Who gains from saving nature
Ledger 1 : 30 — For every dollar the world invests in protecting or restoring nature, thirty dollars are spent on activities that degrade it. (UNEP, State of Finance for Nature 2026)
Cases / Mining · United States · 2022–2026

Salton Sea lithium: California's extraction tax (SB 125) and the Hell's Kitchen project, Imperial County

Nature's voice · report
About 9 million US dollars were budgeted in my name. No one has measured what reached me.
Did nature suffer? Not measured. Accounts differ ↓
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
Details not on record: 3 none on record · 2 not measured · 4 disputed See the gaps
Accounts of the harm differ
Whether Hell's Kitchen has a water supply for its expected lifespan
  • Government and regulators County of Imperial (environmental impact report): Approved the project's environmental review, which a trial court upheld in January 2025 when it rejected the challenge. LAist / CalMatters
  • Courts Fourth District Court of Appeal (August 2026): Found "insufficient evidence" that IID can supply adequate water for the project's expected lifespan and that the review did not address possible Colorado River cuts. Times of San Diego (Capital & Main)
  • Government and regulators Imperial Irrigation District: Called the water supply assessment "incomplete and contains inaccurate data". Times of San Diego (Capital & Main)
  • Communities and civil society Comité Cívico del Valle and Earthworks: Said the review was inadequate; Earthworks' Jared Naimark: "They can't just say, we'll figure that out later." LAist / CalMatters

California's 2022 lithium extraction tax charges US$400 to US$800 per metric ton of lithium carbonate equivalent and directs 20% of revenue to a Salton Sea Lithium Fund. The Legislative Analyst's Office reported in February 2024 that no extraction had begun and no tax revenue had been generated. In August 2026 the Fourth District Court of Appeal found the Imperial County environmental review of the Hell's Kitchen project inadequate on water supply.

noneLithium extraction tax revenue generated, as reported by the Legislative Analyst's Office in February 2024
LAO: no lithium extraction activities had begun in the region. No later revenue figure was found in the sources reviewed.

Status As of October 2026: no lithium tax revenue was reported by the LAO in 2024; the Hell's Kitchen EIR was remanded after the August 2026 Court of Appeal decision; CTR's SPAC merger was expected to close in the fourth quarter of 2026.

What?
A state excise tax on lithium extracted from Salton Sea geothermal brine, with 20% of revenue for Salton Sea restoration, and the Hell's Kitchen lithium and geothermal project, whose environmental review was remanded in August 2026. California Department of Tax and Fee Administration
Where?
The southern Salton Sea geothermal field, Imperial County, California. LAist / CalMatters
When?
Tax signed 30 June 2022 and effective 1 January 2023; lawsuit 2024; trial ruling January 2025; Court of Appeal August 2026. California Department of Tax and Fee Administration
Who?
Gained
Lost
None on record
Harmed
None on record
Why?
The state sought to turn the region's lithium into revenue for the Salton Sea and nearby communities; CTR described its project as addressing energy and mineral security. California Department of Tax and Fee Administration
How?
Producers would pump geothermal brine, extract lithium and pay a tiered per-ton tax; Hell's Kitchen requires Colorado River water supplied by IID. Times of San Diego (Capital & Main)
6 of 6 questions (what, who, where, when, why, how) have an answer on record

What happened

The record, in order.

The Salton Sea's geothermal brine contains lithium. The California Department of Tax and Fee Administration (CDTFA) wrote in December 2023 that the Sea "contains some of the world's largest reserves" of lithium; the LAist/CalMatters report of September 2026 cited the California Energy Commission as saying the aquifers hold the highest lithium concentrations of any geothermal brine in the world, and Lawrence Berkeley National Laboratory as estimating enough lithium for 375 million electric-vehicle batteries. Senate Bill 125 (Chapter 63, Statutes of 2022), signed on 30 June 2022, created a volume-based extraction tax effective 1 January 2023: US$400 per metric ton of lithium carbonate equivalent (LCE) for the first 20,000 tons a producer extracts, US$600 for tons above 20,000 up to 30,000 and US$800 above 30,000, adjusted for the California consumer price index from 1 January 2025. CDTFA's study states that 80% of revenue goes to the counties where extraction occurs and 20% to Salton Sea restoration, and that the tax "was designed to leverage the state's lithium resources into a vital revenue source for the Salton Sea and its surrounding areas".

