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California Has Provided Incentives for Methane Capture at Dairies, but the Program May Have ‘Unintended Consequences’ – Inside Climate News

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California Has Provided Incentives for Methane Capture at Dairies, but the Program May Have ‘Unintended Consequences’ – Inside Climate News


On summer season afternoons, hundreds of dairy cows at Bar 20 dairy in Kerman, California, search shelter from the blazing solar underneath the shade of open-walled barns. After a frenzy of morning exercise, the farm is quiet aside from an occasional moo, a deep rumble from a tomato truck passing on close by Freeway 180 or the wind whistling by means of the barn, carrying the acrid manure scent that permeates the air on the farm. The scene is typical within the San Joaquin Valley, an agricultural area that produces extra milk than every other a part of the nation. 

Much less typical, although, is the 25 million-gallon pond on the southeast nook of the dairy, lined in a big dusty grey tarp that balloons and shrinks with the day’s fluctuating temperature. Beneath the grey overlaying, reminiscent of a big inflatable slide and bigger than two Olympic swimming swimming pools, sits an infinite quantity of manure collected from greater than 7,000 dairy cows on the farm. 

The stress pushing the duvet skyward is an accumulation of methane, a robust greenhouse gasoline that outcomes from manure decomposition. This methane-trapping contraption is known as an anaerobic manure digester, and it’s one of many causes Bar 20 has gained a number of sustainability and innovation awards from trade teams in recent times. 

California, a state happy with its booming dairy trade, has allotted greater than $350 million to construct digesters like this one on dairy farms in a bid to seize methane and stem local weather change. However the expertise presents a significant paradox: Rising analysis means that after the digesters course of the manure, it emits ammonia, which may journey lengthy distances to infect water and soil and threaten ecosystems. Communities close by additionally fear that the ammonia emissions will contribute to particulate matter that’s significantly harmful to human well being. 

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In essence, the digester program may undercut the state’s overarching environmental objectives and public well being priorities. 

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Scientists say that a lot stays unsure about how the expertise impacts agricultural emissions like ammonia. And people who reside close to sprawling dairies say that California regulators haven’t adequately evaluated this system’s doubtlessly vital risk to native air high quality, even because the state gives the trade tens of millions of {dollars} in incentives. Neither the state of California nor the federal authorities immediately regulates ammonia emissions from agriculture. 

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For years, scientists and neighborhood teams have inspired California and the U.S. Environmental Safety Company to guage air emissions at dairies. In August, federal lawmakers, together with Senators Bernie Sanders and Cory Booker, despatched letters to the EPA and the U.S. Division of Agriculture expressing considerations in regards to the potential enlargement of methane digesters. Analysis carried out by scientists during the last decade in Wisconsin, Canada, Washington State and Denmark has prompt that digesters could improve ammonia emissions as they course of manure. In 2018, a California working group really helpful additional research of potential air high quality impacts associated to methane mitigation at dairies. The identical yr, state regulators started planning to check whether or not the analysis from different states utilized to California. 4 years and greater than 50 digester initiatives later, the state solely not too long ago finalized the contracts to start that analysis, one in March and one other in September. 

Digester firms argue they’re offering an important local weather expertise that’s prepared for deployment in the present day. However scientists advised Inside Local weather Information that a greater understanding of the affect of digesters on doubtlessly dangerous ammonia emissions is required because the state facilities the expertise in its technique to slash emissions and confront local weather change. Right now, ammonia mitigation applied sciences for digesters exist, however the state doesn’t require the digester initiatives it funds to make use of them.

Digesters are “one of the vital profitable methods to mitigate methane emissions,” mentioned Rebecca Larson, an writer of the paper printed by Wisconsin researchers and an knowledgeable in manure administration on the College of Wisconsin-Madison. “However typically, there’s unintended penalties.” 

Why California Makes use of Digesters 

Dairy and livestock account for greater than half of California’s methane emissions, which makes mitigating that pollutant important to a state local weather mandate to scale back greenhouse gasoline emissions by 40 p.c from 1990 ranges by 2030, in addition to to a newly codified state dedication to succeed in carbon neutrality by 2045. However dairy merchandise are a profitable agricultural commodity in a state with an already huge farm financial system: The dairy sector alone generated $7.5 billion in 2020. 

