On January 1, 2017, after a unanimous vote from members of both Associations, the California Cotton Ginners Association and the California Cotton Growers Association will become one organization!  The Western Cotton Growers Association was founded in 1949 as a cotton organization representing the interests of Arizona, California, and New Mexico cotton growers. One of the important issues that brought these growers together was government cotton allotments. By the mid 1950′s, with cotton allotments no longer being the central issue, each of the three states went their separate ways and formed their own state grower associations. Since that time, the Western Cotton Growers Association, the name retained by the California organization, worked on issues involving the California cotton growers.  In 1971, a few ginners began meeting. They were concerned over a series of regulations being imposed by State and Federal agencies. What they envisioned was an organization that would represent a united front, and in 1973 the needs led to the formation of the California Cotton Ginners Association.  In 1990, the Western Cotton Growers Association and the California Cotton Ginners Association agreed to share offices, staff and costs of running both organizations.  This agreement has facilitated better use of the dues collected from the members of both associations by avoiding duplication of costs. Furthermore, the Ginner – Grower Associations’ Agreement has greatly enhanced and strengthened the legislative advocacy link in Sacramento as well as Washington.  To further identify the members as California Cotton Growers, in 1991 the Western Cotton Growers changed its name to the California Cotton Growers Association.  For the past 25 years these Associations have shared staff and offices, but kept separate accounting, Boards of Directors and meetings.  With the approved merger there will now be one Board of Directors made up of 12 growers and 12 ginners.  At the December joint board meeting the following board members and officers were appointed from the existing boards:

The new officers for the Association were appointed as follows:

Officers
Chairman – Phil Hansen
1^st Vice Chairman – Mike Davis
2^nd Vice Chairman – Bryan Bone
Secretary/Treasurer – Tom Gaffney

Officially, this new organization will be called the California Cotton Ginners and Growers Association. 

FOR IMMEDIATE RELEASE                                                           December 6, 2016

“Not Perfect But It Will Help”

The words above uttered by U. S. Senator Feinstein, accurately sums up our feelings regarding the California drought legislation introduced yesterday and attached to the Water Resources Development Act.  Our collective email accounts were inundated with announcements and summaries yesterday and over last night we collectively read the pertinent language addressing California’s drought and aging infrastructure needs.

The litany of positives is significant and contains both short term and long term solutions to California needs.  The crescendo of concern expressed by those opposing would have us living in an undeveloped California, foregoing ingenuity and the forward thinking that once helped turn California into a leading producer of food and fiber.  The bill removes subjective intuition that has never been held accountable as a pathway to achieve a goal.  Science that is vetted will create solutions for fish, families and farming.

Funds are authorized that begins a process to create more water efficiencies and create more water for a state seeking environmental and community relief.   We commend Senator Feinstein and Congressman McCarthy for their tireless efforts to achieve a viable compromise on an important issue.  Our thanks to Congressmen Valadao, Nunes, Calvert, Costa, and Garamendi for expressing their support and helping lead Congress to the goal line.

The Senator is correct, “this bill isn’t perfect but I do believe it will help California.”  That’s something that hasn’t been done in a generation relative to water infrastructure and use.

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Yesterday, the California Air Resources Board (ARB) held a workshop in Fresno on the PM2.5 State Implementation Plan (SIP) for the San Joaquin Valley Air Pollution Control District (SJVAPCD).  And as we warned a few weeks ago, agriculture is being called on to do more.  Agriculture is being looked at for additional emission reductions from the following categories:

• Ag Tractor Rule – replace ag tractors and harvesters (particularly almond harvesting equipment) for both NOx and PM2.5 reductions
• More stringent engine standards for agricultural pump engines (beyond tier 4 and cleaner natural gas engines)
• A new low-NOx standard for heavy-duty diesel trucks (beyond ARB’s current Truck Rule)
• Alternatives for ag burning
• Additional Conservation Management Practices (CMPs)
• Additional restrictions under Regulation VIII for fugitive dust

The Association was the only agricultural group in attendance, represented by President/CEO Roger A. Isom and Director of Technical Services Christopher McGlothlin.  Isom also testified at the meeting reporting that incentives are absolutely critical and necessary for the agricultural community due to their inability to pass along the additional costs.  Isom further commented that USDA NRCS already had a program to incentivize the low emission nut harvesting equipment and that the Association is working to develop a similar program with the Air District.  In addition, the Association also pointed to significant research performed recently to more accurately determine PM2.5 emissions from agricultural operations and that data showed that PM2.5 emissions from almond harvesting equipment, cotton gins and other operations are insignificant.  Additional workshops and meetings will occur in January and February.