The LAO reported in February 2024 that "no lithium extraction activities have yet begun in the region, and as such, no tax revenue has yet been generated"; the administration estimated the tax could generate about US$9 million for the Salton Sea Management Program in 2026-27 and up to US$35 million by 2028-29, and the LAO called the amount and timing "fairly uncertain". CDTFA's study recorded that one producer, Controlled Thermal Resources (CTR), planned to start at 25,000 metric tons of LCE a year and ramp up to 300,000, and that the lowest annual estimate for Salton Sea extraction was 13,000. LAist/CalMatters reported in September 2026 that lithium resources at the southern Salton Sea remain untapped and no project is near full operation; CalEnergy (Berkshire Hathaway Energy Renewables) operates 10 geothermal plants, completed a direct lithium extraction pilot and planned a demonstration plant in Calipatria, with a full-scale project that could produce 90,000 metric tons of lithium a year; EnergySource Minerals holds permits for its Project ATLiS.

CTR's Hell's Kitchen project near the Sea was the subject of a business-combination announcement with Plum Acquisition Corp. IV on 9 March 2026 at a pro forma enterprise value of about US$4.7 billion; CTR said it had raised more than US$285 million in private capital, described full scale as up to 650 MW and about 100,000 metric tons a year of lithium carbonate, and Stage 1 as 50 MW and up to 25,000 metric tons. On 1 October 2026 CTR said about US$245 million of convertible notes were expected at closing, development investment to date was about US$310 million, Stage 1 power was expected to start commercial operation in 2028 and Stage 1 lithium in 2030. Neither release addressed water supply, IID or the lithium tax, and the October release did not mention the appeal.

Comité Cívico del Valle and Earthworks sued in 2024 over Imperial County's environmental impact report for Hell's Kitchen. LAist/CalMatters reported that a judge rejected the challenge in January 2025. On appeal, the Fourth District Court of Appeal (decision reported in August 2026) found, according to the Times of San Diego, "insufficient evidence" that IID can supply enough water for the project's expected lifespan, faulted the county for not addressing possible future mandatory Colorado River cuts, and agreed that concerns about air-quality effects of diverting water from the Sea had merit; it remanded the case to the Imperial County Superior Court. IID called the water supply assessment "incomplete and contains inaccurate data". The Times of San Diego also reported that on 11 August 2026 county supervisors voted 3-2 to refund up to half of sales tax and lithium production tax revenue to developers, with payouts of up to US$105 million for a project that meets early deadlines, and that California has given more than US$400 million to Imperial County for lithium development and workforce training.

  1. 2022SB 125 signed (30 June) creating the lithium extraction tax
  2. 2023Tax takes effect 1 January; CDTFA study completed in December
  3. 2024LAO reports no extraction and no tax revenue (26 February); Comité Cívico del Valle and Earthworks sue over the Hell's Kitchen EIR
  4. 2025A judge rejects the challenge to the EIR (January)
  5. 2026CTR and Plum IV announce a business combination (9 March); Court of Appeal decision (August); county incentive vote (11 August); CTR convertible-note release (1 October)

What was said

Claims, in the words of those who made them.

“This extraction tax was designed to leverage the state's lithium resources into a vital revenue source for the Salton Sea and its surrounding areas.”

“We've been all-in on Lithium Valley”

Gavin Newsom, Governor of California, as quoted by CalMatters · 2023 · LAist / CalMatters

“Do we have enough water to support these projects over the long term?”

“Few projects simultaneously address energy security and mineral security at scale.”

“incomplete and contains inaccurate data”

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Whether Hell's Kitchen has a water supply for its expected lifespan
Government and regulators
County of Imperial (environmental impact report)

Approved the project's environmental review, which a trial court upheld in January 2025 when it rejected the challenge.

LAist / CalMatters
Courts
Fourth District Court of Appeal (August 2026)

Found "insufficient evidence" that IID can supply adequate water for the project's expected lifespan and that the review did not address possible Colorado River cuts.

Times of San Diego (Capital & Main)
Government and regulators
Imperial Irrigation District

Called the water supply assessment "incomplete and contains inaccurate data".

Times of San Diego (Capital & Main)
Communities and civil society
Comité Cívico del Valle and Earthworks

Said the review was inadequate; Earthworks' Jared Naimark: "They can't just say, we'll figure that out later."

LAist / CalMatters
Scale of the Hell's Kitchen project
Government and regulators
CDTFA (December 2023)

CTR planned to start at 25,000 metric tons of LCE a year and ramp up to 300,000.

California Department of Tax and Fee Administration
Press and investigations
LAist/CalMatters (September 2026)

Planned capacity of up to 300,000 metric tons of lithium carbonate a year and almost 50 MW.

LAist / CalMatters
Company or project
Controlled Thermal Resources (March 2026)

Full scale of up to 650 MW and about 100,000 metric tons a year of lithium carbonate; Stage 1 up to 25,000 metric tons.

