California has published new rules for zero-emission motorcycles that would mandate zero-emission motorcycles (ZEMs) in the state for the first time in 25 years. With the California Air Resources Board’s proposed ZEM credit system, one company -Aptera- believes it could earn a substantial new revenue stream, similar to Tesla’s success with ZEV credits.
For the first time in over 25 years, CARB is taking aim at emissions from 2-3 wheeled vehicles. Unlike light-duty vehicles, motorcycle emissions standards haven’t changed since 1998, and today’s gas-powered motorcycles emit 20 times more reactive gases per mile than modern cars,says a company statement.
California’s new mandate will require that 10% of motorcycles sold in the state be zero-emission by 2028, scaling to 50% by 2035. This shift is set to reduce motorcycle emissions by half, protecting California’s air quality and health, Aptera management believes.
Aptera’s Unique Position As a solar electric vehicle (sEV) classified as a three-wheeled motorcycle, Aptera’s design aligns directly with California’s vision. Powered by integrated solar panels, Aptera is a truly zero-emission vehicle, delivering clean, efficient transportation without relying on the grid or gasoline for daily commutes. The company has a manufacturing plant in Carlsbad California.
Revenue Potential Tesla has proven the financial potential of ZEM credit trading, amassing over $9 billion from regulatory credits since 2009. In Q3 2024 alone, Tesla’s ZEM credits accounted for $739 million, nearly 34% of its net income. For Aptera, each vehicle sold in California will generate multiple credits, creating a significant new revenue stream through the sale of credits to other OEMS, supporting our profitability, and contributing to California’s environmental goals.
CARB will vote on this landmark regulation on November 7.
Pollution plagued India has seen a surge of sales of electric 2W vehicles– the second largest electric 2W market globally – where 2023 sales grew by 40% compared to 2022. Electric “tuk tuks” are replacing gasoline powered rickshaw taxis and delivery vehicles in Thailand and in Africa as well. caption: California manufactured electric motorcycle made by Aptera
Advanced manufacturing facility expansion and enhancements will boost annual feta production capacity, adding 20 full-time local jobs TULARE, Calif. (Oct. 29, 2024) – Lactalis USA announces a major investment in its Tulare, California facility that will allow it to significantly increase the volume of Président Feta cheese produced in the United States. This comes as feta cheese continues to grow in popularity with American consumers. The $55 million investment creates Lactalis’ largest feta production line in the United States. Lactalis USA is a subsidiary of Lactalis, the world’s largest dairy company. This new, 38,000 square foot manufacturing line will bring additional capacity for Lactalis USA feta production in the United States at its facilities in Tulare and Belmont, Wisconsin. The project creates 20 full-time positions in Tulare along with 100 temporary or contract positions during construction. The construction timeline spans from 2023-2027, with the line becoming partially operational in May of this year. When completed in 2027, Lactalis USA will have increased its U.S. feta production capacity to address current and future customer and consumer demand. “We are expanding to increase our cheese production capacity at our facility,” said Esteve Torrens, chief executive officer, Lactalis USA. “This investment into new jobs and expanding operations supports our local communities and demonstrates Lactalis’ long-term view for business success in the United States. This expansion helps us meet the growing demand for Président Feta cheese in the United States, which is good news for our retail customers and consumers who continue to choose Président Feta for cooking at home and creating new occasions to enjoy feta.” The Tulare manufacturing facility is one of the most advanced of Lactalis’ 11 manufacturing facilities across the United States, incorporating the latest technologies from Lactalis Group. This new production line is outfitted based on a complete 3D ergonomic analysis to support worker well-being and safety, in addition to automated air flow control and in-line production. Lactalis USA produces a variety of products at its Tulare facility including Kraft® Parmesan, Knudsen® Cottage Cheese and Sour Cream, and Kraft sweet whey powder.
About Lactalis USA in California Lactalis has a significant footprint in California with three locations and approximately 500 employees. The company has manufacturing facilities in Tulare and Turlock along with a corporate office in San Fernando. Lactalis manufacturers Kraft® Parmesan, Président® Feta, Knudsen® Cottage Cheese and Sour Cream, and Kraft sweet whey powder in Tulare, and specialty ethnic food and beverage products, including cheeses, yogurts, spreads and dips in Turlock under the Karoun®, Parmalat®, Gopi®, Arz®, Queso Del Valle®, Damavand® and Yanni® brands. About Lactalis USA Lactalis USA is committed to enriching lives by producing nutritious and great tasting dairy products. The company offers an unrivaled house of beloved dairy brands in the United States including Galbani® Italian cheeses, Président® specialty cheeses and gourmet butters, Kraft® brands in natural and grated cheeses, Breakstones® cottage cheese, ricotta and sour cream, Cracker Barrel® cheese, Black Diamond® cheddar cheese, Parmalat® milk, siggi’s® and Stonyfield Organic® yogurt brands. In the United States the company has approximately 4,000 employees, is present in eight states with 11 manufacturing facilities and corporate offices located in New York City and Buffalo, N.Y., Chicago, Ill., Bedford, N.H., and San Fernando, Calif. Lactalis USA is part of Lactalis Group, the world’s leading dairy company, a French family business founded in 1933 in Laval, France.
Energy Commission & Coastal Commission will weigh in
October 28,2024 : Houston-based energy company Vistra, today, informed the City of Morro Bay of their decision to pause the application to build a battery storage facility at the Morro Bay plant site through the City. Instead, it is “our intention of pursuing the permitting path available through the State of California via Assembly Bill 205. This decision was primarily made because the City, within the past several weeks, published timelines and consideration processes that would add at least 18 months of municipal review prior to any preliminary vote.” Given this extension of municipal consideration, the State’s Opt-in Certification process will provide a more defined pathway for consideration, says the company.
