Key Takeaways:

1. Water Privatization Scheme: In a secretive 1994 meeting known as the Monterey Amendments, the Resnicks acquired nearly 60% of the Kern Water Bank, a critical water storage facility originally built with hundreds of millions in taxpayer dollars, effectively transforming a public resource into a private asset.
2. Political Manipulation of Water Rights: The Resnicks strategically used political connections—including a close relationship with former Senator Dianne Feinstein—to rewrite water regulations, eliminating urban water preference rules and loosening "paper water" restrictions, which dramatically increased their ability to control and profit from California's water supply.
3. Disproportionate Water Usage: Despite agriculture representing less than 2% of California's GDP, the Resnicks and similar agricultural interests consume 80% of the state's water, converting public water resources into private profit through products like pistachios and pomegranate juice, while ordinary Californians face increasing water scarcity and potential drought conditions.

By Samuel A. Lopez - USA Herald

[LOS ANGELES, CA] - As wildfires rage across Los Angeles and beyond, Governor Gavin Newsom and Mayor Karen Bass face mounting criticism for their mismanagement and lack of preparation.

Public outrage intensified upon revelations that some fire hydrants were dry, leaving firefighters scrambling to combat the blazes. While leadership failures are under scrutiny, this report delves into another pressing issue exacerbating California’s vulnerability: how billionaires Stewart and Lynda Resnick quietly seized control of a significant portion of the state's water supply, turning a public resource into private profit.

In 1994, a private closed-door meeting at a Monterey Bay resort changed the course of California's water future. State water officials, infrastructure contractors, and agricultural landowners convened to rewrite California's water laws without public input. This gathering led to the Monterey Amendments, stripping urban areas of their priority access to water during droughts and transferring public water assets to private entities. Among the beneficiaries were Stewart and Lynda Resnick, who acquired a controlling stake in the Kern Water Bank—a critical water storage facility built with taxpayer money.

The Kern Water Bank: From Public Resource to Private Asset

Spanning 32 square miles in the Southern San Joaquin Valley, the Kern Water Bank can store 1.5 million acre-feet of water—nearly triple the capacity of Lake Isabella. Originally developed by the California Department of Water Resources, ownership was transferred to private entities, including Westside Mutual Water Company, a wholly owned subsidiary of the Resnicks' Wonderful Company. This allowed the Resnicks to control nearly 60% of the bank, effectively enabling them to sell water back to Californians during droughts.

Profiting from Public Resources

The Resnicks' agribusiness empire, The Wonderful Company, consumes approximately 150 billion gallons of water annually to produce luxury goods like pistachios, pomegranate juice, and citrus fruits. These products, often priced beyond the reach of average consumers, are cultivated using water that was once a public resource. This dynamic not only exacerbates California's water scarcity but also deepens socioeconomic disparities.

Political Influence and Water Policy

The Resnicks have leveraged their political influence to maintain and expand their water control. Their financial influence extends to research institutions and infrastructure projects like the $20 billion California Delta Tunnel, designed to divert Northern California water southward—benefiting the Resnicks' Central Valley farms. Their close ties to influential politicians, including the late Senator Dianne Feinstein, have further solidified their grip on California's water systems.

Economic and Environmental Consequences

Agriculture consumes 80% of California's water but contributes only 2% to the state's GDP. This disproportionate usage highlights the flawed prioritization of water resources. The commodification of water by private entities undermines California's capacity to respond to environmental crises, leaving urban communities and frontline workers vulnerable.

Reclaiming Public Water

California must confront the privatization of essential resources. Water is a fundamental human right, not a commodity for profit. Legislative reforms are urgently needed to prevent further exploitation and ensure equitable distribution. Transparency in water governance and accountability for political influence are critical steps toward safeguarding California's future.

As fires continue to devastate communities, it is imperative to address the systemic issues that magnify these disasters. The monopolization of California's water supply by private interests underscores the dangers of allowing essential public resources to fall under corporate control. It's imperative that we advocate for reforms that put the needs of communities above corporate profits.

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Samuel A. Lopez

USA Herald