This past week the leadership of both the California Cotton Ginners and Growers Association (CCGGA) and Western Agricultural Processors Association (WAPA) went to Sacramento for three days of regulatory and legislative issues.  The Associations’ Executive leadership and staff met with legislative and regulatory representatives on a multitude of critical issues including water rights legislation, FARMER funding, property and stock throughput insurance, the proposed indoor heat illness regulation, water quality fees, air quality legislation for the SJV, funding of water projects for medium and high priority area GSAs, port issues, and several other important topics.  The entourage met with legislators including Assemblyman David Alvarez (80^th), Assemblywoman Cecilia Aguiar-Curry (4^th), Assemblyman Josh Lowenthal (69^th), Assemblyman Juan Carrillo (39^th), Assemblyman Vince Fong (32^nd), Assemblyman James Gallagher ( 3^rd), Assemblywoman Esmeralda Soria (27^th), Assemblyman Greg Wallis (47^th), Assemblywoman Tasha Boerner (77^th), and the staff of Assemblyman Rick Chavez Zbur, and Senator Lena Gonzalez (33^rd).  The group also met with Agency staff from the California Air Resources Board (CARB), Department of Industrial Relations (DIR) Director Katie Hagen, State Insurance Commissioner Ricardo Lara and State Water Resources Control Board Member Dorene D’Adamo.  CCGGA was represented by Chairman Matt Toste, First Vice Chair Gary Martin, Second Vice Chair Adriane Carbonel and Secretary/Treasurer Jake Cauzza.  WAPA was represented by First Vice Chair Pat Andersen, Past Chairman Michael Kelley and Board Member John Rodriguez.  Association staff included President/CEO Roger Isom, Assistant Vice President Priscilla Rodriguez and Director of Technical Services Christopher McGlothlin. 

Southern California Edison has proposed a 45% rate increase over already approved 2024 rates, which would generate another $3.9 billion in revenue for SCE.  This follows the proposed 46% increase in rates by PG&E by 2026.  With the state’s push to electrify everything how can businesses survive in this state?  The association will be working with the Ag Energy Consumers Association (AECA) on both of these important general rate cases (GRCs).  Association President/CEO Roger Isom is the President of the Board of AECA and Association Assistant Vice President Priscilla Rodriguez also sits on the AECA Board of Directors, so this will be a priority!

This week, Association President/CEO Roger A. Isom was named President of the Ag One Foundation at California State University, Fresno.  In 1979, several faculty, alumni and friends of the Jordan College of Agricultural Sciences and Technology at Fresno State had a million-dollar idea — to start a foundation that would benefit, promote and support the college and its programs. The supporters set out to raise $1 million in permanent funds. Today, the Ag One Foundation has raised more than $27 million in endowed funds which are invested with the Fresno State Foundation.  Over the years, donors, board members and volunteers have made it possible to award some 5,000 students with over $8.5 million in scholarships and program support. For the 2022-23 academic year, Ag One will provide more than $850,000 to deserving students and programs.  In response to the appointment Isom stated, “This is truly an honor and a privilege to be associated with such a dedicated board and team helping students in JCAST achieve their dreams and help agriculture remain viable for the next generations”.  This marks Isom’s 6^th year on the Ag One Foundation’s Board of Directors.  Joining Isom as officers will be Vice President: Nick Biscay, Stanislaus Farm Supply; Treasurer: Fendley Ragland, PGIM Real Estate Agricultural Investments and Secretary: Jason Baldwin, Panoche Creek Packing.

Over the last two days, the California Air Resources Board (CARB) Board heard the final update to staff’s Advanced Clean Fleet (ACF) regulation.  CARB Staff presented the final draft version of the rule, which is set to require businesses that dispatch or own 50 or more vehicles, or have $50 million or more in receipts, to begin replacing and upgrading their fleets with Zero Emission Vehicles (ZEV’s) starting in 2025.  The Board heard from over 120 different commenters, and debated for more than two hours before motioning to approve the regulation.  It was approved unanimously by the Board, but with some additional emphasis being placed on impacts to industry. 