This week, the California Department of Water Resources (DWR), California Department of Food and Agriculture (CDFA), the State Water Resources Control Board (SWRCB), the Public Utilities Commission (PUC) and the California Energy Commission (CEC) released a draft plan for achieving permanent conservation measures for water consumption in California in line with the Executive Order the Governor issued is May of 2016.  Several key water conservation efforts included in the plan include:

• Permanent bans on wasteful practices, such as hosing driveways and excessively watering lawns.
• Technical assistance and financial incentives for water suppliers to implement leak prevention, detection, and repair programs.
• Collecting information about innovative water conservation and water loss detection and control technologies.
• Requiring agricultural water suppliers to quantify water use in their service areas and describe measures to increase water use efficiency.
• Full compliance with water use targets for urban water suppliers by 2025.
• Planning and preparing for continued and future drought and water shortages.

The draft plan concerning agricultural water is outside of the scope of the Executive Order, so will require statutory authority.  It is anticipated that the administration the administration has already drafted language that will either be run through the process or as a budget trailer bill.   The SWRCB has been overseeing much of the implementation of the Executive Order, so it is likely the expanded statutory authority would be given to the Board as well.   For agricultural water suppliers, requirements will include:

1. Develop an annual water budget for the agricultural water service area;
2. Identify agricultural water management objectives and implementation plans;
3. Quantify measures to increase water use efficiency; and
4. Develop an adequate drought plan for periods of limited supply.

The proposal would expand existing requirements to require agricultural water suppliers providing water to over 10,000 irrigated acres of land to prepare, adopt, and submit plans by April 1, 2021, and every five years thereafter. Agricultural water suppliers would also be required to submit an annual report to DWR by April 1 of each year that documents water budget inflow and outflow components in the water budget for the preceding water year.   The draft plan can be found here: http://www.water.ca.gov/wateruseefficiency/conservation/docs/EO_B-37-16_Report.pdf

Comments on the plan will be received through December 19.

This past week, the California Cotton Ginners and Growers Associations (CCGGA) brought Assemblyman Evan Low (28^th Assembly District) to Dos Palos Coop, a cotton gin near Dos Palos.  The visit was part of a tour by the Agricultural Presidents’ Council (APC).  Gin Manager Mike Davis was the site host where Assemblyman Low saw first-hand how upland and pima cotton are ginned.  Assemblyman Low saw both a saw gin and a roller gin.  Many topics were discussed including increased automation due to the impact of the increase in minimum wage and the overwhelming regulatory pressures faced by industry.  Assemblyman Low represents the 28^th Assembly District, located in the Bay Area and representing such cities such as Campbell, Cupertino, Los Gatos, Monte Soreno, San Jose and Saratoga.  The tour is part of the Association’s continuing effort to inform and educate urban legislators on the challenges of operating and doing business in California.  Other sites visited included an almond processor, dairy processor and a tomato processing plant.  Representing CCGGA on the tour was President/CEO Roger Isom.

The U.S. Citizenship and Immigration Services (“USCIS”) has released the latest revision to the Form I-9, Employment Eligibility Verification. Beginning January 22, 2017, employers must begin using the revised Form I-9 for new employees.   The new form is intended to make it easier complete electronically.  It does not does not require any additional information be provided by the employee or employer.  You can continue to use the old form until January 21, 2017.  The latest version can be downloaded at the USCIS’s website, available here: https://www.uscis.gov/i-9.

Earlier this week, the Department of Water Resources (DWR) hosted a public meeting to discuss a newly released draft document regarding the Sustainable Groundwater Management Act (SGMA).  The workshop focused on a newly released Best Management Practices (BMP) draft document.  The BMP document primarily focuses on basin modeling, as well as developing and maintaining basin-wide monitoring networks.  The modeling and monitoring are both important to the long term effectiveness of the SGMA program.  The basin modeling will show the layout of the basin as well as the various sources that provide and take water in that specific area, and the monitoring will be able to show changes to the basin in real time.  The Association has submitted comments on the draft document, encouraging DWR to take a synergistic approach to monitoring with other programs that are already in place.  Programs such the California Statewide Groundwater Elevation Monitoring (CASGEM) and the Irrigated Lands Regulatory Program (ILRP) are already monitoring water levels and water quality.  Utilizing these pre-existing programs help reduce cost of installing monitoring wells, and will also minimize the potential for collecting duplicative data.  It is our understanding that the development of these BMP’s will not create any additional regulatory requirements in the monitoring for these programs; they will work in coordination with what is already required.  DWR only wants to utilize monitoring sites that are already in place and functional.  If you would like a link for the draft BMP’s or an email to submit comments, please feel free to contact Chris McGlothlin with the Association.

