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Column: It’s time to kill this useless and costly desalination project

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Column: It’s time to kill this useless and costly desalination project

On the subject of wasteful, overpriced and ill-considered proposals to deal with California’s water provide points, it’s laborious to know the place to begin.

However an excellent place could be the plan to construct a desalination plant on the Pacific coast at Huntington Seashore. As my colleague Ian James has reported, the venture, which is sponsored by the politically wired and private-equity-owned agency Poseidon Water, will probably be developing for an important vote by the California Coastal Fee on Might 12.

The vote represents the very best alternative to drive a stake via the center of the venture as soon as and for all. The fee ought to have its mallet on the prepared.

Political leaders don’t take the time to have a look at whether or not one thing is the precise plan. Sadly, typically they’re solely speaking to the venture promoters.

— Ron Gastelum, former basic supervisor, Metropolitan Water District

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The fee’s workers already has given the panel’s members all of the ammunition they want by recommending rejection in a blistering 200-page report issued April 25.

As I’ve reported prior to now, there isn’t a lot to advocate the Huntington Seashore venture. It could severely harm the marine coastal surroundings, produce the most expensive water of any supply out there and lift water payments for residents and companies.

Poseidon has made clear that it may’t construct the $1.4-billion plant with out large subsidies from the general public purse, together with $400 million from the Metropolitan Water District and $1.1 billion in state government-backed bonds.

At this second, Poseidon doesn’t also have a buyer for the plant’s output. The agency holds solely a nonbinding settlement with the Orange County Water District, which serves about 2.5 million residents, reached in 2018.

At the moment, the district estimated that Poseidon water would exceed the price of water from the Metropolitan Water District of Southern California, its principal outdoors supply, by about 45%, or $536 per acre-foot this 12 months. (An acre-foot is about 326,000 gallons, or sufficient to provide the wants of 1 or two California households for a 12 months.)

The MWD expects the price of its water to extend by just a little greater than 4% yearly on common for the subsequent 10 years; at that charge, Poseidon water would stay dearer than the MWD provide effectively into the 2050s.

Poseidon acknowledges that the plant would possibly drive up the typical family water invoice in Orange County by $3 to $6 per thirty days — or as a lot as 8.6%.

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A 2019 research by researchers at UCLA discovered that these prices, like nearly all utility prices, would fall most closely on deprived households, for whom ingesting water would develop into “reasonably to severely much less reasonably priced.”

To the extent there’s any controversy concerning the knowledge of the Poseidon venture, it displays a disagreement between the state’s political leaders, together with Gov. Gavin Newsom, a powerful supporter of the proposal, and the water districts which are truly liable for serving prospects.

“Political leaders don’t take the time to have a look at whether or not one thing is the precise plan,” says Ron Gastelum, the previous basic supervisor of the Metropolitan Water District, who’s helping the organizations preventing the venture. “Sadly, typically they’re solely speaking to the venture promoters.”

The water districts, alternatively, have signaled their distaste for the proposal. “They’re not signing up with their {dollars} and so they’re making public statements that they don’t want this venture,” Gastelum advised me.

Just a few phrases right here concerning the technical facets of the Poseidon plant, which has been proposed for 20 years. Desalination of sea water appears superficially to be a no brainer as an answer to water shortages in California. In spite of everything, the large blue Pacific Ocean washes up on our shores, and the expertise to transform seawater to recent water by eradicating its salt isn’t particularly novel.

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Accordingly, Poseidon and its backers say the plant will present a “drought-proof” water provide for Orange County. The plant could be positioned on the website of a soon-to-be-mothballed Huntington Seashore energy plant, utilizing its ocean intakes and outflow pipes to suck in seawater and discharge wastewater.

The aim could be for the plant to transform about 107 million gallons a day of seawater into about 50 million gallons a day of potable water. The closely oversalted brine could be piped again into the ocean.

Issues aren’t that easy. The identical phenomenon that exacerbates droughts in Southern California — international warming — additionally represents a menace to the plant. That’s as a result of the plant, positioned a bit greater than a soccer subject’s distance from the ocean, will probably be uncovered to the ravages of rising sea degree.