“The uncertainty and ongoing delays in obtaining a decision regarding a permit to construct were impacting the planning for the project, including long-lead time items and matters involving transmission. We continue to believe that building this new state-of-the-art energy storage facility to capture and better utilize excess renewable solar electricity is good for the community and the State of California’s reliability needs and clean energy goals”
“We will spend the next several months preparing a comprehensive application, and we do not currently envision this new permitting process formally beginning before the end of this year.”
For convenience ” we’ve posted today’s letter to the City in its entirety on our project website: https://morrobayenergystorage.com/ We will retain this project website moving forward and provide updates and information to the community as appropriate. ” Here is that letter.
______________
October 28, 2024
The Honorable Carla Wixom and Members of the City Council Mr. Airlin Singewald, Community Development Director City of Morro Bay 595 Harbor Street Morro Bay, CA 93442
Dear Mayor Wixom, Members of the Council & Director Singewald:
On behalf of Vistra Corp., thank you for your service to the community. As you know, California has been modernizing its grid and generation capacities to reduce the reliance on carbon-intensive power plants to generate electricity. In 2020, recognizing the evolving needs of California’s grid, our company submitted a development application that proposed constructing 600 megawatts of energy storage on 24 of our 107-acre retired Morro Bay Power Plant property adjacent to critical transmission infrastructure.
We appreciate the work conducted over the past several years to analyze how our plan to repurpose our Morro Bay Power Plant into a battery energy storage facility could benefit the city, region, and state. Recently, there have been several comprehensive technical studies and reviews completed and made available to the public, including:
Draft Environmental Impact Report: The City’s draft EIR was completed in May 2024 and found environmental impacts to be “less than significant with mitigation incorporated” or “less than significant impacts without the need for mitigation.” Offsite Consequences Analysis: A Vistra-commissioned safety report was peer-reviewed by a City consultant this summer, concluding that “a credible worst-case scenario would not present any significant health or safety risk to the public.” Economic and Fiscal Impact Analysis: The City was provided an analysis that projected a fiscal windfall for the City of Morro Bay of $24.2 million in the first 10 years, providing financial resources for municipal leaders to invest in initiatives and services to improve the community and quality of life for residents and visitors. To advance the ongoing consideration of this important project, Vistra intends to pursue Opt-in Certification before the California Energy Commission as established in Assembly Bill 205, which was passed in 2022. The Sept. 17 Staff Report and accompanying discussion at the Sept. 24 council meeting provided updated processes and timelines that added a minimum of another 18 months to the municipal consideration calendar, which began in 2020. Given this extension of municipal consideration, the Opt-in Certification process will provide a more defined pathway for consideration. Please accept this as a formal request that the City of Morro Bay pause its municipal consideration of our development applications.
By pursuing this State-led process, based on the site’s coastal location, the California Energy Commission and California Coastal Commission will undertake the statutorily required analysis and review of this proposal.
Vistra recognizes that the plant property is adjacent to the most precious and defining aspect of Morro Bay, your coastline and harbor. We welcome the opportunity the Opt-in Certification process provides to continue our partnership with you and numerous other local and state leaders. Together, we will ensure that the plan to deploy zero-carbon energy technologies at the former fossil-fuel site will be done in a manner that is good for the environment.
While we intend to take a different permitting review path, Vistra’s commitment to transparency won’t change. To set expectations correctly, we do not currently envision this new permitting process formally beginning before the end of this year. The company will retain our project website and provide updates and information to the community as appropriate.
It is our experience that reusing a power plant site for renewable and zero-carbon energy is the most sustainable and environmentally conscious decision to be made to meet the growing electricity demand. Building a new greenfield facility requires disturbing land and building transmission lines and substations, which are expensive and resource-intensive, including time, land, labor, and more.
The Morro Bay Power Plant provides a unique opportunity to use a small portion of a retired fossil fuel power plant site and for Vistra to invest $900 million to construct a new state-of-the-art energy storage facility to capture and better utilize excess renewable solar electricity.
Vistra looks forward to working with you through the Opt-in Certification process toward a solution that is good for the community and the state of California’s reliability and clean energy needs.
Sincerely,
Claudia J. Morrow Senior Vice President, Development Vistra Corp.
VISALIA, Calif. — October 28, 2024 — California Dairies, Inc. (CDI) today announced it will cease operations at its Los Banos, California manufacturing facility, effective immediately. The entire facility will close, affecting approximately 38 employees.
“Closing the Los Banos plant was a difficult decision, one that was not made lightly,” said Brad Anderson, president and chief executive officer. “This decision was driven by the evolving dynamics of the marketplace and shifting milk supplies. We value the contributions of our dedicated employees in Los Banos and recognize the impact this has on them and the community. We are committed to supporting them through this transition. The Los Banos plant and its employees will hold a special place in our company’s history.”
The Los Banos facility will cease operations immediately and will enter a period of shutdown. CDI will be working closely with impacted employees to assist them with this transition.
The Los Banos manufacturing facility has been in operation since 1925. It was first operated as part of San Joaquin Valley Dairymen, before merging with Danish Creamery and California Milk Producers in 1999 to become California Dairies, Inc. CDI continues to have a significant presence, not only in California, but throughout the United States and internationally.
Some blame SGMA – Then there’s the decline in nut prices, chill hours, more heat, trade wars and other factors
The value of farmland in parts of the San Joaquin Valley, California’s agricultural heartland, has fallen rapidly this year as both commodity prices lag and implementation of the state’s Sustainable Groundwater Management Act casts a shadow on the future of farming in the region.So reports a recent California Farm Bureau story.
In 2014, when SGMA was adopted, the value of farmland without reliable surface water access began to decline. But within the past several months, those values have plummeted, according to appraisers, realtors and county assessors.
“It’s very dramatic,” said Janie Gatzman, owner of Gatzman Appraisal in Stanislaus County, who until last month served as president of the California chapter of the American Society of Farm Managers and Rural Appraisers.
