, and with the technology still in its infancy, many believe the explosion of growth is just beginning.
“There is a lot of fuel to burn here so we can go to the maturity level of AI. And if AI technology one day became mainstream, then there’s another technology that would show up here in Silicon Valley and start the cycle again,” said Ahmed Banafa. professor at San Jose State University.
There is still some bad news for San Francisco’s economic recovery. A huge office complex in the city is reportedly losing another major tenant.
He says despite the tough times both the Bay Area and California went through following the pandemic, he’s optimistic about the state long term.
“California goes through cycles. It might go down a little bit for a few years but it goes back to the top immediately,” said Banafa.
After California, New York and Texas tied for second place, with 52 companies each.
As you can read from this chart on the top 25 companies in California by market cap, 22 of them are based in the Bay Area.
Ten-day temperature forecast in Visalia shows 95 degrees or above every day and 105 for a number of them. That will bring down the snowpack in a hurry in the Sierra over the next two weeks with our dams already at capacity.What to watch for?
-More stored water in Sierra than had been estimated with the Friant Kern Canal receiving uncontrolled spill from Friant Dam weeks longer than had been expected and now Friant contractors expecting a 5% Class 11 supply- cheap surplus water to add to their 100% contracted supply this summer. -Bakersfield, Fresno and Visalia could all match or set new record warm low temperature records.The first heat wave of 2024 is hitting inland California last week, and a spell of exceptionally warm nights. –
Tioga Road in Yosemite will finally open this summer on Monday, June 10 by 7 am after a huge snowpack was cleared along the key cross Sierra highway. -High flows on the Kaweah and Kings Rivers this month will offer the best chance for river rafting in a while, with at least three suppliers in Three Rivers offering regular rides down the waterway and several along the Kings River watershed as well.-But the flows will be dangerous, coming down colder and stronger. Tulare County gas prices are the lowest in the state, says GasBuddy this week.Fastrip in Lindsay is selling regular for $3.79 a gallon according to the fueling website and Valero in Linday is $3.80. Gasoline prices nationwide and in California have been dropping rapidly after the start of the Memorial Day driving season, usually when summer prices head higher. The average price for gasoline in California has come down $0.45 since May 8 says AAA.Nationwide the trend is our friend. “This drop in pump prices appears to have some sticking power for now,” said Andrew Gross, AAA spokesperson. “More states should see their averages dip below $3 a gallon in the coming weeks.”
On June 11, oil analyst Tom Kloza said “U.S. gas today is 14.85cts/gal beneath same day 2023 for a disinflationary move of 4.14%. Gap will widen to 20-25cts/gal by the summer solstice (6/20/24). YOY savings of 61cts/gal in AZ & 69cts/gal in UT. Only 7 states are above last year, but they’ll slip below 2023 this week.” Tulare County dairy operators are enjoying better margins this summer as the Class III milk price nationwide has climbed to about $20 per hundred weight compared to $15 at the beginning of this year. Meanwhile their feed is cheaper with the price of corn at $4.49 a bushel compared to over six dollars in June 2023. Helping to boost prices, milk production nationwide is down.
State protection of groundwater proceeds with third subbasin hearing
May 6, 2024 SACRAMENTO – To ensure the long-term viability of groundwater supplies in portions of Tulare and Kings counties, the State Water Resources Control Board today released a public notice for a Nov. 5, 2024, hearing to determine if the Kaweah Groundwater Subbasin should be placed on probationary status under the landmark Sustainable Groundwater Management Act (SGMA).
This is the third probationary notice the State Water Board has issued to groundwater basins since last October as it continues to carry out its state intervention responsibilities under SGMA. The previous notices were issued to the Tulare Lake and Tule basins, respectively. At the Kaweah basin hearing, the board will decide if a probationary designation is warranted after a robust public input process. Such a designation could, after at least one year, lead to temporary state oversight of the basin’s groundwater supplies until its sustainability plan is improved, as required under SGMA. Alternatively, groundwater sustainability agencies (GSAs) could update their groundwater sustainability plans (GSPs) to address deficiencies, exit state intervention and be returned to oversight by the California Department of Water Resources (DWR). This could occur before or after any probationary designation. If the basin is designated as probationary, board staff collect groundwater extraction information and work with GSAs to improve GSPs so that intervention is no longer needed. To help inform the hearing, the board also released a draft staff report that describes the basin’s conditions and makes recommendations for addressing key deficiencies in the Kaweah subbasin groundwater sustainability plan that continue to negatively impact infrastructure and communities. “With this third notice, we are establishing a consistent pace for the intervention process while still ensuring space for thoughtful deliberation,” said Eric Oppenheimer, the board’s executive director. “We will continue to work closely with groundwater sustainability agencies to improve their plans so they can exit state intervention, while also taking necessary steps to protect supplies.” In 2023, DWR determined that the GSAs for six basins, including the Kaweah subbasin, had inadequate plans for meeting SGMA’s requirement of balanced levels of groundwater pumping and recharge by 2040. DWR deemed the GSP for the Kaweah subbasin inadequate in several crucial categories, including the potential for continued water level declines that could cause wells to go dry, along with the threat of continued land subsidence, a phenomenon in which chronic overpumping leaves underground aquifers and the land above them susceptible to collapse. An analysis completed with DWR indicates that, based on past water level trends, approximately 872 domestic wells, nearly 1,545 domestic wells and 53 public supply wells could go dry during drought at thresholds proposed by the 2022 GSP. Release of the draft report begins a 60-day comment period for the board to gather input from stakeholders and others and finalize the document prior to the November hearing at the CalEPA Building in downtown Sacramento. Public input at the hearing is also welcome before the board makes a decision. The public can participate in person or remotely, or watch online. The State Water Board’s mission is to preserve, enhance and restore the quality of California’s water resources and drinking water for the protection of the environment, public health and all beneficial uses, and to ensure proper resource allocation and efficient use for present and future generations.
If there’s one commodity consumers watch to determine how things are going in their pocketbook, it’s gasoline prices. So what is the trend in 4 battleground states who may decide the presidency this November? For the last 12 months, energy prices were up 2.1%, lower than the overall 3.5% inflation. Gasoline gained 1.3% for the past year, while electricity jumped 5% says Reuters.
Info below is from AAA.
Arizona: average price of regular
5/09/24. – $3.99 Week Ag $4.03 Month Ago $4.07 Trend DOWN
5/09/24 $3.78 Week ago $3.81 Month ago $3.69 Trend MIXED
Wisconsin:
5/09/24. $3.32 Week ago. $3.36 Month ago. $3.38 Trend DOWN
In another inflation watch commodity -used car prices, the wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were down in April compared to March. The Manheim Used Vehicle Value Index (MUVVI) fell to 198.4, a decline of 14.0% from a year ago.
