Saturday, June 6, 2026

Good Morning! On this day in 1978, California voters approved Proposition 13, the Howard Jarvis-led measure that capped property tax rates at 1% and reshaped how the state funds schools and local government.

Nearly 50 years after voters capped property taxes, Californians are navigating new battles over election integrity, insurance deductibles on wildfire damage, and a $3.5 billion rail contract reshaping the Central Valley.

A fast food restaurant is taking a victory lap after the candidate it endorsed beat a Trump-backed rival, handing the president his first major statewide primary loss of the 2026 midterms. So how did a burger chain end up in a governor’s race, and why is it bragging now? Today on The Flyover Podcast, Christopher Lyon digs into the story and the politics behind it. Tune in here!

Today’s sponsor, EnergyX, is positioning itself at the center of America’s growing lithium boom with patented extraction technology, major industry backing, and access to millions of tons of untapped lithium reserves across the Americas.

Take The Flyover with you. Busy day? Listen to our daily 15-minute podcast while commuting, cooking, or walking the dog—your Flyover fix, anywhere.

Feds Launch CA Election Probes

Federal prosecutors and the FBI opened multiple election fraud investigations in California yesterday, escalating federal scrutiny of the state’s June 3 primary as ballots continue to trickle in.

First Assistant U.S. Attorney Bill Essayli declared California’s election system has “serious structural vulnerabilities,” arguing that universal mail voting and what he called a lack of voter ID requirements let fraud go “undetected and unpunished.” His office is conducting a comprehensive voter roll audit with the Justice Department.

Essayli pledged his office would “follow the evidence wherever it leads” and prosecute any violations of federal election law to the fullest extent, but did not identify races, counties, or suspects under investigation. California typically takes several weeks to finalize primary results, with millions of mail ballots still being counted.

In the governor’s race, Xavier Becerra holds a projected top-two spot heading to November’s general election, while Republican Steve Hilton and Tom Steyer continue battling for the second slot. Hilton leads Steyer by seven points with ballots still uncounted.

Trump Officials Back California Offshore Oil Project

The Trump administration is throwing its support behind the Sable offshore oil project near Santa Barbara, arguing the long-idled operation could boost California oil production and reduce the state’s dependence on foreign imports.

Speaking from the offshore platform, U.S. Energy Secretary Chris Wright and Interior Secretary Doug Burgum said California now imports more than 60% of its oil from overseas, including significant shipments from Iraq. The officials argued that increasing domestic production would strengthen energy security for the state’s military facilities while helping lower fuel costs for consumers.

The administration also criticized California’s energy policies, saying refinery closures and declining in-state production have increased reliance on foreign suppliers. Gov. Gavin Newsom has opposed expanded offshore drilling, while supporters of the Sable project say restarting previously drilled wells could increase California oil production by roughly 20% and improve energy reliability.

Rail Lands $3.5B Track Contract

California’s High-Speed Rail Authority awarded a $3.5 billion track and systems contract to a joint venture of Kiewit, Stacey Witbeck, and Herzog for 119 miles of Central Valley guideway.

The consortium will install track, an overhead contact system, train controls, and communications infrastructure to transform completed civil work into an electrified system capable of speeds up to 220 mph. The contract extends north and south into the Merced and Bakersfield corridors.

Rail Authority CEO Ian Choudri called the award the moment the project transforms “from major civil construction into delivering an operating railway.” Officials are targeting train service between Merced and Bakersfield by 2032, according to the authority’s news release.

The board also adopted its 2026 Business Plan, which pegs the full San Francisco-to-Los Angeles Phase 1 cost at $126 billion—up from the $33 billion voters approved in 2008.

The Hidden Cost of ChatGPT: A Lithium Crisis

That ChatGPT answer you just got? It ran on electricity. A lot of it.

OpenAI’s data centers consume more power than some small countries, and every one of them runs rows of lithium-ion battery backup systems to keep servers alive if the grid hiccups.

The world isn’t producing enough lithium to keep up. And one company is making major moves to fill the gap.

EnergyX just announced plans for a second lithium project in the United States, sitting on approximately 2.4 million tons of lithium in Utah. They’re projecting $600M+ in annual revenue at full scale, and retail investors can currently claim an early-stage stake.

