What California’s Drought Means For Businesses
California has been battling a drought for the last four years, but it was only this spring that Governor Jerry Brown instituted compulsory water restrictions. California is the leading agricultural state in the US, with output still valued at $46 billion in the drought-afflicted harvest of 2013. About half of this revenue comes from water intensive fruit and nut orchards. However, every business in California will feel the effects of the drought in some way. If not directly through water restrictions, then indirectly through higher food or fuel prices. Energy prices—already higher than elsewhere in the US due to state tax policy—stand to rise as missing hydroelectric generation is replaced by more expensive gas, coal and alternative energy sources.
Southern California’s primary supplier of municipal water, the Metropolitan Water District of Southern California, will continue to monitor compliance with new state restrictions and could decide to further restrict water deliveries if it becomes clear that the new rules are being flouted.
Learn more about the critical state of our state’s water levels at forbes.com . Energy efficiency starts at home. We encourage you to explore the many things you can do to save these precious resources.