| | | | |  | | By Camille von Kaenel | Presented by ESS Inc. | A DRY RUN: It was the big moment that wasn't. Aug. 16 was supposed to be the day the federal government stepped into the seemingly endless fight over the Colorado River and imposed a resolution. The feds, like frustrated parents with a carful of squabbling kids, were going to do what all of us living in the increasingly dry West and Southwest have been unable to do: figure out how to live with less. It didn't happen, though. Judgment day came and went. The Interior Department imposed some modest cuts but punted on the larger question of how to divvy up this increasingly scarce resource among cities, farmers and tribes with the clock running out and the two largest dams on the river nearly three-fourths empty. It raises only one question: Now what? All eyes in California are on Imperial County , the lightly populated slice of desert and chocolate-brown mountains that borders Arizona and Mexico. It has less than 200,000 people and some of the highest poverty in California. But it's an agricultural powerhouse thanks to the water it draws from the Colorado River. It uses two-thirds of California's allotment and its rights trump those of users such as Arizona and Nevada following a century of agreements. That makes the Imperial Irrigation District the linchpin of negotiations over the future of the river. It shares that role with the Metropolitan Water District, which supplies millions of Southern California households and has said both agricultural and urban water users must be prepared to take cuts. Which brings us to farmers like Ronald Leimgruber. He's a third-generation Imperial Valley farmer, growing mostly alfalfa on 3,000 acres. Leimgruber told Politico a day after the feds failed to impose a settlement that he's already invested $4 million in conservation measures and been forced to cut back on irrigation, transferring more water to the growing cities of Southern California. More cuts will mean leaving fields fallow, and will come at a cost to him, and others. "Fallowing will kill our community, kill our agriculture and kill our food security in this nation," Leimgruber said. His livelihood is so tied up in the Colorado River that he met with top Imperial Irrigation District negotiators this morning and frequently talks to them about the state of play. One way to resolve the dilemma would be to use federal money to compensate farmers like Leimgruber. The district's board of directors suggested that was a possibility with money from the Inflation Reduction Act that was signed Tuesday by President Joe Biden. The Imperial Valley is also looking for money to avoid harmful dust and protect bird habitat at the vast Salton Sea. Federal officials are expected to provide more details on potential financial assistance in the coming weeks. So far, at least, they haven't set a new deadline.
| | | | A message from ESS Inc.: We have a solution to power outages and high energy costs in California – Long-Duration Energy Storage.
California can accelerate its transition to 100% clean energy by increasing its investment in shovel-ready long-duration energy storage projects. Storing clean energy will reduce power outages and energy costs by capturing it when it's the cheapest to produce and using it during peak periods when electricity demand and prices are the highest. | | | HAPPY WEDNESDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to cvonkaenel@politico.com or send a shout on Twitter. DMs are open!
|  | WHAT YOU NEED TO KNOW TODAY | | | We know it's hot but California's grid operator wants you to set your home thermostat to 78 degrees or higher this afternoon or evening – or else risk power outages as high temperatures strain the grid. California's Independent System Operator is calling for voluntary electricity conservation from 4 p.m. to 9 p.m. in the first "Flex Alert" of the year to help balance supply and demand. This is the type of day that fuels growing concerns about grid reliability as the state tries to meet its renewable energy goals. Newsom, to the consternation of some of his environmentalist allies, has already had the legislature set aside millions of dollars to buy back-up power, potentially extending the life of natural gas plants, and is now taking steps to stop the planned shutdown of the Diablo Canyon nuclear plant.