Last month, Gatzman presented data based on hundreds of real estate transactions to congressional staff. Her analysis showed San Joaquin Valley vineyards and nut tree orchards had declined in value by 25% to 50% within the previous eight months.
In parts of Tulare County, Gatzman said, some pistachio orchards have sold this year for a quarter of what they were worth last year.
But there are other factors at play here.
Low crop prices, rising input costs and high interest rates have also played a big role in the decline of farmland values, experts said.Farmers have overplanted key crops and current disappointment may simply reflect crop prices half of what they were just a few years ago unrelated to water. A sudden decline in wine consumption has hurt vineyard values along with an influx of cheap foreign grapes.Chinese retaliatory tariffs has reduced ag exports and profitability of nut orchards and vineyards irrespective of SGMA
Global warming effects
Then there is the unmistakable impacts of global warming with both summer heat and warm winter nights affecting fruit and nut production and quality with more insect damage and chilling effect of reduced chilhours.Huge wildfires can blanket the Valley create smoke with high levels of ozone that can damage a plants ability to photosynthesize and can lead to smaller lower quality fruit. Global warming can negatively impact California agriculture in many ways, including:
Water availability: California’s agriculture is dependent on water storage in snowpack, but warming temperatures reduce this storage. Climate change is also causing more precipitation to fall in fewer, heavier events, which can increase the risk of flooding. In 2023 flooding covered thousands of acres of productive farmland in the south valley forcing the government to spend millions to help both farmers, homeowners and cities to survive an unprecedented deluge.
Water demand: Warming temperatures increase the rate of evaporation, which increases the amount of water crops need.
Sea level rise: Rising sea levels can contaminate water supplies with saltwater. In the Sacramento-San Joaquin Delta, which supplies water to 25 million Californians, more freshwater will need to be pushed through to keep out saltwater. Weather variability: Climate change is making California’s climate more volatile, with more dramatic swings between wet and dry conditions. Wildfires: Wildfires can damage agricultural fields with intense heat. Pests: Global warming can increase the risk of pests. Crop sensitivity: Some crops, such as almonds, walnuts, tomatoes, stone fruit, and wine grapes, are sensitive to warming temperatures.This month north Valley walnut growers reported unusual heat damage.”The October heat has pummeled California’s Central Valley as the walnut harvest has gotten underway. Walnuts are the sixth-highest commodity throughout San Joaquin County, but production could be a lot lower this year compared to last year. One grower said that almost one out of every five walnuts he’s grown are bad or gone because of the heat. “
And yes there is the issue of groundwater. Groundwater has supplied about 40% of water used in California in typical years and as much as 60% in drought years, serving as a lifeline for orchards and vineyards that need water year in and year out.
“Pumping is the buffer stock for fluctuations in the surface supply,” said Richard Howitt, professor emeritus of agricultural and resource economics at the University of California, Davis. “That is what enables you to have perennial crops.”
But experts said—and farmers agreed—overdrafting aquifers was not sustainable. It shrank underground water storage, caused swaths of land to sink, damaging water delivery infrastructure, and dried up shallow wells including hundreds of homestead wells.
In Madera County, some farmers in “white areas” that do not receive surface water from an irrigation district must pay penalties this year on any water they pump that exceeds 27.4 inches. But almonds, the county’s No. 1 crop, need 40 to 50 inches of water per year.
Amrik Singh Basra, who farms 300 acres of almonds in a white area in the county, said he has minimized pumping to keep his trees producing without incurring too costly a penalty. But he is still paying a price, both in penalties and production.
“When we look at the trees,” Basra said, “we can see they are not getting enough water.”
He has lost yield, with some of the crop turning out flat and shriveled, and his land’s reduced farming capacity has caused it to lose more than half its value.
Justin Morehead, a former banking manager whose family farms in Tulare County, spoke last month at the state probation hearing for the Tule Subbasin, spelling out the crisis facing some farmers.
“The banks, now looking at appraised land values that have shed 60% to 70% in five years, are reluctant to lend to the local family farm. Unable to continue farming, the owner will either be forced to sell or foreclose with the bank,” Morehead said. “This is not a hypothetical exercise to us. This is the reality our family is facing”. White areas are the areas where historically rivers have not flowed and where irrigation districts were never formed.Of course investing in a permanent crop in those areas is very risky.
Kern real estate agent Brian Neufeld points out that farmland revenues across the board in 2024 are looking to be lower than in recent years, but this is especially true in the almond tree farm market of central California where I operate. Investors interested in purchasing an almond tree farm should beware that good deals are coming in 2024, particularly for those with cash on hand.
The commercial production of almonds is currently going through a market crash that will likely prompt a large number of almond-producing farmland owners to consider selling in 2024. An oversupply of almonds has caused grower pricing to be so soft that revenues to recapture costs to produce are falling short. Even the best-yielding almond tree farms with no debt to service are struggling to cover cultural, water, harvesting, and property tax expenses.
Tough time for walnut growers
A decline in walnut prices preceded the SGMA issue with the price per pound crashing to $.38 last year compared to $1.67 in 2014. This chart shows the steady drop in walnut returns for farmers. Walnut farmers who got $2500 a ton in 2007 saw their return decline to $1200 a ton in 2020 and $840 a ton in 2023. That’s a 2/3 decline in take-home pay. Rather than blame water issues, retired farm advisor Bob Beede suggests that the farmer who is producing the walnuts may be getting as little as 40 cents a pound while the end product, after going through middlemen, is sold for $8 a pound.
Farmers are pulling trees with the 2024 California walnut production forecast standing at 670,000 tons, says USDA. That is down 19% from 2023 production of 824,000 tons.
