9-19-08

  9-19-08Merced Sun-StarProminent Merced County residents lobbied for jail release of housing nonprofit managerRudy Buendia faces 17 charges related to demise of Firm Build...SCOTT JASONhttp://www.mercedsunstar.com/167/story/460852.htmlThe Merced County District Attorney plans to file two more felonies against Firm Build's managers today after investigators received a report from the Contractors State License Board.Rudy Buendia III will face 17 charges connected to the demise of Firm Build, the nonprofit he ran for about a decade. The 45-year-old father was released Wednesday from the John Latorraca Correctional Center by Merced County Superior Court Judge Brian McCabe...Buendia has been charged with embezzlement, grand theft and diversion of construction funds. The allegations come following a 15-month investigation that began after Firm Build, which relied heavily on taxpayer funding, went bankrupt.Buendia refused to surrender to authorities for two days and was arrested Sunday by Merced County Sheriff Mark Pazin, who said he couldn't understand why this arrest is garnering so much attention. "It wasn't that big of deal," Pazin said Thursday...Buendia was released following an outpouring of support from friends and family at the Merced County Superior Court.Twenty letters given by Buendia's attorney to the judge during the hearing, and later obtained by the Sun-Star, show that Buendia, a Merced County planning commissioner and former Housing Authority commissioner, had high and far-reaching support for a reduced bail.McCabe, in thumbing through the letters, noted that he knew seven of the people. He cited Buendia's clean record and 30-year history in the community as reasons that he should be freed...For the most cynical residents, the letters are evidence of a good old boys network that favors its members. Some readers on the Sun-Star's Web site have wondered why Buendia was released without having to post bail.Two other Firm Build leaders, Patrick Bowman and Joe Cuellar, bailed out shortly after they were arrested last week.Christina Ledezma, Firm Build's bookkeeper who's facing nine felonies, had her release denied Tuesday by a different judge. She's in jail in lieu of $312,000.Some statements of support for Buendia came from Merced College President Ben Duran, Supervisor John Pedrozo's sister and sister-in-law, Merced County Sheriff Mark Pazin's former secretary and a current Housing Authority commissioner.One letter, from Lili Harrell, a U.S. District Court bailiff, is on federal letterhead. "(Buendia)will have our complete support as this case adjudicated and his innocence is proven," the letter reads.On plain paper, Duran wrote, "I have known Rudy and his family for more than forty years and believe that he would not be a flight risk due to his commitment to his family and his community ties."Though I do not know the facts of the case against Mr. Buendia, my request is strictly limited to asking for a fair and reasonable bail."Judy Blackburn, Pedrozo's sister and principal of Our Lady of Mercy School, wrote that Buendia is a "person with strong moral character and believe he's a man with strong integrity."Merced County judge lets subject of housing nonprofit investigation out of jailFirm Build's Buendia isn't a flight risk, says Judge McCabe...SCOTT JASON...9-18-08http://www.mercedsunstar.com/167/story/459043.htmlCiting a clean record and a 30-year history in the area, a Merced County Superior Court judge ordered Firm Build's manager released from jail Wednesday.The dozen-and-a-half supporters of Rudy Buendia III sighed as Judge Brian McCabe decided that he wasn't a flight risk and could be set free."There's a pristine record," McCabe said. "He has a long ties to the community."...Merced County District Attorney Larry Morse II filed a 27-count criminal complaint against Firm Build's two managers, bookkeeper, board president and Buendia's father, who did contract work for the nonprofit.The case took 15 months to investigate and included a forensic accounting specialist from a neighboring county.Besides the criminal charges, the case has political implications, as Buendia serves as a Merced County Planning Commissioner and Patrick Bowman, the nonprofit's board president and also facing charges, serves as a Housing Authority commissioner -- both spots are appointed by the Board of Supervisors.Bowman, also a coordinator with the Merced County Office of Education, is on administrative leave pending the outcome of an internal investigation...Loose Lips: A flurry of inactivity in Livingstonhttp://www.mercedsunstar.com/167/story/460878.htmlLivingston's City Council has given new meaning to government inaction.We all know elected officials get a bit squirmy come ballot season -- "What exactly have you been doing in office?" voters wonder -- but Livingston has raised the bar for underachievement.The past two council meetings have been canceled for a lack of agenda items. Livingston's council watchers have taken notice.No public comment. No reports from Supervisor John Pedrozo's mini-me. No insight into what the council's been doing to earn its monthly stipend...Mayor Gurpal Samra explained that the city isn't taking cues Sacramento leaders in their attempt to pass a budget.It's quite the opposite, Samra said. The city has been on hyperdrive preparing the final draft of the general plan update, which includes reviewing the pages of citizen comment...With each meeting costing about $2,000 in staff and attorney time, Samra said it'd be a waste of money to unnecessarily call meetings. Get the story from the UCLook out First Amendment friends, Merced may have its first government-run news service.UC Merced launched a news blog (complete with an RSS feed) to serve the needs of those pesky journalists who are always seeking quotes and facts.Following the path of Pravda, the Soviet Union's leading newspaper, and of China's Xinhua News Agency, the UC's voice of the people promises to keep readers up on what's happening on Scholars Lane.The blogs are condensed versions of the press releases, conforming to the 30-second news cycle that gives us all the stories we love and quickly forget."This is just one more way for the public to read the latest news about our campus, as it occurs," spokeswoman Patti Waid Istas said in a press release. "We hope the addition of video and photos will make visitors feel like they are 'in the know.'"Lips wants to know why it's hosted by Blogger and not off the university's Web site. Isn't this a high-tech university?Sadly, the blog's emperors don't allow feedback on each post, instead suggesting e-mails.Get your daily dose at www.ucmercednews.blogspot.com. Letter: Merced needs jobs...DUANE J. ANDREWS, Merced http://www.mercedsunstar.com/180/story/460877.htmlEditor: As a longtime local businessman, the controversy over the Wal-Mart distribution center coming to our city totally boggles my mind. Right now, Merced is in a depression, not a recession. Recovery is going to be over a very long period of time. Just look at all the vacant space downtown as well as around our entire city. Sales tax dollars are going 7 miles north to Atwater. We desperately need jobs right now. When a city doesn't grow it eventually dies. Right now we are slowly dying.Modesto BeeEconomy in CrisisHome values continue their downward spiral...J.N. SBRANTIhttp://www.modbee.com/local/story/435146.htmlDown again, darn it.Median home sales prices plunged further during August in Stanislaus, San Joaquin and Merced counties and throughout most of California.As usual, the housing meltdown was worst in the Northern San Joaquin Valley, according to MDA DataQuick sales statistics released Thursday.Stanislaus County median sales prices fell to $185,000 in August. That's a one-year drop of 41.3 percent. Even more depressing, it's 53.3 percent below what homes were selling for at the building boom's December 2005 peak.Stanislaus prices haven't been this low since the spring of 2002. Six years of appreciation have been wiped out.Blame foreclosures for the price drops. The Northern San Joaquin Valley continues to be the fore- closure capital of the