The “weeping wall” at Bar 20 collects manure from the farm’s hundreds of dairy cows, then separates the liquid waste from the stable waste. Credit score: Grace van Deelen

Early on in its plans to attract down emissions, California prompt a means to make sure that the dairy trade may maintain buzzing: decreasing heat-trapping methane by encouraging anaerobic digesters at giant dairy farms. These really helpful methane reductions had been enshrined in legislation in 2016, when the state handed a invoice setting a greenhouse gasoline emissions reductions goal for the dairy and livestock sector. (The legislation stipulated that enforceable laws for the trade couldn’t be established till 2024). Within the years since, manure digesters have grow to be the first technique by which the state plans to chop emissions from the dairy sector. 

Farms with digesters accumulate a farm’s slurry of manure and urine. In California, the combination is usually separated into liquid and solids, and the liquid goes right into a lined and lined lagoon—the digester—to seize the methane that the combination produces. That methane is then cleaned and processed into pure gasoline. 

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A state program designed to incentivize digester building has given out practically $200 million to digester initiatives because it was established in 2014. The state public utilities fee has approved one other $133 million for the initiatives, and the state power fee has accepted greater than $35 million. The state obtained purposes requesting $35.38 million in funds for digester improvement this yr by a deadline set in Could. 

The state’s Low Carbon Gas Customary, which incentivizes using renewable gasoline sources, provides digester house owners carbon credit for the biogas that the digester produces, which they will promote or commerce. 

Within the years since California began supporting the expertise, it has funded 117 digesters, together with the one at Bar 20. Every year, the digester initiatives put in within the state obtain greenhouse gasoline reductions similar to greater than 2 million metric tons of carbon dioxide, based on the state. That’s equal to taking greater than 400,000 gas-powered automobiles off the street for a yr. To achieve the methane reductions that California legislation requires by 2030, the state expects it might want to set up greater than 200 extra digesters.

Unintended Penalties?

At Bar 20, one other lagoon sits subsequent to the pond lined with the massive grey tarp. This one is bigger than seven soccer fields and crammed to the brim with a effervescent reddish-brown liquid. The odor is especially pungent on this facet of the farm and carries a distinctly sturdy chemical odor together with the acquainted rotten-eggs scent of manure. 

On farms with digesters like Bar 20, the digestion course of ends in two merchandise: biogas and the leftover digestate. Whereas the biogas is captured and piped elsewhere for processing after which offered as gasoline, the digestate typically sits in an uncovered secondary storage pond till a farmer collects it to unfold its precious vitamins on crops. 

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At dairies like Bar 20, the size of time that the digestate sits within the pond is determined by which crops should be irrigated, a course of that varies by season. When the fertile sludge, sitting in a secondary pond or unfold on a crop area, is open to the air, it continues to launch hint quantities of leftover methane in addition to different pollution like nitrous oxides and ammonia. 

The nitrogen cycle on farms, and the way it contributes to emissions, is advanced. And substances like ammonia, or NH3, typically don’t get the eye they deserve, scientists say. “Ammonia is a narrative that’s not typically advised,” mentioned Joe Rudek, an agricultural emissions scientist on the Environmental Protection Fund, an advocacy group that helped sponsor California’s keystone emissions discount laws in 2006. “Ammonia loss to the environment has each public well being threat points and environmental points.”

At the very least 4 research printed between 2011 and 2018 conclude that the digestion course of can lead to multiplied ammonia emissions from digestate. In a 2017 research carried out in Wisconsin, researchers collected digested and undigested manure from two dairies and measured the greenhouse gases, nitrous oxide and ammonia it emitted because it sat in storage in 55-gallon drums, simulating what often occurs on farms as soon as digestate leaves the digester. After six months of storage, the manure was utilized to a crop area, the place researchers additionally measured emissions.

Over the whole research interval, the digested manure emitted 81 p.c extra ammonia than undigested manure. Most of these emissions got here from the storage interval, when digested manure sat uncovered to the open air, simulating what occurs within the interval earlier than it might be utilized to crops.

The secondary storage pond at Bar 20 Dairy Farm, where dairy wastewater is collected after running through the digester. Credit: Grace van Deleen
The secondary storage pond at Bar 20 Dairy Farm, the place dairy wastewater is collected after operating by means of the digester. Credit score: Grace van Deleen

Authors of the 2017 research acknowledge its limitations: The analysis was achieved on a small scale and in a managed setting. The digester used within the research was totally different from the kind put in in California. Wisconsin additionally has a unique local weather, and dairy farmers in every state have barely totally different manure administration practices, all of which may affect outcomes at particular person dairies. Representatives of California’s digester trade have held up these variations as proof that these outcomes are usually not relevant to operations of their state.

