Alumna on Front Lines of Fight to Advance Clean Energy

Alumna on Front Lines of Fight to Advance Clean Energy

By Brian Hiro

CSUSM alumna Manal Yamout McDermid is the founding partner of Caliber Strategies, a Sacramento-based lobbying firm that helps energy and climate companies navigate California regulations. Photo by Xsight Photography

Manal Yamout McDermid often feels like she's standing on the cutting edge of California's multibillion-dollar green economy.

One day, McDermid will be meeting with a company that is developing what are effectively electric helicopters designed to cover distances of less than 100 miles - basically, an Uber for the skies. The next day, she'll sit down with a business that's building a device that captures a semi truck's carbon emissions directly from the tailpipe, pumps it into a tank, then either buries it underground or sells the CO2 for use in products like soda.

Still other days might include huddles with firms that make rooftop solar panels, heat pump water heaters, even self-driving cars.

"Each of the clients that I work with, I get a chance to embed in their team," McDermid said. "I get to jump around. And not only is the subject matter different, but the people are different and the vibe is different. I like that diversity."

Those clients, in turn, value McDermid's expertise, so much so that they're willing to pay handsomely for it, in many cases while they're still trying to get off the ground as a startup. The Cal State San Marcos alumna is the founding partner of Caliber Strategies, a Sacramento-based lobbying firm that helps energy and climate companies - whether sexy startups or stodgy utilities - navigate the regulatory maze that is the California policy arena.

In doing so, McDermid draws on almost two decades of experience in state politics and policymaking, going back to when she was a clean energy adviser to former Gov. Arnold Schwarzenegger in her early 20s, only a few years after graduating from CSUSM with a degree in biology.

"I founded this company because it's really challenging to bring new technologies to market, especially in a place like California where the market rules are quite complex and there are all these different agencies doing different things," McDermid said. "We focus exclusively on climate and energy, and primarily on what I refer to as disruptive technologies."

Founded in 2013, Caliber now totals eight employees, and one of McDermid's fellow partners is Michael Picker, former president of the California Public Utilities Commission (CPUC), the nonpartisan body charged with regulating the state's utilities. The company has almost 50 clients, including investment management giant Blackstone, accounting firm KPMG and Sunrun, one of the nation's biggest solar installers.

Sometimes Caliber's clients take the form of a legacy company that's opening a new product line. A.O. Smith Corporation, for example, has been around for 150 years and is one of the world's leading manufacturers of water heaters and boilers, with annual sales of almost $4 billion. But as California increasingly moves toward the full electrification of all buildings, A.O. Smith is gravitating toward heat pumps, which heat water using electricity instead of gas.

Enter Caliber. The company worked with a team of nonprofit, industry and environmental organizations to help pass legislation to allocate about $44 million in incentives for heat pumps. Caliber then led an effort with this coalition and the CPUC to design an incentive program that would offer state residents payments of up to $7,300 for installing heat pumps.

Another category of clients is fledgling businesses with an innovative solution to a climate-related problem. Charm Industrial is a Bay Area startup with a mission to, as its website touts, "put oil back underground," an elegantly simple description of the complex science involved in carbon capture and sequestration. Charm approached Caliber in its infancy, seeking to get introduced to the right people, increase its name recognition and create a market from scratch.

"It's about streamlining the process, and even more so trying to educate regulators," McDermid said. "We educate regulators and policymakers about what the needs of new technologies are. After the policymaker has already said, for example, we want electric cars and you have the market ready, there remain all these barriers that no one has figured out. So it's a collaborative process to figure out how we get from where we are now to where we want to be."

It was at CSUSM where McDermid discovered her twin passions for environmental science and public policy. Having initially enrolled at the university on a cross country and track and field scholarship (she competed for two years before injuries forced her to stop), she decided she wanted to pursue conservation biology and save the earth one planted tree at a time.

At some point in her college journey, however, it dawned on her that planting trees - even 10 to 20 acres worth - couldn't compare with, say, protecting millions of acres through legislation. As a junior, McDermid spent the fall semester in Washington, D.C., as part of the Panetta Congressional Internship Program, and when she returned, she ran for and was elected president of Associated Students, Inc., for her senior year in 2004-05. She even started a progressive activist organization with some friends.

"CSUSM was this perfect testing ground to try out all these different things," she said.

Using her student experience as a springboard, McDermid was accepted after graduation into the Capital Fellows Program, an initiative through Sacramento State that offers paid, full-time fellowships in each branch of California's government. She was assigned to Gov. Schwarzenegger's office for a year, followed by a year working in the office of First Lady Maria Shriver.