Fee workers acknowledged that Poseidon’s plan is to lift the elevation of the plant to the purpose that it might be secure from flooding “besides in excessive, worst-case eventualities.” However the workers additionally noticed that the encircling space might be weak to common flooding inside a few a long time, rendering the plant unreachable throughout emergencies.

Poseidon’s location, the workers wrote, “is more likely to develop into remoted and troublesome or inconceivable to entry throughout coastal hazard occasions which are nearly sure to extend in severity and frequency sooner or later.”

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The fee workers and different critics have been stating for years that the plant poses a dire menace to the coastal ecosystem. The discharge would kill marine life in a big marine zone. Poseidon has proposed mitigation tasks in native wetlands to offset the harm, however the fee workers discovered these proposals to be of “restricted … worth.”

The venture’s detrimental affect is so nice and the chance for mitigation so meager, the workers reported, that the proposals didn’t look like possible. In any case, the workers noticed, the mitigation program would take so lengthy to design and construct that the plant could be working for so long as 15 years with none mitigation in any respect.

Because it occurs, the expertise at Poseidon’s desalination plant in Carlsbad, which started working in 2015, means that mitigation tasks are illusory. Though the Coastal Fee ordered the mitigation program when it accredited the Carlsbad plant in 2008, an environmental contractor was not even employed till this February and development work isn’t because of start till September.

“Because of this,” the workers wrote, “the Carlsbad plant has been working for six years with out mitigation in place, leading to vital long-term losses to the state’s marine assets.” Poseidon advised me the mitigation delays have been because of altering authorities requirements and new necessities for permits.

Extra usually, Poseidon says that the fee workers “erred in its advice” for rejection. The agency paints rejection in apocalyptic phrases: “If this advice stands, it can successfully be the dying knell for desalination in California.”

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The Huntington Seashore venture’s significance to its sponsors is illustrated by the cash they’ve doled out for political affect. Since 2001, or about so long as the venture has been on the drafting board, Poseidon has spent practically $2.7 million on lobbying the legislature and state companies, based on state disclosure stories.

Throughout that point, the corporate has positioned some very influential politicians on its payroll, together with former Sen. Barbara Boxer and Kathleen Brown, former Gov. Jerry Brown’s sister.

There are additionally indicators that Poseidon has its hooks into Gov. Gavin Newsom. It could be recalled that Newsom bought into heaps of hassle in late 2020 when he was caught attending a cocktail party on the French Laundry restaurant in Napa Valley on the identical time he was implementing anti-pandemic insurance policies that discouraged exactly such gatherings.

What could also be forgotten is that the celebration was a birthday celebration for Jason Kinney — a Newsom fixer and Poseidon lobbyist.

Newsom has persistently pushed for the venture, to the extent of changing an anti-Poseidon member of the Santa Ana Regional Water High quality Management Board with a politician who had obtained marketing campaign funding from pro-Poseidon labor teams.

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Final 12 months, members of that board have been pressured to reveal a collection of back-door contacts they obtained they obtained from Newsom’s environmental safety secretary, Jared Blumenfeld, wherein Blumenfeld plainly leaned on them to favor the venture.

Newsom doubled down on his help final week throughout a gathering with the editorial board of the Bay Space Information Group, telling them {that a} fee vote killing the venture could be “a giant mistake.”

He acknowledged, “We’d like extra instruments within the rattling software equipment. … What extra proof do you want that it’s essential to have extra instruments within the software equipment than what we’ve skilled? Seven out of the final 10 years have been extreme drought.”

One of the best that may be stated about Newsom’s comment is that it’s a non sequitur: It’s one factor to have desalination within the water provide software equipment however fairly one other to have this venture within the software equipment.

Poseidon is owned by the Canadian funding agency Brookfield Asset Administration. In 2018, Brookfield did a giant favor for the household of then-President Trump’s son-in-law, Jared Kushner, by successfully taking a closely indebted Manhattan workplace constructing off the Kushners’ fingers.

