GOOD AFTERNOON. THANK YOU AGAIN.
SO MUCH FOR UM COMING TO OUR
COMMITTEE HEARING. THIS IS A
JOINT INFORMATIONAL HEARING FOR
THE JOBS, ECONOMIC DEVELOPMENT
IN ECONOMY COMMITTEE AS WELL AS
OUR SELECT COMMITTEE ON ASIA,
CALIFORNIA TRADE AND INVESTMENT.
UM THIS COMMITTEE, UH, IT'S TIME
TO REALLY TEE UP THE MAJOR APEX,
UH, CONFERENCE THAT IS COMING.
WE ARE SO HONORED IN SAN
FRANCISCO, NOT JUST FRANCISCO,
BUT REALLY CALIFORNIA TO BE
HOSTING APEX. WHERE YOU WHERE WE
WELCOME THE ASIAN LEADERS AND
ALL THEIR ECONOMIC MINISTERS AND
TEAMS TO REALLY BE BE TALKING
ABOUT, UM HOW ARE HOW THE REGION
OF ASIA AND OUR COUNTRY CAN BE
WORKING MORE CLOSELY TOGETHER AT
A TIME WHEN UNFORTUNATELY,
THINGS HAVE BEEN COME INFLAMED
WITH CERTAIN COUNTRIES IN ASIA.
I THINK IT'S ABSOLUTELY VERY
CRITICAL TO REMIND OURSELVES HOW
IMPORTANT ASIA IS TO OUR STATE
IN CALIFORNIA. THIS IS A
REMINDER THAT CALORIE THAT CHINA
AND JAPAN ARE 3RD AND 4TH
LARGEST TRADING PARTNERS THAT
THE ASIA PACIFIC REGION AGAIN AS
A HUGE, HUGE ECONOMIC ENGINE IN
TERMS OF POPULATION, BUT ALWAYS
ALSO IN TERMS OF GDP. TODAY WE
WANTED TO FOCUS ON THE LARGER
ISSUE OF TRADE. BUT THEN ALSO
FOCUS ON IN PARTICULAR. TWO
AREAS WHERE WE CAN SHARE. UM AND
ADVANCES IN AGRICULTURE IN
PARTICULAR AROUND AGRICULTURAL
TECHNOLOGY AND THEN AGAIN, ALSO
AROUND CLEAN TRANSPORTATION.
THESE ARE AREAS THAT ARE REGION
IN OUR STATE HAVE ALREADY BEEN
WORKING VERY, VERY CLOSELY WITH
ASIA ON AND THE PANELISTS ARE
GOING TO TALK ABOUT SOME OF THE
HISTORY BUT ALSO MORE IMPORTANT
WHERE THEY SEE THE FUTURE IS
COMING AND TALK ABOUT REALLY UM,
THE CRITICAL IMPORTANCE, LEAVING
THE POLITICS ASIDE REALLY
CRITICAL ECONOMIC IMPORTANCE.
OBVIOUSLY WE ARE A MAJOR
IMPORTER. CALIFORNIA IS OF GOODS
FROM ASIA AS WELL. SO THAT
REALLY SHOULD GO WITHOUT SAYING
LET ME AGAIN. I SAID THIS
EARLIER WHEN I WAS TALKING TO
THE PRESS, LET LET ME AGAIN
THANK OUR PARTNERS. HORRIBLE JOB
IS DEPARTMENT IS HERE. I KNOW
MISS LEE IS COMING IN REMOTELY,
BUT KOBE'S WAS EXTRAORDINARILY
HELPFUL IN HELPING THIS PANEL
GET TOGETHER. I DO WANT TO THANK
OUR PARTNERS AT THE BAY AREA
COUNCIL, AS WELL AS GLOBAL AS F
IN PARTICULAR. FOR REALLY, UM
NOT, YOU KNOW THEIR LONGTIME
FRIENDSHIP FOR ME PERSONALLY,
BUT JUST REALLY THEIR
PARTNERSHIP. AND REALLY STAYING
THE COURSE IN REMINDING US HOW
IMPORTANT THIS REGION IS
ECONOMICALLY TO THE BAY AREA TO
SAN FRANCISCO TO CALIFORNIA. SO
WITH THAT, LET ME TURN IT OVER
TO MY GREAT COLLEAGUE FROM
STOCKTON, WHO CHAIRS OUR
COMMITTEE ON JOBS.
ASSEMBLYMEMBER'S VÆ VALLAPUDUA.
THANK YOU SIMILAR MEMBER CHAIN
FOR YOUR PARTNERSHIP. AND FOR
HOSTING THIS JOINT HEARING HERE
IN YOUR DISTRICT. I LOOK FORWARD
TO THIS ROBUST CONVERSATION
REGARDING ECONOMIC DEVELOPMENTS
AND GLOBAL MARKETS. TO ENSURE
MEMBERS OF THE MEDIA AND THE
PUBLIC HAVE ACCESS TO OUR
PROCEEDINGS. TODAY THIS JOINT
HEARING WILL WILL BE STREAMED ON
THE ASSEMBLY WEBSITE AND MEMBERS
OF THE PUBLIC CAN PROVIDE
TESTIMONY IN PERSON. AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION AUDITORIUM. DURING
THE PUBLIC COMMENTS APPEARED WE
WILL CALL YOU CALL YOU WHAT? AND
YOU CAN FORM A LINE AND
APPROACHED THE MICROPHONE. UH,
ONCE AT THAT TIME, EACH PERSON
HAS THE MAXIMUM OF TWO MINUTES
PER COMMENTS. TO PRESERVE THE
SAFETY OF EVERYONE HERE TO
ENSURE THE PUBLIC ACCESS. TO THE
DECISIONS. PLEASE FOLLOW THE
DIRECTIONS OF THE SERGEANT'S,
WHICH THEY'RE RIGHT HERE AND
THEN LET US BEGIN OUR FIRST
PEDAL CONVERSATION WILL TAKE
WILL DISCUSS TRADE BETWEEN
CALIFORNIA AND ASIA. THE
PANELISTS AS YOU CAN, AS YOU CAN
SEE. PLEASE COME FORWARD. ALL OF
YOU GUYS ARE HERE. AND WE'RE
GONNA START OFF WITH JOINING US
VIRTUALLY IS MISS. UH. WE DIDN'T
LI INVESTMENTS REPRESENTATIVE AT
GÓMEZ. MISS LEE, WHEN YOU'RE
READY, YOU CAN START. THANK YOU
SO MUCH. SHERIFF BUDDHA AND
CHARITY WITH THE OPPORTUNITY TO
JOIN TODAY'S JOINT HEARING.
VIRTUALLY MY NAME IS FINALLY ON
THE TRADE AND INVESTMENT
REPRESENTATIVE FOR ASIA AND
CALIFORNIA GOVERNOR, SELFISHNESS
OF BUSINESS AND ECONOMIC
DEVELOPMENT, OR GÓMEZ. BUT IT
SERVES AS A FIT LEADING AGENCY
FOR JOB GROWTH, ECONOMIC
DEVELOPMENT AND BUSINESS
ASSISTANCE EFFORTS. THE
INTERNATIONAL AFFAIRS AND TRADE
UNIT, WHICH I'M PART OF ADVICE
THE STATE LEADERSHIP ON
INTERNATIONAL AFFAIRS AND TRADE
ISSUES IMPLEMENT STRATEGIES TO
DEVELOP AND GROW INTERNATIONAL
RELATIONSHIPS AND ENGAGING WITH
FOREIGN PARTNERS. PROVIDE
RECOMMENDATIONS TO PROMOTE AND
EXPAND CALIFORNIA'S EXPORT AND
FBI. WORK HAS SWEET PILLARS.
EXPORT PROMOTION SUPPORTING
SMALL BUSINESS IN ACCESSING
GLOBAL MARKETS. ZERO CALIFORNIA
TRADE EXPANSION PROGRAM OR STEP
BRANCH. ATTRACTION. BRINGING
FOREIGN INVESTMENT AND EQUATING
JOBS IN CALIFORNIA BY PROVIDING
ONE ON ONE CONSULTATION AND
COMPLEMENTARY INVESTMENT SERVICE
AND RESOURCES. ENGAGING IN SUB
NATIONAL DIPLOMACY AND BUSINESS
ENGAGEMENT. THIS INCLUDES
SUPPORTING THE GOVERNOR FROM THE
GOVERNOR'S OFFICE, AS WELL AS
CALIFORNIA INTERNATIONAL AFFAIRS
AND TRADE DEVELOPMENT
INTERAGENCY COMMITTEE ON
INTERNATIONAL TRADE MISSIONS AND
DELEGATION VISITS. INTERNATIONAL
COLLABORATION AGREEMENTS AND THE
SYSTEM. CALIFORNIA REGIONAL
ECONOMIC DEVELOPMENT
ORGANIZATIONS AND LOCAL
GOVERNMENTS ON INTERNATIONAL
AFFAIRS AND TRADE REQUEST.
CALIFORNIA PLAYS AN OUTSIZED
ROLE ON THE GLOBAL STAGE.
WHETHER IT'S OUR SHARED BORDER
WITH COUNTRIES MOST SIGNIFICANT
TRADING PARTNER ALWAYS STRATEGIC
POSITION ON THE PACIFIC RUN.
WHAT OUR NATIONAL LEADER IN TWO
WAY TRADE AND TOP STATE
EXPORTERS IN 26 INDUSTRIES. 5
MILLION CALIFORNIA JOBS ARE
SUPPORTED BY TRADE AND FBI. IN
2022, CALIFORNIA EXPORT 9% OF US
TOTAL EXPORTS. AND IMPORT ABOUT
16% OF TOTAL U. S IMPORTS. 55%
OF ALL OF CALIFORNIA'S TWO WAY
TRADE IS WITH EAST ASIAN
COUNTRIES. WITH A TOTAL VALUE OF
386 BILLION. AND LIKE TO SHARE
HOW WE SUPPORT CALIFORNIA
EXPORTERS TO EXPAND TO GLOBAL
MARKETS BUT PARTICIPATING IN
TRADE PROMOTION ACTIVITIES
THROUGH THE CALIFORNIA'S DEATH
THREAT. OKAY THIS IS STILL IN
THIS TRAITOR OF THE CALIFORNIA
STATE EXPANSION PROGRAM WAS
DECORATED AND THE COLLABORATIVE
AGREEMENT WITH US SMALL BUSINESS
INDUSTRY. SHIN S. B. A THIS
GRANT PROGRAM AIMS TO INCREASE
THE NUMBER OF SMALL BUSINESS
EXPORTERS. INCREASED THE VOLUME
OF GOODS AND SERVICE THE EXPORT.
LAST YEAR. WE RECEIVED 600,000
IN GRANT FUNDING FROM S P A.
WHICH INCREASED TO 700,000 THIS
PHYSICAL PHYSICAL FED THAT
FISCAL YEAR. THE GROWTH OF THE
AWARD, DEMONSTRATE AS PS
RECOGNITION AND CONFIDENCE IN
CALIFORNIA'S WORK. I READ HERE
OUR TRIP OUR TEAM SUPPORTS OVER
115, CALIFORNIA SMALL BUSINESS
WITH FUNDING. WHICH EFFECTIVELY
MICRO GRANTS LOVELY IN BETWEEN
1000 TO 5000 RANCH. TO
PARTICIPATE IN INTERNATIONAL
TRADE SHOWS AND TRADE MISSIONS.
U S COMMERCIAL SERVICE EXPORT
PRODUCTS SUCH AS GOLD KEY
SERVICE, COMPLIANCE TESTING AND
PROTECTION. SAMPLE SHIPPING
INTERNATIONAL MARKETING
MATERIAL. TRANSLATION WEBSITE
GLOBALIZATION, E COMMERCE.
EXAMPLE EXPORT CREDIT INSURANCE
AND EXPLORATION SEARCH TOOLS.
HERE ARE SOME EXAMPLES OF OUR
EXPORT ACTIVITIES THAT WAS
SUPPORTED IN ASIAN PACIFIC RIM.
IN MARCH THIS YEAR, THE
CALIFORNIA STATE GRANTS
SUPPORTED CALIFORNIA PAVILION AT
WAR. SMALL ENERGY WORK
EXHIBITION IN TOKYO IN
CONJUNCTION WITH THE JAPAN TO
ADMISSION, LIKE BY OUR
LIEUTENANT GOVERNOR, AND GÓMEZ,
DIRECTOR, D. D. MYERS. PAVILION
HIGHLIGHT SIX CALIFORNIA SMALL
BUSINESS EXPORTERS RANGING FROM
HYDROGEN HYDROPOWER, SMART WAY
OFFSHORE WIND AND OTHER OTHER
CLEAN ENERGY SECTORS AND
PROVIDED A VALUABLE OPPORTUNITY
FOR THESE COMPANIES TO PROMOTE
THEIR PRODUCTS AND SOLUTIONS TO
BUYERS, DISTRIBUTORS AND
POTENTIAL PARTNERS IN JAPAN AND
BEYOND. SIX SMALL BUSINESS
GENERATED 24 CELLS LEASE AND 75
BUSINESS LEASE AT THE BUSINESS
TRIP SHOW. WAS THE TOTAL VALUE
OF 1.4 BILLION ANTICIPATED
ITSELF. MEANWHILE CALIFORNIA
OFFICIALS DELIVER KEYNOTE
SESSION TO AN AUDIENCE OF MORE
THAN 500 PEOPLE ON THE STATE
STRATEGIES FOR DECARBONIZATION
AND CLIMATE RESILIENCE.
FANTASTIC EXAMPLE OF THE WAY HOW
THE STATE IS DANCING AS CLEAN
TECH, ETCETERA. ALSO THIS YEAR,
CALIFORNIA STACK WENT SUPPORT.
12 CALIFORNIA SMALL BUSINESS TO
PARTICIPATE IN THE CHINA CLEAN
BEAUTY SHOWCASE AND SEMINAR POST
BY U. S COMMERCIAL SERVICE. I
SAID THE PUBLIC PROGRAMS
SUPPORTED BUT US SECRETARY OF
COMMERCE GINA RIMANDO DURING
THIS PROGRAM. THERE WERE 130
BUSINESS MIGHT MATCHMAKING
MEETINGS FACILITATED WITH
PARTICIPATING U. S BRANDS? THESE
TYPE OF PROGRAMS THAT VERY
IMPORTANT THEY DIDN'T OUR TRADE
TIES AND PROVIDE NEW REVENUE AND
BUSINESS OPPORTUNITY FOR
CALIFORNIA SMALL BUSINESS IN
VERY IMPORTANT MARKETS OVERSEAS.
WHAT EXAMPLES. THE STATE GRAD
ALSO SUPPORT CALIFORNIA. SMALL
BUSINESS TO PARTICIPATE IN TRADE
WINDS MISSION TO ASEAN COUNTRIES
ORGANIZED BY DEPARTMENT OF
COMMERCE THIS MARCH. WE WILL BE
SUPPORTING FIVE CALIFORNIA SMALL
BUSINESS TO EXHIBIT A COSMO
PROFIT ASIA TWIT SHOW IN HONG
KONG NEXT MONTH, AND WE'RE
AIMING TO SUPPORT 10, CALIFORNIA
SMALL BUSINESS EXHIBIT AT
SINGAPORE AIRSHOW NEXT FEBRUARY.
WE ARE COMMITTED TO CONTINUE
SUPPORT MORE CALIFORNIA SMALL
BUSINESS TO STOP EXPORTING AND
EXPAND THEIR CELLS TO BROADER
GLOBAL MARKETS WITH FUTURE
OPPORTUNITIES. OF SEEKING
RECOMMENDATIONS FOR SMALL
BUSINESS TO WORK WITH THAT
PROGRAM AND WORK CRACK
COLLABORATIVELY WITHIN OTHER GO
BASE UNIT. SUCH AS OUR BUSINESS
INVESTMENT SERVICE TEAM AND
CALIFORNIA COMPLETE TEXT CREDIT
PROGRAM TO RECRUIT BUSINESS
PARTICIPATION. THANK YOU AGAIN
FOR THIS VALUABLE OPPORTUNITY TO
SHARE OUR WORK AND WE'RE LOOKING
FORWARD TO CONTINUE ENGAGE WITH
THE REGION. AND PHOTOS SERVING
CALIFORNIA BUSINESS COMMUNITY.
THANK YOU. THANK YOU. THANK YOU,
MISS LANE. THANK YOU PER
PARTICIPATING YOUR COMMITMENT
AND YOUR PARTNERSHIP TODAY. NEXT
WE HAVE IN PERSON IS SEAN
RANDOLPH SENIOR DIRECTOR, BARRY
COUNCIL INSTITUTE. CHAIRS ABOVE
FEAR. IT'S UM ICON. YOU WANT TO
HIT THE GREEN BUTTON THE BUTTON.
MAKE SURE IT'S GREAT. OH IT'S
GREENER THAN IT WAS GOOD. THANKS
VERY MUCH. I WANTED TO THANK
BOTH COMMITTEES AND THE CHAIRMAN
FOR THE OPPORTUNITY TO BE HERE.
IT'S ESPECIALLY TIMELY WITH APEC
COMING UP IN LESS THAN THREE
WEEKS. AH! 21 AGE PACIFIC
ECONOMIES REPRESENTED BY HEADS
OF GOVERNMENT MINISTERS, SENIOR
OFFICIALS, MEDIA AND CORPORATE
LEADERS, UH, AN AMAZING
OPPORTUNITY TO SHOWCASE
CALIFORNIA SHOWCASE ITS
INNOVATION. WHAT THEY CAN DO ARE
REINFORCED CURRENT TRADE AND
INVESTMENT RELATIONSHIPS AND
HOPEFULLY BUILD SOME NEW ONES.
SO THE REGION COVERED BY APEC,
AS WE ALL KNOW, IS OUR LEADING
TRADE PARTNER IN THE WORLD, AND
THE MEETING COMES AT A
PARTICULARLY IMPORTANT MOMENT.
IN TIME FOR TRADE. SO THERE'S
JUST THREE SORT OF HIGH LEVEL
OVERARCHING THOUGHTS I'D LIKE TO
SHARE KNOWING YOU'LL GET ANY
MORE DETAILED WITH WITH LATER
PRESENTERS. UH ONE IS THAT
ALTHOUGH CALIFORNIA'S TRADE IS
DIVERSE, IT'S LED BY TECHNOLOGY
IN TERMS OF VALUE. THAT'S
ESPECIALLY THE CASE FOR NORTHERN
CALIFORNIA. BUT IT'S THE STATE
AS WELL AND THAT'S ROOTED IN
VERY HIGH LEVELS OF INVESTMENT
IN BOTH DIRECTIONS AND MANY ASIA
PACIFIC ECONOMIES. MOST OF THEM
ARE DEEPLY EMBEDDED HERE
PHYSICALLY IN OUR ECONOMY WITH
ACTUAL PRESENCES IN SILICON
VALLEY, SAN FRANCISCO AND
THROUGHOUT THE STEAK, AND THAT'S
BASED ON CALIFORNIA'S
REPUTATION, WELL DESERVED
REPUTATION. AS THE WORLD'S
NUMBER ONE CENTER FOR TECHNOLOGY
FOR INNOVATION AND FOR
ENTREPRENEURSHIP, SO THIS IS A
MAJOR ASSET FOR THE STATE. TO
LEVERAGE AS IT BUILDS ITS TRADE
RELATIONSHIPS AND ITS INVESTMENT
RELATIONSHIPS IN THE REGION. SO
MY INSTITUTE IS COUNTED AT LEAST
350 OVER THESE HEADQUARTERED
ENTITIES, SO THESE ARE DIFFERENT
KINDS OF GOVERNMENT OFFICES,
PRIMARILY RELATED TO TRADE AND
INVESTMENT. UM, OVERSEAS BASED
CORPORATIONS WITH R AND D
CENTERS WITH INNOVATION OFFICES
WITH CORPORATE VENTURE ARMS,
OTHER VENTURE ARMS ACCELERATORS,
INCUBATORS, OVERSEAS HEADQUARTER
UNIVERSITIES, OVERSEAS
HEADQUARTERS, SCIENTIFIC OFFICES
THAT ARE ALL HERE WITH A
PRESENCE AND OFFICES IN
CALIFORNIA AROUND THE SAME
THINGS. INVESTMENT TRADE,
TECHNOLOGY, INNOVATION,
ENTREPRENEURSHIP, AND THAT
INCLUDES MANY CITY AND STATE AND
PROVINCIAL LEVEL ENTITIES BEING
HERE AS WELL. SO THIS FOCUS ON
TECHNOLOGY AND INNOVATION
UNIQUELY DEFINES CALIFORNIA IN
THE MINDS OF MOST OF THE WORLD,
YET AN IMPORTANT ASSET THAT WE
HAVE AND IT THIS IS REALLY
UNPARALLELED ANYWHERE ELSE IN
THE UNITED STATES. AH THE SECOND
THOUGHT I'D LIKE TO PUT ON THE
TABLE AS THIS HEARING BEGINS. IS
THAT ARE COMPETITIVENESS AS A
STATE, ALTHOUGH IT'S VERY
STRONG. IS UNDERMINED REALLY? BY
. I SAID THE FAILURE OF OUR
NATIONAL GOVERNMENT TO CONSIDER
NEW AGREEMENTS THAT WOULD
FURTHER OPEN TRADE FOR AMERICAN
COMPANIES IN THE AGE SPECIFIC
REGION AND GLOBALLY. SO THAT'S
REALLY BEGAN WITH THE U. S
WITHDRAWAL FROM THE TRANS
PACIFIC PARTNERSHIP IN EARLY
2020. UM WE HAVEN'T TO RETURN AS
THE NATIONAL GOVERNMENT TO THAT
TABLE. SINCE THEN, HOWEVER, THAT
AGREEMENT, THE TPP WAS
REPACKAGED AS A COMPREHENSIVE
AND PROGRESSIVE TPP LED BY
CANADA AND JAPAN, AND IT
CONTINUED WITHOUT US, AND SINCE
THEN THE UNITED KINGDOM JOINED
THIS YEAR. SO THE UNITED KINGDOM
FROM EUROPE, BUT WE ARE NOT
MEMBERS AND CHINA HAS ASKED TO
JOIN, WHICH WOULD CERTAINLY
SHAKE THINGS UP A LOT. SO THE
BUSINESS COMMUNITY, THE
INTERNATIONAL TRADE COMMITTEE,
ARE VERY SUPPORTIVE. THESE KINDS
OF AGREEMENTS, AND THE FEELING
IS IF WE CHOOSE NOT TO
PARTICIPATE. WHERE WHERE WE'RE
LOSING OUT. BUT IT DOES MAKE IT
ALL THE MORE IMPORTANT THAT WE
FOCUSED ON APEC BECAUSE PACKERS
HERE AND OUT AND MANY OF THOSE
ECONOMIES ALL OF THEM ARE
REPRESENTED, UH, THE THIRD AND
LAST THOUGHT I WOULD LIKE TO
PLANT ON THE TABLE. YEAH,
CONCERNS GLOBAL SUPPLY CHAINS
WHERE WE'RE SEEING IMPORTANT AND
REALLY STRATEGIC CHANGES. NOW
THIS IS COMING IN RESPONSE TO
DEVELOPMENTS IN CHINA CHANGES IN
U. S CHINA RELATIONS. UH, THAT
STEMS FROM A VARIETY OF REASONS.
I THINK WE'RE ALL FAMILIAR WITH,
UH, CONCERNS ABOUT SECURITY
RELATIONS WITH CHINA. CHINESE
INTENTIONS GLOBALLY THE FUTURE
OF US BISHOPS OF THE CHINA BUT
ESPECIALLY, UH, DO YOU USE
TECHNOLOGY THAT COULD HAVE CIVIL
AND MILITARY APPLICATIONS BOTH
AND UH, OVERALL, A CONCERN WITH
POTENTIAL OVERDEPENDENCE OF THE
UNITED STATES AND UNITED STATES.
COMPANIES ON CHINA IN PARTICULAR
, BUT REALLY ON ANY ONE COUNTRY
IN THE WORLD FOR SUCH A LARGE
SHARE OF OUR SOURCING AND ARE
CRITICAL SUPPLIES ACROSS MANY,
MANY INDUSTRIES, BECAUSE SINCE
WE KNOW CHINA REALLY IS KIND OF
THE MANUFACTURING HEARTLAND OF
MUCH OF THE WORLD NOW SO WITH
WITH WITH THOSE CONCERNS, THE U.
S GOVERNMENT HAS TAKEN A VARIETY
OF STEPS IN RECENT YEARS TO IN
ONE WAY OR THE OTHER, RESTRICT
EXPORTS. RESTRICT IMPORTS WITH
TARIFFS RESTRICT INVESTMENT. AH.