universe.During August alone, 867 Stanislaus homes were foreclosed on, costing lenders $284.4 million in unpaid debt, according to Foreclosure- Radar... Buyers love a bargain.They can find plenty of them in Merced County, which has suffered the largest price declines in California.Merced County homes sold for a median $150,000 in August. That's down 47 percent in one year and 60.8 percent from the December 2005 peak. Merced prices haven't been this low in seven years. Last month, 549 Merced homes were foreclosed on, costing lenders $176.6 million.San Joaquin homes sold for a median $207,000 in August. That's down 44.1 percent in one year and 54.8 percent from the November 2005 peak. San Joa- quin prices also are back to summer of 2001 levels. Last month, 1,245 San Joaquin homes were lost to foreclosure, costing lenders $467.7 million...USFS sets public meetings for Tahoe Forest roads...last updated: September 19, 2008 06:12:29 AMhttp://www.modbee.com/state_wire/story/435271.htmlTRUCKEE, Calif. — The U.S. Forest Service has scheduled four public meetings to provide information about possible restrictions on roads and off-road travel in the Tahoe National Forest.The agency will accept public comment for two months after it publishes a draft environmental impact statement on a forest-wide travel management plan expected to be issued on Sept. 26.Forest supervisor Tom Quinn says that among other things the draft EIS will consider whether off-road travel should be prohibited and whether some unauthorized historic mining trails and old logging roads should be added to the established system of roads and motorized trails.Quinn emphasized the document will be a draft subject to change. He says the agency realizes it is a "passionate topic" and looks forward to getting feedback from the public.The meetings are planned at Nevada City Oct. 1, Sierraville Oct. 3, Truckee Oct. 7 and Auburn Oct. 9.Fight against dump continues...last updated: September 18, 2008 04:09:28 PMhttp://www.modbee.com/state_wire/story/434676.htmlA fight against a federal dump for nuclear waste at Nevada's Yucca Mountain will continue no matter what happens to the embattled head of the state agency fighting the project, U.S. Sens. Harry Reid and John Ensign said Thursday.Despite progress that the federal Department of Energy has made on the project, Reid and Ensign insisted in a telephone call with reporters that the dump still is more dead than alive and the state should continue its opposition."There will be no deal cut," said Reid, the Democratic Senate majority leader. "You cannot deal with the devil and that is what Yucca Mountain is."Reid and Ensign, R-Nev., said backers of Yucca Mountain won't gain any advantage by citing improper pay raises that Bob Loux gave himself. Loux is the executive director of the Nuclear Projects Agency, which has led the fight against the dump for decades."Let's just understand that this baby is in the process of being buried," Reid said. "We haven’t thrown the last load of dirt on it, but we will.""We're too close to killing this project," Ensign said. "Let's continue to stand together as Nevadans, not as Republicans, Democrats, liberals and conservatives."Both Ensign and Reid said that any restructuring of Loux's office would be left to the state. The two U.S. senators just want to make sure that the message of that office remains the same...Patterson IrrigatorWest Park investor goes under Developer says Lehman Brothers bankruptcy will not impact project...James Leonardhttp://pattersonirrigator.com/content/view/2177/42/One of the world’s largest investment companies filed for bankruptcy this week, but its connection to a proposed 7.5-square-mile industrial park at the former Crows Landing Naval Airbase will not have an impact on the project, according to the project’s developer.Developer Gerry Kamilos said the bankruptcy should have no effect on PCCP West Park, despite the fact that primary investor Pacific Coast Capital Partners had enlisted Lehman Brothers to help fund the project.Kamilos said he didn’t know how much of the $6 million that the project has received from PCCP actually came from Lehman Brothers, because PCCP is the direct equity partner of West Park. He said PCCP has relationships with many investment banking firms, one of which is Lehman Brothers. He’s not sure what action PCCP will take in the light of Lehman Brothers’ bankruptcy — by far the largest bankruptcy filing in U.S. history — but he expressed no concern about West Park’s future.“The project continues to be funded,” Kamilos said. “We’re moving full speed ahead … and we are hopeful that by next spring the draft environmental impact report will be out for public review and sometime during the summer or early fall we’ll get into the early public hearing process.”Still, the news of Lehman Brothers’ bankruptcy — along with a slew of other troubling economic headlines — was disconcerting to some of the project’s biggest critics.“You have to wonder,” said Jim DeMartini, the only member of the Stanislaus County Board of Supervisors to vote against the project. “When their backing goes under and when things are as bad as they are, you have to wonder what kind of shape they’re really in.”Kamilos, though, said this is the perfect time for investors to jump onboard with long-term projects like West Park. If designing gets done and permits are sought now, the market will likely have turned by the time construction begins, he said.Kamilos added he’s confident the economy will rebound, citing positive economic cycles that have followed downturns in recent years.“Investors and firms familiar with projects like ours know this is a prime time to put in the resources and get approvals and get ready for construction and be ready when the market turns,” Kamilos said. “You can’t wait until the market turns to start a project.”City lawsuit updateIn other news, the lawsuit by the city of Patterson against West Park, Stanislaus County and Union Pacific Railroad will face some important decisions in the coming weeks.The city claims the county violated state law on April 22 when supervisors voted to choose a master developer and create a project description before an environmental impact report was complete.County officials have said the report was not needed for a project description to be approved and that a project description is necessary for the environmental review process to move forward.The case is being handled by the Fresno Superior Court. On Oct. 16, Judge Alan Simpson will hear a motion in which the county will allege that the suit should not even go to trial.Patterson City Attorney George Logan said earlier this week that the city will try to have that motion thrown out so the entire matter can be heard in the course of the trial. He expects the judge to make a decision on that by Oct. 1.Westside ConnectCemetery issue raised for West Park review...Written by News Staff...9-18-08    http://www.westsideconnect.com/content/view/1369/57/CROWS LANDING – A tiny portion of the 4,800-acre West Park project may be the final resting place of a small number of the area’s early settlers, according local historians who contend that an unrecognized pioneer cemetery is located on the property.The suggestion that a cemetery may be located on the grounds was one of the few surprises among the comments submitted which suggested topics for review during the Environmental Impact Report (EIR) process for West Park.Many focused on widely-discussed topics such as traffic, air quality, growth-inducing impacts, loss of prime farmland, water-related issues and noise.Each, including the possibility that a cemetery exists on the property, will be investigated as part of the process which evaluates the environmental impacts of the project and identifies ways to offset those impacts.West Side historian Pat Snoke of Gustine firmly believes that a pioneer cemetery exists in the Crows Landing area.Several area historical groups are involved with research into the issue, she noted.Verifying the existence of the cemetery and its location is challenging, she said, because it pre-dates Stanislaus County records for the West Side.Documenting the existence of the cemetery and having the grave sites preserved has been an ongoing interest of hers for years, Snoke stated.