Controlled Thermal Resources / Plum Acquisition Corp. IV (SEC filing)
County incentive refunding up to half of sales tax and lithium production tax revenue to developers
Government and regulators
Bari Bean, county deputy CEO for natural resources

The county needs to compete with other states' incentives.

Times of San Diego (Capital & Main)
Communities and civil society
Anahí Araiza, Imperial Valley Equity & Justice

Opposed the programme.

Times of San Diego (Capital & Main)

How it looked

What was shown, beside what was recorded.

Shown

Recorded

In nature's name

What was promised in nature's name, the money that moved, and what was measured.

Promised

  • “This extraction tax was designed to leverage the state's lithium resources into a vital revenue source for the Salton Sea and its surrounding areas.” — California Department of Tax and Fee Administration, lithium extraction tax study (December 2023) California Department of Tax and Fee Administration
  • “We've been all-in on Lithium Valley” — Gavin Newsom, Governor of California, as quoted by CalMatters (2023) LAist / CalMatters

Money moved in nature's name

WhatKindAmountPeriod
Administration estimate of lithium tax revenue for the Salton Sea Management Program in 2026-27 (estimate, not revenue received; up to US$35 million by 2028-29)
State administration (estimate reported by the LAO)
California Legislative Analyst's Office		Budget≈ $9m estimate2026-27
Lithium extraction tax, tier 1, per metric ton of LCE (first 20,000 metric tons by a producer; CPI-adjusted from 2025)
Lithium producers
California Department of Tax and Fee Administration		Fees$0mfrom 2023
Lithium extraction tax, tier 2, per metric ton of LCE (over 20,000 up to 30,000 metric tons)
Lithium producers
California Department of Tax and Fee Administration		Fees$0mfrom 2023
Lithium extraction tax, tier 3, per metric ton of LCE (over 30,000 metric tons)
Lithium producers
California Department of Tax and Fee Administration		Fees$0mfrom 2023
Private capital raised by Controlled Thermal Resources to date ('more than'; company statement)
Controlled Thermal Resources
Controlled Thermal Resources / Plum Acquisition Corp. IV (SEC filing)		Raised$285mto March 2026
Development investment to date, Hell's Kitchen (company statement)
Controlled Thermal Resources
Controlled Thermal Resources / Plum Acquisition Corp. IV (SEC filing)		Spent≈ $310mto October 2026
Convertible notes expected at closing of the Plum IV merger (US$205 million to convert to equity and about US$40 million into a PIPE)
Strategic investors in CTR
Controlled Thermal Resources / Plum Acquisition Corp. IV (SEC filing)		Raised≈ $245m estimateQ4 2026
Maximum payout under Imperial County's developer incentive (refund of up to half of sales tax and lithium production tax revenue) ('up to' for a project meeting early deadlines; vote of 11 August 2026 (3-2))
County of Imperial
Times of San Diego (Capital & Main)		Subsidy$105m2026
State funding given to Imperial County for lithium development and workforce training ('more than'; as reported by the Times of San Diego)
State of California
Times of San Diego (Capital & Main)		Paid out$400mto 2026

Benefit to nature: what was measured

Not measured

No lithium has been extracted according to the sources reviewed, so no tax revenue has reached the Salton Sea Lithium Fund and no benefit to the Sea has been measured. The 20% share is statutory (CDTFA, LAO); the US$9 million (2026-27) and US$35 million (by 2028-29) figures are the administration's projections as reported by the LAO. The Court of Appeal found in August 2026 that the county's review of Hell's Kitchen lacked evidence on long-term water supply and agreed that concerns about air-quality effects of drawing more water from the Sea had merit.

Lithium tax revenue generated
none (LAO, February 2024)
No extraction activities had begun in the region California Legislative Analyst's Office
Hell's Kitchen water supply
insufficient evidence
Fourth District Court of Appeal, August 2026 Times of San Diego (Capital & Main)

Operation Ongoing · The tax is in force; no extraction reported; the Hell's Kitchen environmental review was remanded in August 2026. Times of San Diego (Capital & Main)

Findings on record

  • Court or regulator ruling California Court of Appeal, Fourth Appellate District (2026-08) · Court of Appeal opinion on the Hell's Kitchen environmental impact report, as reported by the Times of San Diego: “insufficient evidence” Times of San Diego (Capital & Main)
  • Official audit California Legislative Analyst's Office (2024-02-26) · The 2024-25 Budget: Salton Sea Management Program: “no lithium extraction activities have yet begun in the region, and as such, no tax revenue has yet been generated” California Legislative Analyst's Office

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
No figure published.