INBOUND INVESTMENT IN PARTICULAR
FROM CHINA, BUT OUTBOUND
INVESTMENT POTENTIALLY WE SEE A
LOT OF EXAMPLES, BUT CERTAINLY
SEMICONDUCTORS POPS OUT RIGHT
AWAY, AND THE OTHER THING THAT
AFFECTED THINGS WERE CHINA'S
COVID LOCKDOWNS, WHICH REALLY IS
SET DOWN KEY PARTS OF THE
COUNTRY FOR EXTENDED PERIODS AND
WHETHER YOU'RE US COMPANY OR
YOU'RE ANOTHER COMPANY FROM
ELSEWHERE IN THE WORLD. THEY
FOUND THEIR SUPPLY CHAINS WITHIN
CHINA HUGELY DISRUPTIVE, THEY
COULDN'T GET THEIR PEOPLE WHO
WORK. THEY COULDN'T GET THEM IN
AND OUT. IT WAS VERY DISRUPTIVE,
SO POLITICS ASIDE A LOT OF
OVERSEAS COMPANIES THERE SAID.
WE CAN'T ALLOW THIS TO HAPPEN
AGAIN. WE NEED TO DIVERSIFY. SO
BOTTOM LINE IS WHAT WE'RE SEEING
IS IT'S AN INTENTIONAL
DIVERSIFICATION BY MANY, MANY,
MANY GLOBAL COMPANIES, INCLUDING
MANY FROM CALIFORNIA AND THE U.
S THAT HAD A LARGE PRESENCE IN
CHINA OR MIGHT HAVE A PRESENCE
IN CHINA. THE FUTURE TO SPREAD
THAT AROUND TO OTHER COUNTRIES
NOT TO BE SO DEPENDENT ON ONE
AND IN DIFFERENT INDUSTRIES.
DIFFERENT FIELD, THEY MAY LOOK
AT DIFFERENT COUNTRIES THAT
WHERE ARE THEY LOOKING TO THEIR
WORKING PRIMARILY TO SOUTHEAST
ASIA, ESPECIALLY VIETNAM.
THEY'RE LOOKING IN SOME CASES TO
INDIA. AND THEY'RE LOOKING IN
SOME CASES TO MEXICO AND WOULD
BE LOOK AT RECENT SURVEYS DONE
BY THE U. S. CHINA BUSINESS
COUNCIL AND THE AMERICAN CHAMBER
OF CONGRESS AND SHANGHAI. WE SEE
BASICALLY A DECLINE IN OPTIMISM
ABOUT THEIR LONGER TERM FUTURE
AND A VERY SIGNIFICANT
PERCENTAGE HAVING ALREADY MOVE
SOME INVESTMENT OUT OF CHINA TO
OTHER PLACES. OR DIVERTED
INVESTMENT THAT MIGHT HAVE GONE
TO CHINA TO OTHER PLACES, EVEN
THOUGH THEY'RE NOT LEAVING CHINA
, SO I THINK THE IMPORTANCE OF
THIS IS THAT IF THIS HAPPENS AND
IT WILL BE HAPPENING OVER,
CERTAINLY THE NEXT SEVERAL
YEARS, AT LEAST, BUSINESSES MAKE
THEIR DECISIONS ABOUT WHERE THE
SOURCE WHERE TO INVEST WHERE TO
IMPORT FROM. WE'RE GOING TO SEE
REALLY SIGNIFICANT CHANGES IN
SOURCING PATTERNS. AH THAT
RELATE TO CHANGES IN EXPORT
PATTERNS. CHANGES IN REGIONAL
TRADE, LOGISTICS AND OVERALL TO
TRADE AND INVESTMENT FLOWS. SO
IT IS IMPORTANT THAT AS
CALIFORNIA THINKS ABOUT ITS
TRADE IN THE NEXT SEVERAL YEARS
IT KEEP IN MIND THESE CHANGING
PATTERNS AROUND GLOBAL
PRODUCTION GLOBAL SUPPLY CHAINS
THAT MAY OVER TIME DECREASE THE
CENTRALITY OF CHINA EVEN THOUGH
IT WERE MAIN CENTRAL AND SO MANY
WAYS AND ALSO STRENGTHENED THE
FLOWS OF TRADE AND INVESTMENT
WITH OTHER COUNTRIES. THANK YOU.
THANK YOU, MR RANDOLPH.
PRESENTATION. UM. CAN YOU
ELABORATE? JUST A LITTLE BIT ON
THE SOURCING PATTERNS. I MEAN,
WHAT DOES THAT MEAN? THREATING.
YEAH. SO. I THINK WE SAW IT
DURING COVID. AND THIS HAD TO DO
, FOR EXAMPLE, WITH THE PERSONAL
PROTECTION EQUIPMENT THAT SO
MUCH OF THIS WAS COMING FROM
CHINA AND VARIETY OF REASONS
WHEN WE NEEDED IT RIGHT AWAY. IT
WAS VERY HARD TO GET UM, I THINK
COMPANIES. HERE HAVE INVESTED IN
CHINA OVER DECADES NOW VERY
EFFECTIVELY. YOU KNOW, 75% OF US
COMPANIES IN CHINA ARE MAKING A
PROFIT, SO THAT'S GREAT, BUT
THEY'VE INVESTED THEIR INITIALLY
IN CHINA AS AN EXPORT PLATFORM
FOR THE WORLD. THEY WOULD MOVE
PRODUCTION THERE. THEY WOULD
LOCATED THERE SO THEY COULD
EXPORT BACK TO THE U. S AND
OTHER COUNTRIES. AND THEN OVER
TIME THEY EXPANDED WHAT THEY
WERE LOOKING AT THEY WERE
PRODUCING IN CHINA FOR THE CHINA
MARKET AS THAT MARKET GROUP SO I
THINK WHAT WE'RE SEEING TODAY IS
THE COMPANIES PRODUCING FOR THE
CHINA MARKET. ARE STILL
PRODUCING FOR THE CHINA MARKET.
UH, THEY WANTED THEY NEED TO BE
THERE FOR THAT MARKET. THE
COMPANIES THAT ARE PRODUCING
THERE FOR UH, TO BRING THAT
PRODUCT BACK TO UNITED STATES OR
TO SELL IT ELSEWHERE IN THE
WORLD. THEY'RE THE ONES THAT ARE
RECONSIDERING. BECAUSE WE HAVE
TARIFF ISSUES BETWEEN THE U. S
AND CHINA BECAUSE THERE ARE
CONCERNS ABOUT THE POLITICS AND
EITHER SIDE OF THAT EQUATION. AH
THEY'RE CONCERNED ABOUT, UH JUST
CHINESE POLICY. IN OTHER WORDS,
SO DURING THE PANDEMIC, IT WAS
THE DECISION THE CHINESE
COMMUNIST PARTY TO SHUT THE
COUNTRY AND CERTAIN CITIES AT
VARIOUS TIMES, AND THAT WAS THE
DECISION WAS THERE AND IT
HAPPENED. THERE WAS NO DEBATE
ABOUT IT. NOT VERY TRANSPARENT
BUT HUGELY AFFECTED THESE
COMPANIES. AND SO I THINK.
THEY'RE SEEING IT FROM THE
STANDPOINT OF THEY NEED TO GET
COMPONENTS AND PARTS AND THEY
NEED TO GET THE WORKERS TO WORK.
AND THEY COULDN'T DO THAT. AND
SO THE SOURCING IF WE ARE
DEPENDING IN THE U. S AND OTHER
COUNTRIES ARE ON IMPORTS OF A
LOT OF COMPONENTS. A LOT OF
FINAL PRODUCTS. THE SIMPLE
ANSWER IS IF IT'S LARGELY COMING
FROM ONE COUNTRY VERY HEALTHY
FROM ONE COUNTRY. DO YOU WANT?
TO BE THAT DEPENDENT. DO YOU
WANT IT TO BE THAT CONCENTRATED
IF YOU ARE, IF YOU NEED TO
PRODUCE SOMETHING IN THE US HOW
YOU'RE A MANUFACTURER AND YOUR
ABILITY TO PRODUCE THAT PRODUCT
DEPENDS IN PART ON ONE WIDGET OR
SEVERAL WIDGETS THAT COME FROM
CHINA OR FROM ANYWHERE AND YOU
CAN'T GET THAT IN. YOU CAN'T
HAVE YOUR PRODUCT AND SO YET. I
THINK IT'S A CALCULATION ON THE
PART OF MANY OF THESE COMPANIES.
SO WHAT'S THE BALANCE OF RISK
AND SECURITY AND PROFITABILITY?
IN TERMS OF WHERE THEY PUT THEIR
SOURCING, SO THEY'RE LESS
VULNERABLE TO POSSIBLE
DISRUPTIONS FOR POLITICAL
REASONS FOR TRADE REASONS,
WHATEVER REASONS FROM CHINA AH,
BECAUSE THEY FEEL THEY'RE SO
DEPENDENT THERE. AND HOW CAN
THEY SPREAD THAT AROUND, SO
THEY'RE LESS VULNERABLE TO
SUPPLY CHAIN DISRUPTIONS FOR ANY
PURPOSE, SO IT'S BOTH FINISHED
PRODUCTS. BUT IT'S ALSO ALL
THESE DIFFERENT COMPONENTS THAT
CROSS BORDERS BACK AND FORTH
MANY, MANY TIMES THEY'RE GOING
TO MAKE A FINISHED PRODUCT. AND
IF YOU CAN'T GET THOSE IN, YOU
ACTUALLY CAN'T HAVE THE FINAL
PRODUCT. OKAY. THANK YOU, SIR.
OKAY NEXT. WE HAVE BRUCE
PICKERING, VICE PRESIDENT OF
GLOBAL PROGRAM AT ASIA SOCIETY.
THANK YOU VERY MUCH, AND, UH,
YES, UH. I'M ACTUALLY NOW MORE
ENGAGED WITH PROJECT, UH,
INITIATED IN THE UNIVERSITY OF
CALIFORNIA SYSTEM. AND IT'S
DESIGNED TO REALLY LOOK AT IT IN
A IN A WAY HOW TO IMPROVE WORKER
PRODUCTIVITY AND COMPETITIVENESS
BY HARNESSING INNOVATION AND
KIND OF POLICIES THAT WILL
TRANSFORM OR HELP TRANSFORM THE
CENTRAL VALLEY. AND I WOULD, UH.
ONE OF THE INTERESTING THINGS
THAT AS STATE ASSEMBLYMEMBER'S,
UM YOU BETTER THAN ANYONE WILL
WILL KNOW THAT CALIFORNIA HAS
ESSENTIALLY TWO ASPECTS
GENERALLY PROSPEROUS, INNOVATIVE
AND KNOWLEDGE BASED ECONOMY AND
THE COASTAL REGIONS AND THE LESS
PROSPEROUS AND MOSTLY
AGRICULTURAL INLAND COUNTIES OF
THE STATE, PARTICULARLY IN THE
CENTRAL VALLEY AND THE INLAND
EMPIRE. THE DATA FROM THE U. S.
CENSUS BUREAU, BEARS THE SOUTH
AND THE SAN JOAQUIN VALLEY
INCOMES ARE FAR BELOW THE
COASTAL AVERAGE MEDIAN FAMILY
INCOMES AND TO HIM A CADDY ARE
$42,000. $43,369 WHICH IS
ROUGHLY IN LINE WITH
MISSISSIPPI. AND THE SAME IS
TRUE IN TILLERY COUNTY AND
MERCED COUNTIES, WHICH ARE MORE
IN LINE WITH ALABAMA AND WEST
VIRGINIA. SO THIS IS BOTH AN
OPPORTUNITY AND A CHALLENGE FOR
US ALAMEDA COUNTY I MIGHT ADD,
WHICH IS NOT THE WEALTHIEST
COUNTY IN CALIFORNIA. THE
AVERAGE INCOME IS $90,822. THIS
IS FROM THE U. S. CENSUS BUREAU.
BUT THE INTERESTING THING ABOUT
THIS IS THAT IT CREATES AN
OPPORTUNITY FOR THE STATE, THE
BIGGEST BANG FOR THE BUCK FOR
FUTURE INVESTMENT IN MANY WAYS
WILL BE THE INLAND REACHES THE
CALIFORNIA NOT SO MUCH TO COAST
TO COAST, OBVIOUSLY, AS THE
DRIVER OF THE CALIFORNIA ECONOMY
SEAN MENTIONED TECHNOLOGY IS
CRITICAL, BUT ALSO ENTERTAINMENT
INDUSTRY MEDIA THINGS LIKE THAT.
IN A PORTRAIT OF CALIFORNIA BY
THE SOCIAL SCIENCE RESEARCH
COUNCIL IN ORDER THAT MORE THAN
30% OF CALIFORNIA'S POPULATION
WAS CLASSIFIED AS EITHER
STRUGGLING OR DISENFRANCHISED,
THE OVERWHELMING MAJORITY AGAIN
LIVING IN THE STATES INTERIOR
AND MORE IMPORTANTLY, AS WE LOOK
AT THESE ISSUES, HOUSES ARE A
LOT LESS EXPENSIVE IN
MISSISSIPPI, ALABAMA, WEST
VIRGINIA, WHICH I NOW KNOW
BECAUSE MY WIFE WATCHES HOME
IMPROVEMENT PROGRAMS, AND
THEY'RE ALWAYS GETTING HOUSES
FOR LIKE $30,000 AND FIXING THEM
UP, WHICH COULDN'T DO IN
CALIFORNIA. THE DIFFERENCE IN
THE COASTAL REGIONS IS SO DIRE
THAT THE ECONOMIST MAGAZINE MORE
THAN INLAND CALIFORNIA WAS IN
DANGER OF BECOMING THE
APPALACHIAN OF THE WEST. SO THE
QUESTION IS WHAT TO DO ABOUT IT.
AND AGAIN, I THINK THIS IS BOTH
AN OPPORTUNITY AND A DANGER FOR
THE STATE. SO THE INLAND
CALIFORNIA PROJECT, WHICH I AM
THE DIRECTOR OF ALONG WITH THAT
WITH TOM HARMON, WHO IS HERE
TODAY AND ACTUALLY IS THE REAL
GODFATHER OF THIS AND JOHN'S
ICEMAN AT BERKELEY IS A PROJECT
AND IT'S A PRODUCT OF FOUR U. C
CAMPUSES BERKELEY, MERCED,
RIVERSIDE AND DAVIS WITH THE
SUPPORT OF VARIOUS THINK TANKS,
NON PROFIT DOG ORGANIZATIONS,
THE CENTRAL VALLEY, INCLUDING
THAT CENTRAL VALLEY COMMUNITY
FOUNDATION AND THE CARNEGIE
FOUNDATION AT THE STATE LEVEL GO
BIZ AND THE CALIFORNIA
DEPARTMENT OF FOOD AND
AGRICULTURE HAVE ALSO BEEN
INVOLVED, AND I CAN MENTION TOM
HARMON IS ONE OF THE KEY PEOPLE
AND HE'S HERE TODAY AND YOU'LL
HEAR FROM SHORTLY. BUT THE CORE
CONCEPT IS THAT THREE COUNTRIES
JAPAN, ISRAEL AND DENMARK HAVE
CONFRONTED ISSUES AND THEIR
WORLD AGRICULTURAL AREAS QUITE
SIMILAR TO THOSE CONFRONTING
CALIFORNIA, AND EACH IS ADOPTED
SYSTEMS AND POLICIES DESIGNED TO
ARREST DECLINE AND ENCOURAGE
GROWTH AND PRODUCTIVITY AND
THEIR RURAL REGIONS. SO WE SET
OUT TO LOOK AT THOSE THREE AREAS
TO SEE WHAT POLICIES COULD
ACTUALLY BE ADOPTED IN
CALIFORNIA WITH SOME LIKELIHOOD
OF SUCCESS. FIRST TEST CASE WE
ADOPTED WAS JAPAN AND JUNE AT UC
MERCED, KENJI KUSHIDA OF THE
CARNEGIE FOUNDATION, BUT ALSO
STANFORD AND GOT HIS PHD AT UC
BERKELEY. GAVE A PRESENTATION
FOCUSED ON HOW JAPAN IS COPING
WITH AN AGING AND DECLINING
RURAL WORKFORCE AND THEN
IDENTIFIED A NUMBER OF AREAS
WHERE CALIFORNIA MIGHT CONSIDER
ADOPTING POLICIES AND INCENTIVES
DESIGNED TO ENCOURAGE INNOVATION
AND UPSCALE WORKFORCE TO DO MORE
WITH LESS. AMONG KENJI'S
FINDINGS WAS THAT JAPAN HAS
ADOPTED THREE MILES FOR DEALING
WITH ITS DEMOGRAPHIC CHALLENGES.
REPLACEMENT THAT IS THE USE OF
MACHINES TO REPLACE HUMANS
AUGMENTATION THE USE OF MACHINES
TO ENHANCE HUMAN PRODUCTIVITY
REPURPOSING THE USE OF MACHINES.
PREVIOUS DESIGN FOR ANOTHER
PURPOSE TO BE REUSED IN THE
AGRICULTURAL SPHERE. AND ONE OF
THE THINGS THAT WE CLEARLY
RESONATED MOST STRONGLY IS THAT
AUGMENTATION THAT IS TO SAY THE
UPSCALING OF THE WORKFORCE IS
INDEED THE MOST LIKELY ONE FOR
CALIFORNIA TO BE SUCCESSFUL.
ANOTHER THING IS THAT THE
JAPANESE GOVERNMENT HAS CREATED
A SET OF INCENTIVES TO INNOVATE.
FOR THEIR COMPANIES, AS WELL AS
POLICIES DESIGNED TO FORCE
CHANGE, SO IT'S NOT ALL
REGULATIONS. A LOT OF IT IS NOW
KIND OF INTERNALIZED BY GIVING
AWARDS AND OPPORTUNITIES TO
COMPANIES WHO ACTUALLY MAKE THIS
TRANSITION EFFECTIVELY. A KEY
AREA FOR JAPAN, WHICH, ALMOST AS
I MENTIONED HAS POTENTIAL
APPLICATION FOR CALIFORNIA.
ISN'T THIS THE CATEGORY OF UP
SKILLING THAT IS TO SAY
AUGMENTATION WORKFORCE OR THE
ABILITY TO ENHANCE WORKER
PRODUCTIVITY THROUGH INNOVATION?
THERE ARE A NUMBER OF NEW
TECHNOLOGIES AND SOME OF THE
ONES HE LISTED. WORD INCLUDED
ARTIFICIAL INTELLIGENCE AND
MACHINE LEARNING THE INTEGRATION
OF DON'T DARK DRONES, FOR
EXAMPLE, WHEN CREATING NEW
DIGGING, CREATING NEW NEW FIELDS
WORKING ON MAPPING, UH,
PRODUCTIVITY AND THINGS, UM AND
SO ONE OF THE THINGS WHEN ONE OF
THE OUTCOMES OF THIS IS THAT THE
IDEA IS NOT TO REPLACE WORKERS
SO MUCH AS TO MAKE THEM MORE
PRODUCTIVE AND NOT TO BE
UNDERESTIMATED. MAKE THEM
HAPPIER IN THEIR JOBS WERE
THINGS THAT CAME THROUGH FROM, I
THINK HE'S GOING TO BE THE NEW
DIRECTOR OF CALIFORNIA FORWARD
IS A WAS A. IT WAS PART OF IT
WAS PRESENT IN ONE OF THE
DISCUSSIONS WE HAD IN HIS POINT
IS THAT FARM WORKERS DON'T WANT
THEIR KIDS TO BE FARMWORKERS.
THEY SEE IT AS A TOUGH,
UNRELENTING JOB AND NO FUN. THEY
WANT THEIR KIDS TO GET OUT AND
MAKE, YOU KNOW, MAKE THEIR MONEY
MAKE THEIR MARK IN THE WORLD
OUTSIDE OF THE AGRICULTURAL
INDUSTRY, SO IF YOU'RE GONNA
KEEP WORKERS ON THE ON THE ON
THE GROUND, THEY NEED TO BE
HAPPIER AND FEEL FULFILLED. AND
THIS IS ONE OF THE AREAS THAT
WE'RE ACTUALLY ACTIVELY LOOKING
AT. AND JAPAN HAS ACTUALLY DONE
THAT. ACTUALLY SOMEWHAT
EFFECTIVELY. UM SO KENJI ALSO
KNOW THAT THERE ARE SIGNIFICANT
DIFFERENCES BETWEEN CALIFORNIA
AND JAPAN. HE NOTED. HE ASSERTED
THAT THEIR CIVIC AND PHYSICAL
INFRASTRUCTURE IN CALIFORNIA IS
WHICH IS PRETTY AND CIVIC AND
PHYSICAL INFRASTRUCTURE
PREVALENT IN JAPAN IS FREQUENTLY
LACKING IN CALIFORNIA. AND YOU
KNOW THAT THE JAPANESE
GOVERNMENT AND THE POPULATION
ARE FULLY BEHIND THESE
INNOVATION AUTOMATION, WHICH IS
NOT THE CASE IN CALIFORNIA, AND
THAT THERE ARE MULTIPLE
POLITICAL CHALLENGES IN OUR
STATE. JAPAN USED TO HAVE BUT
WHEN THE WHEN THE COUNTRY WAS
POLICIES WERE HIGHLY
RESTRICTIVE, BUT NO LONGER FACE
AS PUBLIC SUPPORT HAS SWUNG IN
FAVOR OF THESE NEW TECHNOLOGIES,
AND THE INTEGRATION IS A NEW
TECHNOLOGIES. HE ALSO NOTED THAT
THE HEALTHCARE SAFETY NET IS
VERY WELL DEVELOPED IN JAPAN,
INCLUDING ITS RURAL AREAS.
TELEHEALTH IS ALREADY HEAVILY
UTILIZED SUPPORT PHYSICAL MENTAL
HEALTH AND WELL BEING FOR THE
RURAL POPULATION, KEEPING THEM
HAPPY, HEALTHY AND PRODUCTIVE,
EVEN INTO THEIR EIGHTIES IN AS
THEY WORK THESE FARMS, THESE
SMALL FARMERS IN JAPAN AND HE
ALSO SAID THAT JAPAN HAS
BROADBAND INTERNET READILY
AVAILABLE, WHICH IS NOT ALWAYS
THE CASE IN CALIFORNIA, AND IS
VITAL TO THE TAKING ADVANTAGE OF
THE NEW TECHNOLOGIES THAT ARE
EMERGING IN THE AGRICULTURAL
SPHERE. FINALLY HE CONCLUDED BY
NOTING THAT HOW WE FRAME THESE
ISSUES IS REALLY VITAL FOR
CALIFORNIA. I THINK ONE OF THE
THINGS I THINK IT IMPLIED
CRITICISM HE WAS MAKING IS THAT
WE HAVEN'T ACTUALLY COME UP WITH
A UNIFIED STORY INTERNALLY TO
TELL. THAT WILL ACTUALLY
ENCOURAGE PEOPLE TO START MOVING
IN THE RIGHT DIRECTION.
UPSCALING AUGMENTATION NOT SO
MUCH THE REPLACEMENT SIDE. THE
NEXT DISCUSSION POINT WILL BE
DENMARK, WHICH WILL PROBABLY DO
SOMETIME IN FEBRUARY. AND IT'S
LIKE CALIFORNIA IS AN ADVANCED
AGRICULTURAL ECONOMY. WE EXPECT
ALSO MANY SIMILAR IN FIGHTS WHEN
WE GET TO ISRAEL, WHICH WILL BE
THE NEXT ONE DOWN THE LINE. BUT
ONE POINT ABOUT DENMARK AND WE
HAVEN'T HAD THIS CONVERSATION
WITH THE WITH THE DANES WHO ARE
GONNA ARE ACTUALLY QUITE EXCITED
ABOUT IT IS THAT THEY HAVE
ADOPTED A TRIPLE HELIX APPROACH,
WHICH IS A COMBINATION OF
BUSINESS, GOVERNMENT AND
ACADEMIA. SO THEY CREATED THESE.
THESE NOTES WERE BUSINESS,
GOVERNMENT AND ACADEMIA ACTUALLY
COLLABORATE. AND I'VE CREATED A
WHOLE SET OF POLICIES AND
OPPORTUNITIES FOR DENMARK. IT
ACTUALLY PUNCHES WAY ABOVE ITS
WEIGHT WEIGHT WHEN YOU CONSIDER
IT'S A COUNTRY OF ESSENTIALLY
4.4 MILLION PEOPLE AND ONE OF
THE LARGEST AGRICULTURAL
PRODUCERS IN THE WORLD EXPORTERS
IN THE WORLD SO, UH, ONE OF THE
POINTS YOU MADE AGAIN, SOMEWHAT
IMPLIED CONTRAST WITH CALIFORNIA
IS THAT WE FREQUENTLY DON'T
COLLABORATE EFFECTIVELY ACROSS
BUSINESS, GOVERNMENT AND
ACADEMIA. THAT'S SOMETHING HE
STRONGLY URGED THAT WE CONSIDER
ISRAEL IS SLATED, PROBABLY FOR
MAYOR JUNE AROUND TABLE, THEN
THE FOCUS THERE WILL BE MOVING
FURTHER. HOW CALIFORNIA MOVES
ITSELF EVEN FURTHER UP THE VALUE
CHAIN WHILE AT THE SAME TIME,
VERY SEXY 30. OKAY ACCOUNTING
FOR, UM FOR WATER SCARCITY, AND
I THINK THAT'S SOMETHING THAT
WILL, UM WE'LL FIND YOU KNOW,
COMING DOWN THE LINE, EVENTUALLY
LEARN HOW TO WORK ALL THESE
THINGS TOGETHER AND UNIFIED.
