The California Senate and Assembly Agriculture Committees held a hearing December 3rd to discuss the impacts of the drought on California Agriculture. The interim hearing was well attended Senators Galgiani, and Pan were joined by Assembly members Perea, Gallagher, Mathis and Irwin. The committee members heard from CDFA and USDA staff, Farm workers, water and ag researchers from universities, representatives from the industry and entities working on a pilot project for groundwater storage and aquifer regeneration. The committee received testimony that the overall impact of the drought impacted almost every commodity, although some like cattle and grazing livestock, were more impacted that others. The drought also impacted every region, although each region was impacted differently based on amount of rainfall, cropping patterns and surface/groundwater availability.

Association Leadership Takes Bay Area Legislative Tour
Chris Zanobini joined a delegation of agriculture, food and business leaders for a tour of bay area political interests sponsored and coordinated by California Advocates. The day started with a fundraiser for Senate Agriculture Committee Chair Galgiani. The delegation then hustled to San Francisco where they met with Supervisor Scott Wiener candidate for State Senate in the "San Francisco" senate seat. The group then traveled south to San Mateo for lunch with Marc Berman, a candidate for state Assembly from Palo Alto. The delegation then crossed back over the bay to Berkeley to meet with former Assembly member and Senate Candidate Nancy Skinner where she discussed her current campaign as well as her University teaching activities while she campaigns. The group then traveled to Danville to meet with Catharine Baker, who brings a unique perspective as the only Republican State Legislator from the Bay Area. Finally, the group ended the day with a fundraising dinner with State Senator Steve Glazer who has a strong streak of independence in his approach to policy making. The group had quality contacts with 6 legislators and candidates educating each on the importance of the agriculture industry, economic impact on California and region, need for pragmatic approach on issues such as pesticides, food labeling and strong food safety requirements, as well as specific challenges such as access to the ports, environmental regulations and rising costs.

Governor Brown will arrive on Saturday for nearly a week of events at the international summit outside Paris to negotiate a new climate pact. He has been preparing for months for the conference, where he will promote California's aggressive action on greenhouse gas emissions, a major legacy issue for him in his fourth and final term. Brown will be joined by a sizable contingent from the state that includes former Gov. Arnold Schwarzenegger, Senate President Pro Tem Kevin de León, Assembly Speaker Toni Atkins and six other lawmakers.

Though he missed a speaking engagement today with UN Secretary-General Ban Ki-moon, due to the unfortunate San Bernadino shooting incident, Brown still has a busy schedule to look forward to, with at least 20 more appearances slated over the next five days. They include a screening of a new climate change documentary with legendary conservationist Jane Goodall, a roundtable with California business leaders and billionaire environmentalist Tom Steyer, and a ceremony for new signatories of a memorandum of understanding to keep the increase in the average global temperature below 2 degrees Celsius. Prior to embarking on the trip, the Governor's Office announced signing a non-binding agreement with 12 other jurisdictions to promote a goal of all passenger cars to be zero emission vehicles by 2050.

California businesses supplying byproducts to livestock or performing rendering services may want to take note of legislation the association supported offering incentives for recycling equipment. This year Governor Brown signed into law Assembly Bill (AB) 199 (Eggman), which includes equipment that processes or utilizes recycled feedstock under the existing Sales and Use Tax Exclusion Program operated by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA).

CAEATFA is currently developing the regulations necessary to implement the AB 199 program. CAEATFA's initial Request for Information (RFI) included a deadline of Dec. 2, 2015; however, CAEATFA has indicated they are willing to take responses after the deadline to assist in development of the program and its forthcoming regulations. They are particularly interested in comments from potential program applicants. To read the Request for Information, to sign up for e-mails on program development, or to find out more about how to comment on the development of AB 199, please visit the AB 199 Program Development website.

Below are two announcements for agricultural interests regarding water conservation grants and education opportunities for dealing with drought impacts.

1. CDFA is now accepting applications for the State Water Efficiency and Enhancement Program (SWEEP).   An estimated $16 million will be available for competitive grant funding to provide financial assistance to implement irrigation systems that reduce GHGs and saves water at California agricultural operations. Visit "Application Guidelines" at www.cdfa.ca.gov/go/SWEEP for detailed information on eligibility and program requirements.   CDFA will hold four application workshops and one webinar to provide information on the program requirements. Please see CDFA News Release for dates and times of workshops.  
https://www.cdfa.ca.gov/egov/Press_Releases/Press_Release.asp?PRnum=15-055

2. The USDA ARS is offering a two-day workshop, "Proven Solutions to Drought Stress" in Modesto Jan 12-13 2016. This will include information on using recycled water, irrigation timing and more. Registration is limited to 300. Please see: http://www.droughtmgt.com  for more information.

 

Already in place are the July 13, 2015 amendments to the mandatory paid sick leave law.

Those changes included clarifying who is a covered worker; providing alternative methods of accruing paid sick leave other than one hour for every 30 hours worked; clarifying protections for employers that already provided paid sick leave or paid time off before January 1, 2015; and providing alternative methods for paying employees who use paid sick leave.

More details appear in a CalChamber white paper, available at www.calchamber.com/paidsickleave

The Labor Commissioner's Office also has released revised FAQs to reflect its position on the paid sick leave amendments.

Other changes to leave and benefit laws include changes to kin care requirements; school and child care activities leave; National Guard leave and protections; unemployment insurance and electronic reporting (taking effect January 1, 2017); state disability insurance eligibility waiting periods (taking effect July 1, 2016); and unemployment insurance training benefits.