“People don’t believe there was even a cemetery there. I have been writing letters to the Navy, Stanislaus County and NASA for 20 years,” Snoke stated. “Finally it is all coming together. We are finally getting people to believe that there was a cemetery there.”She said researchers believe that the cemetery was located next to the original Bonita School, on property which eventually became part of the naval air station.That fits with stories passed down through the generations of her own family, Snoke told Mattos Newspapers.“Almost all the references are of the cemetery being next to the original Bonita School, and we have found that location. The original school was on the southeast corner of the naval air station,” Snoke remarked. “We do have documentation of people being buried at a cemetery in Crows Landing. Where the actual cemetery was located is all word of mouth, but it comes from many sources.”The Bonita School District was formed in 1869, according to Snoke, and that first schoolhouse served the community for 21 years. Her own ancestors settled in the area in 1869, buying land west of what would become the air base decades later. She believes her great-grandmother was buried in the Crows Landing cemetery in about 1884.Snoke believes the controversial West Park project will move forward, but wants the cemetery located and preserved.“West Park is going in whether we want it or not. We just don’t want the graves disturbed,” she stated. “Put a fence around them and leave them alone.”Newman historian Sheldon “Pat” Crow agreed that the cemetery site should be identified and preserved.Some information indicates one member of the pioneering Crow family may be buried there, he noted, although that has never been established with certainty.He said he does not doubt the existence of the cemetery, though.“I’m definite on that,” Crow said. “There is no argument on that as far as I am concerned.”West Park developer Gerry Kamilos said experts will be called in to investigate the claim that a pioneer cemetery exists, and if so the site will be duly respected.“We will get the archaeological professionals out there to determine if a cemetery is there or not,” he commented. “If there is, we will follow all the appropriate procedures required for a historic site like that. We will make sure that it is given appropriate respect.”Kamilos said he has read through each of the comments received as part of the environmental scoping process.“It was great to see the detail and the thought that people put into the comments. It will really help us develop a very comprehensive and complete environmental impact report,” Kamilos commented.He said he does not believe any of the concerns raised are insurmountable.Kamilos said a draft EIR should be presented for public review and comment next spring.In the interim, work is progressing on numerous fronts.“While the EIR is being prepared, we will still be working with a variety of stakeholder groups and agencies to address issues or educate people on the project, and we will continually be working on new ideas to make the project even better as we go through the process,” he said.The West Park group is also working on its job training program, working through the operational analysis of the proposed short-haul rail link to the Port of Oakland and seeking out businesses within the logistics community which may have an interest in using the Crows Landing facility.West Park is proposing development of a massive business and industrial park anchored by an inland port, but also including uses such as general aviation.Fresno BeeFresno Co. politicians yield on growth billAB 375 favors green development plans...Russell Clemingshttp://www.fresnobee.com/263/story/879344.htmlA panel of Fresno County political leaders dropped its opposition Thursday night to a "smart growth" bill now on Gov. Schwarzenegger's desk, but stopped short of supporting the measure. Assembly Bill 375 ended its two-year journey through the Legislature with broad support from environmentalists, builders and local government agencies, many of which had previously opposed it. The Council of Fresno County Governments policy board had been one of those opponents, fearing that the bill could be used to override local land use decisions. Those concerns were eased by amendments in the closing weeks of the Legislature. But it wasn't enough to win outright support from the board, made up of mayors and other officials from each of the county's 15 cities and the Board of Supervisors.The bill would use state transportation money and other funds to create incentives for local officials to adopt development plans that reduce greenhouse gas emissions, via measures such as increased housing density. Five cities -- Mendota, Parlier, Reedley, Sanger and Selma -- voted against supporting the bill Thursday after questions were raised about whether it would put local land use decisions in state hands...Calls for more monitoring of drugs and chemicals...JEFF DONNhttp://www.fresnobee.com/263/story/879337.htmlPollution experts pressed a congressional panel Thursday for a new national approach that monitors the country's waters more broadly for the presence and impact of hundreds of recently detected contaminants from pharmaceuticals to fire retardants. U.S. Rep. Eddie Bernice Johnson, D-Texas, chairwoman of the House Subcommittee on Water Resources and Environment, opened her panel's hearing with a warning. A former nurse, Johnson said the presence of these contaminants makes her "question just how safe our waters actually are - especially to human health over the long term." Equipped with more refined tests, researchers in recent years have discovered the existence of a complex brew of unregulated contaminants beyond conventional industrial and agricultural pollutants. These low-concentration, emerging contaminants include discarded and excreted pharmaceuticals, vitamins and cosmetics, as well as some pesticides and industrial compounds. Risks are poorly understood, though there is evidence that pharmaceuticals and hormone-like compounds can harm aquatic life. Preliminary research indicates that some waterborne drugs also may promote antibiotic-resistant germs and impair the workings of human cells in the laboratory. Some experts testified to the panel that the Clean Water Act, which aims to clean up pollution in rivers and streams, may not be equal to the task for a host of newly recognized pollutants occurring in complex mixtures.Environmental researcher Peter L. deFur of Virginia Commonwealth University suggested the Clean Water Act could be reshaped to "require monitoring and reporting of all chemicals in discharges, regardless of the identity and chemical nature." A limited number of pollutants are monitored now. David P. Littell, Maine's commissioner of Environmental Protection, said "it is probably more effective to reduce or prevent substances of high concern from entering the waste stream" than relying on the chemical-by-chemical water quality standards of the Clean Water Act. Drugs have raised special concerns, because they are designed to affect the human body at low concentrations and because their use and presence in waterways is so widespread. In a continuing investigation, The Associated Press has reported that at least 46 million Americans are supplied with drinking water that has tested positive for traces of pharmaceuticals. The stories, which began appearing in March, have prompted a national flurry of water testing and federal and local hearings like the one convened by Johnson.Pharmaceuticals in water are blamed mostly on unmetabolized drugs excreted by humans and animals, then flushed into sewage systems connected to streams and rivers. However, the AP reported earlier this week that hospitals and long-term care centers intentionally discard an estimated 250 million pounds a year of unused pharmaceuticals and tainted packaging - and much of those drugs also go directly down drains toward water