APPROACH ANYWAY. HAPPY TO TALK
ABOUT THIS FURTHER DOWN LINE.
OKAY VERY, VERY, VERY
INTERESTING, BECAUSE I MEAN,
IT'S LIKE I WENT TO A GAY EXPO.
SO IT'S MY SECOND YEAR. SO FROM
THE FIRST YEAR THAT WENT TO THE
NEXT YEAR. WHAT A TREMENDOUS
CHANGE. YOU SEE. I MEAN, IT'S
LIKE FROM DAY NIGHT, RIGHT OF
ALL THE NEW TECHNOLOGY, BUT IT
WOULD BE INTERESTING THE YEAR
WHAT ESPECIALLY LIKE DENMARK AND
ALL THESE OTHER COUNTRIES WHAT
THEY'RE DOING. AND HOW HOW WE
CAN LEARN FROM THEM. SO I WOULD
LOVE TO TELL YOU. YEAH, YEAH. SO
JUST A QUICK QUICK, QUICK
QUESTION, BRUCE. SO UM, I KNOW
THE EASY ROAD WOULD BE JUST TO
EXTEND THE BAY AREA AND
DISEMBARKING AND JUST MAKE SAN
JOAQUIN LOOK MORE LIKE BEAR,
RIGHT? I DON'T KNOW THAT THAT'S
THE RIGHT APPROACH. AND SO COULD
YOU TALK ABOUT HOW I MEAN? HOW
DO YOU YOU KNOW? GROWTH THAT
ECONOMY BECAUSE IT'S GONNA BE
FINANCIAL PRESSURE. ON THE AREAS
CLOSEST TO L. A AREA TO JUST
KIND OF MORPHIN TAP THOSE
REGIONS. SO HOW DO YOU YEAH, YOU
KNOW, BE ABLE TO. MOVE TOWARD
THIS EVOLUTION IN AND GROW.
THESE ECONOMIES WERE STILL
MAINTAINING AN AGRICULTURAL
BASE. THAT I THINK IS THE
MILLION DOLLAR QUESTION IS WHEN
WE'VE TALKED A LOT ABOUT AND I'M
PRETTY SURE IF WE DO NOTHING
THAT'S WHAT'S GOING TO HAPPEN IS
OVER TIME. BUT I THINK ONE OF
THE THINGS THAT NOW IT SEEMS
CLEAR TO ME, I THINK U C. MERCED
FOR EXAMPLE. AND TOM OBVIOUS IS
PROFESSOR THERE, BUT I'VE BEEN
DOWN MORE TIMES IN THE LAST YOU
KNOW, YEAR THAT I'VE BEEN EVER
AND IT HAS HAD A TRANSFORMATIVE
IMPACT ON THE TOWN. AND I THINK
ONE OF THE KEY THINGS IS BY
CREATING THIS THIS MODEL THAT
INCORPORATES ACADEMIC BUSINESS
AND POLICY. TOGETHER YOU CAN
COME UP WITH A SET OF POLICIES
AND POTENTIALLY BUILD ON THE
INDIGENOUS. UH I WOULD SAY THE
INDIGENOUS SKILL SETS THAT ARE
THERE. SO YOU HAVE YOU HAVE
FRESNO STATE OF STANISLAS STATE?
YOU HAVE SACRAMENTO STATE. THESE
ARE VALLEY SCHOOLS WITH YOU.
HAVE YOU SEEN HER SAID THAT HAVE
OPPORTUNITY HAVE CREATED A KIND
OF LITTLE NETWORKS. AND I THINK
ONE OF THE THINGS TO LOOK AT IS
HOW YOU EXPAND THOSE NETWORKS TO
BUILD AN IN COURT AND INCLUDE
AND ATTRACT INVESTMENT. THAT IS
NOW SEEN AS KIND OF SAFER ON THE
COAST. BUT IF YOU CAN MAKE THOSE
COMMUNITIES ATTRACTIVE FOR A SET
OF POLICIES AND ALSO LIKE THE
JAPANESE CREATE AN ENVIRONMENT
THAT ENCOURAGES INVESTMENT,
YOU'LL ENCOURAGE THAT KIND OF
SEPARATE STREAM OF DEVELOPMENT
THAT IS COMPLIMENTARY BUT NOT
THE SAME AS THE BAY AREA. YEAH
POSSIBLY ADD SOMETHING TO
BRUCE'S REMARKS THAT CONNECTS
THE TWO CONVERSATIONS AND THAT'S
ABOUT SEMICONDUCTORS, WHICH I
BRIEFLY MENTIONED BEFORE. SO
THIS IS WHERE SUPPLY CHAINS ARE
CHANGING A LOT, AND, UH US PAST
ALREADY THIS YEAR THAT THE CHIPS
ACT IS TO STIMULATE DOMESTIC
MANUFACTURING PRIMARILY OF
SEMICONDUCTORS IN THE U. S
CONCERNED AGAIN WITH PRODUCTION
SHOULD BE FOR US IN COUNTRIES
AND ECONOMIES THAT ARE SECURE
AND RELIABLE AND FRIENDLY AND
REALLY CONCERNED, THERE'S SO
MUCH OF OUR DEPENDENCE IS
FOCUSED ON ONE COMPANY AND ONE
COUNTRY WHICH IS T S M C IN
TAIWAN. SO HOW CAN WE BE MORE
SECURE THAN WE ARE TODAY? AND SO
THE ACT TRIES TO GET
MANUFACTURING MORE IN THE US NOW
BUT ALSO IN OTHER FRIENDLY
COUNTRIES THAT WE KNOW THAT WE
CAN COUNT ON. SO WE DID AN
ANALYSIS EVERY THIS YEAR'S THE
GOVERNOR'S OFFICE ABOUT WHAT THE
CALIFORNIA STRATEGY FOR THIS AND
THE BOTTOM LINE WHICH I
RECOMMENDATION WAS THAT IS
PRETTY UNLIKELY THE CALIFORNIA
IS GOING TO GET ANY BIG FOULS
GOING TO OHIO OR NEW YORK OR
ARIZONA, BUT FOR A NUMBER OF
REASONS NOT TO CALIFORNIA, BUT
THERE IS A HUGE OPPORTUNITY
ASIDE FROM THE SIDE AND, UH,
COMPONENT INPUTS. ADD IN
PACKAGING, WHICH IS A HUGE PART
OF THE INDUSTRY AND TESTING.
THAT'S A HUGE PART OF THE
INDUSTRY AND THERE, YOU KNOW,
WE'VE GOT THE WORLD'S BEST R AND
D ON SEMICONDUCTORS IN THE COAST
BAY AREA AND ELSEWHERE. BUT
THERE'S A HUGE OPPORTUNITY IF WE
MANAGE IT RIGHT TO LOCATE
SEMICONDUCTOR TESTING,
SEMICONDUCTOR PACKAGING
COMPONENTS FROM THE SEMI
CONDUCTOR WORLD, WHICH IS A
LARGE WORLD IN THE CENTRAL
VALLEY. BECAUSE IT IS CHEAPER
THERE. THE LAND IS THERE. AND IF
YOU DO THE RIGHT THING THAT
CHRIS WAS TALKING ABOUT IN TERMS
OF THE KIND OF TRAINED WORKFORCE
AVAILABLE, THEN THAT'S A SECTOR
WITH THIS FEDERAL MONEY. THAT'S
A BIG INCENTIVE. NOW THAT COULD
DIRECT MORE, YOU KNOW, HIGH
VALUE HIGH PAID PRODUCTION INTO
THE CENTRAL VALLEY. OKAY? UM.
GREAT DISCUSSION. I MEAN, I LOVE
TO CARRY HIS EVEN FURTHER
BECAUSE I MEAN, PERSON FROM THE
CENTRAL VALLEY I HEAR FROM MY
ACT COMMUNITY. DAY IN DAY OUT.
YELLING AT ME OF WHAT'S GOING
ON. YOU KNOW, IT'S TOUGH FOR
THEM, UM AND LOTS OF TIMES I TRY
TO FIGURE OUT YOU KNOW, IT'S
JUST BEING MY THIRD YEAR. IS
THIS SOMETHING THAT I'M GONNA
CONTINUE TO HEAR? UH, THE
LABORERS BENEFIT ISSUE. RIGHT
I'M HEARING MORE AND MORE OF OUR
LOCAL FARMERS ARE JUST THAT
THEIR THEIR KIDS ARE NOT. I
DON'T WANT THEY DON'T WANT TO
TAKE THIS ON ANYMORE. BECAUSE OF
REGULATIONS OVER AND OVER IN THE
COSTS AND THEN SOMETIMES
LITERALLY DOESN'T PENCIL OUT. I
MEAN, I GOT GUYS ARE CALLING ME
ON BULLETS RIGHT NOW THAT YOU
KNOW BEING SOLD THERE USUALLY
SOLD FOR THEIR 65 CENTS. NOW.
IT'S AT 35. THEY'RE THEY'RE
LOSING OUT. RIGHT SO I THINK I
THINK THE TECHNOLOGY WHICH IS
GOING TO BE, UM SOMETHING THAT.
THE CENTRAL VALLEY IS LISTENING
OR AG COMMUNITIES LISTENING TO
TRY AND FIGURE OUT HOW TO GET
AROUND LABOR. UM. BUT I THINK
THAT WE'RE GOING TO CONTINUE TO
ALWAYS HAVE FOLKS YOU KNOW THAT
COME OTHER PARTS OF THE COUNTRY.
AND BEING PART OF OUR LABOR
MARKET. WE'RE SEEING NOW, FOLKS
THAT THAT THAT WERE JUST THEY
WERE LABORERS NOW BEING OWNERS,
RIGHT, BUT NOT EVERY OWNER. OWNS
THE LAND. YOU KNOW THEY LEASED
THE LAND, AND THAT'S LIKE THE
QUESTION TO THAT. MAYBE FOR
ANOTHER FURTHER DISCUSSION, BUT
YOU KNOW, INTEREST RATES ARE
EXPENSIVE. YOU KNOW THEY WERE
FIRST AT 3. NOT 10% YOU KNOW HOW
HOW HOW DOES THAT CANCEL OUT FOR
THEM? SO UM THANK YOU SO MUCH
FOR BEING HERE TODAY AND NEXT
SIBLING MEMBER TEAM, YOU KNOW,
YOU'RE GONNA INTRODUCE PANEL TWO
AND THREE. YEAH. VERY EXCITED TO
WELCOME OUR SECOND PANEL, WHICH
IS REALLY GOING TO FOCUS ON
TECHNOLOGICAL ADVANCES IN
AGRICULTURE AND ITS IMPACT ON
TRADE. SO WE HAVE PROFESSOR
HARMON FROM UC MERCED, WHO IS
THE DIRECTOR OF SIERRA NEVADA
RESEARCH INSTITUTE. WE HAVE
DARLING BRYANT, WHO IS THE
FOUNDER OF GLOBAL SF, AND THEN
WE HAVE STEVE SHORT. WHO'S THE
VP OF GLOBAL SUPPLY FROM BLUE
DIAMOND GROWERS. AND I BELIEVE
WE'RE GOING TO START WITH MR
HARMON AND THEN GO TO MISCHA
BRYANT AND THEN MR SHORT SO,
PROFESSOR HARMON IF YOU WANT TO
START. THANK YOU.
ASSEMBLYMEMBER'S IT'S A PLEASURE
TO COME UP AND VISIT YOU TODAY
FROM MERCED. AND I HOPE TO OFFER
SOME GOOD PERSPECTIVE FROM
ENOUGH THE HEART OF THE CENTRAL
VALLEY. UM I'M A PROFESSOR AND I
BROUGHT SOME SLIDES. REST
ASSURED, I ONLY HAVE THREE
SLIDES. SO, UM. I HOPE THE
CONVERSATION CAN ENCOMPASS, UM,
CALIFORNIA'S AGRIFOOD SYSTEM AND
ADAPTATION TO CLIMATE CHANGE. UH
WITH WE'RE GETTING NEW LESSONS
IN IT. EVERY YEAR. IT SEEMS WE
CAME OUT OF ONE OF THE DEEPEST
DROUGHTS THAT WE'VE EVER HAD
WITH ONE OF THE WEST WETTEST
WINTERS WE'VE EVER HAD. UM MOST
OF THE STATES CITIZENS HAVE
BECOME VERY FAMILIAR WITH THE
TERM ATMOSPHERIC RIVER. AND HOW
IT LOCALLY DISCHARGES HUGE
VOLUMES OF WATER. WHEREAS NEARBY
IN MIGHT NOT NOT DISCHARGE AS
MUCH AT ALL. SO WE NEED TO LEARN
TO COPE WITH THAT. WE'RE COMING
TO GRIPS WITH SUSTAINABLE
GROUNDWATER PROBLEMS. UM LONG
OVERDUE WITH WE PASSED THAT
LONG, 2014. WE'RE TRYING TO GET
A HANDLE ON IT. CREATIVE
CREATIVE REMEDIES LIKE THE MULTI
BENEFIT LAND REPURPOSING PROGRAM
IS STARTING TO ASK QUESTIONS
ABOUT JUST HOW MUCH LAND SHOULD
WE BE FARMING? WHERE IS THE
OPTIMAL PLACE TO FARM? HOW DO WE
GET MORE WATER BACK IN THE
GROUND, AND HOW DO WE GET BACK
ON A SUSTAINABLE PATH? WE HAVE
VERY AMBITIOUS GREENHOUSE GAS
EMISSIONS GOALS FOR OUR STATE AS
WE SHOULD. CALIFORNIA USUALLY
LEADS THE WAY AND ENVIRONMENTAL
MATTERS. AGRICULTURAL PROCESSES
HAVE ADMISSIONS FARMERS WILL BE
ONE DAY PROBABLY KEEPING TRACK
OF THOSE EMISSIONS. YET ANOTHER
JOB FOR A GROWER. ALREADY HAS A
VERY LONG DAY. HOW DO WE MANAGE
THIS? UH HUH. SO. AGRICULTURAL
TECHNOLOGY IS SOMETHING I THINK
ABOUT A LOT UNLESS SIX OR SEVEN
YEARS. MY BACKGROUND IS CIVIL
AND ENVIRONMENTAL ENGINEERING.
BUT I'VE BECOME TO THINK MORE
BROADLY BECAUSE MY BENNETT UC
MERCED FOR THIS MY 21ST YEAR
NOW, AND I'VE BECOME VERY
ENGAGED IN THE AGRICULTURAL
SECTOR. UM WHAT I LIKE TO THINK
OF BRUCE MATCHING THE TRIPLE
HELIX. I'LL GIVE YOU ANOTHER
THREE. I LIKE TO THINK OF IT AS
A THREE LEGGED RACE THAT WE NEED
TO BE IN LOCKSTEP TOGETHER. FOR
SECURE WATER AND FOOD SYSTEM. UH
DESIRABLE, ELEVATED WORK
CONDITIONS THAT MAKE PEOPLE WANT
TO FARM. AND ENVIRONMENTAL
HEALTH. FOR ALL WE NEED TO HAVE
GOOD CONDITIONS IN THE FARMING
AREAS SO THAT PEOPLE WANT TO
LIVE. THEIR DOCTORS WANT TO BE
THERE. EVERYBODY WANTS TO BE
THERE. SO UH, FIRST MENTION
INLAND CALIFORNIA I WON'T DWELL
MUCH MORE ON THAT. WE CAN
CERTAINLY TURN BACK TO THAT.
THIS IS A PROJECT THAT'S IN THE
CONTEXT OF A BIGGER PROJECT
CALLED LABOR AND AUTOMATION IN
CALIFORNIA AGRICULTURE, AND THIS
IS A REALLY NICE PROGRAM THAT
THE UNIVERSITY OF CALIFORNIA
OFFICE OF THE PRESIDENT FUNDS,
IT GIVES US AN OPPORTUNITY TO
BUILD AN ALL STAR TEAM WITH OUR
COLLEAGUES AT OUR SISTER
CAMPUSES AND THINK ABOUT
INTERDISCIPLINARY DISCIPLINARY
PROBLEMS LIKE THIS. SO HOW DO
YOU ELEVATE LABOR? I HAVE HEARD
HAD THE SAME CONVERSATION MANY
TIMES WITH STUDENTS AT UC MERCED
WHO HAVE BEEN SENT BY THEIR
FAMILIES TO GET A DEGREE IN
MECHANICAL ENGINEERING, COMPUTER
SCIENCE, ENVIRONMENTAL
ENGINEERING, DIG A LITTLE DEEPER
THEIR FARM KIDS. THEY HAVE A
LITTLE BIT OF A HEARTACHE
BECAUSE THEY WOULD REALLY LIKE
TO BE BACK IN THEIR COMMUNITY
AND HELPING OUT AND MICHAEL IN
LABOR AND AUTOMATION, CALIFORNIA
LACK OF IS THE CREATIVE PATHWAY
WHERE THEY CAN COME BACK TO AN
ELEVATED WORK EXPERIENCE STILL
BE WITH THEIR FAMILIES BUT STILL
WORK ON THE FARMS. SO SHOULD BE
CONSIDERED THE SUSTAINABILITY OF
CALIFORNIA AGRICULTURE AS A
NATIONAL SECURITY ISSUE. BIGGEST
PRODUCING MONETARILY
AGRICULTURAL SYSTEM IN THE
WORLD, SO I WOULD SAY YES.
HEALTH CARE HAS BRUCE MENTIONED
IS IMPORTANT. I'VE SEEN IT OVER
THE YEARS THAT U C. MERCED AND
MICROCOSM OF DEVELOPMENT IN THE
VALLEY WHERE PEOPLE COME. PEOPLE
ARE EXCITED. THEY FACED HEALTH
CHALLENGES AND THEY LEAVE. SO
MAKING SURE THAT HEALTH CARE IS
THERE. IT'S IMPORTANT. UH WHAT
WE CAN LEARN FROM OTHER
COUNTRIES IS IMPORTANT. WHAT CAN
WE AS BRUCE MENTIONED? AND HOW
CAN POLICYMAKERS LIKE YOURSELF
CATALYZED POSITIVE CHANGE IN THE
AREA? JUST FOR EXAMPLE.
AUTOMATION EQUIPMENT. IT WILL
BE, UH, AT LEAST ANOTHER
GENERATION BEFORE WE HAVE
AUTOMATED AUTONOMOUS ROBOTS.
COLLECTING HARVESTING IS JUST
TOO MUCH FINE WORK. FIND TACTILE
SKILLS WILL TAKE A WHILE TO GET
THERE. THE NEXT PHASE IS ROBOTIC
HUMAN COLLABORATION. THINKING OF
THAT, THAT THAT ORCHARD MANAGER
WHO'S GOT 20 YEARS OF EXPERIENCE
. THAT PERSON WHO KNOWS EXACTLY
WHEN THAT PEACHES THE RIGHT
LEVEL OF BRIGHTNESS IS GOING TO
BE POINTING TO THE ROBOT WITH A
LASER POINT OR SOMETHING LIKE
THAT, AND THAT ROBOT WILL
UNDERTAKE THE RISK CLIMBING THE
STRAIN ON THE BACK AND THAT WILL
GIVE THAT PERSON WHO'S MANAGING
THE ORCHARD A LONGER MORE
PRODUCTIVE CAREER. SO THIS IS
THE WAY WE LIKE TO THINK ABOUT
IT AS AN ELEVATED COLLABORATIVE
EXPERIENCE. THERE ARE RISKS OF
HUMANS WORKING WITH MACHINES. WE
SEE IT IN THE CITY WITH SOUTH
DRIVING CARS, TAXI SERVICES,
THESE SORTS OF THINGS WE NEED TO
THINK OF HOW TO LEGISLATE THE
DEVELOPMENT OF THESE
TECHNOLOGIES IN A SAFE WAY, BUT
NOT OVERLY CONSERVATIVE THAT
CONSTRAINS THE DEVELOPMENT. HOW
FINALLY WHERE I COULD HAVE,
DOESN'T IT? OOPS. SORRY. FINALLY
. A LITTLE PLUG FOR THE FOR THE
SYSTEM. I THINK WE NEED TO BUILD
PLACES AND ESTABLISHED PLACES
WHERE WE CAN THINK MORE
HOLISTICALLY AND BUILD THE NEXT
GENERATION OF PEOPLE, THINKERS
PLANNERS, ACTORS IN THE CAL
STATES THAT YOU SEE THE
COMMUNITY COLLEGES, AGRICULTURE
AND NATURAL RESOURCES OF THESE
PEOPLE WOULD REMAIN TRUE TO THE
THREE GOALS, FOOD AND WATER
SECURITY, ELEVATED WORK
EXPERIENCE AND A HEALTHY
ENVIRONMENT AND LITTLE IMAGERY.
THERE IS THE IS THE CONCEPTUAL
VIEW OF THE EXPERIMENTAL SMART
FARM, WHICH THE ASSEMBLYMEMBER'S
COULD HELP SEED A COUPLE OF
YEARS AGO WITH A NICE SEED GRANT
. WE'RE HOPING TO BUILD THAT
PLACE AT UC MERCED THAT WOULD IN
PARTNERSHIP WITH OUR SISTERS,
CAMPUSES AND PRESIDENT
STATEMENT. HEALTH SPACE LOSS
THANK YOU. GREAT. THANK YOU.
WE'LL MOVE ON DOWN. MR BRIGHT
THANK YOU. THANK YOU. CHAIR,
FIELDING AND CHAIR CARLOS FOR
THE OPPORTUNITY TO COME AND
SPEAK BEFORE YOU TODAY AND TO
THIS JOINT HEARING, UM FROM
BACKGROUND, SO FOR MORE THAN A
DECADE NOW GLOBAL SF, FORMERLY
KNOWN AS CHINA'S STUFF. HAS BEEN
FOCUSED ON CROSS BORDER TRADE
AND INVESTMENT NOW, UM AND WE
WERE STARTED ACTUALLY AFTER A
TRIP TO CHINA BY OUR CURRENT
GOVERNOR, WHEN HIS FIRST TRIP TO
CHINA AND HE CAME BACK, AND HE
SAID, I HAVE TO START A CHINA
DEATH TO ATTRACT ALL THE
COMPANIES THAT INVESTMENT FROM
CHINA. UM BY 2013 BECAUSE OF THE
IMPACT OF THE WORK THAT CHINA
STUFF HAD HAD CREATED. WE HAD
ALREADY ATTRACTED MORE THAN 3
BILLION AND FOREIGN DIRECT
INVESTMENT FROM CHINA. WE HAVE
SET THE NATIONAL BAR FOR WORK IN
ECONOMIC DEVELOPMENT AND FOREIGN
DIRECT INVESTMENT WORK HERE IN
THE US TODAY I'M HERE TO MAKE A
CASE FOR OF FOOD AND ACT TECH.
UH FOR EXPORT, NOT JUST AG
PRODUCTS, BUT ALSO OF AC
TECHNOLOGY AS WELL. AND
PRIMARILY, THIS IS BECAUSE OF
CLIMATE CHANGE. UM WHAT'S GOING
ON THAT WE KNOW IT'S REAL.
AGRICULTURE AS YOU KNOW, IS ONE
OF CALIFORNIA'S BIGGEST EXPORTS
NEXT TO TECH IN 2021. IT REACHED
$22 BILLION, WHICH INCREASED BY
20% SINCE 2012 AND ACCORDING TO
THE CALIFORNIA DEPARTMENT OF
FOOD AND EGG, BEING THE LARGEST
ECONOMY IN THE UNION, CALIFORNIA
GROWS MORE THAN 400 PRODUCTS. IN
OUR STATE ALONE, UNDERSTANDABLY,
FROM AN ECONOMIC PERSPECTIVE,
ART GROWERS TEND TO FOCUS ON
HIGH VALUE COMMODITIES AND SOME
OF THE PRODUCTS BEING EXPORTED
HAPPENED. ALMONDS AS WE ALL KNOW
, DAIRY AND DAIRY PRODUCTS.
THOSE ARE THE TOP THREE AS THIS
IS THE SELECT COMMITTEE ON ASIA.