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The next 12 months, the Poseidon venture received a coveted $585-million mortgage from Trump’s Environmental Safety Company. A Brookfield spokesman says the funding alternative within the Manhattan deal was “the only driver of the transaction for Brookfield” and “there was by no means a connection in anyway to some other transaction.”

It’s common for promoters of massive water tasks to color their proposals as essential bulwarks standing between the general public and a parched, desertified future. That’s lengthy been the pitch behind the farcical Cadiz water storage venture — as I’ve reported, its backers argue that drought makes it important, when drought is strictly what renders it ineffective. (Cadiz was additionally a favourite of Trump’s EPA.)

The query that must be answered in each such case is: What are the alternate options? On the subject of the Huntington Seashore venture, there are various choices, most of that are higher than Poseidon.

In response to a 2018 report for the Municipal Water District of Orange County, the Poseidon venture was the worst venture into account — near the costliest and least dependable infrastructure proposals on the desk.

The most cost effective choice continues to be recycling and conservation, which haven’t come near being performed out. In response to a latest research by the Pacific Institute, current applied sciences and adjusted water-use practices can cut back city utilization in Southern California by 30% to 48%.

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The Poseidon venture in Huntington Seashore will do nearly nothing to resolve the water provide points for Orange County, Southern California or the state. It would suck up monetary assets higher directed towards different social points.

It could impose a monetary burden on native residents for many years, with none legitimate exhibiting that it’s wanted now or within the foreseeable future. It’s a political boondoggle of the worst type, and it ought to have been killed way back.

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'We will not be closing.' Amid the fires, employers and employees walk a fine line between work and safety

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'We will not be closing.' Amid the fires, employers and employees walk a fine line between work and safety

When Brigitte Tran arrived Wednesday morning at the Rodeo Drive boutique where she works as a sales associate, she was on edge.

Smoke from multiple wildfires raging across Los Angeles County billowed overhead. The luxury shopping corridor usually bustling with tourists appeared a ghost town.

Tran’s co-worker texted their boss to let her know neighboring stores had closed, and described the acrid smoke in the air. But the woman, at home in Orange County, did not seem to grasp their concerns. “We will not be closing unless the mall instructs us to close,” she replied.

Tran, who, fearing professional repercussions, asked that her place of work not be named, grew more anxious as the hours ticked by. Around 3 p.m., she and the two other employees working that day mutinied. They packed up, told the security guard to head home, and locked the doors a few hours before closing time.

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As the wildfires have raged across Los Angeles County, choking the air, closing schools and forcing tens of thousands of people to evacuate, employers and employees alike have had to manage a difficult balancing act between work and well being. Some employers responded swiftly to the crisis, shutting down offices and shifting to remote work, providing outdoor workers with masks and other protective equipment, and offering support for employees forced to evacuate. Others have been less adept, clumsy in their communications or wholly unmoved by worker concerns — sparking anger among their ranks as a result.

The fires have underscored the need for companies to have a clear plan in place to respond to emergencies, said Jonathan Porter, a meteorologist at private weather forecaster AccuWeather. The obligation, he said, goes beyond monitoring whether an office is in an evacuation zone. For example, as the current devastation unfolds, businesses should be aware of the “copious amounts of dangerous smoke that’s wafting into the air” and be prepared to provide outdoor workers with quality respirators or move them away from polluted air.

Some employers gave employees flexibility. Snap, the Santa Monica-based creator of the photo messaging app Snapchat, for example, kept its offices open on Wednesday but encouraged employees to work remotely, said a company spokesperson.

Others changed course after fielding criticism.

An announcement by UCLA that the campus would remain open for classes and regular operations on Wednesday drew anger from some instructors and students on social media.

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Victor Narro, project director for the UCLA Labor Center and a lecturer on campus, said in a post on X he would ignore UCLA’s mandate and hold an optional class online.

“Students have been up all night panicked about sleeping through evacuation orders, winds still high, branches falling all over Westwood, power outages across city, & our new chancellor (on his 2nd day) thought this should be his first bold call…” wrote Nour Joudah, an assistant professor in UCLA’s Asian American Studies Department, in another X post.

