California
California to mandate statewide water restrictions up to nearly 40% in some cities
 
																								
												
												
											 
Some cities may be forced to cut water use by 40% over the next 15 years.
How pumping water in San Joaquin Valley has casued subsidence problem
Learn about the severe subsidence problem in California’s San Joaquin Valley, its impact on water quality, and the regional economic consequences.
The State Water Resources Control Board on Wednesday approved a policy that could force some municipal water suppliers to reduce the amount of water they provide by close to 40% over the next 15 years.
If suppliers and their customers don’t reduce water use, the districts could be fined up to $10,000 a day. Districts can reduce customer water use by mandating restrictions, raising rates on high-volume water users, or encouraging low-flow appliances.
“Our climate has changed. Our uses should match the hydrology that we’re now facing,” Joaquin Esquivel, chair of the state water board, said in a statement.
Suppliers must make a first round of water cuts by 2025, with additional cuts mandated in 2030, 2035, and 2040.
Most of the most extensive required cuts are all in California’s Central Valley, ranging from the City of Redding (39% cut by 2040 and 21% by 2025) in the north to Visalia’s California Water Service Company (22% cut in 25 years). Smaller Central Valley cities will face mandatory reductions, too: Tulare County town Exeter, with a population of 10,000, will face a 39% cut by 2040. The Central Valley’s largest city, Fresno, will face a 21% cut by 2040 and cuts 4% by 2025.
The parched Coachella Valley in Southern California also will face steep mandatory reductions. Desert Water Agency, based in Palm Springs, will have to cut its water supply by 32% by 2040 and 24% by 2025.
In the high desert, water districts in Victorville, Hesperia, and Adelanto will have to cut water use from 18% to 23% by 2040
Not all cities in California will face drastic cuts, though. Salinas’ California Water Service Company will only face a 1% cut by 2040, while the San Francisco Public Utilities Commission will face no reductions.
Some environmentalist groups say the mandated water cutbacks don’t go far enough.
“The regulation does not meet the moment of growing water scarcity in California,” Mark Gold, director of water scarcity solutions and environmental health for the Natural Resources Defense Council, told the San Francisco Chronicle. “A strong regulation will exist in 2040, but that’s 15 years from now and there’s going to be a heck of a lot of water scarcity over that period.”
How California is forcing regions to cut back on water use
In April, for the first time in California history, state officials cracked down on the overpumping of groundwater in the San Joaquin Valley by putting Kings County water districts on probation for failing to protect the region’s underground water supply. The unprecedented decision was the first step that could lead to millions in fines for overpumping groundwater or the state taking over the districts. In adjacent Tulare County, one of the largest agriculture-producing counties in the world, the State Water Resources Control Board is threatening similar action if the Kaweah subbasin users don’t cut back on groundwater pumping.
The State Water Resources Control Board repeatedly warned both counties that their groundwater management plans are deficient because they fail to stop dried-up wells, contaminated water, and sinking earth worsened by overpumping.
Recently, the Imperial Irrigation District in Southern California proposed a plan to pay farmers not to grow hay during the year’s hottest months. The plan is just one step to conserve water from the stressed Colorado River.
Tips on saving water
Below are some tips for you and your family to save water from the California Public Utilities Commission
- Install water-saving devices, such as low-flow showerheads and high-efficiency toilets,
- Take shorter showers, reduce the time by 1-2 minutes, and save 5 gallons.
- Turn the water off while brushing your teeth. Save 3 gallons.
- Fix leaky faucets. Save up to 20 gallons per day.
- Wash a full load of laundry. Save 15 to 50 gallons per load.
- Don’t use a hose to clean your driveway. Sweeping with a broom can save as much as 100 gallons of water.
- Water your yard before 8 a.m. because watering early reduces evaporation.
- Make the switch from lawn to low-water-use landscaping. Outdoor watering accounts for 50 to 70% of all household water use.
 