supplies...Ben Grumbles, the EPA's top water official, balked at any immediate, sweeping upgrade of water standards. He told the panel more research and evaluation are needed now. However, in an interview later, he said critics are correct to question whether the existing regulatory mechanism can handle the complex mixtures being detected in waters. "It may be that there needs to be a more effective way to deal with the mixtures," he added.Radanovich takes aim at species actHe wants more water pumped out of the delta...Michael Doyle, Bee Washington Bureauhttp://www.fresnobee.com/263/story/879337.htmlWASHINGTON -- U.S. Rep. George Radanovich wants to suspend one of the nation's premier environmental laws in order to increase water pumping out of the Sacramento-San Joaquin Delta. In a long-shot bill introduced Thursday, the Mariposa Republican proposes to exempt two delta-area pumping plants from the Environmental Species Act during designated droughts. Farmers would gain irrigation water -- essentially at the expense of fish. "This is all about preparation," Radanovich said Wednesday. "It gives [us] a means to turn the pumps on and store up water." If enacted, Radanovich's bill would dramatically shift the flow of water during times of drought. It effectively would override a Fresno-based federal judge's decisions designed to protect species including the delta smelt. But the new bill is unlikely to be enacted any time soon...The bill excites the opposition of environmentalists -- including close allies of House Speaker Nancy Pelosi. Congress has generally been loath to carve such specific exemptions into the 35-year-old Endangered Species Act. Even so, the bill might serve some other purposes. There are many diverse motives behind the 2,550-plus measures introduced in the House since January. Some are designed to change the law. Others send a signal, strike a pose or frame a debate...Sacramento BeeSmall is safer for local banks, credit unions...Jon Ortizhttp://www.sacbee.com/103/v-print/story/1248791.htmlThe turmoil washing over Wall Street has created waves that reach all the way to Sacramento's locally owned banks and credit unions.Money flowing into conservative havens favored by smaller players has cheapened the value of investments such as government-backed securities. Commercial real estate loans are losing value. Credit remains tight."All banks are struggling to some extent with credit issues," said Anker Christensen, chief financial officer of Sacramento-based River City Bank. "No one is untouched."Still, bank executives and finance experts agree that smaller players are generally in better shape than big banks right now. Community banks and credit unions tend to invest more conservatively. While big financial companies such as Lehman Bros. and Washington Mutual Inc. were sowing trouble with risky home mortgage investments, local institutions held back."About four years ago we saw (lending) was getting crazy," said El Dorado Savings Chief Executive Officer Tom Meuser. "Our loan volume went down to practically nothing because our competitors were giving people whatever they asked for. We lost a lot of business because we wouldn't do those kinds of loans."Terry Halleck, The Golden 1 Credit Union's president and chief executive officer, said that privately held institutions don't have to relentlessly claw for profits, so they don't face the same pressure to perform as publicly held banks.WaMu is a example, she said. In its eagerness to please Wall Street, the Seattle-based bank took on too many investment risks to fuel profits and growth. The company this week put itself up for sale.Companies over the last few years have come by The Golden 1's Sacramento offices to pitch high-risk, high-yield investments, Halleck said, "but we didn't take the bait. We could see the economy was going to turn."Still, small banks and credit have have taken some hits.The number of banks on the Federal Deposit Insurance Corp.'s watch list of struggling banks grew from 90 in January to 117 in August, the highest number in five years.Although the list isn't published, Robert Reich, Berkeley public policy professor and former secretary of labor under President Clinton, told ABC News he estimated that "10 to 25 small, mostly regional banks are treading water."Commercial real estate loans, a niche occupied largely by local banks, have become a worry, said Keith Leggett, chief economist at the American Bankers Association in Washington, D.C."The biggest problems are in construction and land development loans, particularly in retail," Leggett said. "Those projects aren't doing well because they're so closely tied to the housing market."Some lenders are telling commercial developers to put more money down on loans because the land or building backing a deal has lost value.Capital Ag PressSmelt threaten irrigation projectsLawsuit could junk scores of valley water contracts...Hank Shawhttp://www.capitalpress.info/main.asp?SectionID=67&SubSectionID=616&ArticleID=44650&TM=82809.45Contracts for 42 irrigation districts that rely on Central Valley Project water could be tossed because of the tiny delta smelt.U.S. District Court Judge Oliver Wanger heard arguments late last week over whether to require the Central Valley Project to rewrite the contracts because each was based off a flawed ruling that the water promised to both farmers and urban dwellers would not harm the endangered fish...Should the contracts be invalidated, it would likely mean that farmers would get less water and on a different schedule than they receive now.How much less and on what sort of delivery schedule would be up to the individual districts as well as the federal government - and the smelt.The U.S. Fish and Wildlife Service is in the midst of rewriting the biological opinion concerning the smelt. The degree of damage a new series of water contracts could do to the Central Valley farming community will hinge on how much water government scientists say the smelt need.This is a drought year and most farmers who get water from the Delta-Mendota Canal have been receiving far less than their allotment. Thus far most farmers have been able to get by with temporary measures, said Ron Jacobsma of the Friant Water Authority. However, if a new set of contracts drops farmers' allocations, they may be forced to retire more land or alter their cropping patterns to less water-intensive - and often less valuable - product.Friant water users have only an indirect stake in the lawsuit; should the contracts get tossed and open a vacuum, several water-using groups downstream have old claims to San Joaquin River water they could exercise - leaving everyone in the lurch.A similar situation exists with water users in the Sacramento Valley."By reducing the water in the contracts you are in essence supporting permanent modifications to agriculture and urban communities," Jacobsma said...Neither Jacobsma nor Trent Orr - an attorney with the environmental group Earthjustice, which is party to the lawsuit - say they want that to happen."The thing is not that water deliveries should stop - various holders should get interim water - but only that the contracts should reflect the new biological opinion," Orr said.The goal in Orr's mind is to toss the existing contracts but delay any changes for a year. This would allow the 42 contracting water districts to renegotiate contracts or get interim water deliveries.But those new contracts couldn't begin to be negotiated until late this year when the U.S. Fish and Wildlife Service finishes the new biological opinion.Orr said he did not expect earthshaking changes to farmer's lives should the environmental groups win."I don't think (the new contracts) would look a lot different from what it looked like before," he said.Sarah Wolff of the Westlands Water District begs to differ. Westlands is in the midst of negotiating its own Central Valley Project contract. She said if they must start over, "it would be extremely detrimental to us."Wolff said one of the prime arguments the environmental groups make - that because farmers rarely receive 100 percent of their contracted