The paper’s authors, nonetheless, mentioned the general pattern—increased ammonia emissions from digested manure in open storage—would maintain true throughout the nation, though the magnitude of the emissions may fluctuate. “If anyone’s telling you {that a} digester doesn’t mineralize and produce extra ammonia that could possibly be misplaced to the environment, nicely, they’re not utilizing knowledge,” Larson mentioned. “It’s essential to inform the story that it’s attainable to curb that unintended consequence, and there are individuals on the market doing it.”

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Scientists not related to the paper say that additional research is required to totally perceive how digesters affect ammonia manufacturing. “We have to have a greater deal with on ammonia emissions, and we have to develop higher methods to mitigate them, as a result of we all know it’s an essential contributor to PM2.5,” mentioned Francesca Hopkins, an emissions researcher and assistant professor of local weather change and sustainability on the College of California, Riverside. (PM2.5 refers to superb, inhalable particulates with diameters of two.5 micrometers or much less.) “And we all know agriculture is a significant supply.” 

Hopkins mentioned that extra knowledge is required to determine whether or not digesters improve or cut back ammonia emissions. Rudek of the EDF agrees. “The digester provides you methane discount, which is a giant local weather profit,” he mentioned. “EDF could be very, very a lot targeted on the significance of that profit. However the ammonia is a neighborhood affect. And should you simply take the digestate out and put it into an open system, you don’t lower the native affect of the ammonia.” 

Ammonia emissions are already at unacceptable ranges, and any improve may have severe penalties, nevertheless it’s essential to find out whether or not the digesters are contributing to the injury, Rudek added. 

Mark Zondlo, a professor at Princeton College who heads its atmospheric chemistry and composition group, mentioned that it was not “terribly nicely understood” how digesters have an effect on ammonia emissions. He praised the Wisconsin research and mentioned it raised essential questions worthy of additional analysis. 

He’s now in discussions with the state air sources board a couple of three-year research that may study how totally different manure administration strategies at California dairies have an effect on nitrous oxide and ammonia emissions. The contract for that work was not too long ago finalized.

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Folks dwelling close to dairies have lengthy voiced considerations to regulators in regards to the odor and emissions from farm operations. In 2001, Tom Vilsack, then Iowa’s governor and now the U.S. secretary of agriculture, requested two Iowa universities to look into emissions related to concentrated animal-feeding operations within the state. A peer-reviewed research created by a gaggle of researchers a yr later really helpful ambient air-quality limits for sure emissions together with ammonia.

Emissions of ammonia and different pollution have been “elements of curiosity” in California’s digester improvement program since its inception, based on the state Division of Meals and Agriculture, which manages the initiative. In 2018, a unit of a working group assembled by the state to guage potential strategies to scale back greenhouse gasoline emissions from dairies and livestock really helpful that California examine localized air pollution impacts related to methane mitigation at dairies. “The implementation of varied dairy methane emissions mitigation methods could alter the emissions of different air pollution reminiscent of ammonia,” the subgroup wrote. 

The California Air Sources Board, or CARB, which units requirements for air air pollution and greenhouse gasoline emissions within the state, says it’s nonetheless considerably unsure in regards to the impacts of digesters on air high quality. Qian Mitloehner, an air air pollution specialist for the company, advised Inside Local weather Information that the company doesn’t “fairly perceive the downstream emissions at this level.” 

Earlier than becoming a member of the company, Mitloehner studied methane emissions from livestock as a doctoral pupil on the College of California, Davis. She is now married to her former graduate faculty adviser, Frank Mitloehner, an animal scientist with deep ties to the livestock trade who has downplayed the function of methane emissions from livestock in local weather change.

In emailed feedback to Inside Local weather Information, a CARB spokesperson mentioned that after talking with the lead writer of the Wisconsin research, the company believed that additional research was wanted and determined to pursue its personal analysis on potential downstream ammonia emissions from digesters. “The company finalized the contracts to start that analysis this yr, in March and September. The state mentioned in its emailed feedback that these contracts had been practically last in early 2020 however had been upended by the Covid-19 pandemic and the uncertainty it spawned about California’s “anticipated price range place.”