Gained elsewhere

Not totalled
Currency: USD · Window: 2022–2026. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • Controlled Thermal Resources (March to September 2026): Said in March 2026 that it is shovel-ready; was reported in September 2026 to be reviewing legal options and to have declined to comment on the litigation; had no immediate response to the ruling in August 2026. · LAist / CalMatters
  • County of Imperial (August 2026): County officials said they are consulting attorneys on next steps and remain committed to responsible development; the county deputy CEO for natural resources said the county needs to compete with other states' incentives. · Times of San Diego (Capital & Main)
  • Imperial Irrigation District (August 2026): Called the project's water supply assessment "incomplete and contains inaccurate data". · Times of San Diego (Capital & Main)
  • CalEnergy (Berkshire Hathaway Energy Renewables): No statement of its own is recorded in the sources reviewed beyond the project plans reported by CalMatters.

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

  1. 2024–2026Ongoing
    Challenge to Imperial County's environmental impact report for the Hell's Kitchen lithium and geothermal project
    California Court of Appeal, Fourth Appellate District (appeal from Imperial County Superior Court) · Civil · Comité Cívico del Valle and Earthworks → County of Imperial; Controlled Thermal Resources (project developer)

    A trial court rejected the challenge in January 2025. In August 2026 the Court of Appeal partly reversed, finding insufficient evidence that IID can supply adequate water for the project's expected lifespan, that the review did not address possible mandatory Colorado River cuts, and that concerns about air-quality effects of drawing more water from the Sea had merit; it remanded to the Imperial County Superior Court. The Times of San Diego reported that the decision could be appealed to the California Supreme Court. Times of San Diego (Capital & Main)

Insurers

No insurer decision on record.

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Lithium tax revenue generated (LAO, February 2024)
none
No extraction had begun; administration estimate US$9 million for SSMP in 2026-27
Hell's Kitchen water supply from IID
insufficient evidence
Fourth District Court of Appeal, August 2026, per the Times of San Diego

What we don't know

Undisclosed, unproven, untried: recorded as data.
Court ruling existsOfficial audit findingBenefit not measured

Nature

  • Not measured Harm to nature: The record holds no measurement of harm to nature.
  • Disputed Whether Hell's Kitchen has a water supply for its expected lifespan

Accounts

  • Disputed Scale of the Hell's Kitchen project
  • Disputed County incentive refunding up to half of sales tax and lithium production tax revenue to developers

Record

  • None on record None on record: lithium extraction tax revenue after the LAO's February 2024 report, which stated no tax revenue had been generated.
  • None on record None on record: lithium production at the Salton Sea. LAist/CalMatters reported in September 2026 that the lithium remains untapped and no project is near full operation.
  • Disputed Disputed: the scale of Hell's Kitchen. CDTFA (2023) and LAist (2026) give up to 300,000 metric tons of LCE a year; CTR's March 2026 release gives about 100,000 metric tons a year at full scale and 25,000 in Stage 1.
  • Not measured Not measured: the effect of lithium extraction on the Sea's level and dust. The Court of Appeal agreed that concerns about air-quality effects of diverting water from the Sea had merit, and no source measures the effect.
  • None on record Not confirmed: whether IID holds royalty or mineral-rights terms in the Hell's Kitchen project; none of the sources reviewed state any terms.

Did the harm stop?

No extraction has begun according to the latest sources reviewed (LAO, February 2024; LAist/CalMatters, September 2026); the Court of Appeal's August 2026 decision requires further environmental review of Hell's Kitchen.

Who paid?

Lithium producers would pay the volume tax; the sources reviewed record no tax paid. Private investors funded CTR (more than US$285 million raised by March 2026); the state is reported to have given more than US$400 million to Imperial County for lithium development and workforce training.

Sources

Voices on record: ✓ Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

Company or project

  1. Controlled Thermal Resources and Plum Acquisition Corp. IV announce business combination (Form 8-K, Exhibit 99.1)
    Controlled Thermal Resources / Plum Acquisition Corp. IV (SEC filing) · 2026-03-09
  2. CTR and Plum Acquisition Corp. IV announce expected convertible-note conversion and timing (Form 425, Exhibit 99.1)
    Controlled Thermal Resources / Plum Acquisition Corp. IV (SEC filing) · 2026-10-01

Government and regulators

  3. Lithium Extraction Excise Tax Guide
    California Department of Tax and Fee Administration ·
  4. The 2024-25 Budget: Salton Sea Management Program
    California Legislative Analyst's Office · 2024-02-26

Press and investigations

  2. Imperial Valley dreamed of a lithium boom. It just hit another roadblock
    Times of San Diego (Capital & Main) · 2026-08-23

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.
Terms used on this page

Science and environment

Groundwater
Water held underground in soil and rock, drawn through wells.

Institutions

SEC
The US Securities and Exchange Commission, which regulates securities markets and what companies tell investors.
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