water, they would not see much effect from a reduction - fails to account for one of the most serious water problems in the valley: groundwater...Judge Wanger said he would release his ruling "as soon as is humanly possible." It is unclear whether that will be in days, weeks, or months.Stockton RecordFlood of misinformationState's new flood maps are inaccurate, confusing...Editorialhttp://www.recordnet.com/apps/pbcs.dll/article?AID=/20080919/A_OPINION01/809190315/-1/A_OPINIONYou've got to wonder what the state Department of Water Resources was thinking.The DWR has released a set of flood maps, adding to a number already floating around, which1) have nothing to do with FEMA's maps that could force some homeowners to by flood insurance, and 2) are simply wrong.Talk about confusion. The maps released earlier by the Federal Emergency Management Agency are confusing enough. And they've created considerable angst among homeowners about flood insurance. Is it required? Who is required to buy it? When? What will it cost?Now along comes the DWR with its maps that state officials say are for information only. But San Joaquin County officials say the information in the maps is wrong.The maps are supposed to show areas that fall into the 100- and 200-year flood zones. A 200-year flood is one of a depth that has a 1-in-200 chance of occurring in any given year.County officials say the DWR maps drastically underestimate the area likely to fall into a 200-year flood zone. The maps show levees where none exist and embankments such as railroad tracks as levees.DWR officials say they were under a legislative deadline to prepare the maps, although you have to wonder why that deadline was so important to the DWR but the budget deadline so unimportant to the Legislature.The maps were a heads-up to the communities, DWR officials said. They're not much of a heads-up if they're wrong.Still, the agency says corrections are being made and better maps are on the way.A cynic might suggest they will arrive before the state budget.Inside Bay AreaUC regents adopt limits on retiree hiresBoard addresses legislators' concerns after Cal police chief returned...Matt Krunickhttp://www.insidebayarea.com/localnews/ci_10500457OAKLAND —" University of California leaders Thursday cracked down on the rehiring of retired UC employees, addressing legislators' concerns that arose after the UC Berkeley police chief returned to campus.At its meeting in Irvine, the UC Board of Regents unanimously approved the new rules, which restrict the circumstances under which a retiree can be brought back to the university. The new policy replaces "guidelines" that were sometimes ignored by campus administrators.The reform followed a Contra Costa Times report in April that the police chief, Victoria Harrison, had retired, taken a $2.1 million lump-sum payout of her retirement benefits and then continued in the same position. The school did not search for a replacement before bringing her back, a situation that will be prohibited by the new policy.The news report prompted questions from state lawmakers, who asked UC to limit the practice.Administrators will be required to document the "exigent circumstances" that require the rehiring, and retirees will be limited to 43 percent time.A UC Berkeley spokeswoman said Thursday the university is preparing to recruit a replacement for Harrison, whose contract ends Jan. 31. In a written statement, Vice Chancellor Nathan Brostrom called the chief "invaluable" in the school's recent encounters with tree sitters and animal-research protesters.Mercury NewsSave the oceans, save ourselves...Steve Sorensenhttp://www.mercurynews.com/alamedacounty/ci_10501626?nclick_check=1Since man has inhabited the Earth common thought has been that the oceans are much too big to be affected by human action. The idea that the oceans are indestructible has met its end. Despite their size, the oceans are vulnerable to the same unsustainable trends that are degrading the terrestrial environment.The impact we have had on ocean ecosystems has been vastly underestimated. Did you know only 10 percent of all large fish — both open ocean species including tuna, swordfish and marlin, and the large bottom fish such as cod, halibut, skates and flounder — are left in the sea, according to research published in the scientific journal Nature? And the state of California warns those big predatory fish are full of the toxins and other pollutants that we cast into the oceans. Plankton in the ocean generates more oxygen than land-based plants and the oceans remove carbon dioxide from our air. Bottom line, we don't take care of our oceans, we won't be around.Millions of Californians enjoy the state's coast line and waterways every day — nine out of 10 will visit the beach at least once this year. However, many of those people are unaware how their daily activities can impact the plants and animals off our shores. Almost 90 percent of floating marine debris is plastic. Due to its durability, buoyancy and ability to absorb and concentrate toxins present in the ocean, plastic is especially harmful.to marine life. Plastic marine debris affects most sea birds, fish and sea mammals, as they often mistake plastic for food. Some birds even feed it to their young. With plastic filling their stomachs, animals have a false feeling of being full, and may die of starvation. Sea turtles mistake plastic bags for jellyfish, one of their favorite foods. Even gray whales have been found dead with plastic bags and sheeting in their stomachs. How does plastic get into the ocean? Look around the next time you walk down the street. When it rains, trash on sidewalks and streets accumulates in the gutters and is swept into our storm drain system. The storm drains dump into the bay and then is flushed to the ocean by the tides. Trash also may be dumped directly into the water by recreational and commercial boaters, and it is often left on the shores by beach-goers. A recent study found an average of 334,271 pieces of plastic per square mile in the North Pacific Central Gyre, a natural eddy system that concentrates material in the ocean...Los Angeles TimesEPA must limit builders' water pollutionU.S. 9th Circuit Court of Appeals upholds a California suit by the Natural Resources Defense Council...Carol J. Williamshttp://www.latimes.com/news/science/environment/la-me-cleanwater19-2008sep19,0,2925175,print.storyThe Environmental Protection Agency is obliged by the Clean Water Act to protect the nation's waterways, beaches and drinking water from pollution caused by real estate development and should set standards for limiting construction runoff by the end of next year, a federal appeals court ruled Thursday.The ruling from the U.S. 9th Circuit Court of Appeals requires the EPA to create consistent federal standards to control water pollution, supplanting a patchwork of state and local protections now in place, said Melanie Shepherdson, a lawyer for the Natural Resources Defense Council, which sued the federal government for shirking its responsibility to protect public waters.A further appeal is possible, but environmentalists applauded the decision, saying it was likely to spur the EPA to take steps to ensure that development of shopping malls, housing subdivisions and other construction doesn't lead to beach closures, waterborne diseases, flooding, fish deaths or contaminated drinking water.The EPA began work nine years ago on setting limits for building-site runoff after conceding that it can carry high levels of nutrients and metals into rivers and streams. But the agency then reversed course, eliminating construction from the list of activities it regulates to protect surface waters for consumption, navigation and recreation.Congress enacted the Clean Water Act in 1977 "to restore and maintain the chemical, physical and biological integrity of the nation's waterways." The law required the EPA to establish goals for eliminating additional pollution by 1985.In 2004, the Natural Resources Defense Council sued the EPA for failing to set effluent limits for builders. The U.S. District Court for the Central District of California