That evening, UCLA changed course as conditions worsened, announcing it would close campus.

On Saturday, UCLA Chancellor Julio Frenk released a statement saying classes would be held remotely for at least another week and campus operations would be curtailed. “We ask for continued flexibility and understanding as we all work through these difficult times,” Frenk wrote.

But for many workers, the chaos of the last few dayshas left them feeling like they are fending for themselves.

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Tim Hernandez, a driver with Amazon Flex, an on-demand Uber-like program in which people use their own cars to deliver packages, was assigned a route Tuesday along the Pacific Coast Highway toward Malibu, which was rife with closures.

When he questioned whether making the delivery was safe, he said dispatchers at a Amazon facility in Camarillo brushed him off, leaving him to choose between concerns for his safety and worries that his rating in the Flex app would be hurt if he refused to go. He decided to try to make the deliveries, battling gusts of wind that knocked him over at one point. He lost cell signal, however, and was forced to return to the warehouse without completing the vast majority.

And when he arrived for his shift Tuesday, Alfred Muñoz, 43, an Amazon delivery driver who works out of a warehouse in the City of Industry, said he was handed an N95 mask but given little other instruction.

“It was just kind of business as usual,” Muñoz said.

High package counts and the number of stops on his assigned routes this week have made work even more difficult. On Tuesday, with wind gusts whipping debris around making it difficult to see, he had about 180 stops and 290 packages to deliver. On Thursday, the air thick with smoke and ash, he had more than 300 packages.

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He woke up Thursday morning with a bloody nose and a sooty black crust in the corners of his eyes.

In response to a request for comment, Montana MacLachlan, an Amazon spokesperson, said the company was “closely monitoring the wildfires across Southern California and adjusting our operations to keep our employees and those delivering for us safe.”

“If a driver arrives at a delivery location and the conditions are not safe to make a delivery, they are not expected to do so and the driver’s performance will not be impacted,” she said.

At the Brentwood location of popular Italian eatery Jon & Vinny’s, staff complained of headaches and sore throats in a text message group chat. An employee, who asked not to be named fearing retaliation at work, said that on Tuesday, staff huddled around an iPad with a fire map pulled up to keep an eye on the expanding evacuation zone. From the front of the restaurant, they could see the glow of the Palisades fire.

The employee said they were frustrated management kept the restaurant open when the perimeter of the mandatory evacuation zone was just two blocks away. On Wednesday, every server scheduled to work called in to say they were not coming, the employee said.

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A spokesperson for Joint Venture Restaurant Group, which owns Jon & Vinny’s, did not immediately respond to a request for comment.

During natural disasters and extreme weather, employers’ choices can sometimes mean life or death, said David Michaels, a professor at the Milken Institute School of Public Health and a former assistant secretary of labor for the Occupational Safety and Health Administration.

He pointed to recent floods from Hurricane Helene that killed several workers at a plastics manufacturer. The tragedy has drawn scrutiny from state investigators, and a wrongful death lawsuit accuses the company of requiring employees to stay on site amid flooding after they requested permission to leave.

“It’s incumbent on employers to ensure the safety of their workers,” Michaels said. “The safety of their employees must take precedence over business concerns.”

Yasha Timenovich, 48, a driver for rideshare app Lyft and food delivery platform DoorDash, is more worried about declining earnings than on-the-job safety. With many restaurants and other businesses closed and would-be customers fleeing the city, he said that rides and deliveries have been slow. Traffic patterns have been strange and unpredictable with families piling into vehicles to flee fires.

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Timenovich, who faced an order to evacuate his Hollywood apartment with his fiance and 6-year-old daughter Wednesday night, said he planned to stay with relatives for a few days in San Luis Obispo, where he hopes business will be better.

“I’m going to get out of here because it’s too crazy with these fires,” Timenovich said.

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Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts

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Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts

Scott Bessent, the billionaire hedge fund manager whom President-elect Donald J. Trump picked to be his Treasury secretary, plans to divest from dozens of funds, trusts and investments in preparation to become the nation’s top economic policymaker.

