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Conveyor Currents              August 14, 2015
In This Issue
Truck Driving Schools in California
California Legislative Update
AFBF Releases Maps, Corn Growers Want WOTUS Delay
Crop Report Surprises Markets
House Wants EPA 'Lobbying' on WOTUS Investigated; 13 States Ask Federal Court to Delay Rule
15 States File for Emergency Federal Stay of Clean Power Plan Rule on Carbon Emissions
House, Senate Treading Carefully on Energy Bill
Kerry Officially Opens U.S. Embassy in Havana; Ag Committee Members Part of Delegation
Dairy farmers explore options in feed supplies
NGFA-NAEGA-PNWGFA Industry Workshop
CGFA Careers Center
Upcoming Dates
 

2016

January 13-14, 2016: 

Grain & Feed Industry Conference

The Embassy Suites on Monterey Bay

April 27-30, 2016:

CGFA Annual Convention The Manchester Grand Hyatt San Diego 

 

May 4-5, 2016

 California Animal Nutrition Conference at the DoubleTree by Hilton Fresno Convention Center      

Fresno, CA 

 

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Truck Driving Schools in California
A list of truck driving schools in California has been added to the Web Links page under Resources on CGFA.org. Click here to view truck driving resources throughout the state.
 
These schools will be sent the video on Careers in the California Grain and Feed Industry and encouraged to share the CGFA Career Center with their students.
California Legislative Update 
By Dennis Albiani, Legislative Advocate

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Legislature Returns for Final Month Push

The Legislature returns from summer break on Monday August 17th.  They will work diligently until September 11th when the regular legislative session recesses for interim break until next January.  However, there are two extraordinary sessions, one on Health Care Financing and the other on Infrastructure that may continue into the fall. 

There are many significant state issues still pending as well as more specific agriculture and environmental bills.  The major issues include addressing global greenhouse (GHG) emission requirements and spending the Cap and Trade funds.   The lead bills on GHG are SB 32 (Pavely) and SB 350 (de Leon). SB 350 (de Leon) requires a renewable energy generation floor of 50%, increasing building energy efficiency by 50% and reduction of petroleum use for transportation fuels by 50% by the year 2030.  SB 32 (Pavely) will mandate a 40% reduction in GHG emissions by 2030.  There are several other bills in this area as well.  The association is working with a coalition trying to manage these issues and ensure that increased costs to implement these mandates are mitigated. 

Antibiotic Regulation Measure

The livestock industry is facing several issues this year including a nation leading antibiotic regulation measure that will add additional controls to use by farmers and ranchers and will track resistance.  The current lead bill is SB 27 (Hill).  Current bill language includes:
  • Bans "Over the Counter" sales of antibiotics in 2018 - however, allows sales through historical retail outlets including "feed stores." 
  • Narrows allowable preventative use to authorization under vet supervision, must be for uses where there is higher risk for disease or to prevent the transmission of disease. This issue is still controversial.  NRDC will be pushing for opposition and a Governor veto based on still allowing preventative use. 
  • Coordinates with USDA tracking system under development from President's Action plan for tracking of sales and use, resistance including up supply chain.
  • Includes CDFA to develop a stewardship program for ranchers, retailers and vets, including two additional hours of Continuing Education.   
A companion bill sponsored by the California Grain and Feed Association is SB 770 (Mendoza) which retains CDFA authority over medicated Feed Inspection Program.

Organics Recycling Bills

Organics recycling continues to be a large discussion in California.  Feed and rendering entities need to be diligent to ensure that materials are available for livestock feed and are directed to the highest and best use.  The bills include:

AB 1063 (Williams) - Funding for CalRecycle - gut and amend that will raise "tipping fees" from $134 to a cap of $5 for handling organic waste.  The association is working with CalRecycle to assist and shape the funding sources. 

AB 1045 (Irwin) - Streamlines the compost siting process.  Provides some policy direction to direct organic waste into composting. 

AB 876 (Mccarty) - Requires local jurisdictions to revise their 15 year waste plan to include organics.  The association has advanced amendments. 

AB 901 (Gordon) - Requires accounting of organic waste by jurisdiction. 

AB 1103 (Dodd) - Places a definition of food waste into statute.  This can be problematic because much of feed and rendering material comes from food sources.  This is a two year bill. 