ruled in favor of the environmental group in 2006 and ordered the EPA to establish standards for the construction industry by December 2009.In upholding the district court ruling, the appeals court noted that there is nothing in the Clean Water Act allowing the EPA to remove a category of polluter from the federal law's application...Potential environmental risks aren't part of chemical engineers' trainingNo university in the United States teaches basic toxicology or other environmental sciences to students studying for a traditional chemistry degree, even a doctorate...Marla Conehttp://www.latimes.com/news/local/la-me-greenchemside19-2008sep19,0,7070067,print.storyMarty Mulvihill was working in a laboratory with carbon tetrachloride. The lab's supply of the solvent was diminishing, and Mulvihill learned it was being phased out for environmental reasons. Curious, he asked his advisor whether carbon tetrachloride was as bad as he had heard."He asked me if I change the oil in my car, and I said yes. So he said, 'Well, it's not any more dangerous than those chemicals,' "said Mulvihill, who at the time was earning an undergraduate degree in chemistry at Reed University in Portland."I didn't think to dig deeper," he said. "I figured I took many more precautions in lab than I did in my garage."Carbon tetrachloride is among the most highly toxic solvents. Breathing it can damage the liver, and it is believed to be a human carcinogen. It also eats away at the Earth's protective ozone layer. But relying on a chemistry professor to explain the environmental risks of a substance is like asking an orthopedic surgeon whether you have asthma: It's not his area of expertise. Chemists and chemical engineers have been taught everything they need to know about how to synthesize a substance or trigger a reaction. Then they go out in the world and use an old chemical or invent a new one. Yet most don't know the effects on people or the environment -- whether a chemical can collect in mothers' breast milk, damage a baby's brain, kill off immune cells, reprogram genes or cause male frogs to grow female organs.No university in the United States teaches even basic toxicology or other environmental sciences to students studying for a traditional chemistry degree, even a doctorate. Chemistry textbooks are devoid of any mention too."It's absolutely absent from the curriculum," said John Warner, president of the Warner Babcock Institute for Green Chemistry and chairman of California's science advisory panel for its Green Chemistry Initiative.Until chemists understand toxicology and related environmental sciences, then the new molecules they create may become our new environmental problems, Warner said."The reason we have hazardous materials is that we don't know how to do it any other way. Green chemistry is the science to correct that," he said. "But academic inertia is a big problem."A 2005 National Academy of Sciences report blamed inadequate education and training of chemists as a major reason for the chemical industry's lack of emphasis on developing environmentally friendly compounds. A new educational agenda is "the fundamental grand challenge" in making safer chemicals, the report said.Only a handful of universities train chemists how to make environmentally friendly chemicals, and none are in California. At the University of Oregon, two professors restructured a conventional lab course to emphasize green principles. At the University of Massachusetts-Lowell, Warner created the first doctoral program in green chemistry...Even as senior doctoral students at Berkeley, Wise and Mulvihill said their professors and textbooks never addressed the threats many chemicals pose to the world.Wise said some course descriptions suggest that pregnant women avoid certain chemistry classes. Students are never told why, and no one asks. They are told to read the safety data sheets written by the manufacturer of a chemical, but the information is mainly how to avoid poisonings...San Diego Union-TribuneTwo groups sue, seeking review of seawater plant...UNION-TRIBUNEhttp://www.signonsandiego.com/news/metro/20080919-0716-1bo19lawsuit.htmlTwo environmental groups – San Diego Coastkeeper and the Surfrider Foundation – filed a lawsuit in Superior Court yesterday in an attempt to force another review of a proposed seawater desalination plant in Carlsbad. Connecticut-based Poseidon Resources Inc. plans a 500-million-gallon-a-day operation near the Encina Power Station. Water districts across the region have signed up to buy the water once the plant starts producing. The lawsuit against the San Diego Regional Water Quality Control Board claims the agency did not ensure the best site, technology and design for the facility. “What we are trying to do is make sure that all of the analysis goes on so that we get the best plant possible,” said Gabriel Solmer, Coastkeeper's legal director. John Robertus, head of the regional board, said he stands by the agency's decision-making process. The suit follows a legal challenge initiated by conservationists in January against the California Coastal Commission. That case has not been resolved. –M.L.UC regents revive pension contribution School expected to pay most of tab...James P. Sweeney, U-T SACRAMENTO BUREAUhttp://www.signonsandiego.com/news/education/20080919-9999-1n19uc.htmlIRVINE – Facing dramatic pension shortfalls in the future, the University of California Regents voted yesterday to restart employee and university pension contributions for the first time in nearly 20 years. The annual tab is expected to run up to $1.4 billion. The university is expected pay most of the tab, but it almost certainly will prove difficult to find the revenue to fund such a large expense. UC officials have complained for years about declining state support and are facing a more than $100 million shortfall in the university's $18 billion budget. Only about $3 billion of that comes from the state, which will probably be asked to pick up a share of the UC's pension obligations. “The contribution level we're headed for is close to 20 percent” of payroll, Vice Chairman Russell Gould told his fellow regents. “It is absolutely essential that we face this . . . This is a sizable commitment.” Since 1990, the university system and its employees have financed more than $1 billion a year in pension payments to more than 50,000 retirees from enviable earnings on its $42 billion pension fund. As a result, about 80 percent of 114,000 UC employees who participate in the pension plan have never paid into it, though they do make regular mandatory contributions to separate personal retirement accounts. Reflecting a broad downturn in financial markets and the annual drain from benefit obligations, the pension fund has gradually consumed its surplus and will soon be underfunded, a pension expert told regents. Almost 4,900 former UC San Diego employees receive payments from the fund and 15,400 more UCSD employees participate in the plan. Regents approved a proposal to phase in contributions starting in July 2009. In that first year, an actuary consulting for the regents tentatively recommended that employees and the university put up a combined 11.5 percent of payroll, or $850 million. Starting in 2010, the actuary recommended that the university start covering the full annual cost of its pensions, nearly 18 percent of payroll, or $1.375 billion. Regents, however, are expected to phase in contributions much more gradually, starting with a redirection of about 2 percent that UC employees have been contributing to personal retirement accounts since 1990. The university's contribution also would start at that level if not higher, a UC spokesman said. Still to be determined are how contributions will be split between employees and the university. Regents are expected to begin addressing those tough details, plus how quickly to ramp up contributions, in November. A final decision is not expected until early next year. Regents have indicated in the past that they would like to transition to a split similar to the California Public Employees' Retirement System, where the state and