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Elias: California water agency supply estimates should be more realistic

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Elias: California water agency supply estimates should be more realistic


The thousands of drivers traversing Interstate 5 on any given day this winter can see for themselves: Nothing even remotely like a water shortage currently plagues the State Water Project.

This is completely obvious from the major viewpoint off the east side of the interstate between Gustine and Patterson, from which it’s clear that all major canals of the project just south of the Sacramento-San Joaquin River Delta are full to capacity or nearly so.

It’s much the same a few dozen miles to the southwest, where the water project’s largest manmade lake, the San Luis Reservoir, is chock-full. Sand-colored margins that grew steadily larger during the decade of drought from 2010 to 2020 have long since been inundated, with the artificial lake shining bright blue on crisp, sunny winter days.

Water officials also promise the San Luis Reservoir will soon be expanded. So why does California’s Water Resources Department persist in providing preliminary farm water allocations that can only be described as small?

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It may be due to insecurity, a sense that the Pacific Ocean is due for a long-running “La Nina” condition that could produce a new drought and lower State Water Project and federal Central Valley Project water volumes to the dangerously dry levels of seven and eight years ago.

It may also simply be bureaucrats reminding farmers that they control the lifeblood of America’s most productive agricultural region, also one of the five largest industries in California.

The reality, though — especially after heavy “atmospheric river” rains in mid-November and December drenched Northern California — is that farms will receive far more water than the 5% of requested amounts promised them in late December, when state officials behaved as if the November downpours would be the water year’s last precipitation.

Yes, it is the duty of water officials to husband California’s water supplies to make sure neither cities nor farms ever run completely dry. But 5% made no real sense. It’s as if the bureaucrats who work for Gov. Gavin Newsom wanted to put the lie to his post-election pledges to pay more heed to the Central Valley and its interests, whose sense of being disrespected was one reason that region was the only major part of California carried by President Trump in last fall’s election.

This adds up to a need to change some practices, including a few outlined by Karla Nemeth, the Water Resources Department’s director. “We need to prepare for any scenario, and this early in the season we need to take a conservative approach to managing our water supply,” she said.

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That makes planning crops difficult, though, if not impossible, for farmers unless they depend greatly on ground water, a resource becoming increasingly depleted while ground levels above aquifers subside, which they have, as anyone can deduce from seeing onetime irrigation pipes that now rise several feet above current ground levels.

Compromising a bit would be better in years following a few seasons of heavy rain, today’s situation. Another way to put this might be to ask why state bureaucrats push a number and then essentially wink at farmers to tell them what they’re hearing is nowhere near what will eventually govern.

That’s what happened last year too, when the initial estimate of what farmers would get was 10% of requests and the ultimate amount was 40% — still using conservative allocations to make sure, unnecessarily, that reservoirs and canals remained full all year round rather than just partially full.

Even now, after a 2024 that was much drier than 2023 and an early winter with virtually no rain in Southern California, drinking water reservoirs remain nearly full. Diamond Valley Lake, near Hemet, the largest such potable water storage facility in Southern California, was at 97% of capacity shortly after Christmas.

All this makes the time high for California water bureaucrats to cut out their act and provide farmers and other citizens with realistic supply estimates, rather than constantly reserving the right to leave water districts and their people and industries high and dry, even when supplies are copious.

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Email Thomas Elias at tdelias@aol.com, and read more of his columns online at californiafocus.net.

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It rained a lot in October. Is fire season over now?

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It rained a lot in October. Is fire season over now?


This autumn brought something that isn’t always common for much of California — a decent amount of rain in October. Rather than heat waves, there have been umbrellas.

After years in which some of the worst wildfires in state history happened in the fall, a lot of people are wondering: Is fire season over?

It depends on where you live, fire experts say. And simply put, there’s more risk in Southern California right now than Northern California.

“We have not yet seen enough rain in Southern California to end fire season,” said Daniel Swain, a climate scientist with the University of California division of Agriculture and Natural Resources. “But we probably have in Northern California.”

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A car traverses a flooded stretch of Interstate 880 on Monday, Oct. 13, 2025, in Oakland.(AP Photo/Noah Berger) 



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Exclusive: FBI searched California real estate firm linked to bad bank loans

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Exclusive: FBI searched California real estate firm linked to bad bank loans


NEW YORK, Oct 30 (Reuters) – The FBI last month searched the offices of a California real estate investment firm Continuum Analytics, which is linked to bad loans recently disclosed by Zions (ZION.O), opens new tab and Western Alliance (WAL.N), opens new tab, according to legal correspondence seen by Reuters.
Continuum Analytics is an affiliate of the little-known Cantor Group funds which Zions and Western Alliance have said defaulted on about $160 million in loans, spooking markets already on alert for signs corporate credit is weakening.

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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.

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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.

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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.

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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.

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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

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California sues truck-makers for breaching zero-emission sales agreement

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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.

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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.



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