Here’s why the timing matters.

Demand is projected to hit 5.5 million tons by 2040. And that was before the AI buildout got priced in.

McKinsey now projects battery demand growing 30% annually through 2030. The supply gap is widening and not going away.

EnergyX is positioned at the center of it.

Invest before the 7/16 deadline.

➤ Redding: Amazon has opened a new delivery station in Redding, a $20 million investment expected to speed up shipping across Northern California while creating jobs and expanding opportunities for local delivery drivers. (More)

➤ Sacramento: Bricks & Minifigs Pocket Sacramento is temporarily closing after receiving death threats tied to a dispute involving a different franchise in another state. The local store says it has no connection to the incident. (More)

➤ Sacramento: California’s suburban counties are losing population faster than statewide data suggests, with Sacramento suburbs and Central Valley commuter communities hit hardest as housing costs push younger residents out. (More)

➤ Central Valley: About half of California waterways tested show contamination from PFAS “forever chemicals” and pesticides, a new analysis found. Farming communities depending on these sources for irrigation face the greatest risk. (More)

➤ Central Valley: Local officials along California’s early high-speed rail segment are resisting their cost share, forcing a scaled-back service plan even as the state just awarded a $3.5 billion track contract. Total cost estimate: $126 billion. (More)

➤ Fresno: California legislation requiring $28-per-hour wages on residential townhouse construction is drawing unexpected union opposition, with trade unions arguing the bill adds costs without benefiting their members. (More)

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➤ Del Mar: The San Diego County Fair opens today at Del Mar Fairgrounds, running through July 4 with the theme “Once Upon a Fair.” Highlights include 45 food competition entries and a bluegrass festival. (More)

➤ Los Angeles: California’s attorney general must soon decide whether to seek to block the Paramount merger, which would consolidate major Hollywood entertainment assets in a deal now under state review. (More)

➤ Inland Empire: Two fully-leased Amazon fulfillment centers sold to Premier Logistics and Penwood Real Estate Investment Management in one of the region’s largest recent industrial deals, underscoring the area’s continued logistics boom. (More)

➤ Los Angeles Olympics chair Casey Wasserman is refusing to resign despite calls from Mayor Karen Bass to step down over his ties to Ghislaine Maxwell. (More)

➤ LA Dodgers superstar Shohei Ohtani lowered his ERA to 0.74 after pitching six scoreless innings this week, the third-lowest mark through 10 starts in major league history. (More)

➤ The Rams reworked Myles Garrett’s contract to pay him $37 million this season, up nearly $6 million from his original deal with the Browns. (More)

➤ Irvington High School in Fremont canceled its 2026 football season after the program was left with just 17 to 20 eligible players across its varsity and JV rosters and no head coach. (More)

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Discovered: 328 Years Worth of Lithium

The United States just discovered a massive lithium reserve in the Appalachia region, a 328-year supply based on America’s 2025 import totals.

With Morgan Stanley forecasting an 80,000-ton shortage this year alone, the sooner we can tap into it the better.

For companies like EnergyX, that spells opportunity.

Their patented technology can recover lithium 500X faster than traditional methods. It’s why industry leaders like General Motors have already invested.

Now, they hold rights to up to 13 million tons of untapped lithium across the Americas. And they just announced plans for their second U.S. lithium production facility.

All of which puts them on the short list of companies capable of turning massive reserves into fast results.

Claim your piece of this lithium boom as an early-stage EnergyX investor before the 7/16 deadline.

➤ The documentary Kern Oil returns to Bakersfield’s Studio Movie Grill this month, giving audiences another opportunity to explore the history, people, and impact of Kern County’s oil industry through interviews and firsthand stories. (More)

➤ Law enforcement agencies across California are relaying the Special Olympics torch this week on a 1,100-mile route through Southern California counties ahead of the state competition. (More)

➤ Alta Journal compiled a summer road trip guide spotlighting California’s most unexpected routes—Highway 1 detours, the Eastern Sierra, and the Volcanic Legacy Scenic Byway far north of I-5. (More)

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