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Neighborhood Considerations

Whereas scientists have raised questions on how digesters could contribute to ammonia emissions, environmental justice advocates and a few residents within the San Joaquin Valley have raised direct considerations. 

Some neighborhood teams specific frustration that the state hasn’t achieved extra to align local weather methods with air high quality and public well being priorities. If these methods lined up, says Genevieve Amsalem, analysis and coverage director on the Central California Environmental Justice Community, “then we might have been speaking about ammonia after we began speaking about dairy digesters seven years in the past.”

Neighborhood members and activists within the state like Amsalem have argued for years that the push for digesters would help an industrial agricultural system that contributes to air air pollution. Ammonia is likely one of the most vital precursors to speck-like PM2.5 particles, which cling in a haze within the San Joaquin Valley and might lodge within the lungs and the bloodstreams of the individuals who reside there. The superb particles are identified to extend the severity of bronchial asthma and might enhance the danger of coronary heart and lung illness and even untimely dying. 

PM2.5 is a number one killer worldwide, nevertheless it particularly threatens the San Joaquin Valley. Lots of the most polluted counties in the USA are there, and bronchial asthma diagnoses within the valley are increased than within the state as a complete, based on a 2016 evaluation.

The air within the valley is so dangerous that final yr a gaggle of native and nationwide environmental organizations represented by the environmental group Earthjustice filed a swimsuit in opposition to the EPA, arguing that the federal authorities is required to step in to make sure that the state has a plan to enhance its air high quality. The valley has nonetheless not attained the PM2.5 requirements established by the EPA greater than twenty years in the past.

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Every year, California calculates how a lot of its cap-and-trade cash goes to initiatives that profit “precedence communities,” which the state defines as low-income populations or these most certainly to expertise disproportionate impacts from air pollution. At the very least 35 p.c of the state’s local weather investments should profit these populations total. Over the previous 5 years, the state has asserted that no less than 60 p.c of the digester initiatives it has funded benefited low-income and deprived teams. 

However communities close to digesters dispute that categorization. Maria Arevalo, a resident of the San Joaquin Valley city of Pixley, mentioned {that a} digester put in north of the neighborhood had really made the dairy odor worse. “It has a burning odor—it smells dangerous, of burning cow waste,” Arevalo mentioned. “They suppose they’re making it higher, however the trade has the identical [number of] cows they usually maintain shopping for extra, and extra, and extra. And the digesters nonetheless launch gasoline, chemical substances and emissions into the neighborhood.”

Arevalo, who has lived in Pixley for many years and suffers from sleep apnea, has needed to sleep with a CPAP, or steady optimistic airway stress machine, to help her respiratory for about 15 years. She desires the state to impose extra laws on dairy emissions. 

This yr, a gaggle of environmental organizations together with the Central California Environmental Justice Community and the Central California Bronchial asthma Collaborative argued in feedback to the federal EPA that each CARB and the native air district “have repeatedly averted regulating agricultural sources of air pollution despite the fact that the impacts of these choices disproportionately fall on surrounding communities of colour.” 

‘A Big Query That Must be Answered

In stories to the EPA, the state air sources board has argued that it isn’t required to manage ammonia as a result of the formation of particulate matter within the San Joaquin air basin is primarily influenced not by that gasoline, however by one other: nitrous oxide. A number of scientists advised Inside Local weather Information that CARB’s reasoning seems sound. However some prompt that regulatory companies are lacking out on a possibility to cope with ammonia emissions anyway.

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Whatever the stability of nitrous oxide and ammonia within the air, “eradicating ammonia, should you take away sufficient of it, may make a huge impact” on the unfold of small particulates that endanger human well being, mentioned Daven Henze, an air air pollution knowledgeable and affiliate professor of mechanical engineering on the College of Colorado Boulder. However doing so would require stringent controls and regulating ammonia emissions from agriculture and livestock, one thing that the federal authorities hasn’t traditionally achieved. 

Henze argues that ammonia by itself has worrisome environmental impacts. Emissions from the San Joaquin Valley can journey so far as Colorado, he mentioned, settling into and disrupting ecosystems. 

Zondlo, the Princeton atmospheric chemistry knowledgeable, whose grandparents had been dairy farmers in Wisconsin, says that managing the nitrogen cycle is as advanced as managing the carbon cycle. “We’re simply decimating pure ecosystems with human-influenced nitrogen,” of which a significant portion comes from agriculture, he mentioned. “The place does it go? And what are the downstream results? I feel that’s an enormous query that must be answered.”