I AM ALSO HAPPY TO SHED SOME
LIGHT ON SOME ASIAN COUNTRIES
THAT WE EXPORT TO SOME OF THE
COUNTRIES THAT WE EXPORT
PRIMARILY TO INCLUDE CHINA. NO
SURPRISE. HONG KONG, SOUTH KOREA
, JAPAN, TAIWAN AND THE
PHILIPPINES IN THE COUNTRIES
WITH A GROWING MIDDLE CLASS, AND
AS, UM. THAT'S MY COLLEAGUES HAD
MENTIONED EARLIER. YOUNGER
GENERATIONS ARE EAGER TO LEAVE
THE FAMILY FARMS AND MOVE INTO
THE CITIES WHERE THEY CAN EARN
MORE AND RAISE THE QUALITY OF
LIFE. THE NUMBER OF FARMERS
DECREASE AND RESULTING IN
DECREASING THE AMOUNT OF
AGRICULTURE PRODUCT THAT CAN BE
AVAILABLE TO FEED THE GROWING
CITY POPULATIONS. THIS IS
DEFINITELY THE TREND FOR ASIAN
COUNTRIES AND CASE IN POINT
SINCE WE TALKED ABOUT CHINA.
BEING ONE DEFINITELY ONE OF THE
LARGEST MARKETS IN THE WORLD. IN
1980 19% OF THE POPULATION IN
CHINA LIVED IN CITIES. BY 2022
MORE THAN 65% OF THE TOTAL
POPULATION LIVE IN URBAN AREAS,
SO THEY'VE ALL MOVED FROM THE
WEST TO THE EAST COAST OF CHINA.
CHINA IS NOW THE BIGGEST MARKET
FOR RICE, GRAINS, MEAT,
INCLUDING POULTRY, BEEF AND PORK
, AND DEPENDING ON THE
GEOPOLITICAL SITUATION. CHINA
WILL PLAY OFF BRAZIL TO THE USA
AND EVEN AUSTRALIA, DEPENDING ON
WHO THEY'RE ARGUING WITH RIGHT
DEAL, INCREASE THE PURCHASES
FROM A CERTAIN COUNTRY IF WE
HAVE A GOOD RELATIONSHIP AND I
DARE SAY THAT WE HAVE OF COURSE,
IT HAS HURT THE US OF A I WOULD
SAY, PROBABLY IN 2017, BUT NOW
IT'S ACTUALLY REBOUNDED. AND THE
IMPORT OF CHINA. THE IMPACT OF
CHINA IMPORTS OF ACTS FROM THE
USA NATIONALLY UM AND I WOULD
LOVE TO GIVE SOME NUMBERS HERE.
CHINA WAS THE LARGEST NUMBER OF
US ACT PRODUCTS AT AMOUNT OF
$36.4 BILLION. THIS WAS IN 2022.
THE US HAS SEEN AN INCREASE IN
DEMAND FOR THE FOLLOWING
PRODUCTS, NAMELY SOY, WHICH IS
NOT A SURPRISE CORN, CHICKEN
MEAT, BEEF, TREE, NUTS AND
SORGHUM AND EVEN THE REBOUND IN
COTTON. AS WE ALL KNOW, WE BUY A
LOT OF CLOTHING FROM CHINA.
THAT'S WHAT COUNT AND AS AN F II
CHINA BUYS HALF OF THE U. S
PRODUCTION OF SOYBEAN EVEN
THOUGH TERRORISTS HAVE IMPACTED
THE EXPORT OF PRODUCTS LIKE
BEEF. IN 2019 THAT THE MAN HAS
ACTUALLY GONE BACK UP TO CLOSE
TO 2014 NUMBERS, SO IT
DEFINITELY HAS RETURNED. I'M
GLAD TO HEAR AND SEE. I REMEMBER
BACK IN 2013. WHEN PRESIDENT
OBAMA WAS IN OFFICE, I ATTENDED
THE ANNUAL SELECT USA SUMMIT IN
WASHINGTON, D. C AND HE SAID
FOREIGN POLICY IS TRADE TRADE IS
FOREIGN POLICY WHEN PEOPLE ARE
PROSPEROUS AND HAVE FOOD TO EAT
AND A HOUSE TO LIVE IN. THEY ARE
HAPPY AND THE LEADERSHIP CAN
GOVERN IN PEACE. THIS IS WHERE
WE SHOULD COMPETE, CONSIDER THE
IMPACT OF TRADE AND OUR ECONOMY.
MANY CALIFORNIA RESIDENTS DO NOT
REALIZE THAT CALIFORNIA IS A
VERY INTERNATIONAL STATE. PEOPLE
DO NOT JUST COMFORT DISNEYLAND
AND HOLLYWOOD, BUT ALSO BECAUSE
OF A RICH AGRICULTURAL RESOURCES
AND ALSO OUR TECH AND
INNOVATION. I UNDERSTAND THAT
FOR NATIONAL SECURITY REASONS,
WE MUST BE INTENTIONAL AND
CONSIDERATE ON WHAT AREAS WE
COLLABORATE WITH OTHER COUNTRIES
, HOWEVER, TO ADDRESS AREAS
WHERE WE CAN MAKE A POSITIVE
IMPACT, THERE ARE WAYS TO
SUPPORT COUNTRIES IN ASIA SUCH
AS INDONESIA AND CHINA, WHICH
HAVE GROWING MIDDLE CLASSES
THROUGH WHICH THEY DON'T EXPORT.
BUT THEY ARE ALSO COLLABORATING
WITH COUNTRIES LOOKING FOR WAYS
TO FEED THEIR PEOPLE. SO FOR
EXAMPLE, INDONESIA BECAUSE IT
IT'S ACTUALLY THE THIRD LARGEST,
UM, DEMOCRACY IN THE WORLD. THEY
ARE THEY HAVE OVER 200 MILLION
PEOPLE LIVING IN ON ISLANDS AND
WHERE, BECAUSE OF THE RISING
MIDDLE CLASS, LESS PEOPLE ARE
NOW ACTUALLY FARMING. AND WHEN I
TALKED HIM ABOUT YOU KNOW,
CLIMATE CHANGE IS SISTER LEEN.
WE HAVE TO FEED OUR PEOPLE WERE
NOT GOING TO THINK ABOUT CLOUDED
CHANGE. SO JUST CASE IN POINT
ABOUT WHERE THEIR MIND IS THAT
THEY WANT TO FEED THEIR PEOPLE.
UM AND SO WHICH BRINGS ME TO MY
NEXT ITEM, CLIMATE CHANGE AND AS
A STATE AND THE NATION. I
BELIEVE WE ARE, UH, BLAH, BLAH.
OKAY UM, WE BELIEVE THAT
INTERNET INTENTIONAL AND
COMMITTED TO CLIMATE CHANGE, AS
IS THE STATE OF CALIFORNIA. AND
I KNOW THAT CHARITY THAT YOU'RE
VERY COMMITTED TO CLIMATE
CHANGE. UM WHEN SEA LEVEL RISES
EMINENT, THE WEATHER IS CHANGING
AND WARMING UP WHAT IS HAPPENING
IN SAN FRANCISCO AND NOW WITH
THE STATE OF CALIFORNIA IS
REALLY EXCITING BECAUSE OF ALL
THE INVESTMENT THAT WE'RE MAKING
IN CLIMATE CHANGE, SO LET ME
START BY SHARING THAT EVEN
THOUGH KELP GLOBAL ITSELF HAS
BEEN TRADITIONALLY BEEN FOCUSED
ON ATTRACTION OF FOREIGN DIRECT
INVESTMENT AND RECRUITING OF
COMPANIES TO LAND IN SAN
FRANCISCO, SINCE 2019 WE HAVE
BEEN SPENDING A LOT OF TIME ON
EXPORT. BECAUSE OF THE GROWTH OF
THE BIO AND LIFE SECTOR IN SAN
FRANCISCO, NOW THE LARGEST HUB
IN THE USA, PRODUCING MORE THAN
100 BILLION IN ECONOMIC INPUT,
ACCORDING TO X AXIOS. MANY
VERTICALS HAVE GROWN IN THIS
SPACE, NAMELY IN THE FOOD AND
ARCHITECTS SPACE. AS A RESULT OF
THE NEED TO ADDRESS CLIMATE
CHANGE MARKET DEMAND FOR PLANT
BASED PRODUCTS AND ALTERNATIVE
SOURCES. WE HAVE BEEN WORKING
WITH MANY FOOD TECH COMPANIES
AND IN THE PAST YEARS PRE AND
POST PANDEMIC WE HAVE LED
DELEGATIONS TO COUNTRIES SUCH AS
SINGAPORE, HONG KONG, DENMARK,
SWEDEN AND JAPAN. THESE
DELEGATIONS WERE ORGANIZED IN
THE WAY THAT WE WOULD INCLUDE
CORPORATE STAKEHOLDERS WERE
INCLUDE FOOD TECH PRODUCERS,
EXPORTERS, VENTURE CAPITALISTS
AND EVEN CHEFS. UH, WE WANTED
THESE. THESE UH THESE
COMBINATION TO ACTUALLY NETWORK
IDENTIFY PARTNERS AND
OPPORTUNITIES FOR MARKET ENTRY.
EXAMPLES OF SOMEBODY COMPANIES
ARE MINUS, WHICH IS A SEAMLESS
COFFEE COMPANY, AND THEY ARE
FOCUSED ON USING LESS WATER TO
MAKE COFFEE. ANOTHER COMPANY HAS
BEEN CORONA FOODS AND CORONA
FOOD IS ACTUALLY A COMPANY THAT
IS USING JACKFRUIT AS A SOURCE
OF MEAT ALTERNATIVE, SO IT'S NOT
FAKE MEAT. IT REALLY IS. A FRUIT
IS NATURAL, BUT YOU CAN PREPARE
IT SO IT TASTES LIKE CHICKEN.
FOR EXAMPLE, THERE'S A COMPANY
WHERE WORKING WITH CALLED IMPACT
, AND WHAT THEY DO IS THEY'RE
MAKING CELL BASED TUNA. IT'S NOT
FAKE MEAT. IT REALLY IS TUNA
MADE FROM CELLS, BUT IT'S
FERMENTED RIGHT. IT'S NOT GROWN.
IT'S NOT FARM. AND LAST, BUT NOT
LEAST I ALSO WANT TO MENTION OR
BE IT OR OR BILLION BIO. THERE
ARE SO BASED COMPANY AGAIN
WORKING ON FERMENTATION, BUT
THEY'RE MAKING SO I JUST WANTED
TO SHARE THAT THESE ARE ALL THE
COMPANIES THAT WE HAVE WORKED
WITH. NOT ALL OF THEM HAVE
SAMPLE OF THE COMPANIES THAT ARE
LOOKING AT CLIMATE CHANGE
LOOKING AT WHAT IS GOING ON,
ESPECIALLY WHEN WE'RE LOOKING AT
WATER. WE'RE LOOKING AT A LAND
LOCKED AREAS. UM, WHAT CAN WE DO
TO ACTUALLY HELP FEED THE PEOPLE
OF THE WORLD? SO I'LL END MY
COMMENTS. THANK YOU. THANK YOU.
NOW WE HAVE MR SHORT FROM BLUE
DIAMOND GROWERS. UM AND
REPRESENTS ONE OF THEM. LARGEST
ALMOND ALMOND COMPANIES IN THAT
NOT JUST THE STATE, BUT PROBABLY
THE ENTIRE WORLD. THANK YOU VERY
MUCH. WE ARE ACTUALLY THE
LARGEST PROCESSOR IN THE WORLD,
AND WE ARE THE LARGEST HANDLER
WITHIN CALIFORNIA. I DO HAVE A
PRESENTATION, BUT I'LL JUST GET
STARTED AND I'LL START WITH THE
WITH THE CHALLENGE AHEAD OF US
THAT WE FACE AS A AS IT WAS LAID
OUT BY THE GOVERNOR BY 2035
DREDGE TRUCKS WILL HAVE TO BE
OFTEN FUEL. AND THERE IT IS. AND
SO CALIFORNIA DOES LEAD IN
SETTING THE STANDARDS AND AS
SUCH, IT'S GOING TO AS WE'VE
HEARD EARLIER TODAY, I'M
DELIGHTED TO HEAR AGRICULTURAL
TECHNOLOGY AND SO MUCH OF AN
EMPHASIS ON THE CENTRAL VALLEY
AND THE FARMING FAMILIES WITHIN
CALIFORNIA. AND SO AS WE FACE
THIS, THE NEW CHALLENGES AND
WE'LL PROBABLY HEAR FROM MATT
COMING UP LATER ON THE TRUCKING
CHALLENGES WILL HAVE TO PREPARE
THE STATE FOR WHAT IS INEVITABLY
A NEW WAY OF FARMING IN
CALIFORNIA. SO I WON'T DRAIN
THAT I WON'T DRAIN ALL OF THE
DATA ON THE SIDE BUT HAS POINTED
OUT CALIFORNIA ALMONDS.
SPECIFICALLY THERE ARE 7600
FARMS IN CALIFORNIA. BLUE
DIAMOND REPRESENTS AROUND HALF
OF THOSE FARMS. 3000 OF THOSE
FARMS. 90% OF THEM ARE FAMILY
OWNED AND OVER 90% OF THEM. MANY
OF THEM ARE LESS THAN 50 ACRES.
SO IT IS NOT A LARGE FARMING
PRACTICES. SMALL FAMILY FARMS.
MILLION YEAR 3RD AND 4TH
GENERATION FAMILY FARMS. AND, AS
YOU NOTED EARLIER, THE KIDS ARE
NOT GROWING UP TO BE FARMERS.
AND SO WE ARE FACING CHALLENGE,
BOTH WITH LABOR BUT ALSO WITH
GENERATIONAL FARMING. I AM AND
IF YOU ARE, IF YOU ARE WATCHING
THE VALLEY IS ALREADY THERE IN
PRIVATE EQUITY IS ALREADY ON THE
FLOOR. AND SO THE HOTTEST BED OF
TECHNOLOGY ISN'T NO LONGER
SILICON VALLEY. IT'S THE CENTRAL
VALLEY AND IT IS TECHNOLOGY AS
YOU NOTED EARLIER AT THE I. TECH
EXPO DRONES, TECHNOLOGY,
AUTOMATED FARMING EQUIPMENT, AI
WATER USAGE. ALL OF THE DOLLARS
ARE BEING SPENT. AND SO WE'RE
SEEING THAT GROWTH IN IT. SO
WHILE ALMONDS LEAD IN THE WORLD,
70% OF THE ARMS ARE EXPORTED
ACROSS THE WORLD FROM CALIFORNIA
TO OTHER PARTS OF THE WORLD 30%
STATE DOMESTICALLY AND OUR FARM
ARE USED DOMESTICALLY IN OUR
PRODUCTS. I WILL SAY THAT 30% OF
THE FORM OF THE EXPORTS DO GO TO
ASIA AND SO OVER £700 MILLION
ARSON OVER TO ASIA, CHINA, JAPAN
, KOREA AND MANY OTHER OF THE
ASIAN COMMUNITIES AND THEY ARE
SUBSTANCE. THEY'RE USED OVER
THERE ON HIS, UH, PROTEIN 28
ALMONDS A DAY AND MANY CULTURES
WILL SUFFICE TO HELP CARRY FOLKS
OVER. UM AND SO ON THE NEXT
SLIDE, JUST A NOTE OF HOW
FARMING HAPPENS. IT'S NOT JUST
NOT JUST THE TRUCKS, BUT IT'S
THE ORCHARD FLOORS. THE
EQUIPMENT THAT ARE USING ARE
CURRENTLY DIESEL BASED. THE
HOLLER SHELTERS WHERE WE PROCESS
THE TRUCKS THAT ARE RECEIVING
AND THE STORAGE AND THE
TRANSFORMATION OF THAT PRODUCT.
ALL WILL HAVE TO BE READ
REENGINEERED ALL OF IT FROM THE
FARMING EQUIPMENT ON THE FLOOR
TO THE TRUCKS THAT ARE BEING
UTILIZED TO THE PORTS THAT WE'RE
UTILIZING IT WITH THE OAKLAND,
LOS ANGELES, HOUSTON AND NOW
NORFOLK AS A PART OF THE
PANDEMIC WHERE WE'RE SHIPPING
PRODUCT ACROSS THE UNITED
STATES. SO THE GAP AS WE SEE IT
TODAY, THE RED DOTS ON THE MAP
REPRESENT THE BLUE DIAMOND
FACILITIES AND SALIDA SOCCER
MINNOW AND TURLOCK GREEN DOTS
REPRESENT THE 100 OR SO OMINOUS
HANDLERS THAT ARE REPRESENTED
FROM READING TO BAKERSFIELD THAT
ARE THE ONES WHO PROCESS THE
ALMONDS, WHOLE CHARLIE ALMONDS
AND THEN EXPORT COMMENTS. THE
ORANGE JOB DOTS. THOSE REPRESENT
THE HYDROGEN STATIONS AND THEN
THE GREEN AND THE BLUE DOTS
REPRESENT THE ELECTRICITY
CHARGING STATIONS. SO AS YOU
KNOW, THERE IS, THERE IS A LACK
OF INFRASTRUCTURE THAT IS GOING
TO BE THERE TO SUPPORT FARMING
NOT ONLY ON THE ORCHARD ON THE
ORCHARD FLOOR, BUT ALSO GETTING
THOSE ALMONDS AND OTHER
AGRICULTURAL PRODUCTS. TWO PORTS
AND TO EXPORTS. WE SAY WHAT'S
GOOD FOR BLUE DIAMOND IS GOOD
FOR AGRICULTURE WERE 100 AND 13
YEAR OLD COOPERATIVE. WE'VE BEEN
FARMING IN THE VALLEY FOR THAT
LONG AND THE HALO EFFECT OF WHAT
AS ALMONDS ARE THE NUMBER ONE
GROSS PRODUCT FROM FAR FROM
REVENUE IN TERMS OF FARMING. UH
UM. WE REPRESENT ALMONDS
REPRESENT $11 BILLION WORTH OF
TAX REVENUE FOR THE STATE OF
CALIFORNIA. FARMING REPRESENTS
$51 BILLION WORTH OF REVENUE FOR
THE STATE. AND SO THE CHALLENGE
THAT WE FACE IN THE NEXT 10
YEARS IS TO PREPARE FOR THE FOR
WHAT'S AHEAD. AND SO WHAT I'M
EXCITED ABOUT TODAY AND I KNOW
YOU ARE TO BE ON THE PANEL IS
THAT WE HAVE TO PAY FOR THE
FUTURE. MANY OF THOSE BEST
PRACTICES ARE CARRYING FORWARD,
I WAS NOTED. EARLIER, THE
DELEGATION MET THE TRADE
DELEGATION THAT WENT OVER ASIA,
UH, THE PORTS IN JAPAN AND CHINA
. THEY'RE ALREADY ON HYDROGEN.
THE SHIPS THAT ARE ARE MOVING
THERE. AND SO WE HAVE TO
LEVERAGE THE KEY LEARNINGS AND
UH, BRUCE EARL. IF BRUCE WAS UP
HERE EARLIER, LEVERAGING THE C S
U S THE U. C S U. C. DAVIS IS
ANOTHER WHERE WE'RE LEVERAGING.
FARMING IS COLD FARMING IS FUN
AND FARMING IS ABOUT FAMILY AND
WE HAVE TO LEVERAGE THOSE BEST
PRACTICES IN ORDER TO SUSTAIN
WITH 10 YEARS. THAT'S NOT REALLY
A LONG TIME TO SUSTAIN THE
FUTURE BY 2035. WE WILL NEED TO
HAVE DIESEL OUTSIDE OF OUR
DRAINAGE SYSTEM. WE WILL NOT BE
ABLE TO MOVE OUR PROPER CROP,
EXPORT IT OUT TO THE COUNTRIES
AND, UH AND FARMING IN
CALIFORNIA WILL COME TO A HALT
IF WE HAVE NO SOLUTIONS AND SO
SHARING THE BEST PRACTICES AS WE
NOTED EARLIER. KEY MONARCH AT
MONARCHY TRACTORS IS ONE THAT
STARTED AN E V TRACTOR THAT'S
ALREADY STARTED. JOHN DEERE HAS
ALREADY STARTED WITH AN AMMONIA
TRACTOR, AND SO WE'RE STARTING
TO SEE THE TECHNOLOGY MOVED
TOWARDS ALTERNATIVE FUELS NOT
JUST HYDROGEN, BUT OTHER AREAS
THAT WILL CREATE SUSTAINABLE
TRANSACTIONS OR ABILITY TO MOVE
IMPORTANT REPORTS THAT WE CAN
FOLLOW AND IN JAPAN AND CHINA,
THEY'RE ALREADY TOWARDS HYDROGEN
AND THEN THE INLAND PORT
INFRASTRUCTURE THAT WE'RE
WORKING WITH IN PARTNERSHIPS. I
HEARD EARLIER STATES NOT GONNA
ANSWER THIS FEDERAL GOVERNMENT
IS NOT GOING TO HELP US. THIS
HAS GOT TO BE A COMBINATION OF
PRIVATE BUSINESS STATE. AND
FEDERAL FUNDING WORKING IN
PARTNERSHIP ALONG WITH THE
EDUCATION, SO I WOULD SAY IT'S A
IT'S FOUR LEGGED SOUL AND NOT A
THREE AND NOT JUST A REALLY GOOD
HELIX. WE NEED TO PULL IN
FEDERAL, STATE AND THE SCHOOLS
AND PRIVATE BUSINESS IN ORDER TO
START THIS SO US TRADE CORRIDOR
WHICH IS UNDERWAY NOW IN THE
CENTRAL VALLEY, STARTING IN
BAKERSFIELD, FRESNO AND LOOKING
FOR PARTS OF NORTHERN CALIFORNIA
, PARTNERING WITH THE U P THE
UNION PACIFIC BNSF REPORT OF L,
A AND OAKLAND TO CREATE A
SUSTAINABLE ENVIRONMENT FOR
TRANSPORTATION AND THEN FOCUSING
ON THE VALLEY FLOOR. SO
TECHNOLOGY IS ALREADY HERE.
WE'RE ALREADY USING SATELLITES,
SOME MAP IMAGERY ON WATER
IRRIGATION FARMERS HAVE ALREADY
IMPLEMENTED DRIP IRRIGATION AND
ALMONDS. WE USE 30% LESS WATER
THAN WE DID IN THE NINETIES. WE
HAVE A GOAL TO USE 25% BY 2025,
AND WE'RE ALREADY A THIRD OF THE
WAY THERE. AND SO USING SENSORS
ON THE GROUND TO MONITOR SOIL
AND THEN A I SO WHEN WE TALK
ABOUT TECHNOLOGY SOLELY BEING
FOCUSED IN SILICON VALLEY, THEY
GOT TO USE THE SOFTWARE
SOMEWHERE. AND SO THERE'S NO
BETTER PLACE THAN FARMING IN IN
CENTRAL VALLEY, SO LOOK FORWARD
TO WORKING WITH YOU, ALL TEXAS
AND THE FUTURE OF CALIFORNIA.
THANK YOU APPRECIATE THAT QUICK,
QUICK QUESTION FOR MR SHORT. SO
ASIDE OF HYDROGEN AND
ELECTRICITY, DO YOU SEE? OTHER
FUELS THAT MAYBE IT COULD BE
USED FOR ESPECIALLY FOR FLEETS.
THE OTHER PART OF IT IS AS AS
YOU ARE LOOKING TO REPLACE YOUR
FLEETS. YOU MENTIONED JOHN DEERE
AND MONARCH. DO YOU SEE ANY
OTHER MANUFACTURERS REALLY
TAKING THE LEAD IN THIS AREA?
NOT AS OF YET. I THINK THE
AMMONIA IS AN INTERESTING ONE
BECAUSE THE AMOUNT OF FERTILIZER
USED IN AGRICULTURE AND AMMONIA
GOING INTO AGRICULTURE IS
THINKING OF EMERGING TECHNOLOGY
THAT WILL CONTINUE TO EVOLVE
THAT I WOULD EXPECT THAT IF WE
ATTEND THE SAME CULTURAL NEXT
YEAR WILL PROBABLY BE 15 TO
VENDORS. GREAT. THANK YOU. NO I
JUST DON'T THINK FOR SPEAKING.
YOU KNOW WE WOULD LAST MONTH. WE
HAD POOR COMMITTEE. IN LONG
BEACH AND. YOU KNOW, THERE'S A
LOT OF QUESTIONS STILL NOT
ANSWERED. WE'RE TRYING TO FIGURE
OUT BECAUSE IT'S SOME LAYERED.
RIGHT. LIKE WHO? WHO DO WHO DO
WE TURN TO? WHO DO WE ASK THESE
QUESTIONS TO A LOT OF IT. A LOT
OF US THINK THAT WE HAVE THE
ANSWERS, AND WE SOMETIMES ARE
NOT MARCHING THE SAME. WITH OUR
FEDERAL PARTNERS, RIGHT? EVEN
THOUGH WE'RE PUTTING A LOT OF
VESSELS WE PUT LIKE 100 BETWEEN
RIVERSIDE AND U C. MERCED. WE
PUT 100 AND 660 MILLION RIGHT
INTO YOUR SCHOOLS WERE MAKING
THE INVESTMENTS, BUT I THINK
WHAT WE'RE GETTING BACK A LOT
FROM FOLKS SAYING, HEY, GIVE US
TIME, RIGHT? GIVE US TIME TO GET
TO WHERE WE NEED TO GET BECAUSE
IT NEEDS TO BE KIND OF LIKE NOT
THAT WE DON'T WANT TO MOVE
FORWARD. WE DO. WE'RE MOVING AND
WE'RE DOING INVESTMENTS. BUT
WHEN YOU TALK TO THE COMMUNITY,
UM THEY NEED TO BE INVOLVED.
