Cotton & Coffee is Next Week – Tuesday, January 20th, at 7:30 a.m. Central.
We hope you’ll join us next week to learn how Cotton Incorporated’s Cottonseed Research and Marketing Program explores innovations such as enhanced handling characteristics, new storage solutions, cottonseed oil, and opportunities for whole cottonseed as a high-energy feed for cattle.
U.S. Transportation Secretary Sean P. Duffy has announced that the Federal Motor Carrier Safety Administration (FMCSA) is withholding approximately $160 million from the State of California for failing to cancel over 17,000 illegally issued Commercial Driver’s Licenses (CDLs) by the agreed-upon deadline of January 5, 2026. The FMCSA issued a Final Determination after California refused to cancel the licenses on time, allowing foreign drivers with invalid licenses to continue operating on American roads. As part of the Secretary’s Nationwide Non-Domiciled CDL Audit, FMCSA uncovered a systemic collapse of California’s non-domiciled CDL program, which allowed the state to illegally issue licenses with expiration dates extending years beyond a driver’s lawful presence and to grant CDLs to individuals who were ineligible to hold them. According to the Feds, more than 20,000 active non-domiciled CDLs were issued by California in violation of federal safety regulations. In September of last year, a nationwide audit of trucking licenses exposed more than 25% of non-domiciled CDLs issued by California were issued unlawfully – including with licenses extending as many as four years beyond the expiration date of their lawful presence documentation. In November, California agreed to revoke every illegally issued license within 60 days and work with FMCSA so the agency could verify that the failures that allowed these licenses to be issued are corrected. That did not happen and in response, FMCSA will withhold nearly $160 million of funds from California via the National Highway Performance Program and Surface Transportation Block Grant. California’s Department of Motor Vehicles (DMV) has indicated they are extending the deadline until March stating the cancellation of thousands of CDLs will severely impact the California economy.
Longtime Association part time intern Mandy Vang has been promoted to full time as an Office Assistant. Mandy began working at the Association in January of 2023 while she was finishing her degree in Computer Information Systems at Fresno State. Now graduated, Mandy will expand upon her role as an intern and take on extra duties including handling all social media platforms and tackling portions of the Annual Meetings and events for both the California Cotton Ginners and Growers Association (CCGGA) and the Western Tree Nut Association (WTNA).
In action this week, the California Public Utilities Commission set new levels for the Cost of Capitol that represented a 0.3% decrease. While it may not be significant, it is opposite of the 1% increase that the utilities had originally proposed back in March. Prior to this new decision PG&E had proposed to increase the cost of capital from 10.28% to 11.3% and Edison had proposed to go from 10.33% to 11.75%. Considering the current economic environment, it was a bold request by the utilities that was met with tremendous opposition from industry groups, ratepayers and even legislators who were brave enough to challenge the utilities. Association President/CEO Roger A. Isom commented “We applaud the CPUC for having the courage to do the right thing and not only reject the proposed increase, but to actually decrease the rate of return. Electricity rates in California are astronomical compared to the rest of the country, and it is time for the CPUC to bring these utilities in line. Finally, the state is taking a small step in the right direction.”
Save the Date! The 2026 CCGGA Annual Meeting will be on May 20th in Tulare, CA.
This past week the Bureau of Reclamation signed a Record of Decision adopting an updated long-term operation plan for the Central Valley Project. The decision advances actions designed to maximize water deliveries across California while maintaining protections for endangered fish species. “With the signing of this Record of Decision, we are delivering on the promise of Executive Order 14181 to strengthen California’s water resilience,” said Secretary of the Interior Doug Burgum. “This updated operations plan reflects our commitment to using the best available science to increase water deliveries while safeguarding the environment and honoring the legacy of the Central Valley Project’s 90 years of service.” The revised plan responds to Executive Order 14181, issued Jan. 24, 2025, which directs federal agencies to take all available measures to increase water deliveries from the CVP, including issuing a new Record of Decision consistent with federal law. “Action 5 represents a forward-looking approach to water management that balances the needs of California’s communities, agriculture, and ecosystems,” said Assistant Secretary for Water and Science Andrea Travnicek. “By refining real-time governance and operational flexibility, we are ensuring that every drop of water is managed with precision, accountability, and purpose.”
Under the updated approach, the CVP may increase annual water deliveries by between 130 to 180 thousand acre-feet, and the State Water Project by 120 to 220 thousand acre-feet, depending on hydrologic conditions and subject to the State’s adoption of Action 5. The updates improve the use of scientific modeling and analysis in operational criteria. Changes remain within the range analyzed in the 2024 Long-Term Operations Final Environmental Impact Statement and consistent with effects analyzed in the 2024 Biological Opinions issued by NOAA Fisheries and the U.S. Fish and Wildlife Service. Key operational changes include adjustments to Delta export operations, removal of the Delta Summer and Fall Habitat Action and removal of early export-reduction concepts from the State of California’s Healthy Rivers and Landscapes Program. Association President/CEO Roger A. Isom stated “this type of action is what we all hoped for, and represents the balance so desperately needed. While it won’t eliminate the devastating impact of SGMA, it will go a long way in helping to mitigate the damaging effects on farmers, agricultural processors and everyone that lives here.”