Neither California Bioenergy nor Maas Vitality Works, the businesses accountable for greater than 90 p.c of the 117 state-funded digester initiatives funded by the California state authorities, mitigate ammonia emissions from storage of digested manure. 

Neil Black, California Bioenergy’s president, mentioned the problem “must be checked out fastidiously from a California perspective.” “We received into this enterprise as a result of we wished to lower greenhouse gases, however we positive didn’t wish to add to any native air pollution,” he mentioned. 

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Dairy cows at Bar 20 line up in the feedlot. Credit: Grace van Deelen
Dairy cows at Bar 20 line up within the feedlot. Credit score: Grace van Deelen

Daryl Maas of Maas Vitality mentioned in an e mail that the outcomes noticed within the Wisconsin research don’t appear relevant to how digesters operate in California. Michael Boccadoro, a lobbyist for the dairy trade, additionally argued in an e mail that the findings didn’t apply to California due to variations in how the states’ digesters course of manure. On California farms, manure liquids and solids are separated earlier than digestion. Within the Wisconsin research, researchers separated the solids after digestion and composted them, which Boccadoro mentioned brought on the surplus ammonia emissions. 

However that rationalization isn’t based mostly in science, mentioned Michael Holly, the lead writer of the 2017 Wisconsin paper and an assistant professor in environmental engineering on the College of Wisconsin-Inexperienced Bay. “They’re simply throwing stuff on the wall now and seeing what’s going to stick,” mentioned Holly, who added that it doesn’t matter when separation occurs. “Should you retailer digested manure, you’re going to have ammonia emissions increased than undigested manure.” 

In search of Mitigation

Manure administration methods that mitigate ammonia emissions do exist, although it’s unclear what number of farms with digesters use them. In response to the 2017 research, overlaying the secondary storage lagoon with covers or with natural charcoal-like supplies or straw prevents the ammonium in digestate from being launched into the air. Adopting extra exact crop irrigation that retains digestate from interacting with air might help, too. Ammonia-capture expertise, like separating ammonia from the manure slurry utilizing a stripper and sending it right into a tower the place it may be processed and used as fertilizer, additionally exists. 

Such methods seem uncommon, says Rudek of the EDF: He estimates that “lower than 1 p.c” of dairies are utilizing them. California doesn’t at present require farmers or builders to make use of such mitigation when pursuing new digester initiatives.

Each scientists and environmental advocates warn that the state ought to contemplate the potential native impacts of digesters together with local weather options.“It’s a good suggestion for us to think about these air air pollution and local weather change issues collectively as a result of there could also be instances the place one mitigation technique for methane may reduce the air air pollution downside or, conversely, make it worse,” mentioned Hopkins. 

California does supply monetary incentives for farmers to undertake manure administration methods other than digesters that restrict each methane and ammonia emissions by means of its Various Manure Administration Program. Though that initiative has funded across the identical variety of initiatives because the digester program, it has obtained lower than a 3rd of the federal government funding out there to digester initiatives. California has mentioned these initiatives are much less economically environment friendly per metric ton of greenhouse gasoline discount than digesters.

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Extra research may assist dispel uncertainty in regards to the potential unwanted side effects of digesters. Communities close to dairies and the agricultural emissions that speed up local weather change are hanging within the stability.

“Good analysis raises questions,” mentioned Zondlo. “We have to take a look at this.”



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California

STEVE HILTON: Five things California Democrats still don't get

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STEVE HILTON: Five things California Democrats still don't get


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Along with most other Democratic politicians in California, Gov. Gavin Newsom still doesn’t seem to understand what happened in the 2024 election.

For years, Newsom, along with California cronies like former House Speaker Nancy Pelosi and, of course, Vice President Kamala Harris, bragged about their state being a “model for the nation.”

In one sense–not the one they intended, of course–that’s true. California became a model of what not to do.

CALIFORNIA VOTERS NARROWLY REJECT $18 MINIMUM WAGE; FIRST SUCH NO-VOTE NATIONWIDE SINCE 1996

The terrible combination of elitism and extremism that has defined Democratic policymaking in my home state for at least the last decade has delivered failure on every front.