Many of the new wage-and-hour laws deal with how the laws will be enforced, instead of imposing significant new obligations on employers.Urgency legislation that went into effect when the Governor signed it on October 2, 2015 gives employers the right to correct two types of violations relating to itemized wage statements before an employee may bring a civil action under the Private Attorneys General Act, subject to specified limitations.

Other wage-and-hour laws set new rules for employers with piece-rate employees; deal with the meal periods in the health care industry (urgency legislation that went into effect on October 5, 2015); expand the Labor Commissioner's ability to enforce state and certain local laws; reduce the prohibited amount of weekly disposable earnings that may be garnished (effective July 1, 2016); provide an amnesty program for port drayage companies that misclassify commercial drivers; and make various changes relating to public works and prevailing wages.

New laws affecting hiring practices in 2016 deal with the use of the federal E-Verify system; job protections for grocery store workers when the store changes ownership; and classifying cheerleaders for professional sports teams as employees, not independent contractors.

China's commercial feed industry plays a critical role in supporting growth of the country's livestock sector and creating export opportunities for other countries. The feed industry's need for raw materials has been key to lowering China's barriers to agricultural imports. China is now the world's leading importer of soybeans, rapeseed, distillers' grains, sorghum, barley, and fish meal. The feed industry drives demand for each of these commodities, all of which are quota-free with low tariffs. China's feed industry was launched in the 1970s with strong government support and foreign investment, but it is now composed mainly of private companies, including some of the largest in the world. As the industry matures and consolidates, Chinese companies will become more active in international markets by procuring raw materials, setting up feed mills overseas, and even producing meat and dairy products in other countries. This trend creates more demand for U.S. commodities and relieves pressure on China's scarce land and water resources.

• Read Full Article... 

Depending on the headline you read or the biofuel group you talk to, the November 30 release by EPA of its final multi-year rule on Renewable Fuel Standard (RFS) blending rates for various biofuels was either great news, bad news or "we're still trying to figure it out." No matter how it's viewed, lawsuits will follow.

The rule covers 2014, 2015 and 2016 RFS final levels for most biofuels at levels well above the EPA proposal last May. Overall, total biofuels - corn ethanol, biodiesels and cellulosic ethanol - under the RFS rule will be blended at 18.11 billion gallons, well under the 22.3 billion set by the 2007 law which authorizes the RFS.

For corn ethanol, the 2016 RFS level is 14.5 billion gallons, about 500 million under the 15-billion gallon statutory level for which the ethanol industry lobbied hard, but higher than last spring's proposal. Cellulosic biofuels, the 2014 RFS for which was set at 33 million gallons, has an RFS for 2015 of 123 million gallons and for 2016, 230 million gallons reflecting new capacity just came on line in the Midwest.

The good news came for makers of biodiesel and renewable diesel, considered "advanced biofuels" by EPA because of their greater reduction in greenhouse gas emissions. The new rule increases the 2016 amount of biodiesel/renewable diesel - "bio-based diesels" - that must be blended with petroleum fuels to 1.9 billion gallons, and for 2017 that amount jumps to 2 billion gallons, nearly the annual industry capacity.

The National Biodiesel Board (NBB) had requested an increase to 2.7 billion gallons of biodiesel by 2017, but NBB President Joe Jobe called the final EPA action "a good rule. It may not be all we hoped for, but it will go a long way..."

The National Corn Growers Assn. (NCGA) says it's studying the rule and considering its options. NCGA members, facing corn surpluses across the country, wanted to see that 15-billion-gallon statutory level to help draw down stocks and support corn prices. The National Farmers Union (NFU) was not happy with the announcement, saying, "The administration's decision to issue RFS volume obligations below their statutory requirements exacerbates the serious damage already done to the renewable fuels industry and America's family farmers."

Several ethanol companies, including Growth Energy, welcomed the increase from the May proposal, but effectively said the increase is only a step in the right direction.

The National Chicken Council (NCC), which leads the coalition of animal producer groups opposed to the RFS because of ethanol's competition for feed corn, said "EPA's action will cost consumers at the pump and on the plate by effectively raising fuel and food prices."

NCC says EPA's action increases the RFS "beyond the blend wall" - the amount of biofuels that can be used without exceeding a 10% maximum blend rate - and retroactively increased the RFS for 2014 and 2015. "More corn from feed and food use will be diverted into fuel production, resulting in increased costs for poultry and livestock producers," the group said.

The American Petroleum Institute (API) isn't happy with the increases and considers the RFS an outmoded and cumbersome system that needs to be scrapped or replaced. It also contends EPA is in violation of the law when it comes to public notice and other formal requirements for increasing RFS levels, and acknowledged it may file suit to overturn the rulemaking.

Lawmakers are also split on the EPA rule. Sen. Charles Grassley (R, IA), a staunch defender of ethanol and biodiesel, called the rulemaking "a slight improvement, but still sells biofuels short...EPA took a flawed approach that seems to buy into Big Oil's rhetoric." Ranking agriculture committee member Sen. Debbie Stabenow (D, MI) said she was pleased by the increases, that the RFS is "an effective tool" for creating a "clean energy future," but pushed EPA to raise the RFS to statutory levels set by Congress. Rep. Fred Upton (R, MI), chair of the Energy & Commerce Committee, called underlying law that created the RFS and which sets annual "aspirational" blending levels, "flawed," and said it needs to be revisited. Sen. Jim Inhofe (R, OK), chair of the Environment & Public Works Committee, said in a statement, "The RFS as a whole is remarkably flawed. The premise of this program is based on a number of assumptions that no longer reflect reality, like gasoline demand."