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Opinion: Sacramento Needs to Step Up on Water Conservation in California

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Amidst the aftermath of two wet winters, many Californians may have forgotten the severe drought conditions that plagued the state just a few years ago. However, this collective memory lapse could prove detrimental in the face of impending water crises. Throughout California’s history, the oscillation between drought and flood has significantly influenced the state’s landscapes. As we navigate the era of climate change, extreme weather patterns are becoming more frequent and intense.

The reliable water supply that characterized the 20th century is no longer a certainty. Recently, California agreed to reduce its water imports from the Colorado River by 10%, not merely as a gesture of goodwill, but out of necessity. The Department of Water Resources has forecasted that the Sierra snowpack, a crucial water source for both agricultural and urban purposes, could diminish by up to 65% by the end of the century. Moreover, California’s water supply is expected to decrease by 10% as early as 2040. It is imperative that we prepare for a future characterized by scarcity and unpredictability.

To address these pressing challenges, comprehensive legislation was painstakingly crafted over a period of almost two years. In 2018, Senate Bill 606 and Assembly Bill 1668 were introduced with the aim of establishing long-term water conservation standards for urban water suppliers. These standards would govern indoor water use, permissible water loss, and outdoor water use. The State Water Resources Control Board was tasked with formulating these standards in collaboration with various stakeholders, including the Department of Water Resources, businesses, environmental advocates, and water utilities.

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Although significant progress has been made in solidifying indoor water use and allowable water loss standards, a delay has occurred in finalizing outdoor water use efficiency standards. Consequently, the water board is on the brink of negating the hard-won advancements by permitting water utilities to delay meaningful reductions until 2035 or later. Under the current proposal, approximately 72% of Californians would not be required to implement additional water-saving measures for another decade. However, the impacts of climate change are not pausing for a decade to deepen their effects. It is crucial that we maximize the utility of every drop of water during periods of abundance, such as the current year, to navigate the forthcoming hot and arid spells.

SB 606 and AB 1668, along with the associated standards, do not dictate the number of showers a Californian can take per week or when they can water their lawns. Instead, they establish “water budgets” for water suppliers based on population, service area water consumption, climate considerations, and other relevant factors. These individualized budgets enable utilities and customers to find innovative ways to meet their water targets.

The primary objective of these budgets is to maintain a steady water supply and manage water expenditures by encouraging utilities to invest in efficiency measures. This includes replacing aging infrastructure to curb water leaks, incentivizing the transition to drought-resistant plants, and promoting the adoption of water-saving appliances. By offering rebates and other incentives, utilities can facilitate these upgrades even for households with financial constraints.

The prolonged timeline proposed by the water board for implementing efficiency standards will inevitably lead to a rise in water costs, disproportionately affecting low-income households and communities. While investing in efficiency necessitates an initial outlay, it is the most cost-effective and expeditious approach to aligning water demand with diminishing supplies. Prioritizing efficiency investments offers greater flexibility, ensuring that households do not face the prospect of mandatory water rationing or the inability to afford basic water needs.

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Any funds not allocated towards enhancing efficiency will be redirected to more expensive alternatives aimed at achieving water sustainability, such as wastewater recycling and desalination plants. While these solutions are essential for bolstering water security, they require significant time and resources to implement. Whether a utility is advocating for efficiency programs or constructing wastewater recycling facilities, the associated costs ultimately trickle down to customers. Therefore, it is undeniably logical to prioritize investments in efficiency.

State leaders must develop enduring and pragmatic policies grounded in the present climate reality to address the mounting pressure on California’s water resources. There is still an opportunity to remedy the delay in enforcing our conservation legislation by reverting to earlier proposed outdoor water use standards for urban areas and holding utilities accountable for adhering to appropriate water budgets.

The state water board must prioritize the well-being of our communities, environment, and future by making efficiency a top priority. Californians should not be obligated to postpone embracing water conservation as a way of life for decades to come.

Robert Hertzberg, a former speaker of the Assembly and former majority leader of the state Senate, and Assembly member Laura Friedman (D-Glendale), a candidate for the U.S. House of Representatives, advocate for proactive measures to safeguard California’s water resources.

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Is now the right time to invest in gold as prices have cooled?

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Now may be the time to buy gold following a recent lull in its price.

Getty Images/iStockphoto

The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

  • Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
  • Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

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