SACRAMENTO, CA – State Senators Dave Cortese (D-San Jose) and Melissa Hurtado (D-Bakersfield) released the following statements on their joint request to the U.S. Department of Justice (DOJ) to investigate anti-competitive water purchases and drought profiteering in California and Western States:

“History is a reminder of the damage that greed can create. Greed and profiteering off our most fundamental need has no place in California. The response from the Department of Justice provides us with reassurance that bad actors will be held accountable for their actions. I have faith that truth and justice will prevail so that our communities continue to have safe affordable drinking water and access to safe nutritious affordable food.”

“The DOJ has assured us that it will protect competition in water markets so that private interests can’t deny public access to water,” said Senator Cortese, Chair of the Senate Labor, Public Employment and Retirement Committee. “We don’t allow price gouging in retail stores — so why would we tolerate market manipulation when it comes to humanity’s most essential resource? Water is a public good, and any conduct that conceals water trading or spikes water prices in violation of federal antitrust laws should be brought to justice.”

In a letter to United States Attorney General Merrick Garland, Senators Cortese and Hurtado requested an investigation into possible drought profiteering and water rights abuses in the Western states. The concern came from the increasing amount of water rights purchased by hedge funds, their potential anti-competitive practices and the devastating impact that could have on our water security. An investigative report by Bloomberg Green detailed the unsustainable business practices of investment firms in the Central Valley.

Senator Dave Cortese represents State Senate District 15, which encompasses much of Santa Clara County in the heart of Silicon Valley. He chairs the Senate Labor, Public Employment and Retirement Committee. Visit Senator Cortese’s website: https://sd15.senate.ca.gov

Senator Melissa Hurtado is Chair of the Senate Committee on Agriculture, and currently represents the 16th Senate District in the California Legislature, which includes portions of Fresno, Tulare, Kings and Kern Counties. 

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