Climate issues are clear – hot summers and low chilling hours. Last year several late winter and spring storms boosted the Sierra Nevada snowpack and significantly added to reservoir storage in California to normal condition.Some instances of blight showed in walnut groves because of heavy rains, then summer brought record high temperatures to California and growers were forced to increase irrigation. The latest objective measurement survey has indicated nut quality will be decreased from last year.
Almond prices
California’s biggest crop is almonds that covers 1,300,000 acres in the state – up from 760,000 acres in 2011. At the same time growers planted all those trees,it coincided with prolonged drought.But now prices have dropped over the past several years and the state’s almond acreage has started to decrease.
The Fresno Bee reported earlier this year that” financially troubled almond farm with ranches in Fresno and Tulare counties, as well as other parts of California, is on the verge of becoming the latest farming company to call it quits. Trinitas Farming LLC, an Oakdale-based company funded by a private equity firm, is getting ready to take offers on nearly 8,000 acres of young almond trees.”
Farmers enjoyed four dollars a pound for their almond production in 2014. It has headed lower since.In 2017 they received about $2.53 pound says USDA.In 2022 that fell to $1.40 a pound. Production in 2014 was 1.95 billion pounds – 3.1 billion pounds in 2020. Now in 2024 California almond production is expected to be around 2.8 billion pounds.
The brutal impact of Chinese retaliatory tariffs needs to be looked at. Last year, Dr. Steinbeck of UC Davis concluded that the retaliatory Chinese tariffs cost the US almond industry almost $875 million in export value or more than 320 5,000,000 pounds of shipments between April 2018 and April 2022. The impact of these tariffs has reduced the value of California farmland.
Pistachio returns
Operating costs for pistachio growers have been steadily increasing over the past few years, while average prices have been trending in the opposite direction. Assistant Professor in Cooperative Extension in the Department of Agricultural and Resource Economics at the University of California, Davis, Brittney Goodrich has been working on preliminary estimates to update the cost and return study from 2020. She said that costs have increased by about five percent on average since 2020.
“What I have is about $3,300 per acre, in operating costs. That doesn’t include any overhead or investment,” Goodrich noted. The 2020 study shows the cost to produce pistachios as $3,210 per acre. While costs increased, prices declined further. “I have the average price of pistachio, which includes an average on in-shell and the shelled product as well, which is about $1.86. So our revenues are down about 12 percent from 2020,” Goodrich explained.
Reported prices show a decline from 2019 of $2.81lb to about $2 pound in 2023.
Trade wars
California tree nut producers were among the biggest losers of the trade war that began under the Trump Administration, a UC study has found.
In fact, California’s farmers and food processors were hit harder than their counterparts in any other state. And, despite compensation from USDA’s Market Facilitation Program, most California farmers were not made whole by the aid, said lead author Colin A. Carter, a Distinguished Professor of Agricultural and Resource Economics at UC-Davis.
“California’s losses from the trade war far exceeded the government compensation payments,” Carter noted.
The study, “2018 Trade War, Mitigation Payments, and California Agriculture,” was released in late 2020.
Before the trade war, California’s share of the tree nut market in China had been growing rapidly. But almost all California products exported to China— one of the world’s largest importers of agricultural products—lost significant market share due to the trade war and resulting retaliatory tariffs. The U.S. market share for almonds, pistachios and walnuts fell from 94% to just 53%.
Overall, tree nuts suffered substantial trade war losses of about $239 million, with US government subsidy MFP payments accounting for just 52% of the loss, the report found.
About 68% of almonds, 78% of pistachios and 65% of walnuts produced in 2017 were exported to foreign markets. Among the various export markets, China is the third largest market for California agricultural exports by value, worth about $2.2 billion in 2017, constituting 11% of total Ag exports
Still another factor is the increase in the dollar index that has hurt exports of our crops – about 10% in the past five years.
By the way it is not just California farmers who worry about a ratcheting up of trade wars.National Corn Growers have reported that such a trade war would lead to” a steep drop in soy and corn prices, resulting in a ripple impact across the U.S., particularly in rural economies” where farmers live, purchase inputs, use farm and personal services, and purchase household goods.”
“It’s unusual to have so many crops struggling at the same time” – Ag Secretary Karen Ross
Betting on more pistachios
Production report from American Pistachio Growers estimates California acreage will top 811,000 acres and production will reach 2.08 billion pounds in 2031
A new production report, commissioned by American Pistachio Growers (APG), underscores an undeniable fact – the U.S. pistachio industry’s preeminence as a world leader in growing the popular nut will continue in the coming decade. With a projection of annual bearing acres in California running at a 5 percent annual growth clip, the state’s pistachio growers are on a trajectory to shake more than 2 billion pounds from their trees by 2031.
The projections by Dennis H. Tootelian of the Tootelian Company of Sacramento forecasts annual pistachio production from 2023 through 2031. His study focused on California, which provides 99 percent of total U.S. production. Pistachios are also grown in Arizona, New Mexico and Texas.
For the 2023 pistachio crop, which California growers are currently harvesting, Tootelian pegs the crop as 1.36 billion pounds from 453,750 bearing acres. His study projects the rise in new plantings, number of new bearing acres and total annual production in California for each of the next nine years.
New plantings of pistachios are projected to mirror what growers have planted on an annual basis in the past decade. Tootelian said that will mean the total number of acres in California will grow by 28,489 per year, from 2023 through 2031, to total nearly 811,300 acres.
As new orchards mature, the number of bearing acres is expected to grow at a rate of 5.1 percent annually. That will mean the 2031 crop will come from 668,850 bearing acres. Non-bearing acres are counted as trees in their first year of being planted through year five. Measurable production begins in the 6th year, the year they are considered “bearing” acres.
Location Location
The prospect of receiving water is and has always varied by location. The eastside of the Valley has always been more productive, dotted with more small farms and cities than the dry west side of the Valley. The east side- close to the Sierra – is favored with more permanent plantings that require regular annual water supply over decades. These vineyards and orchards have sprung up on the river fans coming off the Sierra like the Kaweah River or the Kings. But areas in between those fans are dryer, soils are poorer and often less productive.Now some of these areas are termed White lands.