THEY NEED TO BE AT THE TABLE,
TOO. SO THANK YOU FOR BEING HERE
TODAY REALLY DO APPRECIATE THAT.
THANKS. I THINK THAT'S WHY I
THINK YOU KNOW, UM BRUCE'S POINT
ABOUT REALLY HAVING
COLLABORATION BETWEEN GOVERNMENT
ACADEMIA BUSINESS, I THINK MAKES
A LOT OF SENSE LONG OVERDUE. AND
I THINK WELL, YOU KNOW, WHEN YOU
SAW THAT UH, IN PART AROUND
BIOTECH, AND YOU SAW WHAT
HAPPENED ABOUT CALIFORNIA, BUT
THAT WAS THE KEY RELATIONSHIP
THAT WAS VERY ACADEMIC, VERY
GOVERNMENT, AND THEN IT GREW A
BUSINESS SO YOU CAN SEE REALLY,
AND WE SEE THAT OVER. WE SAW
THAT WITH TECHNOLOGY TO SO AGAIN
IF THE BAG IS GONNA GET TO THE
NEXT EVOLUTION IS GOING TO HAVE
TO BE A PARTNERSHIP. THERE'S NO
QUESTION NO QUESTION BECAUSE
THAT'S FIRST MENTIONED, UM I'M
SORRY, STEVE MENTIONED TODAY THE
INVESTMENTS OF FARMERS AND WHAT
THEY'RE THERE. BEING ASKED TO
PUT IN UH, IS A LOT RIGHT THERE.
THERE THERE'S A LOT OF LIKE MOM
AND POP BUSINESSES THAT THEY
KNOW THEY'RE GOING TO HAVE TO
CLOSE DOWN THIS THE BIGGER
COMPANIES THAT WILL THAT ARE
ALREADY THINKING AHEAD THERE
ALREADY INVESTING BUT THIS IS
NOT JUST WE'RE TALKING.
OBVIOUSLY WE'RE GONNA HAVE
SOMEONE COME UP AND TALK ABOUT
TRUCKING. BUT THERE'S A THERE'S
A COLLABORATION. THERE'S A
DOMINO EFFECT OF HOW THEY ARE
TRYING TO CATCH UP AND BASKETS.
IT IS A HUMONGOUS, UM, DOESN'T
WHAT I THINK THAT'S A GOOD GIRL,
PROFESSOR. JUST REALLY REAL
QUICK TO COMMENT ON THE ENERGY
ISSUE. ONE POTENTIAL OTHER
SOURCE IN THE IN THE TEMP THE
DANES WILL MENTIONED. THIS IS
BIOGAS AND I SAY POTENTIAL
BECAUSE WE DO HAVE THESE
EMISSIONS GOALS, SO YOU'RE STILL
GOING TO BE BURNING SOMETHING
ABOUT THE ARGUMENT IS IT'S GOING
TO END UP IN THE LANDFILL AND
BECOME A GAS ANYWAY, SO MAYBE
GET ANOTHER CYCLE OUT OF IT
BEFORE THAT PARTICULAR ANY
PARTICULAR OKAY? WE'RE TRYING TO
HAVE THOSE DISCUSSIONS AND I'M
I'M PART OF A GROUP CALLED THE
PROBLEM SOLVERS. WE'RE TRYING TO
FIGURE OUT LIKE WHAT? WHAT IS
THAT MIDDLE GAME RIGHT THERE
BEFORE WE GET ALL THE WAY DOWN
THERE, ASKING THOSE QUESTIONS.
RIGHT AND SOMEHOW WE HAVE TO
FIGURE OUT THAT, YOU KNOW. HOW
DO WE GET? YOU KNOW TO THE END
GAME? LIKE DE DE MAR DIRECTOR
MEYER EXCUSE ME AND GÓMEZ AS
WELL. THEY PUT TOGETHER A SUPPLY
CHAIN. LED BY TRADE BROUGHT
BRANDY HE WAS WORKING ON PUTTING
TOGETHER KIND OF THE STRATEGY
AND WE'RE WORKING TOGETHER WITH
THEM AS WELL. IT'S LIKE HOW DO
WE BRING ACT FORWARD AS A
LEADING, UM, THANKS TO HELP
PROVIDE THAT DIRECTLY TO THE
GOVERNMENT. WELL I THINK THAT'S
THE CHALLENGE WITH ALSO SINCE
WE'RE GOING FIRST, WE CAN'T JUST
SAY, HEY, THERE'S SOMEBODY ELSE.
WE CAN JUST FOLLOW THE BORDER
PLATE. WE KNOW IT'S NOT GONNA BE
LINEAR. IT'S GONNA THERE'S GONNA
BE YOU KNOW, FITS AND STARTS,
BUT I THINK IT'S IMPORTANT TO
GET IT RIGHT AND UM YOU KNOW,
LOOKING LOOKING AT THIS? I THINK
IT'S A IT'S A MIX WHEN I LOOK AT
WHAT WE'VE DONE AROUND PASSENGER
VEHICLES. PART OF IT WAS THE
AUTOMAKERS. PART OF IT WAS US
FORCING THE AUTOMAKERS HANDS, SO
I THINK IT'S. IT'S BEING ABLE TO
PUSH BUT NOT TOO HARD. BUT MAKE
SURE THAT YOU KNOW, LIKE
ANYTHING ELSE THAT YOU HAVE TO
NUDGE AT THE RIGHT TIME AND WITH
THE RIGHT TOOLS, AND I THINK
WE'RE STILL WE'RE STILL LEARNING
SO REALLY APPRECIATE, I THINK.
YOUR GREAT COMMENTS. YOU'RE VERY
THOUGHTFUL. UM YOU KNOW,
COMMENTS AND WISDOM AND REALLY
APPRECIATE THAT WE'RE GONNA
WE'RE GONNA MOVE TO THE VERY
NEXT PANEL THINK IT'S A PERFECT
SEGUE INTO OUR CLEAN
TRANSPORTATION PANEL? UH WE HAVE
, UM SCOTT HARDIMAN FROM UC
DAVIS WITH THE ELECTRIC VEHICLE
RESEARCH CENTER. AND AGAIN, THE
TRANSPORTATION INSTITUTE AND AT
KIRKLEY AS WELL AS DAVIS OR ARE
FUNDED BY THE STATE. SO WE'RE
REALLY I THINK THIS SHOWS
EXACTLY WHERE THE STATE IN
ACADEMIC COLLABORATION WORK. WE
HAVE JOHN BAZELL, WHO'S THE CEO,
PRESIDENT OF CAL START REALLY
APPRECIATE REALLY. THE LEADING
COALITION OF AH CORPORATIONS AND
COMPANIES REALLY ON THE
SPEARHEAD OF, UH, SORT OF SORT
OF CLEAN TECHNOLOGY FOR VEHICLES
, AND THEN WE HAVE MATT SHRAPNEL
WHO'S THE CEO OF THE HARBOR
TRUCKING ASSOCIATION. SO REALLY
APPRECIATE ALL OF YOU BEING HERE
AND WE'RE GONNA GO WITH DOCTOR
HARDMAN, DOCTOR HARDMAN FIRST
AND THEN MR BOESEL AND THEN, MR
SHARP. GOOD AFTERNOON. THANK
YOU. CHATTING AND CHAT. I'M
SORRY. THAT'S TODAY TO GIVE SORT
OF AN ACADEMIC PERSPECTIVE ON
THIS TRANSITION TO ZERO EMISSION
VEHICLES. I THINK I'LL START BY
SAYING I THINK WE'RE IN LIKE A
REALLY GOOD SPOT SO FAR THIS
YEAR GLOBALLY, THERE'S BEEN
ABOUT 1 MILLION ELECTRIC
VEHICLES SOLD EVERY SINGLE MONTH
IN THE US, WE LOOK LIKE WE MIGHT
SELL ABOUT A MILLION ELECTRIC
VEHICLES THIS YEAR, JUST IN
CALIFORNIA. ALONE ONE IN FOUR
EVERY VEHICLE SOLD AS ELECTRIC.
THERE'S ALMOST 100 DIFFERENT
VEHICLES PEOPLE CAN CHOOSE FROM
NOW. AND ALL OF THAT IS THAT
FROM EFFECTIVELY ZERO YOU KNOW,
JUST OVER 10 YEARS AGO, SO I
THINK WE'RE IN A REALLY GOOD
SPOT. UM AS ALWAYS TRYING TO
DECIDE WHAT I WOULD TALK ABOUT
TODAY. I DECIDED I WOULD, YOU
KNOW, SORT OF SEE WHAT'S
TRENDING IN THE NEWS, AND YOU
WOULD NOT THINK THAT THOSE
NUMBERS WERE THE CASE. SO IN MY
SEARCH OF THE MEDIA, I LEARNED
THAT THERE'S A LACK OF DEMAND OF
ELECTRIC VEHICLES. THEY'RE
EXPENSIVE AND DIFFICULT TO MAKE.
THEY COST TOO MUCH NOR WANTS TO
BUY THEM AND THEY'RE DIFFICULT
TO SELL. SO I THINK LIKE I'VE
BEEN DOING THIS FOR 10 YEARS NOW
THERE'S PEOPLE WHO HAVE BEEN
DOING THE RESEARCH FOR FOLLOWING
IN MY HEALTH, AND THOSE ARE
EXACTLY THE SAME THINGS WE'VE
HEARD. EVERY SINGLE WAITED FOR
10 YEARS AND I THINK EVERY YEAR
THAT GOES ON THOSE THINGS ARE
ALL SORT OF PROVEN TO BE FALSE.
SO I THINK THAT'S THE LESSON OF
MAYBE WE SHOULD ALWAYS REALLY
BELIEVE WHAT YOU READ IN THE
MEDIA. BUT BASED ON THAT I
WANTED TO TALK ABOUT TWO THINGS
AND CHATTING MENTIONED THIS SORT
OF PUSH AND THE POLE, SO I WANT
TO TALK A LITTLE BIT ABOUT THE
ROLE OF ZERO EMISSION VEHICLE
SALES REGULATIONS AND SECONDLY,
TALK ABOUT SORT OF ROLE OF
INCENTIVES, AND BOTH OF THOSE
THINGS ARE IMPORTANT FOR
ENCOURAGING AUTOMAKERS TO MAKE
GOOD DECISIONS, GIVING PEOPLE
CHOICE AND ALSO HELPING PEOPLE
CHOOSE THIS. THIS SORT OF NEW
TECHNOLOGY. AND SO YEAH, AS I
SAID, THE DEMAND QUESTION TIME
AND TIME AGAIN. WE HEAR THERE'S
NO LAND. YEAH THAT'S YOU KNOW,
RECORD SALES, AND I THINK SUPPLY
REGULATIONS LIKE CALIFORNIA ZERO
EMISSION VEHICLE REGULATIONS.
THERE'S ALSO MANY OTHER OF THESE
AROUND THE WORLD. NOW A LOT OF
THE MODELED OFF CALIFORNIA'S
THERE'S ONE IN CHINA. THERE'S
ONE IN KOREA. THERE'S ONE IN THE
UK WE WERE JUST IN AUSTRALIA.
THEY'RE ALSO CONSIDERING
ADOPTING SOMETHING THAT WOULD
ENCOURAGE ELECTRIC VEHICLES. AND
I TEND TO THINK ABOUT THESE
REGULATIONS HAVING A FEW ROLES,
SO ONE IS OBVIOUSLY CLIMATE. I
THINK THAT'S CLEAR. TWO IS
GIVING PEOPLE THAT THE
AVAILABILITY AND CHOICE OF
VEHICLES THAT THEY GENERALLY
WANT BECAUSE THE DEMAND DOES
EXIST, BUT I THINK THE THIRD
THING WE SHOULD THINK ABOUT IS
UM, GIVING AUTOMAKERS A CLEAR
PATH OF WHERE THEY NEED TO GO.
SO THEY HAVE MUCH MORE
CERTAINTY, AND I THINK THAT'S
LIKE A REALLY IMPORTANT ROLE OF
THESE REGULATIONS. WE DON'T TALK
ABOUT MUCH, AND SO IT MAPS OUT A
CLEAR PATH THEY NEED TO FOLLOW.
IT'S SORT OF US SAYING THIS IS
WHERE WE NEED TO GO TO MEET OUR
CLINIC. ALS. THIS IS WHAT YOU
NEED TO DO. AND ALSO THIS IS
EFFECTIVELY WHAT YOU NEED TO DO
TO BE COMPETITIVE. UM YOU KNOW,
TIME AND TIME AGAIN WHEN WE HAVE
TRANSITIONS FROM ONE TECHNOLOGY
TO NEW TECHNOLOGY. INCUMBENT
FARMS CAN STRUGGLE TO INNOVATE
AND OFTEN END UP BEING
CASUALTIES, AND WE DON'T WANT
THAT WITH ANY AUTOMAKERS.
OBVIOUSLY THEY'RE VERY IMPORTANT
CONTRIBUTORS TO THE ECONOMY,
THEY EMPLOY TERMS OF PEOPLE, SO
I THINK LIKE WE SHOULD THINK
ABOUT THESE REGULATIONS AS
HELPING GUIDE AUTOMAKERS MAKE
DECISIONS THAT ARE VERY
DIFFICULT RIGHT NOW TO MAKE
BECAUSE IF YOU TAKE A SHORT TERM
PERSPECTIVE, PERHAPS IT DOESN'T
MAKE SENSE TO MAKE ELECTRIC
VEHICLE RIGHT NOW OR NEXT YEAR.
BUT IF WE GET TO 2035 LOOKING
BACK, I THINK THEY WILL THANK US
BECAUSE THEY DON'T EXIST, AND
THEY WILL HAVE FIGURED OUT HOW
TO MAKE THESE VEHICLES YOU KNOW,
PROFITABLE. I THINK THE SECOND
THING I WANT TO TALK ABOUT IS
INCENTIVES. THESE HAVE ALWAYS
BEEN A VERY IMPORTANT TOOL IN
GROWING THE MARKET. UM YOU KNOW,
I THINK I DO RECOGNIZE THAT
ELECTRIC VEHICLES. THERE ARE NEW
TECHNOLOGY AND FAMILIAR TO
PEOPLE. THERE ARE NEW PRODUCTS
THAT AUTOMAKERS HAVE TO LEARN TO
SELL, AND THEY ARE A LITTLE BIT
MORE EXPENSIVE THAN COMMISSION
VEHICLES. SO I THINK YOU KNOW
INCENTIVES ARE VERY IMPORTANT. I
THINK WE WERE FORTUNATE WITH THE
INFLATION REDUCTION ACT SORT OF
EXPANDING, UM, FEDERAL
INCENTIVES FOR ANOTHER 10 YEARS.
UM I THINK IS REALLY GREAT, AND
ALSO THAT REGULATION ENCOURAGES
MANUFACTURING IN THE U. S, AND
ALSO COUNTRIES FRIENDLY TO THE
US BUT I ALSO THINK IT'S UM THE
CHANGES THEY'VE MADE TO THAT
WHICH WILL START NEXT YEAR. ALSO
PEOPLE TO CLAIM THE INCENTIVE
WHEN THEY BUY THE CAR RATHER
THAN WHEN THEY FOLLOW TAXES. SO
THAT'S GOOD. AND I THINK FROM A
CALIFORNIA PERSPECTIVE, IT'S A
LITTLE BIT MORE MIXED. MAYBE SO
WE'VE ALWAYS HAD THE CLEAN
VEHICLE REBATE PROGRAM ABOUT 500
MILLION OF THOSE WERE GETTING
OUT THAT'S NOT BEEN REPLACED
WITH A SORT OF EQUITY FOCUS
PROGRAM, CLEAN CASSEROLE AND THE
CLEAN PICKLE ASSISTANCE PROGRAM.
WHICH I THINK IS ABSOLUTELY THE
RIGHT STEP. THAT'S OBVIOUSLY
WHAT WE NEED TO DO. I TEND TO
SEE A GAP IN THE MARKET. NOW
LOOK SO THAT PROGRAM. IF YOU'RE
A HOUSEHOLD OF TWO TO BE
ELIGIBLE, YOU HAVE TO EARN ABOUT
$60,000. SO THOSE PEOPLE WILL
OBVIOUSLY HAVE TO SUPPORT. THEN
THERE'S PEOPLE WHO ARE WEALTHY
ENOUGH TO AFFORD ELECTRIC
VEHICLE. THEY DON'T NEED SUPPORT
. BUT MAYBE THERE'S A GAP
BETWEEN THESE HOUSEHOLDS AND
$60,000 AND HOUSEHOLDS AND LIKE
OVER 150 OR 200, I DO THINK
WE'VE GOT TO THINK A LITTLE BIT
ABOUT HOW DO WE SUPPORT THAT
SORT OF GAP BETWEEN THE PEOPLE
WHO CAN AFFORD IT? AND THE
PEOPLE WHO CAN GET INCENTIVES.
SO ONE MORE THING I THINK WE
SHOULD THINK ABOUT. YEAH I THINK
I'LL LEAVE IT THERE AND SAY, OF
COURSE, THERE ARE CHALLENGES.
DESPITE WHAT YOU READ IN THE
MEDIA. I THINK WE'RE NOT REALLY
GREAT PLACE A LOT OF THAT,
THANKS TO THE ZERO EMISSION
VEHICLE SALES REGULATION. THE
MARKET IS GROWING. IT LOOKS LIKE
WE'RE ON TRACK TO MEET 100% 0
EMISSION VEHICLE SALES BY 2035.
I THINK THE FINAL LIKE SORT OF
CLOSING. THOUGHT THAT I HAVE IN
TERMS OF SORT OF THIS
RELATIONSHIP WITH APEC IS I
OFTEN THINK ABOUT CALIFORNIA AS
AN EXPORTER OF LIKE POLICY.
MAYBE THERE'S NOT A YOU KNOW.
ECONOMIC CASE FOR THAT, BUT I
MEAN, I THINK THEY'RE ALSO IS
BUT YOU KNOW, WE WERE JUST IN
AUSTRALIA AND LIKE I THINK
PEOPLE REALLY HAVE A DESIRE TO
LEARN ABOUT WHAT WE'RE DOING AND
SEE WHAT POLICIES WE HAVE AND
FIGURE OUT HOW THEY CAN ALSO
IMPLEMENT THEM IN THEIR
COUNTRIES. SO I THINK THAT'S THE
LAST THING I'LL SAY THANK YOU,
JUST AS YOU WATCH YOUR MONITOR
THAT INCOME LIMIT. I THINK IT'D
BE GOOD FOR YOU FOR YOU AND YOUR
CENTER TO KIND OF MONITOR IF
THAT'S THE RIGHT CUT OFF. I
MEAN, THAT'S THE CURRENT CUT OFF
, BUT WE'LL SEE HOW MANY PEOPLE
ACTUALLY QUALIFY AND HOW MANY
FOLKS CAN USE THOSE INCENTIVES.
I THINK CLEARLY THE TIME WAS
RIPE NOW THAT THE MODEL THREE
THE MODEL WIRE THE TOP TWO
SELLING CARS IN THE ENTIRE
STATE, CLEARLY THEY DON'T NEED
ANY HELP ANYMORE. UM BUT IT IS
CLEAR WHETHER YOU ARE GOING FOR
THE USED CAR MARKET OR WHETHER
YOU'RE GOING FOR OTHER OTHER
SORT OF MORE. ECONOMICALLY
PRICED VEHICLES THAT THAT THAT
DEFINITELY, YOU KNOW, WE I THINK
WE NEED TO FOCUS ON THERE, TOO.
SO IT SO I THINK YOUR INSTITUTE
OF COULD PLAY A CRITICAL ROLE TO
REALLY HELP US. IDENTIFY WHAT
THE PROPER CUT OFF IS WHETHER
60,000 OR 180,000, OR 150 THAT
BE HELPFUL. OKAY UM, JAM. BOZELL
PRESIDENT, CEO OF CAL START
ASSEMBLYMAN VIA PADOVA AND
ZIMMERMAN. TEAMS VERY HONORED TO
BE HERE REALLY APPRECIATE IT.
IT'S ALREADY BEEN A SUPER
THOUGHTFUL FORWARD LOOKING, UH,
HEARING AND THIS IS KIND OF
THOUGHT LEADERSHIP THAT WE
REALLY NEED HERE IN THE STATE OF
CALIFORNIA. UH MR TING. I JUST
WANT TO SAY I REALLY APPRECIATE
YOUR LEADERSHIP IN ELECTRIC
VEHICLE POLICY OVER THE YEARS.
YOU MAKE A GOOD ARGUMENT. WHY
THE NAVY? THE CURRENT TERM
LIMITS ARE A LITTLE TOO
RESTRICTIVE. UH SO I JUST WANT
TO SAY THAT AL START. WE'RE AN
INDUSTRY ORGANIZATION FOCUSED ON
THE DECARBONIZATION AND CLEANING
UP OF THE TRANSPORTATION SECTOR.
WE VERY MUCH BELIEVE THAT WE CAN
HAVE A HEALTHY ENVIRONMENT,
ADDRESSED THE CLIMATE THREAT AND
CREATE JOBS AND HAVE A THRIVING
ECONOMY. WE HAVE OFFICES IN
PASADENA, BERKELEY AND MERCED,
AS WELL AS IN FOUR OTHER STATES
AND NOW AN OFFICE IN EUROPE. WE
WERE FORMED IN 1993 WHEN THE
DEFENSE AND AEROSPACE INDUSTRY
WAS REALLY IN A MAJOR STATE OF
DECLINE. AND THE CITY LEADERS AT
THE TIME SAID WE'VE GOTTEN
ELECTRIC VEHICLE MANDATE, SO
LET'S TAKE THOSE LAID OFF
AEROSPACE WORKERS PUTTING BACK
TO WORK BUILDING THE ELECTRIC
VEHICLES AND THE INDUSTRY OF THE
FUTURE. UM AND AT THE TIME, YOU
KNOW, AGRICULTURE AND VERY
HONORED TO ACTUALLY BE HERE, YOU
KNOW WITH AGRICULTURE BECAUSE I
ALWAYS HAD WENT TO U. C DAVIS AS
AN UNDERGRAD AND WE STARTED BAG
IS LIKE THE BIG INDUSTRY IN
CALIFORNIA, ALONG WITH MOTION
PICTURE, SILICON VALLEY AND OIL,
BUT REALLY THE BIG INDUSTRY,
PARTICULARLY IN VALLEY. UM I'M
REALLY, UH, HONORED ALSO BE HERE
AND SAY THAT OVER MY LIFETIME
NOW WE'VE SEEN THE CLEAN
TRANSPORTATION INDUSTRY GROW AND
BE. WE HAVE 70,000 DIRECT JOBS,
PRODUCING ELECTRIC VEHICLES
COMPONENTS BUILDING OUT THE
INFRASTRUCTURE HERE IN THE STATE
AND THE FACT THAT WE'RE TALKING
ABOUT THESE TWO SECTORS TOGETHER
IS IF YOU ARE REALLY GOOD ABOUT
THAT. WE UH WE THINK THERE ARE
HUGE OPPORTUNITIES, UH, WITH
WHAT'S GOING ON HERE IN
CALIFORNIA AND THEN ALSO WITH
APEC, AND I AM ACTUALLY HOPING
TO GO TO THE APEC CONFERENCE AND
TALK TO YOU A LITTLE BIT. ABOUT
WHAT? I'M HOPING TO GET DONE
THERE IN A BIT, BUT JUST WANT TO
GIVE YOU A FEW EXAMPLES OF SOME
OF THE ACTIVITY ALREADY. WE SAW
THAT YOU I D THIS LARGE BATTERY
MANUFACTURING CHINA WITH
INVESTMENT BY WARREN BUFFETT
LOOKED ACROSS THE UNITED STATES
AND WAS CARRYING WHERE WERE THEY
GOING TO BUILD THEIR FIRST
PLANT, AND THEY ENDED UP
BUILDING IT HERE IN CALIFORNIA,
LANCASTER BECAUSE THIS IS WHERE
THE MARKET IS. YOU DON'T
NORMALLY THINK OF REGULATIONS
DRIVING BUSINESS. BUT IN THIS
CASE WITH ZERO EMISSION VEHICLE
REGULATIONS, POLICIES AND
INCENTIVES THAT SCOTT TALKED
ABOUT THIS IS REALLY WHERE THE
ELECTRIC VEHICLE MARKET HAS
TAKEN OFF. WE PRODUCE MORE
ELECTRIC VEHICLES, MOTORCYCLES,
CARS, TRUCKS, BUSSES IN THIS
STATE THAN IN ANY OTHER STATE.
