Joshua Sweet, a cannabis grower in Northern California, along with his businesses The Hills and Shadow Light Ranch, struck a deal to resolve a lawsuit over environmental wrongdoings. They’re shelling out $1.7 million in fines to several state bodies—$500,000 goes to the Division of Water Rights, $175,000 to the North Coast Water Board, and $75,000 to the California Department of Fish and Wildlife. A judge from the Humboldt County Superior Court gave the nod to this settlement, setting a new high for penalties related to water-rights breaches in the state.
The violations primarily revolved around building and diverting water from unauthorized onstream reservoirs without obtaining the necessary permits from the California Water Boards and the California Department of Fish and Wildlife. Sweet is obligated to pay these penalties over five years, and he must also comply with regulatory requirements, including obtaining all necessary permits, ceasing unauthorized water diversions and use, and restricting future property development.
A significant aspect of the settlement involves environmental restoration. If Sweet completes the restoration work by 2026, $1 million of the penalties could be revoked. The restoration work includes the removal of three unauthorized reservoirs, rehabilitation of stream channels, and restoration of damaged wetlands. The allegations against Sweet’s companies included the destruction of wetland habitat and stream channels, conversion of oak woodland for cannabis cultivation, and failure to fulfill permitting requirements.
In response to the settlement, Sweet expressed reservations, noting that if the full penalty and remediation costs were due today, it would take everything he owns. He emphasized the disproportionate nature of the penalties, considering that such fines are typically reserved for larger corporations rather than small independent businesses.
The settlement sheds light on the complexities faced by cannabis cultivators in the post-legalization era. The cannabis industry continues to grapple with regulatory challenges, especially concerning water use and environmental impact. Sweet’s case, which dates back to inspections starting in 2016, highlights the efforts by state water and wildlife officials to enforce compliance within the industry.
The repercussions of environmental violations are not only financial but also ecological. The allegations against Sweet’s companies reveal a broader concern for habitat destruction and the conversion of natural territory for cannabis cultivation. The case prompts reflection on the balance between the burgeoning cannabis industry and environmental conservation.
Yvonne West, director of the State Water Resources Control Board’s office of enforcement, expressed that Sweet’s unauthorized water diversion amounted to approximately 16.2 acre-feet of water between 2017 and 2020. The penalties, though considered modest by some, were imposed for multiple violations over four years, including unauthorized diversion and use of water to support cultivation.
The significance of this penalty lies in its record-setting nature for water-rights violations. Notably, the water board faces limitations in enforcing California’s water rights system, making penalties of this scale particularly noteworthy. The cannabis industry’s challenges, particularly related to water use, are gaining attention, and lawmakers are considering measures to address and potentially increase fines for water rights violations.
Joshua Sweet’s case demonstrated the evolving terrain of the cannabis industry, where environmental compliance and sustainability are becoming increasingly crucial. As the industry navigates post-legalization challenges, cultivators like Sweet are reminded of the importance of accountability and adhering to regulations to ensure a sustainable and responsible future for cannabis cultivation.