Ag West Farm credit reports that areas not served by district water, known as ‘White Land’ areas, have seen values decrease 9% to 16% annually since 2015.Elsewhere in the State, land values are becoming increasingly tied to projected long-term groundwater availability and the access to reliable surface water supplies. The Sacramento Valley, because of its wetter climate and closer access to the Sacramento area rivers, is one area in the state to enjoy more reliable water.
Water availability, particularly access to surface water, is the primary driver of land values in the San Joaquin Valley. Pumping restrictions and state intervention will increase the importance of groundwater recharge. Secondary drivers include elevated interest rates and falling commodity prices.
Declining commodity prices are beginning to put downward pressure on land values in the San Joaquin Valley, notably in the tree nut and table grape sectors. This trend is also present in tree nut orchard values in the Sacramento Valley.
Listing times are increasing as supply outpaces demand, a trend that has been compounded by the liquidation of multiple large vertically integrated grower/packers and agricultural investor groups based in the southern San Joaquin Valley. Tens of thousands of additional acres are on the market.
Dairy facility demand is decreasing due to weak domestic markets. There is a limited pool of buyers and they prefer newer, more efficient facilities. Less efficient facilities are typically purchased and redeveloped into feed cropland or used as heifer facilities.
Increased orchard plantings over the last several years reduced available land for sale in the Sacramento Valley, leading to higher land values. More recently, this trend is slowing as commodity prices fall. Rice ground values are diverging on opposite sides of the valley – west-side values are trending lower due to water supply curtailments while east-side values are trending higher due to relative water security.
Glut of wine
Premium wine grape vineyards in the Central Coast, with the exception of those located in the desirable western Paso Robles area, are seeing reduced demand due to a glut in the U.S. wine industry. Established winery sales activity appears to be slowing.
Water availability, particularly access to surface water, is the primary driver of land values in the San Joaquin Valley. Pumping restrictions and state intervention will increase the importance of groundwater recharge. Secondary drivers include elevated interest rates and falling commodity prices.
In the South Valley there has always been a huge difference in natural precipitation that replenishes our groundwater.The east side has more small farms, while the west and south have more larger farms.
Eastern San Joaquin Subbasin: Precipitation ranges from 11 inches in the southwest to 25 inches in the northeast.There is a tremendous variation in the amount of precipitation that falls that can be seen comparing precip at Giant Forest in the Sierra receiving about 45 inches a year, Three Rivers just above the valley floor receiving an annual rainfall of about 27 inches. Lindsay, California at the base of the foothills gets 12.5 inches annually and Visalia receives about 11 inches of rain annually. Further west Hanford receives around 9 inches and Lost Hills on the extreme west side of the Valley gets just 7 inches of annual rainfall.Besides rainfall, the eastern portions of the SJV, close to where rivers spill out onto the valley floor, are the beneficiaries of the best water runoff and recharge with a dense network of district canals and ditches criss crossing the ag land and replenishing the groundwater there.
In order to bring water to areas along the eastside that do not enjoy river runoff, the federal government in the 1940s funded a canal (Friant Kern Canal) that brings San Joaquin River water south past Bakersfield offering a steady reliable supply to otherwise dry areas like Orange Cove and southern Tulare County where little river runoff exists and/ or the soils have little groundwater.Likewise on the westside the state has brought northern California water south to extremely dry areas although on a less reliable and reduced quantity level allowing a huge planting of pistachios near Lost Hills, for example.
Statewide drought has reduced the annual average California Aqueduct volume prompting vigorous groundwater pumping by farmers who have invested in trees. But in recent years pumping has caused adjacent land to sink along both the east and west side canals with subsidence (sinking land) damaging canal infrastructure to the tune of millions of dollars. So far the state has picked up the tab, but the issue is in litigation.
The water and land value issue is not just SGMA but drought. Land close to a surface water source has always been more valuable than land without the choice.Westside rangeland can go for $500 an acre while pistachio orchards can fetch $45,000 an acre.
The whole picture is complicated. Karen Ross, Secretary of the California Department of Food and Agriculturw says it’s a difficult situation for farmers, particularly due to low commodity prices and increasing production costs. “It’s unusual to have so many crops struggling at the same time,” she said in a recent interview.
The California Farm Bureau contributed to this story.
captions: Winter chill brings summer fruits (and nuts). But warmer, shorter winters can disrupt the chill that fruit and nut crops—and related local economies—depend on.Chart shows winter chill hours measured in Fresno.
The City of Tulare is in possession of two parcels of land located between K Street and Highway 99 just south of Commercial Avenue.
The city has received interest from Knight Transportation, the owner of surrounding properties, to purchase the five acres of city owned property to expand their current trucking operations.
The Planning Commission will take up the proposal on October 28.The property will soon have access to the new AgriCenter Interchange being constructed by CalTrans.
Staff recommends that the Planning Commission find that the declaration of the properties as surplus and disposition of properties for industrial development is consistent with the 2035 General Plan, adopted October 7, 2014, in accordance with Government Code Section 65402.
The sale will then be taken up by the city council.
According to the truck company website”The Tulare terminal broke ground in 2004 and officially opened up in 2005 and at the time of its inception was the largest terminal within Knight Transportation. Conveniently located right in between the Bay Area in northern California and Los Angeles, the Tulare terminal has become an ideal rest stop for Knight drivers whether they are heading south from PNW or north from Southern California. Our terminal has grown to include dedicated short haul routes throughout California, a regional fleet and our OTR fleet. We currently have the largest fleet at Knight Transportation, consisting of 208 trucks and 225 drivers. The Tulare terminal includes a full service shop and weekly orientation classes.”