AND A LOT OF PEOPLE SAY, WELL,
WE STARTED. YOU KNOW YOU CAN'T
MANUFACTURE THINGS IN
CALIFORNIA. IT'S TOO TOO HIGH
COSTS. WELL IT'S HAPPENING AND
IN 2020 E. V S WHERE OUR LARGEST
EXPORT $5.6 BILLION WORTH OF
EXPORT, SO B Y D DID THAT SEARCH
CAME HERE. TESLA IS CONTINUES TO
EXPORT CARS. MAYBE NOT AS MANY
NOW THAT THEY'VE GOT THE
SHANGHAI CLAMP, BUT CONTINUING
THE EXPORT AND THEN HOW TO LAY
THROUGH UP THERE YOUR DISTRICT
THEY ARE BUILDING THAT THE MEGA
PACKS FOR THE STATIONARY STORAGE
THE LARGE AMOUNT OF BATTERIES
FOR UTILITY SCALE STORAGE. UH
SOME REALLY INTERESTING THINGS
ARE GOING ON. THERE'S A OUT IN
THE SOUTHEASTERN PART OF THE
COUNTRY, THE STATE THERE'S THE
MOUNTAIN PASS MINE. WHERE RARE
EARTH MATERIALS EXIST. AND RIGHT
NOW IN A COMPANY THAT IS
PARTIALLY 8% OWNERSHIP BY A
CHINESE COMPANY. THAT MATERIAL
IS DEVELOP, IS MINED IN
CALIFORNIA, BROUGHT BACK TO
CHINA AND PROCESSED AND THEN
THEN SOLD AS RARE EARTH
MATERIALS. THAT'S THAT'S AN
OPPORTUNITY, PERHAPS FOR
CALIFORNIA. WE HAVE THE LITHIUM
VALLEY, WHICH IS, UH, A LOT OF
INTEREST IN A LOT OF POTENTIAL
DEVELOP OUT OF THE SALT SEA AND
THE SURROUNDING AREA LITHIUM
HERE IN CALIFORNIA, SO WE'RE
BUILDING THE HEAVY INDUSTRY AND
I THINK THERE'S A HUGE
OPPORTUNITY FOR US TO BE A
RESPONSIBLE DEVELOPER AND
PROVIDER OF THIS STRATEGIC
CRITICAL MINERALS. THAT ARE
NEEDED IN IN THAT IN THAT
INDUSTRY, SO I THINK THERE'S A
GREAT OPPORTUNITY. UM I WANT TO
JUST TALK ABOUT THE COMMERCIAL
VEHICLE SECTOR IN PARTICULAR IN
CALIFORNIA'S LEADERSHIP. UH IT
WAS. I KNOW IT'S NOT ALWAYS EASY
IMPLEMENTING IT. WE'LL HEAR
ABOUT IT TRUMP FROM SOME OF THE
TRUCKERS. WE HEARD ABOUT IT FROM
BLUE DIAMOND. THIS IS GOING TO
BE A CHALLENGING BUT I THINK
ULTIMATELY DOABLE TRANSITION TO
GET TO ZERO EMISSION TRUCKS. UM.
WE BASED ON ALL THE WORK WE DID
HERE IN CALIFORNIA. WE SAID THAT
WE ARE OUT ABLE TO HELP SET THE
STAGE FOR CALIFORNIA THE FIRST
GOVERNMENT IN THE WORLD TO SAY
THAT IT'S TIME TO GO TO ZERO
EMISSIONS IN THE IN THE BUS AND
TRUCK WORLD. SO WE'RE NOW ON THE
PATH BY 2036. ALL THE TRUCKS
WILL HAVE TO BE ZERO EMISSION
AND BUSSES. GET TO, UH DURING
MISSION EARLIER BY 2029 28. SO
BASED ON THAT, THEN, UH, WE
CREATED SOMETHING AT THE
GOVERNOR-BROWN-SIGNS-MOORLACH-DATE-SEPARATION-BILL
COMMERCIAL VEHICLE DRIVE TO ZERO
PROGRAM. AND WE NOW HAVE 27
NATIONS HAVE SIGNED UP TO THE
CALIFORNIA TARGETS TO GET TO 30%
0 MISSION COMMERCIAL VEHICLES BY
2030 100% BY 2040. IN THAT COP,
27. THE UNITED STATES WAS JOINED
UP SO THE U. S IS NOW COMMITTED
TO THOSE TARGETS. WE HOPE TO BUY
ADMINISTRATION WILL BACK THAT UP
IN THE CURRENT EPA REGULATION.
THAT IS THAT IS PENDING. UH I
THINK IT'S THIS IS A GREAT
OPPORTUNITY AT APEC TO GET MORE
ASIA PACIFIC COMPANY COUNTRIES
TO SIGN UP TO PARTICIPATE RIGHT
NOW. CHILE IS PART OF THE APEC
SO THEY'RE ON BOARD. SO IS NEW
ZEALAND. WE THINK VIETNAM IS A
GREAT OPPORTUNITY TO PARTICIPATE
. FANTASTIC CONGLOMERATE THAT IS
MAKING LIKE YOUR CARS IN, UH IN
VIETNAM AND HAS NOW PLANT SOUTH
CAROLINA IS IN VIETNAM, AND WE
HOPE TO BE WORKING WITH THEM TO
DEVELOP THAT, SO I THINK THERE'S
A BIG OPPORTUNITY THERE WITH
WITH APEC AND DEVELOP MORE TRADE
WITH THE APEC THROUGH THE
COMMERCIAL VEHICLE SECTOR. AND
JUST WANT TO SAY, POINT OUT 11
EXAMPLE OF REALLY SHREWD USE OF
CALIFORNIA RESOURCES WAS, YOU
KNOW, PILOT AND DEMONSTRATION
PROGRAM WITH FREE OLE AH! THEY
WERE A $13 MILLION IN STATE
MONEY FROM CALIFORNIA RESOURCES
WORK, THEY WERE ABLE TO REPLACE
EVERY DIESEL ENGINE AT THEIR
CHIP MAKING FACILITY, NOT
SEMICONDUCTORS. BUT THE OTHER
KIND OF CHIPS IN THE DESK OF, UH
AND THEY HAVE BOX TRUCKS MADE BY
KENWORTH RUNNING AROUND DOING
LOCAL DELIVERIES. B Y D R
TRACTORS MOVING PRODUCTS AROUND
THE FACILITY THAT PLANT THEN THE
TESLA SEMIS WERE THE FIRST THEY
WERE THE FIRST LOCATION WHERE
THE TESLA SEMIS WERE DEPLOYED.
AND THEN THEY WERE HAVING
INVOLVED TRUCKS RUNNING ON
RENEWABLE NATURAL GAS, SO THEY
REGULAR REPLACE ALL THE DIESEL
ENGINES THERE. AND THEY NOW SAID
THAT EVERYONE OF THE PEPSI FEEL
THE FACILITIES ACROSS THE
COUNTRY. THEY'RE NOT DO THE SAME
THING. SO THIS THIS IS DOABLE,
TAPPING MODESTO. REALLY? THAT
PLANT WAS THE FIRST PLANT REALLY
TO DO THAT IN THE COUNTRY,
RIGHT? RIGHT IN THE HEART OF THE
VALLEY. SO I THINK IT'S A HUGE
AND EXCITING OPPORTUNITY.
CALIFORNIA IS REALLY LEADING THE
WORLD IN THIS AREA. AND VERY
HAPPY TO BE PART OF IT. GREAT.
THANK YOU. THANK YOU FOR THE
OPPORTUNITY. HELLO? GOOD
AFTERNOON. CHAIR FIELD CHAIR
TING. REALLY APPRECIATE THE
OPPORTUNITY AND LIKE JOHN TO
ECHO HIS. HIS COMMENTS ARE
HONORED TO BE UP HERE WITH SUCH
A GREAT PLATFORM FOR EXCHANGING
IDEAS AND TRYING TO GET TO THE
BOTTOM OF SOME OF THE CHALLENGES
THAT WE HAVE. UM MY NAME IS MATT
TRAP. I AM THE CHIEF EXECUTIVE
OFFICER OF THE HARBOR TRUCKING
ASSOCIATION. EACH DAY IS THE
NATION'S LARGEST DRAINAGE TRADE
ASSOCIATION REPRESENTING MOTOR
CARRIERS DOING BUSINESS AT PORTS
ON THE U. S WEST COAST. WE HAVE
A PARTICULAR FOCUS IN CALIFORNIA
. FOR OBVIOUS REASONS. ARE
MEMBERS RANGE FROM THE 12 SMALL
TRUCK OPERATOR ALL THE WAY
THROUGH THE LARGEST FLEETS DOING
BUSINESS IN NORTH AMERICA. WE
ARE MOVING THE MAJORITY OF
FREIGHT THAT'S COMING IN
CALIFORNIA AND GOING OUT AND WE
HAVE OUR PARTNERS IN EXPORT,
ESPECIALLY IN EGG WHOM WE RELY
UPON FOR A SYMBIOTIC
RELATIONSHIP TO HELP GET THEIR
GOODS TO MARKET. JUST A QUICK
GET WANTED TO ALLUDE TO ONE
THING. I HAVEN'T BEEN FLANKED BY
TWO AGGIES AND QUITE SOME TIME
SINCE I WENT TO CAL STATE
SACRAMENTO MANY MANY YEARS AGO,
SO MAYBE WE CAN GET THE OUTCOME
ON THE NEXT CAUSEWAY CLASSIC ON
SOME OF THESE POLICY ITEMS. UM
BUT I THINK IT'S IMPORTANT TO
NOTE THAT WHILE THERE'S A LOT OF
EXCITING THINGS HAPPENING IN THE
PASSENGER CAR MARKET, THERE ARE
TREMENDOUS CHALLENGES IN THE
COMMERCIAL HEAVY DUTY CLASS
EIGHT BATTERY ELECTRIC OR
HYDROGEN MARKETPLACE. UM WE NEED
MORE RESEARCH. I THINK THAT THAT
ONE IS WHAT IT BOILS DOWN TO. WE
NEED TO UNDERSTAND TRULY WHAT
THESE IMPACTS OF PRODUCING THESE
VEHICLES MINING THE RARE EARTH
MINERALS COST, ETCETERA. I THINK
IT'S CRITICAL TO UNDERSTAND THAT
AS THESE BATTERY PACKS CAN BE 5
TO 10 TIMES THE SIZE OF BATTERY
PACKS THAT ARE IN AN ELECTRIC
PASSENGER VEHICLES. TO THAT END,
YOU KNOW, WE ARE NO STRANGER TO
REGULATORY POLICY THAT GOVERN
OUR ENGINE OR FUEL CHOICES,
RIGHT? AS OF TODAY, OUR INDUSTRY
HAS JUST OVER NINE WEEKS BEFORE
THE MOST AGGRESSIVE TRUCK
STANDARDS IN THE WORLD UNDER THE
CALIFORNIA RESOURCES BOARD,
ADVANCED CLEAN FLEETS WILL KICK
IN. IT'S NOT 2035 THAT WE'RE
WORRIED ABOUT OUR INDUSTRY IS
SERIOUSLY CONCERNED ABOUT 2024
AS THAT'S WHEN WE ARE FIRST CUT
OFF. AND AS YOU LIKELY KNOW, ON
THAT DATE, ALL INTERNAL
COMBUSTION ENGINE POWER
EQUIPMENT WILL NO LONGER BE ABLE
TO REGISTER FOR PORTS SERVICE
AND COME 1125. VERY LIKELY. WE
WILL SEE 2000 TRUCKS REMOVE
PORTS SERVICE ACROSS THE STATE.
DUE TO THE USEFUL LIFE
PROVISIONS OUTLINED AND HELP AND
SAFETY CODE 4321. WELL WHILE THE
USEFUL LIFE PROVISION IS A
WELCOME SAFEGUARD THERE IS ZERO
CONSIDERATION AND THE CONTENTS
FOR POTENTIAL CAPACITY
CONSTRAINTS THAT MAY HINDER THE
ABILITY OF SHIPPERS TO BRING
THEIR GOODS TO MARKET THROUGH
OUR CALIFORNIA GATEWAYS. FURTHER
COMPLICATING THIS IS THE FACT
THAT UNDER THE DRAINS PROVISIONS
IN A CF THERE IS A TREMENDOUS
AMOUNT OF LACK OF FLEXIBILITY TO
ACCOUNT FOR THE REAL WORLD
REALITIES OF LIMITED FUELING
OPPORTUNITIES AS WELL AS THE
RESTRICTIONS THAT GO ALONG WITH
BATTERY ELECTRIC OR HYDROGEN
POWERED ZERO EMISSION VEHICLES.
THIS BECOMES ESPECIALLY
CHALLENGING FOR AN INDUSTRY THAT
IS ACCUSTOMED TO UBIQUITOUS,
FUELING OPPORTUNITIES. A MAJOR
FLAW IN THE CF, UNFORTUNATELY,
IS A TOTAL LACK OF RECOGNITION
FOR FLEETS WILL BE RELYING
EXCLUSIVELY ON PUBLIC FACING
CHARGING INFRASTRUCTURE. WELL
THERE ARE MANY OTHER EFFORTS
UNDERWAY TO FILL THIS GAP. THE
REGULATORY CONSTRUCT IS NOT
ACCOUNT FOR THE DEPLOYMENT
TIMELINES THAT FUELING PROVIDERS
ARE UP AGAINST. THIS IS
IMPORTANT TO NOTE. AS
CALIFORNIA'S IS SAID TODAY SETS
THE TONE ACROSS ALL CORNERS OF
THE GOLD GLOBE WHEN IT COMES TO
ENVIRONMENTAL REGULATORY POLICY
WILL NO DOUBT MANY OTHERS WILL
FOLLOW SUIT. IT IS IMPORTANT TO
LEAD BY EXAMPLE, WAS SOUND AND
SUSTAINABLE POLICY MEASURES. TO
PUT THIS FEELING PERSPECTIVE
CHALLENGE INTO PERSPECTIVE.
EXCUSE ME. THE CALIFORNIA ENERGY
COMMISSION HAS ESTIMATED 157,000
CHARGES WILL BE NEEDED ACROSS
THE STATE TO SUPPORT MEDIUM AND
HEAVY DUTY DEMAND BY 2030. THIS
AMOUNTS TO OVER 400 CHARGERS PER
DAY OR EXCUSE ME PER WEEK THAT
NEED TO COME ONLINE TO MEET THIS
PROJECTION STARTING TODAY. A
DIFFERENT NUMBER THAT'S BEEN
USED TO DESCRIBE THE AMOUNT OF
ADDITIONAL GROUP CAPACITY NEEDED
TO SUPPORT THE ROLLOUT IS AROUND
6000 ADDITIONAL MEGAWATTS. TO
PUT THAT INTO PERSPECTIVE THAT
EQUALS ABOUT THREE DIABLO
CANYONS ARE SINGLE SOURCE OF
LARGEST ENERGY PRODUCER, SINGLE
SOURCE PRODUCER WITH ABOUT 2200
MEGAWATTS OF CAPACITY. OF COURSE
, MUCH SMARTER FOLKS THAN MYSELF
ARE WORKING TO SOLVE THIS
CONUNDRUM AND NO ONE IN OUR
INDUSTRY HAS SAYS WE CAN SAY
THAT WE CANNOT GET TO THE ZERO
EMISSIONS, FUTURE AND VISION FOR
THE TRANSPORTATION INDUSTRY,
HOWEVER, IN THE INTERIM, REAL
WORLD LIFE CHANGING IMPACTS OF
THE STANDARDS ARE ALREADY BEING
FELT WITH MANY SMALL BUSINESSES
REEVALUATING THEIR FUTURE PLACE
IN OUR CRITICAL INDUSTRY. TODAY
RAGES IN THE MIDDLE OF A PERFECT
STORM. MARGINS ARE DOWN.
REVENUES ARE DOWN. AND AS YOU
ALLUDED TO SOME REMEMBER
AVAILABLE TO REVEREND INTEREST
RATES ARE UP FLEETS, KNOWING
THERE WILL BE AN ABSOLUTE
MORATORIUM ON ADDING ADDITIONAL
INTERNAL COMBUSTION ENGINE
EQUIPMENT AT THE END OF THIS
YEAR, ARE STOCKING UP ON DIESEL
AND NATURAL GAS EQUIPMENT TO GET
AHEAD OF THE DEADLINES TO ENSURE
THEY HAVE AMPLE CAPACITY TO
SERVICE THEIR CUSTOMERS AND KEEP
THE LIGHTS ON. WHILE SOME OF THE
LARGEST FLEETS IN THE WORLD HAVE
TAKEN SMALL, SMALL STEPS TOWARDS
DEPLOYING BATTERY, ELECTRIC OR
HYDROGEN EQUIPMENT, IT IS BEING
SUPPLEMENTED WITH INTERNAL
COMBUSTION PURCHASES TWO AS
PREVIOUSLY MENTIONED, ENSURE
AMPLE CAPACITY TO SERVICE
CUSTOMER NEEDS. HOWEVER IT MAY
NOT BE ENOUGH TO MAKE UP FOR THE
THOUSANDS OF TRUCKS THAT WILL BE
REMOVED FROM SERVICE OVER THE
NEXT FEW YEARS SINCE THE ONLY
OPTION FOR ADDITIONAL CAPACITY
AFTER 1124 IS ZERO EMISSIONS.
FOR BETTER OR WORSE, FLEETS ARE
NOT CLAMBERING TO DEPLOY ZERO
EMISSIONS EQUIPMENT, DESPITE
POTENTIAL INCENTIVES THAT MAY
SIGNIFICANTLY REDUCE THE
PURCHASE PRICE DOWN FROM THE
OUTDOOR COSTS OF OVER HALF A
MILLION DOLLARS. TO A LITTLE BIT
MORE ACCEPTABLE AMOUNT,
DEPENDING ON PROGRAMS SUCH AS
THE HYBRID VETERAN SENATE
PROGRAM. IT'S ACTUALLY
ADMINISTERED BY BY JOHN'S
ORGANIZATION. ONE NEEDS TO LOOK
NO FURTHER THAN THE PORTS OF
ELIAN, LA LONG BEACH, WHO IS
CURRENTLY SITTING ON ABOUT $100
MILLION FOR TRUCK TURNOVER
INCENTIVES WITH NO TAKERS. LTD
OPERATIONAL RANGE AND INCREASED
WAY TO THE ENERGY STORAGE
PLATFORMS THAT REDUCES OVERALL
TRUCK CARRYING CAPACITY. THE
EXTENDED FUELING TIMES FOR
BATTERY ELECTRIC TRUCKS THAT CAN
FOUND ALREADY HIGH DETENTION
COSTS AND THE TOTAL LACK OF
FEELING INFRASTRUCTURE,
ESPECIALLY PUBLIC FACING ARE BUT
A HANDFUL OF REASONS WHY FLEETS,
ESPECIALLY SMALL FLEETS, ARE
WONDERING HOW THEY'RE GOING TO
SURVIVE THIS TRANSITION. FOR
CONTEXT TODAY IN THE PORTS OF L,
A AND LONG BEACH, OUR NATION'S
LARGE OR OUR STATE'S LARGEST
MARITIME GATEWAY. THERE ARE
20,000 TRUCKS REGISTERED TO DO
BUSINESS OVER 14,000 ARE
CONSIDERED REGULAR OR IN SERVICE
TRUCKS. THERE ARE LESS THAN 150
CONFIRMED ZERO EMISSION VEHICLES
HANDLING LESS THAN 1% OF ALL
CONTAINER VOLUME AT THIS GATEWAY
YET WE'RE LOOKING AT A MANDATE
STARTING AND AGAIN NINE WEEKS.
IF WE SEE A CHRISTIAN INCREASED
ATTRITION DUE TO REGULATORY
CHALLENGES, THE INDUSTRY CANNOT
DEPLOY, NOR CAN THE OEM'S BUILD.
NOR CAN THE U UTILITIES PRODUCE
ENOUGH TRUCKS AND ENERGIES AND
ENERGY AND THIS RESTRICTED
TIMELINES TO MEET POTENTIAL SHIP
OR DEMAND FOR CAPACITY. IF WE'RE
UNABLE TO MEET SHIPPER NEEDS
SORT OF COST FOR TRADE SERVICES
OR SO OFF HIÂU OPPOSITE THE MUCH
HIGHER CAPITAL INVESTMENT CARGO
LIKE WATER WILL FIND THE PATH OF
LEAST RESISTANCE AND WILL LIKELY
BEGIN AN INCREASED FLOW AWAY
FROM THE CALIFORNIA GATEWAYS.
DIVERSION IS REAL. THE PORTS ARE
A MASSIVE ECONOMIC ENGINE OF THE
GOLDEN STATE HAS BEEN SAID THAT
FOR EVERY FOUR CONTAINERS, YOU
EQUAL ONE JOB. ONE IN NINE JOBS
HERE IN THE STATES ARE DIRECTLY
RELATED TO AGAINST ME WITH 30%
OF WORKING CALIFORNIANS WORKING
IN TRANSPORTATION. IF COSTS
INCREASE OR DEMAND CANNOT BE MET
. CARGO WILL LEAVE. IT'S
HAPPENING AND WILL CONTINUE TO
HAPPEN UNLESS WE CAN BALANCE THE
NEED FOR STABLE ECONOMIC GROWTH
WITH THE DESIRE TO DECREASE TH
GS HOUSTON, NEW YORK, NEW JERSEY
, SAVANNAH, NORFOLK AND OTHERS
ARE ACCEPTING THIS IMPORT AND
EXPORT CARGO WITH OPEN ARMS. AS
CARGO GOES, SO GOES THE JOBS.
THIS IS NOT HYPERBOLE. THESE ARE
THE UNFORTUNATE FACTS THAT CAN
BE SEEN IN THE DECLINING MARKET
SHARE OF THE U S WEST COAST
GATEWAYS. IN THE SAN PEDRO BAY
PARK COMPLEX IN 2006 TO 2020 TO
A 1.3% YEAR OVER YEAR. GROWTH IN
TOTAL CONTAINER VOLUME IS
REALIZED. THIS IS COMPARED TO
ANNUAL GROWTH AS HIGH AS 10% AT
OTHER GATEWAYS ACROSS THE NATION
, THE IMPACTS OF DIVERSION OR
NOT JUST ECONOMIC WHEN LOOKING
AT OVERALL GHD S A RECENT STUDY
BY THE PACIFIC MARITIME SHIP
MERCHANT SHIPPING ASSOCIATION.
HAS SHOWN THAT CARD MOVING CARGO
AWAY FROM THE U. S WEST COAST
WILL ACTUALLY INCREASE 19% ON
AVERAGE EMISSIONS, WHICH IS HIGH
AS 92% DEPENDING ON THE ROUTE
USED TO AVOID THE WEST COAST.
OVERALL WE ALL NEED TO BE
COGNIZANT OF HOW POLICIES NO
MATTER HOW WELL INTENTIONED MAY
HAVE PROFOUND IMPACTS ON THE
FUTURE ECONOMIC HEALTH OF OUR
STATE. AND THE CLIMATE CHANGE
REDUCTION GOALS OF THIS WORLD.
THANK YOU AND I LOOK FORWARD TO
FURTHER DISCUSSION AGAIN. IT'S
TRULY AN HONOR TO BE HERE TODAY.
THANK YOU QUESTIONS. THANK YOU.
MY GOD. FIRST THANK YOU FOR THIS
INFORMATION IS DÍAS. CHAIR OF
JENNY AND AS. PUTTING MY HAT AS
A PROBLEM SOLVER TO, UM AND
BEING ON THE POOR COMMISSION,
RIGHT? I MEAN, THESE ARE
QUESTIONS THAT IT'S VERY SCARY.
I MEAN, WE THANK YOU, SCOTT AND
JOHN WE'RE TALKING ABOUT. WHAT
THEY'RE DOING. BUT ONE QUESTION
I KEEP HEARING IS THAT AS MUCH
AS WE WANT TO GO AND MOVE TO
ELECTRIFYING IS THAT THEY'RE
THEY'RE NOT BUILT IN A FAST
ENOUGH. WE KEEP HEARING THAT
RIGHT. YOU SHARED SOME NUMBERS,
YOU KNOW OF HOW MANY IS BEING
SOLD, BUT I KEEP HEARING A
DIFFERENT SIDE OF THE STORY WAS
LIKE WORK. WE'RE TRYING TO GO
THAT WAY. BUT IF WE PUT OUR
ORDER IN TODAY FOR NEW TRUCKS
WE'RE NOT GONNA SEE HIM FOR A
YEAR, AND YOU JUST HEARD MATT
TALKED ABOUT THE PROBLEM THAT
WE'RE GOING TO HAVE IN NINE
WEEKS. YOU KNOW, HOW ARE WE
GOING TO GET INTO OUR PORTS AND
AGAIN TALKING ABOUT MOVEMENTS OF
GOODS? WE MAY LOSE THAT THOSE
JOBS AND WE ALREADY KNOW WE'RE
GOING TO LOSE THOSE JOBS TO
OTHER PORTS AND OTHER STATES.
