The California Public Utilities Commission (CPUC) held an outreach hearing yesterday in Stockton to discuss the impacts of the proposed rate structure under the 2017 PG&E General Rate Case (GRC).  Association President/CEO Roger Isom testified at the hearing by demanding that this “not just be another meeting!  Electricity prices are already too high!”  The hearing was to take public comments on the Phase 2 portion of the 2017 PG&E GRC.  CPUC Administrative Law Judge Michele Cooke presided over the hearing since she is the ALJ assigned to this case and will ultimately be making the recommendation to the Commissioners on the GRC.  During the hearing, Isom specifically commented on the proposed rates for cotton gins, and tree nut hullers and processors.  Isom also expressed major concerns with shifting the “peak period” and the impact it would have on growers in terms of irrigation scheduling and on the businesses that installed solar and made financials decisions on an assumed rate of return that would now be completely turned upside down. The meeting was fairly well attended, especially by growers and members of the San Joaquin Farm Bureau.  These growers did an outstanding job of expressing their specific concerns with changing the time of use periods.  Phase 2 of the GRC is where rates are divided up amongst the various rate classes and those negotiations are ongoing.  This was an important meeting where industry could express their specific concerns outside of the negotiations.

The California State Water Resources Control Board has appoint Eileen Sobeck as the new Executive Director, replacing Tom Howard who retired in May of this year.  Ms. Sobeck comes with nearly 40 years of government service, most recently as Assistant Administrator for the National Oceanic and Atmospheric Administration (NOAA) in the Fisheries Division, where she worked from 2014 to 2017.  Prior to her work at NOAA she was the Department of Interior’s Acting Assistant Secretary for Insular Affairs (2012-2014), and Deputy Assistant Secretary for Fish, Wildlife and Parks (2009-2012).  Sobeck is a lawyer by training and spent 25 years at the U.S. Department of Justice, ultimately serving as Deputy Assistant Attorney General for Environment and Natural Resources (1999-2009).  While Sobeck has spent her professional career in Washington, D.C., she has many ties to California.  She grew up in Davis, is a graduate of Stanford and Stanford Law School, and has strong family connections to California.  Sobeck will join the State Water Board following the Labor Day holiday weekend.

Addressing concerns expressed by the community on why Assemblyman Devon Mathis voted for the recent Cap & Trade legislation (AB 398), Association President/CEO Roger Isom spoke on the need for the legislation for agriculture and that many have misunderstood the bill and its true impacts.  Isom was part of an eight person panel that consisted of representatives from Western United Dairyman, California Dairies Inc., Southern California Edison, California Manufacturers and Technology Association (CMTA), California League of Food Producers, and Assemblyman Devon Mathis himself.  Isom explained that this is a complex issue that has forced agriculture in a position where they are stuck.  With the passage of SB 32 last year, the state has a mandate in law for businesses to reduce greenhouse gas emissions by 40% by 2030.  The state has two options to make that happen: “command and control” or “Cap & Trade”.  The option with the least impact by far is Cap & Trade.  Isom said “Let’s be clear.  No one up here likes Cap & Trade or the whole greenhouse gas emission program.  We’re the only area in the world with a mandatory program and it is killing us.”  AB 398 provides the least impactful pathway for facilities subject to the mandatory reductions, and it also resulted in concessions that helped nut processors, tomato processors, milk and cheese plants, and poultry processing plants that are actually subject to the regulations.

In less than 30 days from submittal of the application, the California Department of Pesticide Regulation (DPR) has received approval from Federal EPA and has authorized for use the pesticide Transform for use on lygus in cotton in California.  Use is limited to Fresno, Glenn, Imperial, Kern, Kings, Madera, Merced, Riverside, Sutter, Tehama and Tulare counties.   This was issued as a Section 18 Crisis Exemption to help combat the unprecedented levels of lygus seen in cotton fields this year.  This is a limited exemption currently only available through August 4^th.  The Association is also working on a specific Section 18 and hopeful that deadline will be extended.    Meanwhile, Dow AgroSciences is working to get supply of the product in to California as we distribute this announcement.  At this point we wish to thank Dr. Peter Goodell, and Dr. Bob Hutmacher for their tireless efforts in working on the Section 18 application and information.  In addition we want to especially recognize Dow AgroSciences for their work and cooperation in obtaining this important Section 18.

Yesterday, the U.S. House of Representatives passed H.R. 23, known as the Gaining Responsibility on Water Act of 2017 (GROW Act), by a vote of 230 to 190. The legislation, sponsored by Rep. David Valadao (CA-21), aims at increasing the amount, quality, and reliability of water available to California.  This is an important piece of legislation that follows on the heels of the passage of the Water Infrastructure Improvement for the Nation Act (WIIN Act) in 2016.  A large portion of the bill focuses on modifying policies regarding the operations of the Central Valley Project and State Water Project and the implementation of the San Joaquin River Settlement.  More specifically, the legislation does the following:

• EXPANDING WATER STORAGE The GROW Act requires the federal government to expedite and complete consideration of feasibility studies for water storage projects some of which have been wasting away in bureaucratic purgatory for over ten years
• IMPROVING INFRASTRUCTURE: “ONE-STOP-SHOP” PERMITTING The GROW Act establishes the Bureau of Reclamation (BOR) as the lead coordinating agency for the permitting process for new or expanded surface storage facilities in order to streamline agency permit requirements that often impose unnecessary costs and burdens when constructing new water infrastructure
• ENSURING WATER RELIABILITY The GROW Act updates the Central Valley Project Improvement Act to ensure water resources are reliable and available to fulfill supply promises
• PROTECTING WATER RIGHTS The GROW Act prohibits past abuses of the Departments of the Interior and Agriculture that required private entities to relinquish their water rights to the federal government as a permit condition to continue operating on federal lands
• SAFEGUARDING THE ENVIRONMENT AND FISH The GROW Act provides reasonable flows for habitat restoration of fish and wildlife in the Central Valley and ensures compliance with requirements of the Endangered Species Act

The Association sent letters urging Congress to support the legislation, which now moves to the Senate where it will face a more fervent challenge.  If you haven’t already done so, please write letters of support to our two (2) California Senators, Senator Dianne Feinstein and Senator Kamala Harris.

Date: July 18 2017
Time: 10:00 a.m.

The Saqui Law Group and the Western Agricultural Processors Association offer this webinar for Owners, Office Managers, supervisors, and HR team members.

PRESENTER
Michael Saqui, The Saqui Law Group — Michael Saqui’s highly successful track record spanning over two decades makes him a powerful partner to the clients he represents in all aspects of employer-employee relations. He does extensive public speaking including seminars, lectures and in-house training, to counsel employers in developing proactive approaches to address employment and labor relations matters.

TOPICS COVERED

1. “TRUMP-Train” trends and their effect on AG;
2. Dealing with Employee confusion and “Fake News;”
3. Dealing with I-9 compliance issues;
4. Employer workplace obligations; and
5. What to do when ICE shows up.

Q+A: Bring your questions.

Please RSVP by July 14, 2017.
For more information and to register, contact Elda at: Elda@agprocessors.org

Webinar Flyer

After receiving numerous reports from growers, PCA’s and Cooperative Extension representatives regarding the severe Lygus populations in California cotton, the California Cotton Ginners and Growers Association (CCGGA) immediately went to work in preparing a Section 18 Crisis Emergency Exemption for sulfoxaflor (aka Transform®). Given the extended winter season and increased rains, a perfect storm was created to give Lygus the ideal conditions to grow to large populations, many indicating this is the worst they have ever seen. With the assistance from UCCE IPM Specialist Peter Goodell, state cotton specialist Bob Hutmacher and the representatives at Dow AgroSciences, CCGGA was able to prepare and submit an application within a week’s timeframe. Throughout the entire process, CCGGA has been engaged in communication with the Department of Pesticide Regulation (DPR) to convey the urgency and time sensitive nature of getting this application approved. It is hoped with this particular Section 18 being categorized as a “crisis”, DPR and the US Environmental Protection Agency (USEPA) will speed up the process to allow timely access to growers. At this point there is no timeline as to when the product will be able to be used, CCGGA staff are in contact with DPR on a daily basis conveying the urgency and will provide updates as they become available.

The California Department of Food and Agriculture’s Pink Bollworm Program have released the preliminary acreages for most of the cotton growing counties in California.  The breakdown is as follows:

With a currently estimated 4,200 acres in the Sacramento Valley, the overall total is estimated to be 295,848 acres statewide.  It is too early for the Pink Bollworm Program to confirm Pima/Upland splits, but current estimates put the split at 75%/25%, but we will wait to confirm what was actually planted, especially given the late announcement on water.

The Cotton Board is currently seeking nominees from California to fulfill a three year term beginning on January 1, 2018 through December 31, 2020.  Based in Memphis, Tennessee, The Cotton Board is the oversight and administrative arm of the Cotton Research & Promotion Program, representing U.S. Upland cotton.  To fund the Program, The Cotton Board collects a per bale assessment of all Upland cotton harvested and ginned in the U.S., as well as an importer assessment for all Upland cotton products imported into the U.S.  To conduct the Program, The Cotton Board contracts with Cotton Incorporated to carryout the actual research and promotion activities for U.S. producers and importers of cotton.  While Cotton Incorporated is consumer and trade focused, it is a charged function of The Cotton Board’s mission to keep U.S. producers and importers of cotton informed on the innovative developments coming from the Program.  Being a board member of the Cotton Board will help shape cotton’s future and play a critical role in the success of the cotton industry for years to come.  Growers Aaron Barcellos and Dustin Mancebo currently represent California.  There are 2 to 3 meetings per year, and travel costs are reimbursed.  Anyone interested in encouraged to apply.  If you are interested, please contact Roger Isom at (559)252-0684 or via email at roger@ccgga.org.

While activists outnumbered agricultural representatives 10 to 1, the Association yet again spoke out against the mandate to tractors, harvesters and pump engines at the California Air Resources Board Hearing this week in Sacramento on the State Implementation Plan (SIP) for attaining the PM2.5 Standard.  Once again, Association President/CEO Roger Isom testified before the Board to ensure agriculture’s accomplishments were recognized.  The plan will have a hearing In August or September, but CARB demanded an update from staff on the development of the plan and what will be included.  The Association, along with the Nisei Farmers League, were the only ag organizations to testify at the hearing where environmental advocates and some ARB board members called for a mandatory farm equipment and harvester replacement rule.  Isom highlighted the 12.65 tons of NOx reductions already obtained on a voluntary basis through the NRCS EQIP program and the San Joaquin Valley Air Pollution Control District’s Ag Equipment Incentive Program.