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Despite having the highest taxes in the nation, despite the state’s budget nearly doubling in the last ten years (even as our population has been falling, in the exodus from blue state misrule), California has the highest rate of poverty in America. We have the highest housing costs, the lowest homeownership, highest gas and utility bills, and the worst business climate–ten years in a row.

This record of failure is exactly why Democrats lost so badly on November 5th. Voters had a clear choice: between more of the same Democrat policies that raised the cost of living and lowered their quality of life, or a return to the peace and prosperity of the Trump years.

GAVIN NEWSOM TO MEET WITH BIDEN AFTER VOWING TO PROTECT STATE’S PROGRESSIVE POLICIES AGAINST TRUMP ADMIN

In many ways, the contest between Donald Trump and Kamala Harris represented a battle between the ‘blue state model’ championed by Gavin Newsom in California, and the ‘red state model’ that has driven people and businesses out of California and into the arms of more welcoming states like Texas, Tennessee and Florida.

Of course, the red state model won and the blue state model was roundly rejected. 

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You would think that would make blue state leaders like Newsom pause and reflect. But the exact opposite has happened. Gavin Newsom immediately called a “special session” of the California legislature to “Trump-proof” his state.

What California really needs is “Newsom-proofing.” 

Instead, California Democrats are doubling down on the exact same agenda that was defeated across the country – including in California, which saw the biggest shift from Democrats to the GOP in decades.

Here are the five things California Democrats still don’t get:

1. People want results, not lectures

Democrats and their media sycophants can do all the self-righteous, sanctimonious bloviating they like about “our democracy” and “equity”, but in the end people want the basics of the American Dream: a good job that pays enough to raise your family in a home of your own in a safe neighborhood with a good school so your kids can have a better life than you. No amount of moral superiority from the people in charge will make up for that if they fail to provide it.

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2. Enough with the ‘climate’ extremism

“Climate” has become a religion for Democrats, and you see that especially clearly in California. But when you look at the main reason life is so unaffordable for working people, whether that’s gas prices, utility bills or housing costs, extreme climate policies are to blame. Working-class Americans can’t afford these ‘luxury beliefs.’

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3. Who cares about Hollywood? 

This election destroyed forever the myth that fancy celebrities can sway votes. Oprah, Beyonce, George Clooney, Taylor Swift…nobody cares! The new cultural powerhouses are the podcast hosts, comedians…the raw power of UFC is where it’s at, not the decadent Hollywood elite who won’t even turn up to support “their” candidate without a multimillion dollar paycheck.

Producer and actress Oprah Winfrey holds up Vice President and Democratic presidential candidate Kamala Harris’ hand as she arrives onstage during a campaign rally on the Benjamin Franklin Parkway in Philadelphia, Pennsylvania, on November 4, 2024.  (Getty Images)

4. ‘Little tech’ beats Big Tech

Democrats may console themselves with the knowledge that California’s Big Tech monopolies are on their side. But in this election we saw the rise of what famed Silicon Valley investor Marc Andressen calls “little tech”, the upstarts and rebels who reject leftist groupthink. They got engaged in this election in a way we’ve never seen before. It’s a massive shift and will be a huge force for the future.

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5. Working class beats the elite 

Back in 2016, after the Brexit vote, and then Donald Trump’s victory here, shocked the world, I predicted that the Republican Party had the opportunity to become a “multiracial working class coalition.” Trump’s 2024 victory has delivered that — a revolutionary shift in our political landscape. The other part of my prediction? Democrats will be left as the party of the “rich, white and woke.”

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Unless Democrats come to terms with these realities and change course, they can expect to lose elections for years to come. The reaction in California – epicenter of today’s Democrat elite — shows that there is zero sign of this happening. 

They just don’t get it.

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California proposes its own EV buyer credit — which could cut out Elon Musk's Tesla

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California proposes its own EV buyer credit — which could cut out Elon Musk's Tesla


  • Gov. Gavin Newsom plans to revive California’s EV rebate if Trump ends the federal tax credit.
  • But Tesla, the largest maker of EVs, would be excluded under the proposal.
  • Elon Musk criticized Tesla’s potential exclusion from the rebate.

California Gov. Gavin Newsom is preparing to step in if President-elect Donald Trump fulfills his promise to axe the federal electric-vehicle tax credit — but one notable EV maker could be left out.

Newsom said Monday if the $7,500 federal tax credit is eliminated he would restart the state’s zero-emission vehicle rebate program, which was phased out in 2023.