Groundwater Adjudication Progresses

Groundwater adjudication has taken center stage.  In early August the administration released their preferred amendments to the legislation progressing through the process.  The association is cosponsoring AB 1390 (Alejo) which would streamline the adjudication process.  A more threatening bill is SB 226 (Pavley) which could impact water rights and is being opposed.  There are ongoing negotiations which will continue to be an aggressively negotiated issue through September 11.    
AFBF Releases Maps, Corn Growers Want WOTUS Delay 
The American Farm Bureau Federation (AFBF) this week released a series of maps, which purport to show how, much land in Virginia, Pennsylvania and Montana will fall under EPA's "waters of the U.S. (WOTUS)" rule.  Effective August 28, WOTUS regulation of "ephemeral streams" - water ways which carry water only occasionally - would bring up to 99% of Pennsylvania's total acreage under agency jurisdiction, AFFB said.

EPA said the maps, created for AFBF by a consulting firm, are "inaccurate and a visual exaggeration" of the agency's new jurisdiction under WOTUS.

Meanwhile, the National Corn Growers Assn. (NCGA) called on EPA to delay implementation of the new rule, citing documents released to Congress by the U.S. Army Corps of Engineers which call into question the technical and legal basis for the rulemaking, referring at one point to "fatal" flaws in the regulation.

NCGA joins a list of livestock and poultry group, led by the National Cattlemen's Beef Assn. (NCBA) and the National Pork Producers Council (NPPC) to push back the effective date of the rule.  AFBF wants the rule withdrawn and reissued, but only after extensive agriculture stakeholder consultation. 
Crop Report Surprises Markets 
USDA's August Crop Report, pegging 2015 corn production at 13.7 billion bushels, the third biggest crop, but 4% below last year, with yields at 168.8 bushels per acre, caught market watchers by surprise, doubly when USDA projected the soybean crop at 3.92 billion bushels, 1% below a year ago.  Soybean yields were set at 47 bushels per acre. 

Corn acres were set at 81.1 million acres, down 2% from 2014.  Soybean acreage for harvest was pegged at 83.5 million acres, up 1% from 2014.

All wheat production is forecast to be 2.14 billion bushels, down 1% from last year. Yields are predicted to hit about 75 pounds per harvested acre, with 83.5 million acres for harvest reported.  
House Wants EPA 'Lobbying' on WOTUS Investigated; 13 States Ask Federal Court to Delay Rule 
Controversy surrounding EPA's "waters of the U.S. (WOTUS) rule continued as 106 House members sent a letter on August 7 to EPA's Office of Inspector General (OIG) requesting a formal investigation into the agency's promotion efforts surrounding the rulemaking.  The Senate has asked for a similar investigation.

This week, 13 states led by North Dakota filed action in federal court seeking a preliminary injunction to stop the WOTUS rule from taking effect August 28. 

The House letter said, "We believe that OIG should investigate all matters relevant to determining whether EPA violated the Anti-Lobbying Act," further asking for the OIG to determine if the agency used federal funds to "lobby and generate grassroots support of the regulatory agenda."  The members also want OIG to investigate whether EPA violated the "publicity or propaganda" restrictions under the FY2015 continuing resolution.

In May, a New York Times story said EPA pushed for grassroots support for the WOTUS rule by launching a number of social media campaigns and partnered with groups like Sierra Club to push the rule. For its part, EPA has often publicized its "unprecedented outreach" in finalizing the rule that seeks to expand the agency's authority under the Clean Water Act (CWA).

"We are particularly concerned that the most essential and democratic component of the rulemaking, the public notice and comment process, was abused and corrupted in a way that drowned out opposition to help justify the agency's actions," they wrote.

The North Dakota Attorney General said the rule is unnecessary and unlawful.  His state is one of 30 which asked EPA last week to postpone the rule for at least nine months so that court cases currently pending could be heard.  The injunction is necessary because EPA has not responded to the states' letter.

EPA has asked that dozens of lawsuits filed in eight separate federal courts by states, companies, agriculture groups and others be consolidated into a single suit.  The preliminary injunction request includes asking the court not to consolidate the actions. 
15 States File for Emergency Federal Stay of Clean Power Plan Rule on Carbon Emissions
After EPA rejected last week a request by 16 states to administratively stay President Obama's "Clean Power Plan" rule on carbon recapture from power plants, 15 states turned to the U.S. Court of Appeals for the Washington, DC Circuit to grant an emergency stay of the rulemaking. 