Those plans were released on Saturday along with the publication of an ethics agreement and financial disclosures that Mr. Bessent submitted ahead of his Senate confirmation hearing next Thursday.

The documents show the extent of the wealth of Mr. Bessent, whose assets and investments appear to be worth in excess of $700 million. Mr. Bessent was formerly the top investor for the billionaire liberal philanthropist George Soros and has been a major Republican donor and adviser to Mr. Trump.

If confirmed as Treasury secretary, Mr. Bessent, 62, will steer Mr. Trump’s economic agenda of cutting taxes, rolling back regulations and imposing tariffs as he seeks to renegotiate trade deals. He will also play a central role in the Trump administration’s expected embrace of cryptocurrencies such as Bitcoin.

Although Mr. Trump won the election by appealing to working-class voters who have been dogged by high prices, he has turned to wealthy Wall Street investors such as Mr. Bessent and Howard Lutnick, a billionaire banker whom he tapped to be commerce secretary, to lead his economic team. Linda McMahon, another billionaire, has been picked as education secretary, and Elon Musk, the world’s richest man, is leading an unofficial agency known as the Department of Government Efficiency.

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In a letter to the Treasury Department’s ethics office, Mr. Bessent outlined the steps he would take to “avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of secretary of the Department of Treasury.”

Mr. Bessent said he would shutter Key Square Capital Management, the investment firm that he founded, and resign from his Bessent-Freeman Family Foundation and from Rockefeller University, where he has been chairman of the investment committee.

The financial disclosure form, which provides ranges for the value of his assets, reveals that Mr. Bessent owns as much as $25 million of farmland in North Dakota, which earns an income from soybean and corn production. He also owns a property in the Bahamas that is worth as much as $25 million. Last November, Mr. Bessent put his historic pink mansion in Charleston, S.C., on the market for $22.5 million.

Mr. Bessent is selling several investments that could pose potential conflicts of interest including a Bitcoin exchange-traded fund; an account that trades the renminbi, China’s currency; and his stake in All Seasons, a conservative publisher. He also has a margin loan, or line of credit, with Goldman Sachs of more than $50 million.

As an investor, Mr. Bessent has long wagered on the rising strength of the dollar and has betted against, or “shorted,” the renminbi, according to a person familiar with Mr. Bessent’s strategy who spoke on condition of anonymity to discuss his portfolio. Mr. Bessent gained notoriety in the 1990s by betting against the British pound and earning his firm, Soros Fund Management, $1 billion. He also made a high-profile bet against the Japanese yen.

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Mr. Bessent, who will be overseeing the U.S. Treasury market, holds over $100 million in Treasury bills.

Cabinet officials are required to divest certain holdings and investments to avoid the potential for conflicts of interest. Although this can be an onerous process, it has some potential tax benefits.

The tax code contains a provision that allows securities to be sold and the capital gains tax on such sales deferred if the full proceeds are used to buy Treasury securities and certain money-market funds. The tax continues to be deferred until the securities or money-market funds are sold.

Even while adhering to the ethics guidelines, questions about conflicts of interest can still emerge.

Mr. Trump’s Treasury secretary during his first term, Steven Mnuchin, divested from his Hollywood film production company after joining the administration. However, as he was negotiating a trade deal in 2018 with China — an important market for the U.S. film industry — ethics watchdogs raised questions about whether Mr. Mnuchin had conflicts because he had sold his interest in the company to his wife.

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Mr. Bessent was chosen for the Treasury after an internal tussle among Mr. Trump’s aides over the job. Mr. Lutnick, Mr. Trump’s transition team co-chair and the chief executive of Cantor Fitzgerald, made a late pitch to secure the Treasury secretary role for himself before Mr. Trump picked him to be Commerce secretary.

During that fight, which spilled into view, critics of Mr. Bessent circulated documents disparaging his performance as a hedge fund manager.

Mr. Bessent’s most recent hedge fund, Key Square Capital, launched to much fanfare in 2016, garnering $4.5 billion in investor money, including $2 billion from Mr. Soros, but manages much less now. A fund he ran in the early 2000s had a similarly unremarkable performance.