AND AT THE END OF THE DAY, THOSE
EQUAL JOBS SO WE NEED TO FIGURE
OUT THAT WE NEED TO PROVIDE A
SUPPORT TO MEET THE REGULATORY
STANDARDS BY PROVIDING MORE THAN
JUST TECHNICAL ASSISTANCE, BUT
IN THE FINANCIAL RESOURCES
BEHIND IT THAT THESE ARE THESE
ARE SOME REALLY TOUGH. QUESTIONS
THAT WE KEEP ASKING. HOW DO WE
GET THERE? UM YOU MENTIONED JOHN
THAT THE GOOD STORIES ABOUT
THESE CORPORATE COMPANIES,
RIGHT? BUT I'M ALSO THINKING
ABOUT YOU KNOW THAT DAY SILVER
TRUCKING COMPANY IN MY DISTRICT
RIGHT THAT THAT THERE. THEY'RE
GOING TO GET THERE. WHAT THEY'RE
ASKING FOR US TO HELP OUT RIGHT?
THEY'RE LOOKING, YOU KNOW, 50
YEARS OUT, NOT JUST FOR HIM, BUT
FOR HIS WORKERS, HIS FAMILY
BUSINESS. AND HE FEELS SORRY FOR
THE SMALLER BUSINESSES THAT NOT
GONNA NOT GONNA MAKE IT. THEY
CAN'T AFFORD TO $450,000 TRUCKS.
THEY'RE USED TO SPINNING. NO.
8200 GRAND, BUT THE 450 THEN
TRYING TO FIGURE OUT HOW DO THEY
GET FROM THE CENTRAL VALLEY,
TOO? THE BAY AREA. YOU KNOW,
THEY DO THIS DAY IN DAY OUT,
RIGHT? HOW HOW ARE THEY GONNA,
YOU KNOW? HOW ARE THEY GOING TO
GET THERE? BECAUSE IT MAY TAKE
LONGER. THEY MAY NEED TO TURN
AROUND. THEY MAY NOT BE ABLE TO
TAKE ON CONTRACTS LIKE THAT.
BECAUSE OF EITHER BEING IN
TRAFFIC. THERE ARE SO MANY
DIFFERENT LAYERS SEVEN MEMBER OF
HOW WE'RE TRYING TO YOU KNOW,
ANSWER THIS AND SAVE THESE JOBS,
SO I REALLY DO APPRECIATE ALL OF
YOU GUYS. AND IF YOU GUYS WANTED
TO YOU KNOW, ANSWER THIS
QUESTION. I HAVE I'M READY FOR
AN ANSWER HERE, SO I'M TRYING TO
FIGURE OUT WHAT DO WE DO? WHAT
DO WE HOW DO WE SAY OUR JOBS
HERE IN CALIFORNIA? YEAH I THINK
IT DOES REALLY REQUIRE A LOT OF
DIALOGUE AND WE'RE LEADING THE
WORLD IN MANY WAYS IN THIS
TRANSITION, AND I THINK US WHERE
HE WAS SCOTT AND HIS
STAKEHOLDERS AND THE
MANUFACTURERS UTILITIES. I
REALLY THINK WE CAN GET THERE.
UH THE ADVANCED CLEAN TRUCK RULE
. ONE OF THE KEY THINGS TO NOTE
IS IT'S A 30% TARGET BY 2030.
THERE ARE WHEN YOU LOOK AT THE
COMMERCIAL VEHICLE MARKET. THERE
ARE SO MANY DIFFERENT KINDS OF
TRUCKS AND VEHICLES THAT
CONTRIBUTE TO THAT 30. THEY'RE
ALREADY ABOUT 3000 AMAZON
ELECTRIC VANS RUNNING AROUND THE
COUNTRY OR THE STATE IN
CALIFORNIA. UH AND WHERE THERE
ARE SO MANY TRUCKS, A LOT OF THE
TRUCKS HAD DELIVERED HIS
SUPERMARKETS, US FOODS FREELY
AND OTHERS. THOSE ARE CLASSY
DETRACTORS. THEY DON'T GO MORE
THAN 200 MILES PER DICT. SO YOU
KNOW, IMMEDIATELY GO AFTER THAT
BIG RIG THAT'S GONNA PICK UP AT
THE PORT OF L A AND GO TO TEXAS.
THAT'S NOT YOUR FIRST TARGET.
THERE'S LOTS OF, YOU KNOW, GOING
FOR HIS LITTLE BIT OF AN
EXAGGERATION, BUT THERE ARE A
LOT OF EASIER TARGETS THAN THEN
THAT ARE A LOT OF VEHICLES THAT
DO LESS THAN 200 MILES, AND SO
WE CAN BUILD IT UP, BUILD UP THE
ECOSYSTEM. AND GET THERE. I DO
THINK THAT WE'VE SEEN AS A 17
TINK SAID EARLIER. THE
MANUFACTURERS FOR PARTICULARLY
THE LEGACY MANUFACTURERS ARE
OFTEN RELUCTANT. AND THEY GET
SORT OF PULLED IN. BUT ONCE THEY
FINALLY REALLY MAKE THE
COMMITMENT, THEN THEY START
PRODUCING AND I THINK WE'RE
GOING TO SEE THAT THERE IS
DEFINITELY SOME PUSHBACK FROM
SOME OF THE LEGACY FIRMS RIGHT
NOW. BUT I THINK WE CAN GET
THERE. AND I THINK WE'VE ALSO BY
THE WAY, WE'VE GOT A BIG WORKING
GROUP OF FOLKS ADDRESSING THE
ISSUE ABOUT BRINGING THE POWER
TO WHERE IT NEEDS TO BE IN A
TIMELY MANNER. I THINK THAT'S
ALL MANAGEABLE. THERE'S NO GREAT
NEW TECHNOLOGY NEEDED. IT IS
GONNA BE A LOT OF ELECTRICITY.
BUT NOT IN THE CAN'T BE MANAGED
THROUGHOUT THE DAY, AND IT
DOESN'T HAPPEN HAVE TO HAPPEN
ALL AT ONCE. SO OVER TIME, I
THINK WE CAN WE CAN MEET THE
CHALLENGES. JUST A PIGGYBACK ON
THAT ISSUE, RIGHT? SO WE SAW
CARBS STARTED THEIR REGULATION
AND THEN WHAT WE GOT OR WHAT I
WOULD SAY KIND OF IMPERFECT
COMPLIANCE CARS. YOU HAD CARS.
THAT. QUALIFIED THE LETTER OF
THE LAW THAT IN MY MIND, IN MY
OPINION, BELIEVE DID NOT MOVE
TECHNOLOGY VERY FAR, MEANING
THAT YOU HAVE BATTERY PLUG IN
VEHICLES THAT YOU KNOW THE
BATTERY WOULD BE 50 MILES OF THE
BATTERY. THAT WOULD GO TO A GAS,
RIGHT? SO REALLY, I DON'T THINK
WE DID A WHOLE LOT, BUT MOVE THE
NEEDLE A TEENY BIT, I THINK
REALLY, WHAT MOVED THE NEEDLE
THE MOST IN THE INDUSTRY WAS, UM
TESLA JUST DEMONSTRATING THAT
PEOPLE WOULD PAY 100 AND $20,000
FOR ELECTRIC CAR. AND YOU KNOW
THE REST OF THE INDUSTRY,
REALIZING THAT IF THEY DID NOT
EVOLVED EVENTUALLY TEST CLOTHES
AND OTHER STARTUPS LIKE THAT,
LIKE YOU SEE RIVIAN COMING OUT.
WE'RE JUST GOING TO TAKE OVER
AND IF THEY DIDN'T ADAPT, THEY
WERE GOING TO GO THE WAY OF THE
TELEGRAPH COMPANY, RIGHT? I
MEAN, AT ONE POINT, THE
TELEGRAPH COMPANY WAS THE MOST
DOMINANT. COMPANY. YOU KNOW
THEY'RE GOING TO GO THE WAY OF
YOU KNOW THE STEEL INDUSTRY,
RIGHT? SO I THINK, MY GUESS MY
QUESTION IS THIS WHO WHO'S DOING
THAT IN THE HEAVY DO THE SPACE.
I SEE WHO'S DOING IT? THE BUS
PAID A LITTLE MORE NOW WITH THE
BUS SPACE. BUT WHO'S DOING THAT
IN THE HEAVY DUTY SPACE? ANOTHER
THING I ASKED EARLIER. I THINK,
UNLIKE PASSENGER VEHICLES WERE,
IT'S VERY DIFFICULT TO HAVE
MULTIPLE TECHNOLOGIES. I
ACTUALLY THINK YOU CAN ACTUALLY
WITH FLEETS AND MAYBE MR
SHRAPNEL CORRECT ME OR OR
SOMEBODY CAN CORRECT ME. IT
SEEMS TO ME WITH FLEETS YOU
COULD ACTUALLY HAVE. DIFFERENT
TECHNOLOGIES BECAUSE I DON'T
THEY DON'T NEED TO FUEL EVERY
FIVE MILES THERE CAN BE. YOU
KNOW, THEY'RE THEY'RE DROPPING
THEIR LOADS. THEY KNOW WHERE
THEY'RE GOING. THEY YOU CAN FIND
VERY STRATEGIC PLACES TO HAVE
FUELING AND YOU DON'T NEED 5000.
YOU JUST NEED CERTAIN NUMBER,
RIGHT? I THINK THE SO I GUESS
WHAT OTHER TECHNOLOGY? THAT'S
WHY I WAS ASKING, LIKE, WHAT ARE
THE TECHNOLOGY? IS REALLY DOING
WHO'S WHO'S PUSHING THE INDUSTRY
BECAUSE TO ME IF THERE'S NO IF
THERE'S NO COMPANY PUSHING THE
INDUSTRY, I THINK THE INDUSTRY
IS GOING TO GET THERE. IT'S TOO.
IT'S TOO DIFFICULT. THERE ARE
PEOPLE THE ONE THING YOU CAN.
YOU CAN BE SURE OF PEOPLE HATE
CHANGE. RIGHT YOU ASK PEOPLE,
YOU KNOW, YOU ASKED FOR DRIVER
TO GO GET A CHEVY TRUCK. THEY
WILL KILL YOU. IF YOU ASK A
CHEVY TRUCK, RIGHT? YOU ASKED,
YOU KNOW, LIKE IF YOU IF YOU
DRIVE A SILVERADO AND YOU WANT
YOU WANT TO GIVE THEM A FREE F
150? THEY WON'T EVEN TAKE IT.
THEY WON'T TAKE IT TO PAY FOR
THE SILVERADO. YOU KNOW THIS IS
TRUE. RIGHT IT'S A CHANGE IS
VERY HARD. SO I GUESS WHO'S
PUSHING THE INDUSTRY. YEAH WELL,
I THINK SCOTT CAN TALK TO SOME
OF THE RESEARCH ABOUT HOW WHITE
PEOPLE DIDN'T CHANGE TO ELECTRIC
CARS, AND THEY AND THEY STAY
THERE. THEY DON'T GO BACK TO
ISIS. BUT ON THE ON THE TRUCKS.
I WANT TO SAY IT IS WE HAVE NOT
HAD QUITE THE IMPACT OF A
DISRUPTER LIKE TESLA. I DIDN'T
TRUCK MARKET, HOWEVER, RIVIAN IS
HAVING A BIGGER IMPACT IN THAT
SMALLER CLASS, AND I THINK THEY
WILL CONTINUE TO GROW AND HAVING
AN IMPACT THERE. THERE'S ANOTHER
COMPANY EXHAUST TRUCKS BASED
HERE IN CALIFORNIA THAT ALSO I
THINK FOR CONSUMERS THAT WERE
DONE, I MEAN WERE YOU KNOW THIS
IS MOVING. I THINK WE'LL SEE
WHERE WE'RE GOING FOR CONSUMERS.
I'M TALKING ABOUT HEAVY DUTY.
YEAH I DON'T KNOW THAT MARKET. I
DON'T I DON'T. I DON'T EVEN KNOW
WHO MAKES. IF YOU ASK THE NAME,
IT'S PETER BILL CAMERA. BUT I
WILL JUST SAY THAT THE AMAZING
THING ABOUT THIS MODESTO PROJECT
WAS. IT WAS THE FIRST TIME THE
TESLA SEMIS WERE PUT INTO USE.
THEY ARE GETTING CARRYING,
WHETHER IT'S PEPSI BOTTLES OR
FREE TO LAY CHIPS. THEY'RE
GETTING 400 MILES PLUS ON A
CHARGE, SO THAT'S THAT'S NOT
CHUMP CHANGE AS DOUBLE WHAT THE
OTHER OHMS ARE DOING, AND THEN
IN 45 MINUTES, THEY CAN GET AN
ADDITIONAL 4400 MILES OF CHARGE
OF RANGE. NOW THEY UNFORTUNATELY
THEY ARE MUCH LATER TO ACTUALLY
BRING THAT TRUCK TO MARKET. THEN
I WISH I WISH IT WAS AVAILABLE
TODAY. IT MAY NOT BE TILL 25 SO.
IT WILL BE THERE IN TIME TO MEET
THE FULL FORCE OF THE
REGULATION, BUT NOT AS FAST AS I
WISH, SO I HAVE A MUCH MUCH
DIFFERENT PERSPECTIVE THAN MY
COLLEAGUE AND WOULD CALL
STRAIGHT DOES GREAT WORK, HANDS
DOWN, GREAT ORGANIZATION. WE
PARTNERED WITH THEM TO THROW
FOUR DIFFERENT RIDES AND DRIVES
ACROSS THE STATE, WHICH
TREMENDOUS, TREMENDOUS FEEDBACK
FROM THE FOLKS WHO ARE DOING IT.
WE CANNOT USE THE TESLA SEMI AS
A REPRESENTATIVE EXAMPLE OF
HEAVY DUTY CLASS EIGHT
TRANSPORTATION. IT'S A LARGER
BATTERY PACK B. IT'S PROPRIETARY
SO FAR CHARGER THAT HAS A MUCH
HIGHER OUTPUT THAN WHAT'S
COMMERCIALLY AVAILABLE TODAY.
NOT TO MENTION THAT WORSE, STILL
WONDERING HOW MUCH THAT TRUCK
WEIGHS, AND WHETHER THE BOTTLES
OF PEPSI OR FULL OR EMPTY POTATO
CHIPS DON'T WEIGH THAT MUCH
EITHER. BUT LET'S COMPARE THE
NIKOLA TRAY BETH NICOLA, ANOTHER
NAME THAT WE'RE FAMILIAR WITH.
THEY JUST RECALLED ALL OF THEIR
BATTERY ELECTRIC TRUCKS, BUT
THOSE TRUCKS WAIT £29,000 ON THE
CURB. A DIESEL DAY CAB FULLY
FUELED WEIGHS ABOUT £16,000. SO
WE'RE TALKING A £13,000 WEIGHT
DIFFERENTIATION. YOU HAVE
MILEAGE CHALLENGES. WE HEAR 200.
I HAVE MEMBERS WHO OPERATE THESE
TRUCKS WHO OPERATE THE CASCADIA
WHO OFFER VÆ NRS, WHO OPERATED
THE NICHOLAS UNTIL THEY TOOK
THEM ALL BACK. WHO HAVE EXCESS
VEHICLES. THEY'RE NOT GETTING
250 MILES. THEY'RE NOT AND I
DON'T. I'M NOT SAYING THAT THE
TECHNOLOGY WILL NOT EVOLVE AND
WE'LL GET THERE IS VERY AS I
SAID, THERE'S VERY SMART PEOPLE
ARE WORKING ON THIS. AND THIS IS
HUMAN INGENUITY AT ITS FINEST.
I'M EXCITED FOR THE FUTURE
TIMELINES DO NOT LINE UP WITH
THE TECHNOLOGY. TAKES A YEAR TO
GET YOUR TRUCK. YOU GET YOUR
TRUCK, THEN THEY MAYBE RECALL
IT. AGAIN THE O. E. M S ARE ALSO
LIMITED HOW MUCH POWER THEY CAN
TAKE FROM THOSE CHARGERS 350
KILOWATT HOURS, A DC FAST
CHARGING THAT'S KIND OF THE TOP
END. BESIDES WHAT TESLA IS
USING, WHICH ISN'T COMMERCIALLY
AVAILABLE. AND ALSO TO MENTION I
HAVE A LOT OF MEMBERS WHO GIVE
TESLA A LOT OF MONEY YEARS AGO
WAITING FOR THIS TESLA SEMI TO
SHOW UP, SO WE HAVE THAT ISSUE,
BUT THE E M S, LIKE DAIMLER
INVOLVED, FOR INSTANCE, CAN ONLY
TAKE A CERTAIN AMOUNT OF CHARGE
ON THEIR TRUCKS. TO 70 WITH DUAL
PORTS FOR THE CASCADIA. THAT'S
YOUR MAX KILOWATT HOUR THAT YOU
CAN TAKE 250 ON THE V N R.
THAT'S NOT 350. SO USING 350
KILOWATT HOUR, EVEN AS THE
BENCHMARK FOR HOW LONG IT WOULD
TAKE YOU TO GET TO A CERTAIN
STATE OF CHARGE WHERE YOU'D BE
ABLE TO CONTINUE ON YOUR WAY,
AND THERE'S BEEN SOME GOOD DATA
COMING OUT OF THE NORTH AMERICAN
COUNCIL FOR FREE DEFICIENCY, BUT
IT'S ON THE TESLA TRUCK. YOU
LOOK AT THE DRAINAGE TRUCK THAT
THE E CASCADIA PERFORMANCES
VASTLY DIFFERENT. WHAT ARE THE
TECHNOLOGIES ARE OUT THERE?
UNFORTUNATELY FOR US FOR THE
DRAINAGE INDUSTRY. THERE'S ONLY
TWO. IT'S BATTERY, ELECTRIC OR
HYDROGEN. THAT'S IT. NO INTERNAL
COMBUSTION, AMMONIA. NO METHANOL
KNOW WHO'S MAKING HYDROGEN
HYDROGEN SEEMS LIKE TO ME A
VIABLE ALTERNATIVE FOR HEAVY
DUTY. IF WE CAN GET THE PRICE
DOWN BELOW, YOU KNOW $25 A
KILOGRAM FOR HYDROGEN, AND IT'S
PROBABLY DEFINITELY VIABLE. YOU
HAVE LONGER RANGE. ABOUT 500
MILES. BUT YOU HAVE NICOLA,
WHO'S WORKING WHO'S BEEN A
PIONEER IN THIS SPACE AS WELL AS
HYUNDAI. AND THEN YOU HAVE
PARTNERSHIPS BETWEEN VOLVO AND
DIMLER. IT'S KIND OF ONE OF
THOSE FORD CHEVY THINGS. THE
UNHOLY ALLIANCE. I GUESS YOU
COULD SAY BETWEEN THOSE TWO
MANUFACTURERS. THEY'RE WORKING
ON IT. YOU ALSO HAVE KENWORTH
AND TOYOTA. UM TRUCKS ARE VERY
EXPENSIVE THERE. YOU KNOW, I
DID. NICOLA IS PROBABLY THE ONLY
ONE. THAT'S WE WOULD CALL
COMMERCIALLY AVAILABLE THAT IS
ON THE H FIVE APPROVED VEHICLE
LIST. SO FAR FOR CLASSIC HEAVY
DUTY HYDROGEN. BUT THEN WE ONLY
HAVE TWO PATHWAYS, ASSEMBLY AND
SO FAR OKAY. I WILL JUST SAY
THAT THERE ARE PEOPLE WHO HAVE A
DIFFERENT PERSPECTIVE. SO I
THINK LIKE, YOU KNOW, WE SHOULD
BALANCE LIKE THIS EXPECTATION OF
HOW DIFFICULT WILL BE AND I
AGREE. IT WILL BE DIFFICULT. WE
RECENTLY INTERVIEWED 100 FLEETS
OPERATING HEAVY DUTY TRUCKS AND
THERE ARE REAL CHALLENGES, BUT I
THINK WE NEED TO REMEMBER THAT
THERE'S ALSO CUTE HEALTH AND
ECONOMIC BENEFITS THAT HAPPENED
WITH THIS, SO IT'S GOING TO BE
VERY DIFFICULT JUST AS THE
TRANSITION TO LIGHT DUTY
VEHICLES IS, BUT I THINK LIKE
IT'S SOMETHING WHICH IS WORTH
PURSUING, BECAUSE WE'LL HAVE
HEALTHIER, HEALTHIER COMMUNITIES
AND, YOU KNOW, ULTIMATELY IT
WILL SAVE THESE COMPANIES MONEY
EVENTUALLY BECAUSE THEY HAVE BIG
OPERATING COST SAVINGS. BUT I
KNOW I UNDERSTAND. AGREE THERE
ARE CHALLENGES THAT WE DO NEED
TO ADDRESS. BUT YOU KNOW AGAIN,
OUR INDUSTRY HAS NEVER SAID
THAT. WE CAN'T GET THERE. THIS
TIME WISE, THEY DO NOT WORK AND
YOU TALK. OH, YEAH, AGAIN. WE
HAVE FLEET TO HAVE BEEN RUNNING
THESE TRUCKS SINCE THE FIRST
GENERATION OF THE B Y D. HAVE
YOU PUT OUT AN ALTERNATIVE
TAIWAN THAT YOU THINK DOES WORK.
I THINK THAT THE BEST ANALOGY
THAT I HEARD TODAY WAS MY DR
HARMON ABOUT THE THREE LEGGED
RACE. ACADEMIA BUSINESS AND
GOVERNMENT, RIGHT, BUT THIS IS A
ONE SIDE. UM YES, I APOLOGIZE
FOR INTERRUPTING
ASSEMBLYMEMBER'S, BUT THE AIR
RESOURCES BOARD IS A ONE SIDED
CONVERSATION. I UNDERSTAND THAT
DAVID ONCE HAD A CONVERSATION
WITH THE LEGISLATURE TO BE AWARE
OF THAT AS WELL. I'M NOT. I'M
NOT. I DON'T DOUBT THAT. UH WHAT
IS YOUR ALTERNATIVE TIMELINE?
WELL FOR US, YOU KNOW IF YOU
LOOK AT THAT 2035 DATE, IF
THAT'S REALLY THE DATE, AND
THAT'S WHAT WE SHOULD BE HEADED
TOWARDS, UM AND TRY TO SEE HOW
WE CAN REACH THAT WITH UTILIZING
GREAT INCENTIVES LIKE A TRIP
LIKE CARL MOYER LIKE THE VW
PROGRAM. AND USING THOSE AS WELL
AS CHARGE READY THAT'S AVAILABLE
FOR PG AND E AS WELL. SO CAL
EDISON AS WELL, SO EXCITING, YOU
GUYS SO ELECTRIC. LET'S LOOK AT
THAT. BUT THERE JUST HASN'T BEEN
AN OPPORTUNITY FOR DIALOGUE BUT
THINGS BECAUSE FRANKLY, THIS
ISN'T ABOUT AIR QUALITY. THIS IS
ABOUT POLITICS. AND AT THE END
OF THE DAY WHEN WE THINK ABOUT
IF WE TRULY WANTED TO REDUCE
DIESEL PARTICULAR MATTER AND
LOCAL COMMUNITIES, WE'D BE
RUNNING BIO METHANE. RENEWABLE
NATURAL GAS TRUCKS AND USING
THOSE TO REDUCE DIESEL
PARTICULATE MATTER EXPOSURE,
WHICH IS WHERE THE REAL TRUE
HEALTH IMPACTS ARE. I THINK THAT
IT'S IMPORTANT TO HAVE ALL SIDES
OF THE STORY WITHOUT A DOUBT,
AND I DON'T THINK THAT OUR
INDUSTRY DESERVES TO BE, YOU
KNOW, LABELED AS SOMEBODY WHO IS
ANTI TECHNOLOGY OR ANTI
EMISSIONS REDUCTIONS. WE'VE MADE
TREMENDOUS STRIDES, ESPECIALLY
REPORT CIVILIAN LONG BEACH.
THEIR EMISSIONS INVENTORY JUST
CAME OUT. WE'RE TALKING ABOUT
REDUCTIONS OF 98% OF DIESEL
PARTICULATE MATTER. WE HAVE A
LONG WAY TO GO AND TREMENDOUS
AMOUNT OF CHALLENGES, NO DOUBT,
BUT WE WOULD ENTERTAIN ANY
OPPORTUNITY TO HAVE A DIALOGUE
ABOUT A MORE SENSIBLE TIMELINE
THAT ALSO TOOK INTO ACCOUNT SOME
OF THE COMMUNITY HEALTH BENEFITS
IT COULD BE ACHIEVED. MEANWHILE
WHILE THE THREATS CREATURE IS
STILL MELTING OUT FROM UNDER US
THAT'S WHAT I'M HEARING. YOU'RE
YOU'RE YOU'RE OPEN TO THE 2030
2030. IT'S A 2030 2035 2035 AND
THE 2040. DEADLINE RIGHT? 2020
36 FOR ALL ZERO MISSION.
CORRECT, RIGHT, BUT I THINK IT
SOUNDS LIKE THE HEARTBURN.