The Association’s Director of Technical Services, Chris McGlothlin, provided comments specifically identifying the current delays with utility interconnectivity.  Speaking on years long delays to connect well pumps, farm shops, even major processing facilities, McGlothlin emphasized that the utility companies are not ready for the manufactured demand for system upgrades that this rule creates.  Speaking after public comments were provided, several Board Members echoed those concerns in regard to interconnectivity, and directed staff to work with industry and various stakeholders to stay on top of direct needs on the infrastructure side.  Stay tuned for more updates!

Today, the Bureau of Reclamation announced it is increasing Central Valley Project 2023 water supply allocations for irrigation water service and repayment contractors. Both north- and south-of-Delta contractors are increased to 100% from 80%. All other CVP water supply allocations remain the same as noted in the March 28 announcement.  Current status of all CVP allocations are:

North-of-Delta Contractors

Sacramento River

• Irrigation water service and repayment contractors north-of-Delta are allocated 100% of their contract supply.
• Municipal and industrial water service and repayment contractors north-of-Delta are allocated 100% of their contract supply.
• Sacramento River Settlement Contractors’ water supply is based upon settlement of claimed senior water rights. The 2023 water year is determined as non-critical, as defined in their Settlement Contracts, which allows for 100% of their contract supply.

American River

• M&I water service and repayment contractors north-of-Delta who are serviced by Folsom Reservoir on the American River are allocated 100% of their contract supply.

In-Delta Contractors

• M&I water service and repayment contractors who are serviced directly from the Delta are allocated 100% of their contract supply.

South-of-Delta Contractors

• Irrigation water service and repayment contractors south-of-Delta are allocated 100% of their contract total.
• M&I water service and repayment contractors south-of-Delta are allocated 100% of their contract supply
• San Joaquin River Settlement Contractors and San Joaquin Exchange Contractors’ water supply is based upon settlement/exchange of claimed senior water rights. The 2023 water year is determined as non-critical, as defined in their contracts, which allows for 100% of their contract supply.

Eastside Water Contractors

• Eastside water service contractors (Central San Joaquin Water Conservation District and Stockton East Water District) are allocated 100% of their contract total.

Wildlife Refuges

• The 2023 water year is currently determined as non-critical, as defined in their contracts, which allows for 100% of contract supply for wildlife refuges (Level 2), both north- and south-of-Delta.

Friant Division Contractors

• Friant Division contractors’ water supply is delivered from Millerton Reservoir on the upper San Joaquin River via the Madera and Friant-Kern canals. The first 800,000 acre-feet of available water supply is considered Class 1; Class 2 is considered the next amount of available water supply up to 1.4 million acre-feet. Given the current hydrologic conditions, the Friant Division water supply allocation is 100% of Class 1 and 70% of Class 2 (from the initial 20% allocation).

A special cotton zoom meeting is coming on Friday, April 21^st at 9:00 am.  This meeting will be conducted by UC Cooperative Extension and will feature topics on cotton management under the slow start, management of lygus, aphid and whitefly, as well as an update on the cotton seed bug.  We encourage all cotton growers to participate in this critical and informative meeting for the upcoming cotton season!  Here are the details:

Spring 2023 Cotton Zoom Meeting

Date/time: Friday, April 21^st, 9:00-10:20 AM

Goal: present information and discuss current and likely issues with cotton management given conditions this year, as well as updates on arthropod pests and their management

Agenda

9:00-9:20. Cotton management and a slow start to the season. Bob Hutmacher, UC Davis, Dept. of Plant Sciences, retired.

9:20-9:40. Lygus management in California cotton. Ian Grettenberger, UC Davis, Dept. of Entomology and Nematology.

9:40-10:00. Aphid and whitefly management in cotton and update on coverage/efficacy research, Buddhi Achhami, UC Davis, Dept. of Entomology and Nematology.

10:00-10:15. Cotton seed bug update. Mark Hoddle, UC Riverside, Dept. of Entomology.