In 2008, McDermid got her big break when Susan Kennedy, still early in her tenure as Schwarzenegger's chief of staff, acted on a recommendation to tap McDermid as her top deputy. Kennedy was seeking not an executive assistant but someone who could step into her high-pressure position when necessary and not miss a beat. In McDermid, she found a kindred spirit, essentially a younger version of herself.

"She was perfect," Kennedy said. "She looked out at the landscape from the perspective of, if she were the chief of staff to the governor, how would you prepare for this? How would you brief him on this? What information do you need from the agencies or the departments or the senior staff?

"It's a very tough role to step into, and she earned everyone's respect because she was so good at what she did. She made me twice as good at what I was doing because she was as good as me."

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Near the end of his eight years as governor, Schwarzenegger began to feel a particular urgency to buttress his accomplishments in the climate space. He tasked Kennedy with figuring out how to secure permitting for a host of renewable energy projects being incentivized by the Obama administration, and Kennedy in turn tasked not only Picker - the former CPUC president and current Caliber partner - but also McDermid.

"It was a failure-is-not-an-option initiative by the governor," Kennedy said. "I gave Michael all the power, and I gave him the most powerful weapon I could think of, which was Manal. The two of them were responsible for basically unlocking gigawatts of renewable energy in California, which completely changed the landscape of the state's climate initiatives."

McDermid's efforts were so successful that, when Schwarzenegger left office in 2011 and Jerry Brown entered, she was among just a handful of staffers retained out of the nearly 100 in the governor's office. She departed later that year to take a job in Washington as a lobbyist for NextEra Energy, an electric utility holding giant, before Kennedy lured her back to California in 2013.

With her longtime mentor, McDermid launched not only Caliber but also Advanced Microgrid Solutions (AMS), a company that was born out of the shuttering of the San Onofre nuclear power station in June 2013. That closure created an immediate 20% power shortage in large portions of Los Angeles, a gap that AMS filled by building what McDermid called the "world's largest virtual power plant" - battery storage systems at commercial sites like Kaiser Permanente, Irvine Company and Walmart. Over time, AMS shifted its focus from developing those large-scale energy storage projects to providing software that allowed others to optimize their own energy storage assets.

When AMS was sold in 2020, McDermid rededicated herself to Caliber, which had been on the back burner for a few years. During the pandemic, she got married and moved from San Diego (where she grew up after her family escaped war-torn Lebanon when she was 3) to Santa Barbara, her husband's hometown. Manal and Hitch, her husband, have a 3-year-old son, Malek.

McDermid makes frequent trips to Sacramento and to San Francisco, where Caliber has a small office. Not coincidentally, the Bay Area also is the headquarters of the CPUC, one of the regulatory bodies that Caliber works closely with, along with the California Energy Commission, the Air Resources Board and the Natural Resources Agency.

Many for-profit companies have an adversarial relationship with the regulators that establish the rules governing them, but that's not the case with Caliber or most of its clients. They're all in the same boat and rowing in the same direction when it comes to the state's ambitious climate goals, which is one of myriad reasons why McDermid loves the work she does.

"We're very focused in California precisely because we actually want to get things done," McDermid said. "I don't want to spend my time convincing someone that climate change is a problem or that we should put more electric vehicles on the roads. The nice thing about California is, at the highest level, the leadership is completely bought in on what the problem is. And it's more about figuring out: How do we solve it?"

Manal Yamout McDermid

Major at CSUSM: Biology

Graduation year: 2005

Company: Caliber Strategies

Website:caliberstrat.com

Founded: 2013

Number of employees: 8

Talking Business With Manal Yamout McDermid

What's the best advice you received about starting a business?

Work with people you like. It's super simple, but if you pick people you like and admire and want to spend an inordinate amount of time with, you really can't go wrong. In some ways, getting the people right is more important than the idea and the path to market.

What advice would you give budding entrepreneurs?

Same advice as the first one: Choose your partners carefully, and choose them based on their character, their integrity and your level of trust in them. Don't just think about breaking into a market.

What's the greatest challenge in starting your own business?

I think it's the uncertainty and the self-doubt that come with it, like: Should I grow? The greatest challenge is believing that as you scale up, things will work out, and getting the confidence to take that next step.

Knowing what you know now, is there anything you would have done differently?

No. I'm a firm believer that whatever happens was supposed to happen, and it doesn't mean that it was good. But I wouldn't have done it differently.

What are the qualities of a good entrepreneur?

I would say confidence, belief in yourself. The ability to really pay attention to what's happening around you, whether that's the market or the people you surround yourself with.

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