The California Cotton Ginners and Growers Association is pleased to announce the re-election of the following board members. Re-elected to the board were the following Ginners: Raymond Gomez, J.G. Boswell Company and Kirk Kilkey, Cross Creek II Gin LLC. The following Growers were re-elected: Fresno County: Gary Martin, Wyatt McKean and Renato Serrano; Tulare County, Doug Cardoza. All board member positions are three-year terms.
The Department of Water Resources (DWR) has announced an initial State Water Project (SWP) allocation of 10 percent of requested supplies for the new water year. The SWP is contractually required to make an initial allocation forecast by December 1 each year. Since it is so early in the season, the initial allocation typically reflects current hydrological conditions, existing reservoir storage, and an assumption of dry conditions through the rest of the year. So far, the wet season is off to a good start with beneficial rain falling in Northern California and Southern California already seeing significant rainfall following a dry year last year. “Recent history has shown us that anything can happen during a California winter, so it’s important that our early season allocation for the State Water Project is conservative,” said DWR Director Karla Nemeth. “Traditionally our wettest months are yet to come. With improvements to forecasting and science, we are better prepared to capture water supply during wet periods if Mother Nature delivers.” Across the state, California’s water supply starts the season in good shape with statewide reservoir storage just above average at 114 percent. Lake Oroville, the SWP’s largest reservoir, is at 100 percent of average for this time of year, slightly above where it was at last December. Each year, DWR provides the initial SWP allocation based on available water storage, projected water supply and water demands. Allocations are updated monthly as snowpack, rainfall and runoff data is analyzed, with a final allocation typically determined near the end of the season in May or June.
The Department of the Interior has announced Secretary’s Order 3446, which streamlines federally funded construction projects at Bureau of Reclamation facilities across the 17 Western states. The order reduces administrative burdens, cuts costs for water and power users and supports faster delivery of critical infrastructure across the West. The order directs Reclamation to work with local water and power partners to modify certain contracts and establish new contract terms that allow qualified partners to manage portions of the procurement process on some federally funded projects. This partner-led approach is designed to speed up project delivery and improve efficiency while maintaining federal oversight. “The Trump administration is focused on unleashing American infrastructure, cutting unnecessary red tape and lowering costs for families, farmers and communities,” said Secretary Doug Burgum. “By empowering local partners and simplifying federal processes, we can deliver water and power projects faster to make life more affordable for American families while strengthening economic growth throughout the West.” Reclamation will begin implementing the order immediately. One of the early efforts will be the B. F. Sisk Dam Raise and Reservoir Expansion in partnership with the San Luis and Delta Mendota Water Authority. Under the new model, the authority will conduct procurement for a significant part of the storage raise project during the upcoming construction period. The expansion will add 130,000 acre-feet of storage capacity to the 2 million acre-feet San Luis Reservoir, the largest off-stream reservoir in the United States. In addition, the order directs Reclamation to review key processes and programs, including cost-share programs, Reclamation guidelines, engineering design review procedures and environmental compliance, by engaging with stakeholders to identify process improvements and efficiencies. “In addition to speeding up project timelines and cutting costs for our customers and taxpayers, the order directs the Bureau of Reclamation to review many of its processes, manuals and guidelines to identify further operational efficiencies,” said Assistant Secretary for Water and Science Andrea Travnicek.
This past week, the Association co-hosted a very important meeting on the statewide emissions inventory for agricultural operations at our office in Fresno. The high-level meeting included 17 CARB Staff either in-person or online, and five staff from the San Joaquin Valley Air Pollution Control District. Leading the CARB staff was Air Quality and Planning Division Chief Matthew Lakin, Mobile Source Control Division Chief Michelle Buffington, Special Assessment Branch Chief Yanju Chen, Mobile Source Analysis Branch Chief David Quiros, Research Division Chief Elizabth Scheele, and Atmospheric Sciences Branch Chief Michael Fitzgibbon. The focus of the meeting was on updates to the agricultural operations emission inventory, which will play a major role in what is regulated going forward. Topics included harvesting, particularly tree nuts, unpaved roads, land preparation and mobile sources. A lot of the discussion centered on the change in the agricultural landscape due to the impact of the Sustainable Groundwater Management Act (SGMA) and changes in crop type over the past 20 years and what that looks like going forward. Additional meetings will be held to address specific action items including updates to estimates of vehicle miles traveled for specific commodities as equipment and practices have changed over the past 20 years. Co-hosting the meeting with the Association was the Nisei Farmers League and Milk Producers Council.