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As wildfires rage, private firefighters join the fight for the fortunate few

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As wildfires rage, private firefighters join the fight for the fortunate few

When devastating wildfires erupted across Los Angeles County this week, David Torgerson’s team of firefighters went to work.

The thousands of city, county and state firefighters dispatched to battle the blazes went wherever they were needed. The crews from Torgerson’s Wildfire Defense Systems, however, set out for particular addresses. Armed with hoses, fire-blocking gel and their own water supply, the Montana-based outfit contracts with insurance companies to defend the homes of customers who buy policies that include their services.

It’s a win-win if the private firefighters succeed in saving a home, said Torgerson, the company’s founder and executive chairman. The homeowner keeps their home and the insurance company doesn’t have to make a hefty payout to rebuild.

“It makes good sense,” he said. “It’s always better if the homes and businesses don’t burn.”

Torgerson’s operation, which has been contracting with insurance companies since 2008 and employs hundreds of firefighters, engineers and other staff, highlights a lesser-known component of fighting wildfires in the U.S. Along with the more than 7,500 publicly funded firefighters and emergency personnel dispatched to the current conflagrations, which have burned more than 30,000 acres and destroyed more than 9,000 structures, a smaller force of for-hire professionals is on the fire lines for insurance companies, wealthy individual property owners or government agencies in need of additional hands.

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Their presence isn’t without controversy. Private firefighters hired by homeowners directly have drawn criticism for heightening class divides during disasters. This week, a Pacific Palisades homeowner received backlash for putting a call out on X, the social media site formerly named Twitter, for help finding private firefighters who could save his home.

“Does anyone have access to private firefighters to protect our home in Pacific Palisades? Need to act fast here. All neighbors houses burning,” he wrote in the since-deleted post. “Will pay any amount.”

“The epitome of nerve and tone deaf!” someone replied.

In 2018, Kim Kardashian and Kanye West credited private firefighters for saving their $60-million home in the Santa Monica mountains during a wildfire. But those who serve wealthy clients make up only a small fraction of nonpublic firefighters, according to Torgerson.

“Contract firefighters who are hired by the government are the vast majority,” he said. The federal government has been hiring private firefighters since the 1980s to support its own forces. According to the National Wildfire Suppression Assn., there are about 250 private sector fire response companies under federal contract, adding about 10,000 firefighters to U.S. efforts.

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Some private firefighting companies, including Wildfire Defense Systems, are known as Qualified Insurance Resources and are paid by insurance companies to protect the homes of their customers. Wildfire Defense Systems refers to its on-the-ground forces as private sector wildfire personnel.

Wildfire Defense Systems only works with the insurance industry, but other privately held firefighting companies contract with industrial clients such as petrochemical facilities and utility providers. Wildfire Defense Systems declined to disclose company revenue or what it charges for its services.

Allied Disaster Defense, a company that has sent personnel to the fires in Los Angeles, offers services to both property owners and insurance companies. Its website says its services will “enhance the insurability of properties” and “contribute to reduced claims.”

The website also has a page dedicated to services for private clients, which include emergency response and assistance with insurance claims for “high net-worth and celebrity” customers. The company does not list prices for its services and has nondisclosure agreements with its private clients.

Several other private firefighting companies are based in California, including Mt. Adams Wildfire, which contracts with government agencies, and UrbnTek, which serves Los Angeles, Orange County and San Diego among other areas. Along with spraying fire retardant on trees and brush to stop an advancing fire, the company offers “a double layer of protection by wrapping a structure with our fire blanket system.”

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Torgerson, a civil engineer with 34 years in emergency services, said he has been struck by the speed of the current wildfires. While typically it takes two to 10 minutes for a fire to sweep through a home, he said, the Palisades fire is traveling at higher speeds.

“It’s moving so fast, it’ll likely take one to two minutes for these fires to pass over the properties,” he said.

He said his company responded to all 62 of the wildfires that threatened structures in California in 2024 and didn’t lose a property.

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