A cannabis farmer in Humboldt County, California, has agreed to pay a hefty fine and restore the natural environment after being accused of violating state laws that protect water and wildlife. The settlement is the result of years of investigations by state agencies and the largest penalty ever imposed for a water rights violation in California.
The Violations and the Settlement
Joshua Sweet, the owner and operator of two cannabis farms, Shadow Light Ranch LLC and The Hills LLC, admitted that he had destroyed wetland habitat and stream channels, converted oak woodland to grow cannabis, and failed to obtain proper permits for his operations. He also diverted water from springs and streams that feed into the South Fork Eel River, a wild and scenic river that is home to threatened and endangered species of salmon and steelhead.
Sweet agreed to pay $750,000 in fines to the state, including $500,000 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 (CDFW). He also agreed to remove unpermitted ponds and reservoirs, restore streams and wetlands, and obtain permits for his water use and cannabis cultivation. He will have to pay an additional $1 million if he fails to complete the remediation work within five years.
The settlement was approved by the Humboldt County Superior Court and announced by the state last week. It is the culmination of years of inspections by state water and wildlife officials dating back to 2016.
The Impacts on the Environment and the Industry
The state officials said that Sweet’s violations were “egregious” and had caused significant harm to the environment and public trust. They said that the settlement reflects the state’s commitment to enforcing the laws that protect water and wildlife, especially in the context of the cannabis industry.
“Cannabis cultivation can have significant impacts on water and wildlife if not done legally and with appropriate environmental safeguards,” said David Bess, CDFW Deputy Director and Chief of the Law Enforcement Division. “This settlement is an important step toward bringing these operations into compliance and restoring the damaged habitat.”
The settlement also comes at a time when the cannabis industry is still struggling to adapt to the legal market and the regulations that come with it. Many cannabis farmers, especially in the Emerald Triangle region, have been operating for decades in the shadows without proper permits or environmental oversight. Some have been reluctant or unable to transition to the legal market, while others have faced barriers such as high taxes, fees, and compliance costs.
Sweet, who is a licensed cannabis cultivator, said that he did not believe he was being treated fairly by the state. He said that he was a small, independent businessman who had invested millions of dollars in his farms and had tried to comply with the regulations. He also said that he had suffered from wildfires, theft, vandalism, and harassment.
“I do not believe this is fair or just, and I believe I have already suffered way too much,” Sweet said in a statement to CalMatters. “Even during our court-mandated settlement conference, they were asked why they would go after a small independent businessman with these types of enormous fines usually reserved for huge corporations that destroy ecosystems.”
The Future of Cannabis and Water in California
The settlement is not the first of its kind, nor will it be the last. The state has been cracking down on illegal and unregulated cannabis operations that pose a threat to water and wildlife, especially in the wake of the historic drought and the climate crisis. The state has also been working to support the legal cannabis industry and help it become more sustainable and environmentally friendly.
In 2019, the state launched the Cannabis Cultivation Permitting Program, which aims to streamline the permitting process and provide technical and financial assistance to cannabis farmers who want to comply with environmental regulations. The program also helps the state monitor and enforce water use and water quality standards for cannabis cultivation.
The state has also been collaborating with other stakeholders, such as local governments, tribal communities, environmental groups, and industry associations, to find solutions and best practices for managing water and wildlife in the context of cannabis. The state hopes to balance the needs and interests of all parties while ensuring the protection and restoration of the natural resources that are vital for California’s future.