																	
																															California
Exclusive: FBI searched California real estate firm linked to bad bank loans
 
														 
Item 1 of 2 The podium for the director of the Federal Bureau of Investigation is seen at FBI headquarters in Washington, U.S. June 14, 2018. REUTERS/Yuri Gripas/File Photo
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On September 11, FBI agents searched Continuum’s Newport Beach, California, offices, law firm Paul Hastings wrote in a September 12 letter seen by Reuters.
Representatives for Continuum did not respond to emails and calls seeking comment. The FBI is an enforcement arm of the Justice Department. Spokespeople for the agencies did not respond to requests for comment. An attorney for Cantor Group said the firm upheld the terms of the Zions and Western Alliance loans and did not provide comment on the government scrutiny.
Allen Matkins, a law firm that represents other entities linked to Continuum, wrote in an October 2 letter that it learned on September 11 that certain of its clients were the subject of search warrants “in connection with a pending criminal investigation,” and that a grand jury had been convened in the case.
Prosecutors typically convene a grand jury when they intend to gather more evidence. The letters did not say which specific criminal authority was leading the case or what potential misconduct or individuals it was focused on.
Criminal investigations do not necessarily mean any wrongdoing has occurred and many do not result in charges.
Reuters is reporting the FBI search and probe for the first time. The government scrutiny could have ripple effects for what legal filings and public records show is a complex web of investors and lenders tied to Continuum’s real estate dealings, some of which are entangled in civil litigation.
Paul Hastings and Allen Matkins are representing parties embroiled in a complex real estate dispute. The letters relate to those proceedings. The Allen Matkins letter was disclosed in a California court.
When asked about the letter by Reuters, a lawyer for Paul Hastings said the firm was “working to unravel multiple levels of alleged fraud,” but did not provide more details.
Allen Matkins did not respond to calls and emails seeking comment.
PASSIVE INVESTORS
Zions on October 15 sued Cantor Group fund guarantors Andrew Stupin and Gerald Marcil, among others, to recover more than $60 million in soured commercial and industrial loans. The next day, Western Alliance flagged that it had sued the pair and a different Cantor fund in August to recover nearly $100 million.
Both suits allege key information was misrepresented or not disclosed, breaching the loan terms. Western Alliance also alleges fraud on the part of the Cantor fund.
Continuum acquires and manages distressed real estate assets for groups of investors, and its largest investors include Stupin and Marcil, according to a February arbitration ruling related to the real estate dispute. That ruling found Cantor “consists solely” of Continuum’s legal owner, Deba Shyam, and shares the Continuum offices. Shyam did not respond to calls and emails seeking comment.
Cantor upheld its contractual obligations and was transparent with its lenders, while the loans were audited and independently reviewed multiple times over the years, said the Cantor attorney Brandon Tran, who also represents Stupin and Marcil.
The pair are passive investors in Cantor and held no operational roles, he added. Cantor in legal filings has disputed that the Western Alliance loan is in default.
In a statement, Marcil said he had invested in several of Continuum’s properties. He denied wrongdoing and said that he was a victim.
Spokespeople for Zions and Western Alliance did not respond to requests for comment.
Reporting by Douglas Gillison and Chris Prentice; Editing by Michelle Price
Our Standards: The Thomson Reuters Trust Principles.
California
California sues truck-makers for breaching zero-emission sales agreement
 
														 
California air quality officials have sued four truck manufacturers for breaching a voluntary agreement to follow the state’s nation-leading emissions rules, the state announced Tuesday.
What happened: Attorney General Rob Bonta’s office filed a complaint Monday in Alameda County Superior Court, arguing that the country’s four largest truck-makers — Daimler Truck North America, International Motors, Paccar and Volvo North America — violated an enforceable contract that they signed with the California Air Resources Board in 2023.
The lawsuit comes two months after the manufacturers filed their own complaint in federal court, arguing the agreement — known as the Clean Truck Partnership — is no longer valid after Republicans overturned California’s Advanced Clean Truck rule in June through the Congressional Review Act.
Why it matters: The move sets up a fight to determine whether the federal system or state courts — where CARB would have a higher likelihood of prevailing — will review the case.
California
California sues USDA over halted SNAP benefits, warning 41 million Americans are at risk
 
														 
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