PRESS RELEASE: FWA/AEWSD Statement on Court Ruling in Friant-Kern Canal Collapse Claim Against ETGSA ~ MAVEN NOTEBOOK

Press release from Friant Water Authority and Arvin Edison Water Storage District:

The Tulare County Superior Court issued a significant ruling yesterday in a lawsuit filed by Friant Water Authority (FWA) and Arvin-Edison Water Storage District (AEWSD) against the Eastern Tule Groundwater Sustainability Agency (ETGSA). In a decisive rejection of two ETGSA motions to defeat the lawsuit in its early stages, the Supreme Court rejected ETGSA’s central claim that it is effectively immune as a public agency from a breach of contract lawsuit. As a result, the lawsuit will now go to trial in June 2025.

In their lawsuit, FWA and AEWSD believe they will prove that, among other things, ETGSA improperly allocated “rainfall credits” to landowners within its jurisdiction, which in turn allowed them to pump unsustainable “overrun” water without paying the required penalties. In addition, ETGSA failed to properly establish and maintain a groundwater pumping penalty program; and failed to adopt and implement effective management actions to mitigate the impacts of subsidence on the Friant-Kern Canal. The complaint details various ways in which ETGSA failed to fulfill its contract and fund portions of the Friant-Kern Canal Capacity Correction Project, Phase 1 of which was recently completed at a cost of more than $325 million. To date, ETGSA has refused to implement any recommendations from FWA or State Water Resources Control Board staff to mitigate subsidence.

ETGSA’s refusal to honor key elements of the 2021 Settlement Agreement has jeopardized the reliability of water supplies in the eastern San Joaquin Valley. By encouraging continued unmitigated groundwater withdrawals, ETGSA has undermined what was once celebrated as a “historic settlement agreement” and undermined hopes for a smooth transition to sustainability.

“While we are always open to settlement, the sooner we can get to trial, the better,” said Jason Phillips, FWA CEO. “For too long, the Friant-Kern Canal has been damaged by excessive groundwater pumping, and those who caused the damage continue to expect others to foot the vast majority of the repair costs. Enough is enough.”

“I am pleased that the court has recognized ETGSA’s trickery,” said Edwin Camp, AEWSD board chairman. “We look forward to a swift resolution to this matter. It is long past time for ETGSA to take responsibility on behalf of its landowners for the destruction of critical water infrastructure that San Joaquin Valley farmers depend on. All must play by the same rules.”

“We were somewhat surprised that ETGSA spent tens of thousands of dollars of farmers’ hard-earned money on these unsuccessful applications,” said FWA attorney David Darroch of Burke, Williams & Sorenson LLP. “Nevertheless, we are pleased that the court rejected all of the various legal theories and defenses that ETGSA attempted to advance to prevent our claims from proceeding further. We are also pleased that the court set an early trial date of June 2025.”

In response to a press release issued by ETGSA stating that the FWA and AEWSD had allegedly declined an offer to mediate the dispute, Johnny Amaral, FWA’s chief operating officer, noted, “We have been trying for months to get ETGSA to make very modest changes to its Sustainable Groundwater Management Plan and regulations. They know what they need to do, and at this point they should focus on making the appropriate changes and stop fighting the FWA and AEWSD who are simply trying to protect the most important piece of infrastructure in the eastern San Joaquin Valley – the Friant-Kern Canal.”

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