other public employers pay about three times as much as employees... CNN MoneyDow jumps 369 pointsWall Street surges as the government moves to stem the financial market crisis. Two-day gain of over 7% is the best in 6 years.http://money.cnn.com/2008/09/19/markets/markets_newyork2/index.htm?postversion=2008091916NEW YORK (CNNMoney.com) -- Stocks rallied Friday, with the Dow rising 369 points, as the government's plan to help rescue banks from toxic mortgage debt soothed investors at the end of a gut-churning week on Wall Street.Treasury prices plunged and gold prices tumbled as investors bailed out of safe-haven plays and poured money into equities. This was a reversal from recent sessions, when bond and gold prices surged as stocks retreated.The Dow Jones industrial average (INDU) added 369 points, or 3.3%, according to early tallies.The Dow surged 410 points Thursday as speculation about the government plan circulated. .."We've figured out a plan that could restore health to the financial system," said Phil Dow, director of equity research at RBC Wealth Management. "It doesn't mean that stocks will go straight up from here, but the fundamentals have changed and that's going to support markets going forward."The economy still has work to do, and the problems in financials have not disappeared as a result of today's announcements, but confidence has been restored, said Fred Dickson, chief market strategist at D.A. Davidson & Co. "It's a seminal moment in the crisis," Dickson said. "It doesn't mean we're out of the crisis, but the net impact is that people will feel more comfortable investing again."Bailout plan: The federal government is establishing a plan that will allow banks to get soured mortgage-related assets off their balance sheets, a move seen as key to stemming the 15-month old credit crunch.Treasury Secretary Henry Paulson outlined the plan Friday, saying that it would likely cost "hundreds of billions of dollars" and that it needs to be substantial enough to have maximum impact. (Full story)"This may prove to be a big watershed for U.S. financials because it could allow the banks to benefit again from rising stock prices and to clear their balance sheets," Dow said. Money markets: As part of the broad effort to restore stability, the Treasury Department and Fed both announced steps Friday to shore up the nation's money market fund industry, which has stumbled this week amid the financial market crisis. (Full story).The Treasury said it will insure up to $50 billion in money market fund investments at companies that pay a fee to participate in the program. The yearlong initiative guarantees that the funds' value will not fall below the standard $1 a share. Dickson said this is perhaps the most significant development announced Friday, in that it insures that funds will be available to millions of depositors. "The number one fear for investors has been 'With banks going under, where do I put my money?'" he said. "This addresses that."At the same time, the Fed will lend an unlimited amount of money to banks to buy asset-backed paper - short-term debt issued by corporations - from money market funds. These holdings have come under pressure as investors cashed in a record $169 billion in money market assets in the past week.Short-selling ban: And in an attempt to limit the plunge in financial stocks, the Securities and Exchange Commission is temporarily banning the short-selling of nearly 800 financial stocks...Financial crisis: The developments were critical at the end of an extraordinary week that began with Lehman Brothers (LEH, Fortune 500) filing the biggest bankruptcy in history.Also this week: Merrill Lynch (MER, Fortune 500) was bought by Bank of America (BAC, Fortune 500) in a $50 billion stock deal; AIG (AIG, Fortune 500) narrowly avoided bankruptcy after the Fed bailed it out with an $85 billion bridge loan and speculation swirled about the fates of Morgan Stanley (MS, Fortune 500), Goldman Sachs (GS, Fortune 500) and Washington Mutual (WM, Fortune 500). Friday's news seemed to cool fears, giving a boost to all the companies that were at the source of the panic. Merrill rose 28%, Bank of America gained 17%, AIG rose 51%, Morgan rose 25%, Goldman rose 20% and WaMu rose 28%.Among other financial sector gainers, Citigroup (C, Fortune 500) jumped 25%. The company is reportedly considering making a bid for WaMu, according to the Wall Street Journal. Wachovia (WB, Fortune 500), rumored to be in talks with Morgan Stanley, gained 30%.JP Morgan Chase (JPM, Fortune 500) advanced 13%.The Philly KBW Bank (BKX) index jumped 12%. (Full story)...Banks get breathing roomThe massive government rescue of banks could buy time, and possibly more options, for institutions whose fate hangs in the balance...David Ellishttp://money.cnn.com/2008/09/19/news/companies/banks_feds/index.htmNEW YORK (CNNMoney.com) -- Should a more concrete government plan emerge over the weekend to help solve the ongoing credit crisis, it could give some banks left for dead by Wall Street more time and more alternatives than seemed available just days earlier.Leading investment bank Morgan Stanley (MS, Fortune 500), for example, which is rumored to be eyeing a possible merger with commercial bank Wachovia (WB, Fortune 500), may be able to remain independent.A source close to the situation told CNNMoney.com that Morgan Stanley believed the latest developments give the firm more time to decide its next move. The source added, however, that the firm was continuing to evaluate all of its options. One bank expert said that Morgan Stanley isn't the only financial firm that can now take a step back and review all possible plans for the future."I think that they are thinking to themselves, 'What can we do today that we couldn't do yesterday?' " said Gary Townsend, a former bank analyst at Friedman, Billings, Ramsey, who now serves as the president of the Chevy Chase, Md.-based Hill-Townsend Capital. Details of the government plan so far remain slim, even as Treasury Secretary Henry Paulson warned Friday it would cost "hundreds of billions of dollars." It is widely believed to involve letting banks rid themselves of their problematic mortgage-related assets.Such a move would not only go a long way towards providing relief to investment banks and brokerages that bet on risky mortgage-backed securities, but also those firms that sold the mortgages in the first place like Washington Mutual (WM, Fortune 500) - the nation's largest savings and loan.Just this week, the Seattle-based firm has had its credit rating lowered to junk status by the top credit rating agencies. At the same time, there has been rabid speculation that WaMu is looking for a buyer after reportedly hiring Goldman Sachs as an advisor. Wells Fargo (WFC, Fortune 500), Citigroup (C, Fortune 500) and HSBC (HBC) have all been mentioned as possible suitors.A government purchase of the company's worst assets could make an independent WaMu more likely. But it could also make what's left of the savings and loan more attractive to a buyer, said Howard Shapiro, an analyst with Fox Pitt Cochran Caronia."It was going to be very hard to get anyone to buy WaMu if they had to take on the toxic waste," he said. "If you don't have to take that on, then what you are left with is a very, very valuable retail branch system and that is an easier sale."