Tesla moves production to California and announces its first passenger sedan; trouble for a new coal plant in Georgia; and the EU reconsiders biofuels.

Tesla to build new electric sedan in Bay Area: It’s not exactly a popularly priced electric car for the masses, but Tesla Motors is poised to make good on delivering a passenger vehicle follow-up to its well-received roadster. California Governor Arnold Schwarzenegger joined company officials Monday to announce that Tesla had nixed their plans for a New Mexico production facility, and would instead build a new 4-door, 5-passenger sedan called the Model S in the San Francisco Bay Area. Lawmakers crafted a package financing $100 million worth of manufacturing equipment, plus sales tax exemptions and grants for training new Tesla employees. The Model S is expected to enter production by late 2010. (SF Gate)

Georgia Judge Cites Carbon Dioxide in Denying Coal Plant Permit: In a move signaling rough waters ahead for new coal-fired power plants, a Georgia state judge tossed an air pollution permit for a proposed facility near the city of Blakely. Judge Thelma Wyatt Cummings Moore said the permit failed to address carbon dioxide emissions. It’s believed to be the first time a permit has been denied based on greenhouse gas concerns. The case now goes back to the Georgia Department of Natural Resources for possible reconsideration. The $2 billion dollar project was set to begin construction before the end of the year. (New York Times)

Headwind: Asian Wind-Power Upstarts Stumble: At one point, low labor overhead gave upstart windpower companies from India and China an advantage against their better-established U.S. and European competitors. But the Asian wind turbine industry is experiencing growing pains in its drive to crack the robust American wind marketplace. Take, for example, the case of Indian manufacturer Suzlon. Early this year, they were forced to recall the bulk of its turbine blades after cracks appeared in some U.S. deliveries. That led to the cancellation of at least one 150-turbine order by Edison Mission Energy. Now Suzlon is dealing with disappointing performance from some of its newer 2.1 megawatt models. These missteps are causing U.S. buyers to take another look at companies such as Vestas and Nordex, whose proven designs provide the backbone of Europe’s installed wind farms. (WSJ.com)

France says EU may need to reconsider biofuel goal: The European Union’s biofuel mandates may again be up for debate. France is asking the EU to reconsider its goal of 10 percent transportation biofuels by 2020. One of the issues prompting a possible revamp of the EU’s mandates is growing political pressure to insure that biofuels don’t displace food production. France assumes the rotating presidency of the European Union today, a six-month term which may give French President Nicolas Sarkozy the opportunity to press his country’s biofuel concerns. (Reuters)

New Apple iPhone 3G to arrive in Green Packaging: It’s a small thing — literally — but when Apple’s much-anticipated second generation iPhone begins selling a week from Friday, it will be sporting new eco-friendly packaging. Still stinging from a dust-up with environmental groups last year which led CEO Steve Jobs to promise a far “greener” Apple, the company has chosen potato starch product trays to replace styrofoam packaging. Apple claims the move reduces the carbon footprint of the iPhone’s packing materials by 90 percent. (TriplePundit)