Citizens Oversight Committee for Lithium Extraction Excise Tax

Lithium Extraction Tax Citizens Oversight Committee (COC)

The COC is a standing committee composed of:

  • Three local community members, appointed by the Governor.
  • Two local community members with either environmental justice expertise or economic development expertise, appointed by the Senate Rules Committee.
  • Two local community members with either environmental justice expertise or economic development expertise, appointed by the Speaker of the Assembly.

Please be aware currently no appointments for the committee members have been made as of April 12, 2024. We will update this information as soon as it becomes available.

Duties of the COC include ensuring that certain revenues from the lithium extraction excise tax are appropriately distributed or allocated, as specified, and making recommendations on how to improve community engagement and maximize community benefits from the revenues.

Upcoming Meetings

(Meeting Date(s) TBD)

COC Background

Beginning January 1, 2023, a producer pays the lithium extraction excise tax on each metric ton of lithium carbonate equivalent extracted from geothermal fluid, spodumene ore, rock, minerals, clay, or any other occurring substance in California. The revenues from the Lithium Extraction Excise Tax, after state administrative costs, are deposited into the Lithium Extract Tax Fund and distributed in two ways: eighty percent of the revenues are disbursed to the counties impacted by lithium extraction activities, and twenty percent is set aside for Salton Sea restoration projects and grants for community engagement or community benefit projects at or around the Salton Sea.

The COC was established to ensure that revenues from the lithium extraction excise tax are appropriately distributed or allocated, as specified, and to make recommendations on how to improve community engagement and maximize community benefits from the revenues.

Authority

Revenue and Taxation Code (R&TC) section 47110(a) established the COC. Subdivision (b) requires the committee be composed of the following members:

  1. Three public members who reside in the local communities where the lithium extraction occurs, to be appointed by the Governor.
  2. Two public members who reside in the local communities where the lithium extraction occurs, to be appointed by the Senate Rules Committee. Of these two public members, one shall have environmental justice expertise, and the other shall have economic development expertise.
  3. Two public members who reside in the local communities where the lithium extraction occurs, to be appointed by the Speaker of the Assembly. Of these two public members, one shall have environmental restoration expertise, and the other shall have vocational training expertise.

Duties of the COC

R&TC section 47115 provide the duties of the COC. The COC shall report to the Legislature about how the revenues from the collection of the lithium extraction excise tax were distributed, how revenues deposited were allocated in the prior fiscal year and provide recommendations for improving the distribution or allocation, or both, of those revenues to enhance the health and welfare of the local communities where the lithium extraction occurs. The report will be submitted on April 1, 2027, and subsequent reports will be filed every April 1.

COC Meetings

The first meeting must be held during the calendar quarter after the calendar quarter when the first revenues of the lithium excise tax have been collected. Thereafter, the committee will not meet more than once per calendar quarter.

Tenure of COC Members

The members of the committee serve at the pleasure of the appointing power and are appointed for two years.

Compensation of COC Members

There are no provisions for providing a salary to COC members. However, Government Code section 11009 provides for the payment of “necessary expenses” for persons serving on boards, commissions, or committees without compensation. This allows for travel and per diem compensation for those members who do not receive reimbursement as part of their full-time positions. For members to receive travel expense reimbursement, their oaths of office must be filed with the Secretary of State each time new members are appointed. Our staff files these papers on behalf of the members.