E15 sign in Iowa gas station.Iowa Renewable Fuels Assn
The Renewable Fuels Association October 25th applauded California Gov. Gavin Newsom for directing the state’s Air Resources Board (CARB) to expedite the approval of E15, gasoline containing 15 percent ethanol. California is the only state in the country that doesn’t currently allow the sale of lower-cost, lower-carbon E15 but limits it to 10%.
In a letter to CARB Chair Liane Randolph Gov. Newsom wrote, “Given the potential for allowing E15 gasoline to increase fuel supply and reduce gasoline prices, with little to no environmental harm, it is prudent for CARB to prioritize resources that would allow for the expeditious completion of this process. Therefore, I am directing CARB to accelerate its action on this critical issue.” E15 fuel, which contains 15% ethanol, has been widely adopted in other states and could significantly reduce prices without adding environmental harm, says RFA. As of 2023, E15 was sold at more than 3,000stations in 31 states.
In a related news release, Newsom stated, “There’s massive potential for this to be a win-win for Californians: lowering gas prices by up to twenty cents per gallon while keeping our air clean. It builds on our efforts to keep gas prices low by holding Big Oil accountable and helping prevent price spikes at the pump.”
Gov. Newsom’s letter cited a recent study by economists at the University of California, Berkeley and United States Naval Academy that showed E15 could result in a $0.20 per gallon price decrease for the state’s drivers, saving California families up to $2.7 billion per year. E15 is a fuel blend that contains 15% ethanol and is generally cheaper than regular gasoline, says the RFA.
Price: In April 2023, E15 was on average $0.27 per gallon cheaper than E10, or 7.4%.In summer 2023, E15 was on average 10–30 cents per gallon cheaper than regular gas, with some locations offering over $1 off per gallon.
Reasons for lower price: Ethanol is cheaper to produce than gasoline, and the domestic production of ethanol from corn helps stabilize fuel prices.
Benefits: E15 is a lower-carbon option and can help save money on fuel.
“”We sincerely appreciate Gov. Newsom’s efforts to accelerate the approval of the cleaner, greener E15 fuel blend in California,” said RFA President and CEO Geoff Cooper. “Not only does E15 reduce greenhouse gas emissions and harmful tailpipe pollution, but it also delivers significant savings at the pump. Allowing the sale of E15 would provide economic relief to California families, while at the same time providing important environmental benefits.” Newsom’s news release also highlights recent vehicle testing from the University of California, Riverside showing that “blending in gasoline would not affect NOx emissions and would reduce particulate emissions.”
CARB has long argued that higher blends of ethanol would hurt the fight against air pollution. Given their opposition, ethanol manufacturers based in California had trouble making a profit and several have gone out of business. Just a few weeks ago CARB appeared poised to make it harder to offer higher blends in the state.
RFA opposed proposed regulations updating California’s Low Carbon Fuel Standard recently noting that CARB’s proposal was “fundamentally flawed and could significantly restrict the future use of low-carbon ethanol in the state”, the Renewable Fuels Association wrote.
CARB had been criticized by the RFA arguing that ” renewable fuel producers and California consumers will suffer if CARB moves ahead with its unnecessary and inexplicable proposal for new “sustainability” requirements and an arbitrary new method for assigning hypothetical land use change penalties.
“If CARB had its thumb on the scale against ethanol before, now they are trying to give themselves the authority to put their whole fist on the scale,” said RFA President and CEO Geoff Cooper. “This proposal is completely disconnected from reality and, if finalized, will very likely result in shortages of low-carbon fuels and higher fuel prices for California consumers.”
Now Newsom is weighing in and if CARB changes its tune could help reduce average fuel cost in California, widely known for high gas prices. CARB needs to finish their studies first.
Ethanol is made from corn and is not an oil product.It is blended with gasoline around the state available at all gas stations.Blending at the 15% level should not require much retooling of the process, say sources.
Consumer Reports writes that “the EPA says E15 can be used in flexible-fuel vehicles, as well as 2001 and newer cars, light-duty trucks, and medium-duty SUVs. Don’t use E15 in motorcycles or other small engines, heavy-duty trucks, or nonroad vehicles such as boats and snowmobiles.”
Oil analyst Tom Kloza has written that it “looks like CA governor Newsom will look to accelerate car approval of E 15 gasoline blends.Opis data shows ethanol to be about $.40 a gallon beneath Carbob so the move makes economic sense”. Carbob gas from the refineries for use in California is mixed with ethanol at the terminal racks before the finished blend shows up at your local station.
Come the new year there will be a new way to catch a ride around Visalia.
Assistant City Manager John Lollis says Visalia residents will be able to access a newly purchased fleet of microtransit vehicles starting in January.
Microtransit is a transportation service that instead of running on a fixed-route, uses technology to provide on-demand rides within a designated area. Riders use a smartphone app or website to request a ride, and software matches the rider’s location with a vehicle and estimates a pick-up time. The vehicle may deviate from its route to pick up the rider.
The Visalia City Council will be considering the final component of Visalia Transit’s new microtransit service at its meeting on December 3, 2024, with the proposed farebox rate of $5 for trips within the city of Visalia.
The council will also receive a staff presentation on Visalia Transit’s robust overall transit operations, including Dial-A-Ride, Fixed Route, Sequoia Shuttle, V-Line, as well as the anticipated new Cross Valley Express between Lindsay and Hanford.
In regards to microtransit, at its meeting on September 16, 2024, the Council approved the purchase of seven vehicles to deliver the service, as well as software to support the service, which both are expected to be delivered to Visalia by December 1st.
Now they need to come up with a catchy name.Transit staff is currently refining the brand and graphics of the microtransit vehicles, with promotion and beginning of services planned for January 2025, says Lollis.