The states asked the stay be granted before September 8, about a year from the first compliance deadline for the states and the date Congress returns from August recess.  Thirteen of the states seeking the court stay were part of the original request for administrative action.

The power plant carbon emissions recapture rule was announced by the White House last week, but has not been published in the Federal Register.  Once it's published, there's a 60-day window for court actions to be filed, with several expected. 

The states asking for the emergency stay are Alabama, Arkansas, Florida, Indiana, Kansas, Kentucky, Louisiana, Michigan, Nebraska, Ohio, Oklahoma, South Dakota, West Virginia, Wisconsin and Wyoming. 
House, Senate Treading Carefully on Energy Bill 
While the Senate Energy & Natural Resources Committee approved a politically crafted bipartisan energy package just before leaving for the congressional August recess, the House continues to seek to advance its own draft energy bill.

The Senate bill focuses on modernizing U.S. energy infrastructure, including the electric utility grid, and promotes energy efficiency.  The House bill, approved by an Energy & Commerce Committee subcommittee also stresses efficiencies and infrastructure.  Both bills seeks to capitalize on the U.S. position globally as a major energy producer.

No full committee action on the House bill is expected before late September, at the earliest.
Kerry Officially Opens U.S. Embassy in Havana; Ag Committee Members Part of Delegation 
Members of the House and Senate Agriculture Committee traveled with Secretary of State John Kerry this week to Cuba as part of the official delegation when Kerry formally opened the new U.S. embassy in Havana.

Sen. Patrick Leahy (D, VT), former agriculture committee chair and Sen. Amy Klobuchar (D, MN) represent the Senate Agriculture Committee, while Rep. Jim McGovern (D, MA) is representing the House ag panel.  Also along are Sen. Barbara Boxer (D, CA), Sen. Jeff Flake (R, AZ) and a handful of House members.

The Cuban government opened its Washington, DC embassy on July 20. 
Dairy Farmers Explore Options in Feed Supplies 
By Ching Lee, California Farm Bureau Federation's AgAlert  
Limited water supplies have reduced production and acreage of California-grown feed crops, but experts say lower corn prices and greater abundance of other feed ingredients have allowed dairy farmers options for feeding their animals.

While dairy farmers were grappling with high forage prices last year, Brad Kloss, a dairy nutritionist and management consultant in Visalia, said alfalfa hay is "more reasonably priced" this year. Prime-quality hay remains very expensive and limited in supply, he noted, but what's available on the market today will work for lactating cows.

Because of lower fuel prices this year, Kloss said some of his clients are buying alfalfa from states such as Utah and Idaho without incurring high freight charges. The stronger dollar has also dampened hay export prospects, with more Southern California hay looking for local outlets, he added.

NGFA-NAEGA-PNWGFA Industry Workshop

Grain industry representatives in the Pacific Northwest region are welcome to attend a workshop hosted by the National Grain and Feed Association, the North American Export Grain Association, and the Pacific Northwest Grain and Feed Association.  Please join us on Thursday, August 27 from 7:30am to 4:30pm for the NGFA-NAEGA-PNWGFA Regional Workshop that will take place at the Merchants Exchange of Portland, 200 SW Market Street in the Large Conference Room at the Lobby Level.

 

The workshop will focus on several issues related to the Pacific Northwest including: 1) key regulatory and legislative topics such as biotechnology and GIPSA reauthorization; 2) transportation issues on the Columbia River; 3) an APHIS update on international phytosanitary topics, including those associated with Canada and China; and 4) an FGIS update on grain inspection and grain quality issues.

 

For further information about the workshop, please click here for the agenda. The cost for attending the meeting is $50 which includes a continental breakfast and lunch. We encourage NGFA and NAEGA members to invite others, who would also benefit from the topics addressed, to attend. 

 

Please fill out the attached registration form and return to Margerie Sedam at margerie@pnwgfa.org or fax to (503) 227-0059.

 

If you have any questions or need additional information, please contact me at (202) 888-1102 or Margerie Sedam at (503) 227-0234. 

 


CGFA Careers Center
The CGFA Careers Center can help connect you with qualified and talented employees searching for dynamic and challenging career opportunities. After registering, you can post job & internship openings available at your company, as well as view potential candidates' resumes and upcoming career fairs.

Follow CGFA's page Careers in the California Grain & Feed Industry on LinkedIn and encourage your audiences to as well to help get the word out!