YOU'RE HAVING IT AROUND. THE
2020 DID THE IMPENDING DEADLINE
COMING UP WITH YOURS THAT THAT'S
THE CHALLENGE AND THE AIR
RESOURCES BOARD ACCORDING TO
THEIR OWN DATA, THEY'RE TALKING
THOUSANDS OF 1000 TRUCKS. PER
YEAR AT LEAST 2020 25 AND YOU
KNOW, THEY ASSUME THAT THERE'S
GOING TO BE A ONE RUN TO ONE
REPLACEMENT BATTERY ELECTRIC
THAT THAT'S NOT THERE. ALMOST
GREENWASHING THEIR OWN ROLE. HMM
I GUESS WITH THAT, UM, I DO
UNDERSTAND THAT CARPETS HAVING A
ONE SIDED CONVERSATION ABOUT
SURPRISED HAVE YOU OFFERED AN
ALTERNATIVE KIND OF PHASE INTO
THEM, AND YOU WANT TO TALK ABOUT
THAT? ABSOLUTELY WE'D THROUGHOUT
PARTNERS OF THE CALIFORNIA
TRUCKING ASSOCIATION, ESPECIALLY
OF LED THE CHARGE ON THIS AND
ONE THING THAT WE HAD INITIALLY
SUGGESTED CORPUS TO FOCUS ON
THOSE SHORTER ROUTES. BECAUSE
UNFORTUNATELY, THOSE AMAZON
TRUCKS CAN'T HOLD CONTAINERS,
RIGHT? VICTOR CONTAINER GOING
FROM TEXAS TO L. A LONG BEACH
TRUCK. THAT'S ABSOLUTELY WHAT IS
HAPPENING. WHAT WE SAID, IS
FOCUSED ON WHAT WE WOULD CALL
STORED OR MOVES, WHICH ARE SHORT
MOVES FROM THE PORTS TO EITHER
LOCAL RAIL YARDS OR DISTRIBUTION
CENTERS BACK AND FORTH A LITTLE
BIT MORE PREDICTABLE ROUTE.
OBVIOUSLY THERE'S POSSIBILITY
FOR TIME AND CHARGING DURING OFF
PEAK. UM WE HAVE TWO SHIFTS IN
L, A LONG BEACH AS WELL AS UP
HERE IN OAKLAND, AND SO THE TIME
FOR YOU TO CHARGE IF YOU'RE
SLIPS, EATING YOUR VEHICLE IS
RIGHT DURING PEAK DEMAND FROM
BASICALLY 5 TO 8 P.M. AND SO
THAT CREATES A CHALLENGE, AND WE
SUGGESTED THAT THIS WOULD BE A
PATHWAY THAT THE INDUSTRY SHOULD
STOMACH FOR LACK OF A BETTER WAY
TO PUT IT AND IT WAS. IT WAS MET
WITH WHAT WE SEE TODAY, WHICH IS
THE A C F. AND THAT CONVERSATION
WAS HELD DIRECTLY WITH THE
COMMISSIONER'S NOT JUST WITH THE
STAFF THAT WAS HELD WITH THE
HIGHEST LEVELS OF AARP STAFF,
AND IT HAS BEEN COMMUNICATED TO
THE BOARD MEMBERS. SEVERAL OF
THEM I KNOW HAVE BEEN ENGAGED IN
MANY DISCUSSIONS WITH OUR
COLLEAGUES AT THE CALIFORNIA
TRUCKING ASSOCIATION WITHOUT A
DOUBT, AND THERE HAS NOT BEEN
THE NEEDLE HAS NOT MOVED. COME.
THANK YOU APPRECIATE THAT
SOMETHING ANY, UM. WHAT ELSE
COULD WE DO TO MOVE THE NEEDLE
ON THIS? BECAUSE I DO FEEL LIKE
WE'VE DONE SOME WORK. BUT YEAH,
GO AHEAD. GREAT QUESTION, I
WOULD SAY. UH IT MAY BE A GOOD
OPPORTUNITY JUST TO TAKE A FRESH
LOOK ON THE INCENTIVES AND THERE
WAS A MOVE TO RESTRICT THE
INCENTIVES JUST TO THE SMALLEST
OF THE FLEETS, AND THAT WAS IN,
YOU KNOW, BACKED BY THE
LEGISLATURE. WE MAY JUST WANT TO
TAKE A LOOK AT THAT BECAUSE THE
BIGGEST PURCHASERS OF THE NEW
TRUCKS ARE THE MEDIUM AND LARGER
FLEETS. AND THAT'S HOW THEN THEY
GET INTO THE USED MARKET, AND
THEN THEY CAN BE PICKED UP BY
THE OWNER OPERATORS. THAT'S YOU
KNOW, THOSE ARE FUNDAMENTAL
TRUCK ECONOMICS TODAY. SO DO WE
REALLY WANT TO RESTRICT THE
MEDIUM AND LARGER FLEETS FROM
FROM BEING ABLE TO BUY AT THIS
POINT, MAYBE NEITHER IS A ROLE
FOR THEM BEING ABLE TO MOVE THAT
AHEAD. UH AND YOU KNOW, JUST ONE
EXAMPLE IS LIKE OKAY PRODUCES
ALBUM FRESNO, AND THEY'RE GOING
AHEAD WITH LIKE TO FIND YOUR
FLEET. THEY GOT 100 TRUCKS. BUT
YOU KNOW IT'S A CHALLENGE, BUT
THEY'RE MAKING IT HAPPEN. BUT
SHOULD WE ENCOURAGE MORE MIDSIZE
FLEETS LIKE THAT? PROFESSOR.
THAT YOU CAN DO TO MOVE THE
NEEDLE IS JUST SORT OF KEEP THE
REGULATION AS IT IS. IF YOU PUSH
THIS BACK TWO YEARS, WE'LL BE
BACK IN THIS ROOM IN TWO YEARS,
AND YOU'LL BE ASKING US THE SAME
QUESTION. YOU KNOW, I THINK IF
YOU KEEP IT AS IS IT'S GOING TO
BE DIFFICULT, BUT I THINK WE
HAVE TO. WE HAVE TO TRY AND JUST
WONDERING WHAT THE COST IS. WHAT
ARE THE TRADE OFFS? AND WHAT CAN
WE STOMACH HIS TRADE OFFICERS
AND ECONOMY HERE IN CALIFORNIA?
I WHOLEHEARTEDLY AGREE WITH
SHAWN THAT THE INCENTIVE
PROGRAMS ESPECIALLY FOR H V, I,
P IS BACKWARDS. IT'S TRYING TO
BUILD THIS INDUSTRY. THIS
ELECTRIC VEHICLE HEAVY DUTY
INDUSTRY ON THE BACKS OF THE
SMALLEST OF THE SMALL FLEETS.
THEY NEED SO MUCH RUNWAY AND
THEY HAVEN'T EVEN SHOWED UP AT
THE AIRPORT YET. AND I WOULD
SAY, I THINK YOU KNOW FOR THE
HEAVY DUTY FLEETS. I THINK IT'S
REALLY IMPORTANT THAT WE
PROBABLY NEED A LOT MORE DATA
AND INFORMATION RIGHT BECAUSE
WITH PASSENGER VEHICLES, WE ALL
DRIVE PASSENGER CARS, RIGHT. WE
SEE THE DEALERSHIPS WE WATCH.
THE EVOLUTION IS VERY EASY TO
SEE IN FRONT OF OUR EYES. WE
KNOW WHO THE PRODUCERS ARE. I
DON'T NEED TO. YOU KNOW, NO ONE
NEEDS TO TELL ME THAT YOU KNOW
THE TOP SELLING CARS, TOYOTA,
YOU CAN JUST LOOK AROUND. YOU
CAN KIND OF SEE IT RIGHT? I
THINK THIS IS AN AREA WHERE A
LOT MORE EDUCATION FOR ALL OF US
NEEDS TO NEEDS TO, FRANKLY
HAPPEN IN TERMS OF WHAT THAT
WHAT THAT TIME FRAME LOOKS LIKE
AND ALSO WHAT WHAT NEEDS TO BE
DONE. I MEAN, YOU YOU KNOW,
PROFESSOR HARTMAN MENTIONED THE
TRANSITION FOR CVR P TO CLEAN
CARS FOR ALL. I MEAN, IF YOU'D
ASKED ME 334 YEARS AGO, I WAS
DEAD SET AGAINST IT. BUT I
PROBABLY LED THAT CHARGE LAST
YEAR BECAUSE NEED. THE TIMING
WAS RIGHT. RIGHT WE WATCHED THE
EVOLUTION WE KIND OF, YOU KNOW
THE WHOLE POINT OF INCENTIVES AT
SOME POINT INCENTIVES GO AWAY.
AND YOU KNOW, WE SAW THAT WITH
SOLAR. WE SAW THAT WITH. WE'RE
SEEING THAT WITH PASSENGER
VEHICLES WERE SEEN SUCCESS. SO I
WOULD SAY THE SAME THING. I
THINK THERE NEEDS TO BE A LOT
MORE EDUCATION. JUST BECAUSE WE
DON'T KNOW WHAT THE PLAYERS ARE.
WE DON'T KNOW THE INDUSTRY AS
WELL. IT'S A SMALLER YOU KNOW,
SMALLER MARKET. IT'S A BIT OF
BUSINESS TO BUSINESS MARKET, SO
IT'S SOMETHING THAT YOU KNOW ON
THE NATURAL. WE'RE NOT GOING TO
BE AS FAMILIAR WITH BUT YOU
KNOW, GOING BACK TO MR STRAPS
POINT. I MEAN THAT THE STAKES
ARE REAL RIGHT. THERE'S NO
QUESTION THE STAKES ARE REAL.
THIS IS VERY IMPORTANT AND TO BE
FAIR TO YOUR INDUSTRY. I MEAN,
WHEN YOU LOOK AT YOU KNOW, I
KIND OF AGREE WITH MR HARTMAN. I
THINK YOU HAVE TO. WE HAVE TO
HAVE SOME SOME DEADLINES. IF YOU
NEED A REPRIEVE, THERE HAS TO BE
GOOD REASON THERE HAS TO BE A
VERY SET. REASON BECAUSE YOU
KNOW YOU'VE BEEN TOLD. AND YOU
KNOW, WE ALL KNOW FROM WHEN WE
WERE ALL STUDENTS, YOU KNOW, AND
NO INTERNAL LIKE I'M TEACHING A
CLASS AT BERKELEY. NO ONE GIVES
ME THE PAPER THE DAY BEFORE THEY
ALL GIVE ME YOU KNOW, THEY'RE
LIKE, YOU KNOW, UP TO THE MINUTE
I SAID, YOU GOTTA TURN IT BY
THIS TIME, AND I SAY THE TIME
AND IT'S SO FUNNY ENOUGH FOR
SOFTWARE THAT THE TYPE LIKE THE
COMPUTER LOCKS IT, SO IF YOU
DON'T TURN IT BY 10 O'CLOCK,
IT'S LIKE THEY CAN'T TURN IT IN.
IT'S REALLY FUNNY. BUT YOU KNOW,
JUST HUMAN NATURE. IF YOU DON'T
HAVE A DEADLINE, YOU DON'T DO IT
RIGHT. SO I THINK I THINK IT'S A
CHICK. IT'S A IT'S A TASK. UM I
EMPATHIZE AND I THINK I THINK I
DON'T THINK ANYBODY'S WRONG
HERE, RIGHT? I THINK WE ARE ALL
LEARNING, AND WE'RE TRYING TO
FIGURE OUT WHAT THE RIGHT WAY TO
DO IT IS, BUT I THINK IT WOULD
BE REALLY AND THAT'S WHY
ACTUALLY ABOUT IN TERMS OF
ALTERNATIVES. COME UP WITH A
REAL ALTERNATIVE THAT YOU SAY,
HEY, I THINK THIS IS REALISTIC
AND PART OF IT'S NOT EVEN YOU
KNOW, THIS IS NOT SOMETHING THAT
YOU HAVE CONTROL OVER. YOU HAVE
YOU KNOW, I LIKE I DON'T YOU
DON'T REPRESENT THE AUTOMAKERS.
YOU DON'T REPRESENT ANY OF THE
MANUFACTURERS. RIGHT? SO YOU,
YOU KNOW, YOU'RE YOU'RE JUST
REPRESENTING THE CUSTOMERS WHO
ARE BUYING THESE TRUCKS. RIGHT?
SO I THINK THAT'S PART OF THAT.
THE CHALLENGE THAT WE'RE ALL
TRYING TO FIGURE OUT. UM, YOU
KNOW, YEAH, ABSOLUTELY. IT JUST
DOESN'T SEEM TO BE THAT THEY'RE
ON THE SAME PAGE. WE CAN. WE
NEED TO CONTINUE TO HAVE THIS
AND MAKE INVESTMENTS ON THE
INFRASTRUCTURE. AS MUCH AS YOU
KNOW, WE ALSO NEED IT. BE ABLE
TO WORK WITH OUR FEDERAL
PARTNERS TO WE ALL HAVE TO BE ON
THE SAME PAGE BECAUSE WE'RE
GONNA BE BACK HERE IN A YEAR AND
LOOKING AT HOPEFULLY, RIGHT? YOU
KNOW WHAT WERE THE DAMAGES? WHAT
WERE THE COSTS? SO WHAT WAS THE
TRADE? SO I THINK WE'VE GOT TO
GET WE HAVE WE GOT TO HAVE THAT
DISCUSSION BEFORE THE YEAR.
YEAH. SO I THINK I THINK YOU'RE
TALKING ABOUT NINE WEEKS. I MEAN
TIMES OF THE ASSETS. AND SO I
THINK I THINK THAT'S WHY IT'S
SORT OF LIKE YOU'RE MOVING THE
CHESS MATCH RIGHT? SO IT'S LIKE,
KIND OF WHAT WHAT OFTEN AND I
SAID, THAT'S ALL THE TIME AND
BUDGET RIGHT. THERE'S TWO.
THERE'S TWO WAYS TO DO IT. AND I
ALWAYS GIVE EVERY SINGLE
DEPARTMENT THE OPPORTUNITY. HEY,
YOU KNOW, WE NEED TO PLAN ON X Y
AND Z IF YOU CAN GIVE YOU KNOW
ME A PLAN. THAT WE COULD ALL
WORK WITHIN DIGEST. I WOULD
RATHER HAVE THAT IF YOU DON'T
GIVE ME A PLAN. GUESS WHAT? I'M
DOING MY PLAN. YOU KNOW? WHEN
THE CLOCK STRIKES MIDNIGHT.
THERE WILL BE A THERE WILL BE A
PLAN ONE WAY OR THE OTHER. MARK
MY WORDS, AND I GUARANTEE YOU MY
PLAN. YOU'RE GONNA LIKE A LOT
LESS THAN YOUR PLAN. RIGHT SO
YOU'VE BEEN YOU'VE BEEN KIND OF
WARMED. SO I THINK I THINK
YOU'RE YOU'RE IN THAT PART OF
THE GAME. WE'RE LIKE, OKAY? YOU
GOT THE PLAN YOU DON'T LIKE I
THINK YOU GOTTA PUT FORWARD THE
PLAN. THAT YOU DO YOU CAN YOU
CAN LIVE WITH RIGHT NOW THAT YOU
CAN EVEN LIKE THAT YOU CAN LIVE
WITH AND I THINK YOU GOTTA PUT
THAT TOGETHER. ABSOLUTELY WORK.
WE ARE OUR MISSION IS TO EDUCATE
ALL STAKEHOLDERS ABOUT DRAINAGE
OPERATIONS AS WELL AS THE
TRUCKING INDUSTRY IN GENERAL AND
CALIFORNIA. WE EMBRACE ANY
OPPORTUNITY FOR DISCUSSION AND
AGAIN. UNFORTUNATELY IT'S JUST
DURING DEVELOPMENT OF THE EVENTS
CLEAN FLEETS WILL THERE WAS VERY
LITTLE WILLINGNESS TO MOVE AWAY
FROM THE SET. THAT WAS THE
MARKET THAT WAS ALREADY SET. AND
WE UNDERSTAND THAT YOU CAN'T
JUST CRY, POLLYANNA AND THE SKY
IS FALLING ON TOP OF YOU. AND
YOU KNOW WE CAN'T AFFORD TO DO
THIS. THAT'S NOT WHAT WE'RE
SAYING. WE'RE SAYING THAT THE
TIMELINES DON'T DON'T WORK. AND
A BETTER TIMELINE WERE
ABSOLUTELY OPEN TO IT. AND I
DON'T KNOW IF NOW THAT
CALIFORNIA TRUCKING ASSOCIATION
HAS SUED THEIR RESOURCES BOARD
OVER A CF IF THAT'S GOING TO
DRIVE THAT IS GOING TO DRIVE A
RB TO COME BACK TO THE
NEGOTIATING TABLE. THEY DID IT
WITH THE IEMMA ON THE T IN ORDER
TO GET A NATIONWIDE LOW NOX
STANDARD. BUT WE'RE ALWAYS
WILLING TO HAVE A CONVERSATION
ANY DAY ANY TIME. I GET IT AND I
GET THE POSTURING, RIGHT? I JUST
THINK MY ADVICE TO YOU IS COME
UP WITH PLAN COME UP WITH THE
PLAN FAILS. JUST BECAUSE BECAUSE
. OTHERWISE CHEN ONE THAT
HANGOVER IS GOING TO BE A REAL
HANGOVER. OKAY. THANK YOU. THANK
YOU. I JUST WANT TO THANK THE
PALACE TODAY FOR BEING HERE
TODAY. WE'RE WELL. WE WILL NOW
OPEN FOR THE PUBLIC HEARING.
PUBLIC COMMENT. FOR THOSE OF YOU
WHO WISH TO SPEAK. PLEASE FORM A
LINE. APPROACHED THE MICROPHONE.
YOU HAVE EXACTLY TWO MINUTES.
I SEE. NO, HERE WE GO. GOOD
AFTERNOON. CAN YOU HEAR ME? YES.
HI. HI CHAIRMAN TING CHAIRMAN
EDOUARD. THANK YOU VERY MUCH FOR
HOLDING THIS FORUM AND TO YOUR
TEAMS FOR PUTTING THIS TOGETHER.
I ALSO COMMEND ALL THE PANELISTS
. I THINK THERE WERE SOME GREAT
LEARNINGS TODAY. I JUST WANTED
TO ADD IN I'M ALICIA ROCKWELL,
THE CHIEF GOVERNMENT AFFAIRS
OFFICER FOR BLUE DIAMOND GROWERS
. I AM ALSO IN A APPOINTED
MEMBER OF USDA SECRETARY BILL
SACKS, AGRICULTURAL TECHNICAL.
ADVISORY COMMITTEE ON TRADE FOR
FRUIT AND VEGETABLES, SO JUST AS
I THINK WAS DISCUSSED OR
MENTIONED FROM DEEP A LITTLE BIT
EARLIER TRADE IS INCREDIBLY
IMPORTANT FOR CALIFORNIA ALMONDS
AND TO HIGHLIGHT THAT I WANTED
TO JUST PRESS A FEW ADDITIONAL
FACTS THAT STEVE WASN'T ABLE TO
BRING OUT EARLIER IN HIS
TESTIMONY. FIRST OF ALL
CALIFORNIA ALMONDS ARE NUMBER
ONE U. S SPECIALTY CROP EXPORT
FOR THE U. S. SO THEY'RE NOT
JUST CALIFORNIA ALMONDS? THEY'RE
AMERICA'S ALMONDS. CALIFORNIA'S
ALSO THERE. CALIFORNIA'S NUMBER
ONE EGG EXPORT WITH A VALUE OF
OVER 4.9 BILLION IN 2019, AND IN
2020, THE FARM GATE VALUE WAS
5.6 BILLION. WE HAVE NEARLY 7000
ALMOND GROWERS RANGING FROM
BAKERSFIELD IN THE SOUTH ALL THE
WAY UP NORTH OF CHICO. THEY
ACTUALLY SUPPORT AND ARE THE
FOUNDATION AND FABRIC FOR ALL OF
THOSE RURAL COMMUNITIES,
PROVIDING JOBS AND SUPPORTING
THEIR LOCAL COMMUNITIES,
CHURCHES, SCHOOLS, ETCETERA.
MORE THAN 80% OF THE SUPPLY OF
ALMONDS IN THE WORLD ARE
PRODUCED RIGHT HERE. WE ARE THE
ONLY STATE THAT HAS THE CLIMATE
AND CONDITIONS TO EFFECTIVELY
AND EFFICIENTLY GROW ALMONDS, SO
THEY TRULY ARE SOMETHING TO BE
CELEBRATED AND SUPPORTED HERE
WITHIN THE STATE. AS STEVE
MENTIONED, 70% IS EXPORTED AND
OF THE 70% 30% OF THAT IS GOING
INTO THE ASIAN PACIFIC REGIONS
OF THE WORLD IN ORDER TO
CONTINUE TO PRODUCE CALIFORNIA
ALMONDS HERE, WE NEED TO
MAINTAIN OUR MARKET VALUE. TRADE
ALLOWS US TO DO THAT, AND THAT'S
WHY WE'RE HERE. THAT'S WHY WE'RE
IT'S SO IMPORTANT THAT APEC WILL
BE HERE IN SAN FRANCISCO FOR US
TO CONTINUE. TO SHED A LIGHT ON
HOW CRITICAL IT IS. I THINK I'M
OUT OF TIME. YES. THANK YOU VERY
MUCH. ANYONE ELSE? YOU'RE GOING
TO HEAR FROM MORE FROM YOU
TODAY, ANYWAY, UM I'M REALLY
AGAIN THANK YOU VERY MUCH FOR
THE OPPORTUNITY TO COME AND
TESTIFY AND ALSO SHARE THOUGHTS
ABOUT WHAT WE'RE DOING IN THIS
SPACE. I DO WANT TO SHARE THAT
WE ARE ORGANIZING AN EVENT FOR
APEC AND CHAIR TINK. YOU WILL BE
SPEAKING AT OUR EVENT THAT DAY.
IT IS TAKING PLACE TUESDAY.
NOVEMBER 14TH, PLEASE. UH YOU
ARE ALSO WELCOME TO COME AS
WELL. BUT THE EVENT IS ON
TUESDAY, NOVEMBER 14. I THINK WE
HAVE SOMEONE FROM OUR ALMOND
GROVES COMING TO, BUT IT'S GOING
TO BE A FULL DAY PROGRAM. UM,
AND THAT'S FOCUSED ON THE FUTURE
STARTS IN CALIFORNIA. IT WILL
START WITH THE LEADERSHIP
BREAKFAST. UM AND WE'LL BE
TALKING ABOUT CLIMATE CHANGE
WHETHER IT BE DECARBONIZATION
WHETHER IT BE, UH YOU KNOW,
CLIMATE TECH, ESPECIALLY MOST
IMPORTANTLY, FOR COMPANIES WHO
WANT TO LEARN HOW TO DO BUSINESS
IN THE US AND ACTUALLY PARTNER
WITH GOVERNMENT WILL HAVE
SOMEONE. SOME REPRESENTATIVES
FROM THE DEPARTMENT OF ENERGY AS
WELL AS FROM THE GENERAL
SERVICES AND MINISTRY. MISSION
TO COME TALK ABOUT OPPORTUNITIES
AS WELL. AND OF COURSE A I. IT'S
A VERY IMPORTANT SUBJECT THAT
EVERYBODY WANTS TO KNOW ABOUT,
AND WE'LL BE HAVING SPEAKERS
TALK ABOUT THAT AS WELL, JUST TO
MENTION TO YOU SO FOR MORE
INFORMATION, PEOPLE CAN ACTUALLY
LOG ONTO OUR WEBSITE. GLOBAL SF
DOT B. I Z, UM AND, UH AND SEE
MORE INFORMATION AND I HOPE TO
SEE PEOPLE THERE. THANK YOU ALL.
THANK YOU. WHAT ELSE? YOU SEE?
NONE I WANT TO THANK THE
PANELISTS AND THE PUBLIC
PARTICIPATION. YOU'RE INSIDE
EXPERTISE WILL CONTINUE TO HELP
INFORM THE LEGISLATURE. I WANT
TO THANK ASSEMBLYMEMBER'S TEAM.
THANK YOU FOR HOSTING THIS EVENT
. IT'S ME FIRST. AND THE HEARING
IN YOUR DISTRICT AND I LOOK
FORWARD TO CONTINUING THIS
CONVERSATION. UM IN THE NEAR
FUTURE, SO WITH THAT I WILL
ADJOURN THE MEETING.