Microtransit services are typically offered by local governments or public transit agencies but operated by third-party companies.The idea has been spreading in the U.S. for years as traditional transit struggles to increase ridership. They’re similar to ride-sharing companies like Uber and Lyft — and operated by similar types of tech startups — but still subsidized like other modes of public transit. Screenshot 2024-10-25 at 11.29.33 AM.png In other parts of Tulare County microtransit is already offered. With Visalia starting up, the Tulare County Regional Transit Agency (TCRTA) is proposing changes to its on-demand microtransit service. In anticipation of the City of Visalia deploying its own microtransit service, TCRTA proposes discontinuing its service of providing intra-city trips in the Visalia zone.
For Inter-city trips to and from the City of Visalia, riders will continue to be dropped off and picked up from their destination. Going forward, TCRTA will collaborate with its partners on microtransit inter-city trip policy and protocols. TCRTA is also proposing changes to microtransit pick-up times from 30 minutes in all areas to a market-based approach where pick-up times are determined by availability with the rider determining whether to accept the ride as they see fit.
Targeted average pick-up times for urban areas are proposed to be under 30 minutes, and rural areas under one hour.
Public hearing
Members of the public are encouraged to comment. A Public Hearing for final comments will be held at the TCRTA Board Meeting scheduled for Monday, November 18, 2024, at 4:00 pm. The hearing will be held in the TCRTA Conference Room located at 200 E. Center Ave., Visalia, CA.
Cross Valley Express bus service funded
Meanwhile,Tulare County has received over $50 million for the Cross Valley Express project, which will offer a new bus service
Tulare County has received $59,100,000 in funding for their Cross Valley Express: Kings-Tulare County Regional Bus and Capital Infrastructure plan. The funds come from the California State Transportation Agency.
Officials say the project will establish a new transit bus network connecting Visalia, Hanford and Lindsay, to the San Joaquin Hanford Amtrak station and the future Kings-Tulare High-Speed Rail station in Hanford.
Phase 1A launched July 1, 2024 and will provide connection from Visalia to Hanford with four round trips per day, including four round-trips on weekdays and two round trips on Saturdays. This phase will also provide a convenient connection to Amtrak San Joaquins trains (702 & 712).
Phase 1B is slated to be in service by January 2025 and will add service from Visalia to Hanford – enhancing the frequency and convenience of the route.
And lastly, a future Phase 1C will focus on implementing an Express Bus, providing service every half-hour, connecting Hanford to Lindsay and the High-Speed Rail connection.
California’s new light vehicle registrations fell by 1.7 percent YTD versus the year earlier, totaling 1,320,708 through September 2024 says the latest California New Car Dealers Auto Outlook.
The state is forecasted to reach 1.75 million new vehicle registrations by year-end. Overall sales in 2023 reached 1.77 million, indicating a flat YOY prediction. Additionally, early 2025 estimates remain in the narrow range, with total projected sales to reach 1.79 million.
New vehicle registrations in the Golden State seem to be leveling off post-pandemic with a new yearly average benchmark. Three of the past four years have totaled approximately 1.76 million registrations, far less than the pre-pandemic years (2015-2019), which hovered just above 2 million registrations. Affordability remains a key issue holding back numbers, but lower interest rates, falling inflation, increasing employment, and rising incentives may help sales rise into 2025.
Tesla loses market share
Tesla’s Model Y remains the top-selling car in California year-to-date, but the company’s sales continue to slip, losing 8.5 percent market share compared to last year. This marks a full year of registration declines for Tesla in California, leaving the “alternative powertrain door” open for traditional automakers. Manufacturers and dealers have embraced this shift, expanding their share of battery electric vehicle (BEV) sales to 40.2 percent as consumers increasingly turn to exciting, new electric vehicle (EV) options.
Brands like Kia, BMW, and Hyundai have gained traction, increasing their year-to-date market shares by 1.4, 1.3, and 1.3 percent, respectively. Hyundai’s Ioniq 5 is now the third best-selling BEV in California.
Internal Combustion Engine vehicle sales down
YTD, BEVs currently comprise 22.2 percent of the State’s market share, showing a slight increase this year. When considering all alternative powertrains—plug-in hybrids (PHEVs), hybrids, and BEVs— these vehicles account for 39.4 percent of new sales in the first nine months of 2024, a significant increase from just 11.6 percent in 2018.
By contrast last year ICE-powered vehicles (gas and diesel) accounted for 63.9 percent of the state’s new vehicle sales share in 2023, losing about 7.7 points from 2022 numbers.So far in 2024 the market share of ICE vehicles sold in the state declined to 58.3%, says the report.
In 2023, combined sales of BEVs, PHEVs, hybrids, and fuel cell vehicles in the state accounted for 35.9 percent of the market share (compared to 11.6 percent in 2018) and 39.4% this year.
“California’s franchised dealers are here to meet the needs of our customers, whether they prefer traditional gas-powered vehicles or are shifting to electric or hybrid alternatives. We’re proud to be at the forefront of the Nation’s evolving auto industry, providing the choices and expertise Californians need as they navigate their options,” says David Simpson, CNCDA Chairman and owner of Simpson Buick GMC Cadillac of Buena Park, Simpson Chevrolet of Garden Grove, and Simpson Chevrolet of Irvine. “At the end of the day, it’s about serving our communities and offering vehicles that best suit their lifestyle while supporting a greener future in a way that aligns with consumer demand and affordability.”
Brand Market Share and Summary
Among all powertrains, Toyota remains California’s preferred brand, with 215,402 registrations YTD and 16.3 percent of the market share.
Other YTD market share brand leaders: Tesla (with 12.1 percent market share) and Honda (with 10.9 percent market share). Honda also posted a noteworthy 11.2 percent increase in registrations this year, with 143,391 registrations YTD.