10:15-10:20. Final discussion and conclusion

Zoom information

Link: Join Zoom Meeting

https://ucdavis.zoom.us/j/93248697037?pwd=a2xCMlBrUnFjbGFZZDNBUllZUExXZz09

Meeting ID: 932 4869 7037

Passcode: 488512

Dial by your location**– WILL NOT BE ABLE TO SEE SLIDES/VISUALS (but possibly useful for audio issues)

        +1 669 900 6833 US (San Jose)

        +1 646 931 3860 US

Meeting ID: 932 4869 7037

Passcode: 488512

This week, the US Department of the Interior announced a nearly $585 million investment from President Biden’s Bipartisan Infrastructure Law for infrastructure repairs on water delivery systems throughout the West. Funding will go to 83 projects in 11 states to improve water conveyance and storage, increase safety, improve hydro power generation and provide water treatment.  The projects selected for funding are found in all the major river basins and regions where Reclamation operates. Among the 83 projects selected for funding are efforts to increase canal capacity, provide water treatment for Tribes, replace equipment for hydropower production and provide necessary maintenance to aging project buildings. Projects will be funded in Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, and Washington.  The projects identified for California’s Central Valley Project includes:

Central Valley Project –

• $25 million for the Jones Pumping Plant Excitation Cabinet and Control Panel Refurbishment
• $25 million for the Delta Mendota Canal Subsidence Correction Project
• $22.2 million for the Friant Kern Canal Capacity Correction
• $42.53 million for the San Luis Unit – Gianelli Pump-Generating Plan Unit 8 Motor Generator, Turbine and Butterfly Valve Replacement
• $10 million for Nimbus Fish Hatchery Nursery Phase IV Modernization
• $14.74 million for Shasta Dam Refurbishment Tube Valves
• $10 million for Shasta Dam Temperature Control Device
• $42.25 million for Trinity Division, Spring Creek Power Transformer Replacement
• $65.9 million for Trinity River Fish Hatchery Building Modernization

As part of his comprehensive effort to give more insurance options to California residents and businesses, Insurance Commissioner Ricardo Lara announced last week the California FAIR Plan Association has agreed to more than double its existing commercial coverage limits to $20 million for businesses unable to find coverage in the normal insurance marketplace. The FAIR Plan is an association comprised of all insurers authorized to transact basic property insurance in California and designed to be the state’s property “insurer of last resort,” writing coverage for businesses and residences when other insurance options are not available.  Commissioner Lara and the FAIR Plan have been working on this issue since the Commissioner’s investigatory hearing into the FAIR Plan last July where homeowners associations, youth recreational camps, agricultural groups, and other businesses spoke about the growing need for greater commercial coverage limits.   Association President/CEO Roger A. Isom testified at that hearing specifically asking for an increase to at least $20 million in coverage.  “Giving businesses greater options for insurance coverage is a top priority of mine. I am pleased the FAIR Plan is stepping up when insurance companies fall short in providing businesses and homeowners access to the coverage they need,” said Commissioner Lara.  Today’s agreement signed by Commissioner Lara and FAIR Plan President Victoria Roach will increase the combined coverage limits for the FAIR Plan, under its Division I Commercial Property Program, from $8.4 million to $20 million per location and, under its Division II Businessowners Program, from $7.2 million to $20 million per location.  State legislators, including Senator Toni Atkins and Senator Susan Rubio joined Commissioner Lara’s call for an increased commercial coverage limit at the FAIR Plan in letters sent earlier this year.  The new coverage limits will take effect after the FAIR Plan submits a new rule filing for approval by the Department of Insurance. The FAIR Plan has 60 days to submit a rule filing to the Department, with the goal of the Department approving these coverage limit increases, meaning coverage could be available in the fourth quarter.

The CalOSHA Standards Board has released notice the plan to hear the new Section 3396 – Heat Illness Prevention in Indoor Places of Employment.  This new regulation would affect all indoor work areas where the temperature equals or exceeds 82 °F when employees are present.  In these areas the employer must provide a mandatory “cool down area” that is less than 82 °F.  in addition the employer must monitor the temperature and heat index at all times.  Further, the employer must provide engineering controls to bring temperatures down to 87 °F.  Employers will also have to develop and implement emergency response procedures, employee training, supervisor training and have a written Heat Illness Prevention Plan (HIPP).  The proposed standard is set to be heard by the Standards Board in May.  The Association is opposing the proposed standard as currently written.