...Rushing to save money-market fundsIn effort to calm critical part of the broader financial system, Fed and Treasury take three-pronged measure to stabilize troubled funds...Tami Luhbyhttp://money.cnn.com/2008/09/19/markets/money_markets/index.htm?postversion=2008091913NEW YORK (CNNMoney.com) -- Coming to the rescue of a bedrock of American investing, the Treasury Department and the Federal Reserve took three big steps Friday to shore up the $3.3 trillion U.S. money-market fund industry.Investors have been fleeing money-market funds after a week of chaos on Wall Street that included the bankruptcy of Lehman Brothers, an $85 billion government bailout of American International Group and a sweeping plan for the federal government to buy up financial companies' troubled mortgage debt. Money-market funds are typically a safe investment popular with American consumers and companies alike, but redemptions have severely strained fund families and global financial markets.In response, the Treasury said it would insure up to $50 billion in money-market fund investments at financial companies that pay a fee to participate in the program. The initiative, which lasts for a year, will guarantee that the funds' value does not fall below the standard $1 a share."Concerns about the net asset value of money-market funds falling below $1 have exacerbated global financial market turmoil and caused severe liquidity strains in world markets," the Treasury Department said in a statement.Fed seeks to stabilize money fund assetsAt the same time, the Fed took two steps to stabilize the debt products in which money-market funds invest. The value of this debt plummeted this week as the funds rushed to sell their holdings to meet investor redemption demand. Money-market fund holders cashed in a record $169 billion in the past week.First, the Fed will lend an unlimited amount of money to banks to finance their purchases of high-quality asset-backed commercial paper from money-market funds. Money-market funds hold approximately $230 billion in this type of debt.In an unusual move, the Fed is lending the funds on a "non-recourse" basis, meaning if the value of the commercial paper - short-term debt issued by companies - declines in value, the agency will absorb the loss. However, senior Fed staffers said they do not expect to take any losses because the debt should regain its value once the markets stabilize.Second, the Fed will purchase short-term debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks from investment banks, which should also inject liquidity into the market. Money-market funds hold about $69 billion of such debt.Experts: No need to cash outMoney-market experts say investors shouldn't panic. They felt most funds were safe even before Friday's government action, which will only add more confidence in the investments...Money-market funds have been under pressure for the past year as the credit crisis swept Wall Street. But the tension soared this week amid a new round of trouble.In ordinary times, investors turn to money-market funds as a stable place to stash extra cash in their brokerage or retirement accounts. They usually offer higher interest rates than many bank accounts, such as money-market accounts...Money-market funds can offer higher yields because they invest in assets ranging from Treasurys to short-term corporate debt, the latter of which comes with higher rates but more risk.But unlike bank products, money-market funds are not covered by the Federal Deposit Insurance Corp. Investors can lose money, and this week, those in one fund did.The Reserve Fund announced Tuesday that it had to cut the price of shares in its primary fund to 97 cents and investors who wanted to withdraw money would have to wait a week for the proceeds.Other mutual fund companies have had to take emergency maneuvers to stabilize their money-market funds. Under siege from redemptions, Putnam Investments said Thursday it would close its institutional prime money-market fund and return all proceeds to investors at $1 a share.Meanwhile, Legg Mason announced it would inject up to $630 million into three funds to allow them to maintain their $1-a-share value. Other fund companies - including Wachovia's Evergreen Investments and Frank Russell Funds - announced earlier this week their parent companies also would put money into the accounts.By Friday, federal officials worried that the strain on money-market funds had become too great and threatened the world's financial system."Money-market funds play an important role as a savings and investment vehicle for many Americans; they are also a fundamental source of financing for our capital markets and financial institutions," the Treasury Department said. "Maintaining confidence in the money-market fund industry is critical to protecting the integrity and stability of the global financial system." Rescue cost: Hundreds of billionsWashington unveils sweeping efforts to save financial system. Bottom line will depend on what Uncle Sam pays for toxic assets...Jeanne Sahadihttp://money.cnn.com/2008/09/19/news/economy/paulson_plan_cost/index.htm?postversion=2008091913NEW YORK (CNNMoney.com) -- Treasury Secretary Henry Paulson on Friday didn't mince words when it came to the cost of his latest proposal to stem the credit crisis. "We're talking hundreds of billions of dollars - this needs to be big enough to make a real difference and get at the heart of the problem," he said. "This is the way we stabilize the system."Paulson, speaking at a brief press conference in Washington, offered few details on his plan to help banks offload their toxic mortgage assets. Treasury is drafting a legislative proposal for lawmakers to consider this weekend.The speculation is that the Treasury will help banks clear their balance sheets of illiquid mortgage assets by buying them at a discount.One way the plan could work is for the Treasury to make the purchases through a bidding process. Companies that want to offload their hard-to-sell assets from their balance sheets would bid to sell to the government at a huge discount. The company willing to sell at the lowest price wins. The government would then be able to sell the assets back into the market when it wanted. The idea is that the government would buy at below-market rates and sell for a gain when the housing market recovers"The government could make a profit, a substantial profit," said Jaret Seiberg, a financial services analyst at the Stanford Group, a policy research firm.This optimistic scenario hinges not only on a housing recovery but on how big a discount the government gets when it buys banks' toxic mortgage assets to begin with.The problem is that the assets have proven extremely difficult to value as the demand for them has disappeared."The pricing mechanism is going to be central," Seiberg said.On Friday, Sen. Richard Shelby, R-Ala., the ranking member on the Senate Banking Committee, told CNNMoney.com that the latest plan from Treasury could cost up to $500 billion. Awaiting details on the plan from Treasury, Shelby said, "I think this is too big to just accept ... without understanding who pays."If he's right about the $500 billion, the headline figure on the government's attempts to stem the credit crisis hits $1.3 trillion. That includes all the loans, investments and new programs committed by the Federal Reserve and Treasury this year.But that doesn't mean that taxpayers would end up paying anything near that amount, because in exchange for its commitments the government will get saleable and income-producing assets. If these efforts result in a net cost to the taxpayer, it's a better bet than the alternative, Paulson said."I am convinced that this bold approach will cost American families far less than the alternative - a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion," he said. -------------------------------------------------------------CENTRAL VALLEY SAFE ENVIRONMENT NETWORKMISSION STATEMENTCentral Valley Safe Environment Network is a coalition of organizations and individuals throughout the San Joaquin Valley that is committed to the concept of "Eco-Justice" -- the ecological defense of the natural resources and the people. To that end it is committed to the stewardship, and protection of the resources of the greater San Joaquin Valley, including air and water quality, the preservation of agricultural land, and the protection of wildlife and its habitat. In serving as a community resource and being action-oriented, CVSEN desires to continue to assure there will be a safe food chain, efficient use of natural resources and a healthy environment. CVSEN is also committed to public education regarding these various issues and it is committed to ensuring governmental compliance with federal and state law. CVSEN is composed of farmers, ranchers, city dwellers, environmentalists, ethnic, political,and religious groups, and other stakeholders.