“We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” Newsom said in a statement. “We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”

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The rebates for EV buyers would come from the state’s Greenhouse Gas Reduction Fund, which is funded by polluters of greenhouse gases under a cap-and-trade program, according to the governor’s office.

But Tesla’s vehicles could be excluded under the proposal’s market-share limitations, Bloomberg News first reported.

The governor’s office confirmed to Business Insider that the rebate program could include a market-share cap which could in turn exclude Tesla or other EV makers. The office did not share details about what market-share limit could be proposed and also noted the proposal would be subject to negotiations in the state legislature.

A market-share cap would exclude companies whose sales account for a certain amount of total electric vehicle sales. For instance, Tesla accounted for nearly 55% off all new electric vehicles registered in California in the first three quarters of 2024, according to a report from the California New Car Dealers Association. By comparison, the companies with the next highest EV market share in California were Hyundai and BMW with 5.6% and 5% respectively.

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Tesla sales in California, the US’s largest EV market, have recently declined even as overall EV sales in the state have grown. Though the company still accounted for a majority of EV sales in California this year as of September, its market share fell year-over-year from 64% to 55%.

The governor’s office said the market-share cap would be aimed at promoting competition and innovation in the industry.

Elon Musk, who has expressed support for ending the federal tax credit, said in an X post it was “insane” for the California proposal exclude Tesla.

The federal electric vehicle tax credit, which was passed as part of the Biden administration’s Inflation Reduction Act in 2022, provides a $7,500 tax credit to some EV buyers.

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Musk, who is working closely with the incoming Trump administration, has expressed support for ending the tax credit. He’s set to co-lead an advisory commission, the Department of Government Efficiency, which is aimed at slashing federal spending.

The Tesla CEO said on an earnings call in July that ending the federal tax credit might actually benefit the company.

“I think it would be devastating for our competitors and for Tesla slightly,” Musk said. “But long-term probably actually helps Tesla, would be my guess.”

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BI’s Graham Rapier previously reported that ending the tax credit could help Tesla maintain its strong standing in the EV market by slowing its competitors growth.

Prior to the EV rebate proposal, Newsom has already positioned himself as a foil to the incoming Trump administration. Following Trump’s election win the governor called on California lawmakers to convene for a special session to discuss protecting the state from Trump’s second term.

“The freedoms we hold dear in California are under attack — and we won’t sit idle,” Newsom said in a statement at the time.





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California Gov. Gavin Newsom says state will provide rebates if Trump removes tax credit for electric vehicles

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California Gov. Gavin Newsom says state will provide rebates if Trump removes tax credit for electric vehicles


California Gov. Gavin Newsom said the state will provide rebates to residents if President-elect Donald Trump’s incoming administration does away with a federal tax credit for electric vehicles.

In a news release issued Monday, Newsom said he would restart the state’s Clean Vehicle Rebate Program, which provided financial incentives on more than 590,000 vehicles before it was phased out late 2023.

“We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” Newsom said. “We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”

The federal rebates on new and used electric vehicles were implemented in the Inflation Reduction Act that President Joe Biden signed into law in 2022. When Trump’s second term in office begins next year, he could work with Congress to change the rules around those rebates. Those potential changes could limit the federal rebates, including by reducing the amount of money available or limiting who is eligible.

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Limiting federal subsidies on electric vehicle purchases would hurt many American automakers, including Ford, General Motors and the EV startup Rivian. Tesla, which also builds its automobiles in the United States, would take a smaller hit since that company currently sells more EVs and has a higher profit margin than any other EV manufacturer.

Newsom also announced earlier this month that he will convene a special session “to protect California values,” including fundamental civil rights and reproductive rights, that he said “are under attack by this incoming administration.”

“Whether it be our fundamental civil rights, reproductive freedom, or climate action — we refuse to turn back the clock and allow our values and laws to be attacked,” Newsom said on X on Nov. 7.

A spokesperson for Trump did not immediately respond to a request for comment.

This isn’t the first time California will be taking action against the Trump’s administration concerning clean transportation legislation.

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In 2019, California and 22 other states sued his administration for revoking its ability to set standards for greenhouse gas emission and fuel economy standards for vehicles, The Associated Press reported.

California sued the Trump administration over 100 times during his first term, primarily on matters including gun control, health care, education and immigration, the Los Angeles Times reported.



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