| | ON THE BEATS | | BRUIN BALL: Since UCLA and USC announced their sports teams would leave the Pac-12 for the Big Ten, a multi-million question has lingered: How much are the universities left behind going to lose? A new report from UC President Michael V. Drake's office dropped today, providing some tentative answers. USC's departure will cost the Pac-12 an estimated $150 million in media revenue, 30 percent of the conference's total, according to the report. UCLA's leaving will shrink members' earnings too, by about one third as much. USC's departure will cost remaining Pac-12 members such as UC Berkeley about $9.8 million apiece, and UCLA's exit will add onto those losses. The shakeup could be a boon for UCLA, as it follows USC to a potentially more lucrative conference. — Blake Jones FRAUD IN RENTAL ASSISTANCE PROGRAM — A review released today by State Controller Betty Yee's office found California distributed $7 million in potentially fraudulent payments through the Housing and Community Development's State Rental Assistance Program. The program was launched in March 2021 to administer state and federal funds to qualified Californians who needed assistance paying rent or utilities during the pandemic. Since its launch, the state has distributed about $4.27 billion to more than 340,000 households through a third party "fiscal agent." Yee's review initially identified $18.1 million in potentially fraudulent applications during the period of July 1, 2021, through December 31, 2021. A total of $7 million of the potentially fraudulent payments had been disbursed, and $11.1 million could have been disbursed had SCO not identified the potential fraud, the office said in a release. - Lara Korte SEISMIC SAFETY: Labor groups are fighting an effort by the California Hospital Association to exempt hundreds of buildings in more than half the hospitals in California from complying with 2030 earthquake safety standards and seeking a seven-year extension for the rest. A coalition that consists of the California Nurses Association, the Teamsters, National Union of Healthcare Workers, UNITE HERE, and the Building and Trades Council is circulating a letter to Gov. Gavin Newsom and state lawmakers. They say the extension is too long and would put people at risk in an earthquake. Notably, the coalition doesn't include Service Employees International Union—United Healthcare Workers West. Some of those who signed the letter say there's a reason. They say SEIU-UHW is supporting the extension request as a bargaining chip in negotiations to secure a $25 minimum wage for its members. Neither the union nor the hospital association responded to requests for comment. The hospitals have long sought delays in the state's earthquake requirements, mandates which were created in the wake of the 1994 Northridge earthquake and have been phased in over many years. The 2020 standards required hospital buildings to be able to withstand an earthquake; the 2030 standards require them to be fully functional and provide care after an earthquake. Last year, the hospitals lobbied to get a seven-year delay of the 2030 standards included in the state budget. That didn't work. Now they're seeking the same flexibility, but with a different tack. — Victoria Colliver
| | | | A message from ESS Inc.:   | | | | | AROUND CALIFORNIA | | "California officials warn of misleading COVID rapid test results: Sick but 'negative'," by the Los Angeles Times' Rong-Gong Lin II and Luke Money: "If you have COVID-19 symptoms and get a negative rapid test result, the FDA suggests testing again 48 hours later. If the second test is negative and you're still concerned your symptoms are caused by COVID-19, the FDA suggests either a third rapid test or a lab-based PCR test." "'People should use multiple tests over a certain time period, such as two to three days, especially when the people using the tests don't have COVID-19 symptoms,' the agency said in its statement. 'The FDA is highlighting the continued need for repeat, or serial, testing when people get a negative result with an at-home COVID-19 antigen test, including recommending additional testing over a longer period of time.'" " Know your rights during a California heat wave: Here's how outdoor employees are protected," by the Sacramento Bee's Brianna Taylor: As Sacramento and the Central Valley region endures one of the longest stretches of 100-degree heat , it's important for people to stay cool, especially if they work outdoors. The Sacramento Bee's broken down some of the rights rights that employees working outside hold, including access to water and shade. "It's unlawful for a California employer within the agriculture, construction, landscaping, oil and gas extraction and transportation industries to discharge or discriminate against their outdoor workers for exercising these rights, the California Department of Industrial Relations wrote on its website." Compiled by Sakura Cannestra.
| | | | A message from ESS Inc.: California can increase reliability and control energy price spikes with long-duration energy storage.
California is a leader in the transition to renewable energy. However, even with that progress, we still cannot rely upon renewable power when the sun isn't shining, and the wind isn't blowing. There are still times of the day when we generate more low-cost renewable energy than Californians can use and must shut down renewable generation because there is nowhere for the energy to go. In California, we waste 1.5 terawatt hours of power annually due to solar curtailment – enough energy to power over 218,000 homes for an entire year. Imagine if we could capture this wasted renewable energy and use it when we need it the most – like on hot summer days. With federal tax incentives on the horizon, California's investment in long-duration energy storage will undoubtedly pay off. | | | | | MIXTAPE | | — "These are the least affordable housing markets in California and the Bay Area," by the San Francisco Chronicle's Kellie Hwang. — "Monkeypox resources are scarce in California's Central Valley," by CalMatters' Kristen Hwang. — " California's giant sequoias are burning up. Will logging save them?" by the Washington Post's Joshua Partlow.
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