Over the past week the California Cotton Ginners and Growers Association (CCGGA) has been calling upon our grower community and last night they answered. Joining CCGGA Director of Regulatory Affairs Jodi Raley, nearly 20 growers gathered to provide public comment opposing the Department of Pesticide Regulation’s (DPR) proposed draft rule that would prohibit many applications within a quarter mile of a school site and day care facility. Additionally it would could cause growers to provide an annual notification to the school site of all potential applications they expect to make over the next year as well as a 48-hour notification to the school site providing a 12-hour window of when and where the application will be made. CCGGA provided public comment adamantly opposing the regulation as it not only limits the flexibility that growers need to make real-time decision for applications, but additionally the regulation only further will propagate fear, misunderstanding and undue concern surrounding crop protection tools and the method of applications. Comments from the grower community included points of how it will impact their operation and limit their ability to produce, however most importantly growers shared their relationship with adjacent schools and how they take pride in the communication, coordination and trust that has been developed for years. Many shared of how their children and now grandchildren attend those very schools so as responsible stewards of the land it is their duty to protect human health when growing their crop. These comments and others were critical in the public hearing process as the activists group present at last night’s meeting was requesting an extension of the regulation to a 1-mile buffer zone enforced 24/7. There is one public hearing left on this issue schedule for Thursday, Dec. 1 at 6 p.m. with written comments being accepted until COB Dec. 9, 2016. If you would like more information or would like to sign on to our opposition letter you can do that at https://www.ccgga.org/industry-call-to-action/.

With the nation still celebrating, or protesting, the results of this year’s election, outcomes for some key Assembly and Senate races are still being tallied.  A final count is being reviewed to determine if Democrats have secured a supermajority in both the Assembly and Senate.  On the Assembly side, Democrats are on the verge of picking up the two necessary seats to give them a two-thirds supermajority.  With a return victory for Democrat Al Muratuschi in District 66 (Torrance), District 65 (Fullerton) is also showing Democrat Sharon Quirk-Silva ahead of her Republican challenger Young Kim by a slim margin.  Democratic Challenger Sabrina Cervantes is also leading incumbent Republican Assembly Member Eric Linder in District 60’s (Corona) race.

The supermajority is too early to call on the Senate side, but Senate Dems have held on to all of their current seats.  They only need to pick up one more additional seat to gain the supermajority.  Ballots are still being calculated in the race to fill former Republican Minority Leader Bob Huff’s seat for District 29 (Diamond Bar).  Republican nominee Ling Ling Chan holds a 1.8% lead over Democratic Challenger Josh Newman.

In other election news, Governor Brown secured a small victory for his Twin Tunnels project with the defeat of Proposition 53.  Prop 53 would have required the project to go before a vote of the people before the building process could begin.  Republicans also scored a small victory with the passage of Proposition 54 which requires all legislation to be in print 72 hours before it is voted on.  If you have any other questions on any other propositions or races, please feel free to contact us.

In an effort almost a year in the making, the Governor and the state legislature are getting ready to move a $7.4 billion transportation bill to address deferred maintenance on the state highway system and local street and road system.   They will fund this bill by increasing fuel taxes, levying an additional new motor vehicle tax and increases annual vehicle registration fees.  Proposed measures include: 

• 17 cents per gallon increase in the motor vehicle fuel tax
• 30 cents per gallon increase in the diesel fuel excise tax  
• Increase the sales and use tax on diesel fuel by 3.5% from the current 1.75% to 5.25%
• $38.00 increase in the annual vehicle registration fee
• A new $165.00 annual vehicle registration fee attributable to zero emission vehicles  

Furthermore, moving forward these increases will be tied to the California Consumer Price Index.   The bill also creates the independent Office of the Transportation General (“Independent Office”), which would be a separate governmental agency designated to oversee all state agencies expending state transportation funds, including the Department of Transportation, High-Speed Rail Authority, Department of California Highway Patrol, Department of Motor Vehicles and State Air Resources Board.  The bill will alter funding allocations to the Air Resources Board by continuously appropriates 20% of the annual proceeds collected by the Air Resources Board from Cap and Trade auctions to the Transit and Intercity Rail Capitol Program and 10% of the annual proceeds to the Low Carbon Transit Operations Program.  The Association will be watching and opposing this legislation.  With the need for a two-thirds majority to pass tax and registration increases, it will be difficult to secure the needed republican votes in this session.  If the bill is not passed during the special session, but the democrats gain a super majority in the assembly and senate, we can anticipate an attempt to pass a similar transportation bill next session.  Stay tuned!