Still holding the position as California’s second best-selling brand, Tesla is grappling with significant hurdles. Its market share dropped by 12.6 points compared to last year, and Q3 2024 registrations fell by 3.5 percent from Q3 2023. This decline suggests that Tesla’s once-coveted appeal continues its downward trend, raising more concerns for the direct-to-consumer brand.
Five brands in the State have improved their registrations by 20 percent (or more) this year. These brands include Jaguar (222.6 percent), Buick (39.9 percent), Rivian (35.4 percent), Lincoln (27.6 percent), and Dodge (20 percent).
Model Segment Rankings
Unchanged from the last two quarters, California’s best sellers in the primary segments in Q3 2024 include the Honda Civic, Toyota Camry, Tesla Model 3, Toyota Tacoma, Chevrolet Silverado, Toyota RAV4, Subaru Outback, and Lexus RX.
The top three passenger cars sold in California YTD saw variations from Q2. The Honda Civic is now the best-selling passenger car in California (with 40,741 registrations), followed by the Toyota Camry (40,025 registrations), with the Tesla Model 3 taking third place (37,219 registrations). The top three light trucks sold YTD were the Tesla Model Y (105,693 registrations), the Toyota RAV4 (49,810), and the Honda CR-V (37,759 registrations).
Regional Variances
Northern California car registrations dropped 15.4 percent YTD, while light trucks were up .6 percent. Southern California cars also slipped by 12.3 percent. However, southern California light truck registrations saw a jump of 4.2 percent.
Regionally, the San Diego County market has been the most insulated from declines, with a -0.7 percent dip in YTD registrations. The San Francisco Bay Area market saw the largest dip in registrations, posting -4.3 percent this year.
The US Navy is working on a lease of 920 acres of land around the NAS Lemoore base to a Massachusetts company who would construct a large 425 MW solar farm and build a data center the size of three Costcos on the base campus. This is the third run to lease surrounding land at the base by the government to produce energy that could help protect the facility power supply and offer resiliency. Similar projects were proposed in 2015 and 2023 but no construction ever happened. Now there is a new investor who could build this project that now includes a 600,000sf power-hungry data center – one of hottest commodities on Wall Street these days. A draft environmental document (Supplemental Assessment-SEA) published in June says a new lessee -Ameresco- could sell the generated power to regional customers, including the onsite data center. In return, the lessee would provide in-kind consideration in the form of energy generation to the Navy that would allow NAS Lemoore to work toward meeting both Navy and Department of Defense energy resiliency objectives. The project would include EV charging stations, a battery storage facility or BESS, backup generation/microgrid, and other facilities.
The final Supplemental Environmental Assessment is expected to be complete in late in November.
A data center is a facility used to house computer systems and associated components, such as servers, storage systems, networking equipment, and other hardware. It serves as a centralized location for organizations to store, process, manage, and distribute large amounts of data. Data centers are designed to provide a controlled environment with optimal conditions for the reliable operation of the computer systems. They have redundant power supplies, cooling systems, and backup generators to ensure uninterrupted operation. They also employ various security measures, such as access controls, surveillance systems, and fire suppression systems, to protect the valuable data and equipment.
The data center would be connected to high-speed long haul fiber optic network for receiving and transmitting data. The facility would be primarily powered by on-site solar and battery storage for most of the year and would be connected to grid power for periods of low solar energy production. The data center would be secured by fences and
gates and only accessible by authorized personnel or deliveries. Vehicles onsite would include employee vehicles, delivery trucks and service vehicles. During operations, the project site would have 20 employees, with staffing 7 days per week, 24 hours per day.
A key factor that contributes to the rapid expansion of data center construction in the US is digital transformation. As more businesses undergo digital transformations, the need for robust IT infrastructure to support cloud computing, big data analytics, and online services has skyrocketed, says one analysis.Federal incentives have promoted investments.There are no data centers in Kings or Tulare Counties.
Approximate Construction Timeline Although the draft says that construction of the overall project would be expected to begin in 2024 with data center operations most likely commencing in 2025.. th navy is now saying the part date has not been set.
The project can be constructed in a single or multiple phases that are determined by the data center customer. Data center development typically can include up to five phases of approximately 20-25 MW increments that may extend construction time through 2027.
History of leaseThe document is a Supplemental Assessment because the 2016 environmental study led to a lease of lands around the base that is still in place. NAS Lemoore encompasses 18,784 acres of Navy-owned land.On October 12, 2016, approximately 930 acres (i.e., Project Site) were leased to Liberty CO LLC for a term of 37-years (expiring October 31, 2053). The existing lease with Liberty CO LLC was then transferred to Bright Canyon Energy on February 14, 2019. In January 2024, Brightg Canyon was acquired by Ameresco, and thus, as of 2024, Ameresco is now the current lessee of the undeveloped land and hereinafter is referred to as “lessee.”
Under the Navy’s 2024 Proposed Action, the existing lease would be modified to allow the lessee to construct and operate additional resilient energy systems within the leased 930-acre Project Site. The existing lease allows the lessee to construct and operate up to a 125 MW solar PV system and associated infrastructure. The changes proposed as part of the 2024 Proposed Action would include the construction and operation of an additional 300 MW of solar PV systems (for a total of up to 425 MW) and an option to construct a data center, EV charging stations, BESS, backup generation/microgrid, and related infrastructure. Ameresco, Inc. completed the acquisition of Clean Energy Asset from Bright Canyon Energy for $76.8 million says their website. Ameresco develops, owns and operates renewable-energy projects across the United States, Canada and Europe. In California, its projects include battery storage installations, including a $1.2 billion, 537.5-MW project that was delayed due to COVID-19 lockdowns and resulted in the company declaring a force majeure in April 2022. Ameresco was contracted to construct the battery storage systems for SCE at the utility’s substations in Ventura and the Los Angeles area.
The environmental document says once construction starts iit will employ about 400 construction workers. A final SEA is expected before work begins.
