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Conveyor Currents
                     May 10, 2016
      


In This Issue
Governor Brown Issues Order to Continue Water Savings as Drought Persists
California Legislative Report
AFIA Urges Industry to Let FDA Know about "Natural" Definition for Human Food
Lawmaker Seeks to Kill Advanced Biofuels Blenders' Tax Credit
Obama Warns on TPP: China will Replace U.S. as Lead in Asia Trade without Treaty Approval
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2016
October 26, 2016:
CGFA and NGFA Joint Grain Safety Seminar
DoubleTree, Fresno, CA


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Governor Brown Issues Order to Continue Water Savings as Drought Persists



FOR IMMEDIATE RELEASE
Monday, May 9, 2016


Contact: Governor's Press Office
(916) 445-4571
 
SACRAMENTO - Moving to bolster California's climate and drought resilience, Governor Edmund G. Brown Jr. today issued an executive order that builds on temporary statewide emergency water restrictions to establish longer-term water conservation measures, including permanent monthly water use reporting, new permanent water use standards in California communities and bans on clearly wasteful practices such as hosing off sidewalks, driveways and other hardscapes.
 
"Californians stepped up during this drought and saved more water than ever before," said Governor Brown. "But now we know that drought is becoming a regular occurrence and water conservation must be a part of our everyday life."
 


California Backing Away from Strict Water-Saving Standards
By Phillip Reese and Ryan Sabalow, The Sacramento Bee
 
Just a year ago, California regulators ordered cities and suburbs across the state to make drastic cuts in water use, telling residents the time had come to make longstanding lifestyle and landscaping changes consistent with a state with limited water.
 
One modestly rainy season later, the State Water Resources Control Board has backed off its sweeping mandate, issuing draft revisions to its conservation regulations that would allow individual water agencies to propose their own standards for water use.
 
In a marked shift from a year ago, the revised rules wouldn't require one region to cut water use based on the overall health of the statewide water supply. Instead, beginning June 1 and lasting at least through January, urban water agencies would be allowed to conserve on a sliding scale tailored to their local water supplies.
California Legislative Report
By Dennis Albiani, Legislative Advocate 


Natural Gas Storage Bills Meet opposite Fates


Natural gas is an important input to many California businesses as well as to electricity generation. Natural gas shortages could impact food processing, rendering, feed mills, and electricity generation across southern California as soon as this summer.  Therefore, the association is carefully watching the state's response to the Aliso Canyon natural gas storage facility leak in Southern California.  Two bills that were inspired by the leak met with opposite fates last week in Sacramento. 


Assembly Bill 2748 (Gatto) was introduced in response to Aliso Canyon.  The bill would protect people who win payouts for the short-term fallout from "environmental disasters," including out-of-pocket expenses for food and shelter, from forfeiting their rights to bring future legal challenges. It would specify that a settlement does not release a polluter from future liability, and broaden the statute of limitations to sue for exposure to toxic or hazardous substances. The bill failed on the Assembly floor with a 27-31 vote.  Many business entities opposed because the language was far too broad.


Senator Pavley's SB 380 which creates a moratorium on natural gas injection at Aliso Canyon until state inspectors ensure the facility does not leak and is safe was sent to the Governor last week.  It is expected that Governor Brown will sign the bill.  It passed both the Assembly and Senate with zero "no" votes.


Anti-Neonicotinoids Bill Will Go to Suspense File


SB 1282 (Leno) would require labeling of commercially available seeds and plants sold at retail establishments that have been treated with a neonicotinoid pesticide, to bear the following label "STATE OF CALIFORNIA SAFETY WARNING: MAY HARM BEES" and have a logo to be designed by the Director of Department of Pesticide Regulation.  Additionally, it requires the Director to designate neonicotinoid pesticides as restricted materials by January 1, 2018.  There is an ongoing review of neonicotinoids at the department through their science based process to determine the appropriate classification of the materials.  This bill would usurp this process. 


The bill is awaiting hearing in Senate Appropriations Committee this Monday and will go to the "suspense" file because it has a fiscal cost to the state of over $150,000.  A large coalition of agriculture, consumer product associations and other are opposing the legislation. 


Governor Makes Appointments to Fish and Game Commission


Last week the Governor made two appointments to the California Fish and game Commission.  These are important because they review all designations of "endangered Species Petitions" which can greatly impact agriculture operations across the state.  Additionally they make regulations on hunting, recreational fishing and commercial fishing. 


Russell Burns, 55, of Napa, has been appointed to the California Fish and Game Commission. Burns has been business manager at Operating Engineers Local Union 3 since 2006, where he has held several positions since 1994, including treasurer, financial secretary, district representative, special representative to the business manager and business agent.
 
Peter Silva, 63, of Chula Vista, has been appointed to the California Fish and Game Commission. Silva has been president and chief executive officer at Silva-Silva International since 2011. He served as assistant administrator for water at the U.S. Environmental Protection Agency from 2009 to 2011, senior policy advisor at the Metropolitan Water District of Southern California from 2005 to 2009 and vice chair at the State Water Resources Control Board from 2000 to 2005. Silva was deputy general manager at the Border Environment Cooperation Commission from 1997 to 2000 and served in several positions at the City of San Diego Public Utilities Department from 1987 to 1997, including deputy director for water utilities, assistant deputy director for the clean water program and civil engineer. He was a resident engineer at the International Boundary and Water Commission from 1983 to 1987. Silva was an engineer at the San Diego Regional Water Quality Control Board from 1982 to 1983, at the Otay Water District from 1980 to 1982 and at the Los Angeles Regional Water Quality Control Board from 1977 to 1980.

AFIA Urges Industry to Let FDA Know about "Natural" Definition for Human Food
Cautioning the animal food industry that current FDA efforts to decide what "natural" should mean on a human food label could evolve over time to include all foods, the American Feed Industry Assn. (AFIA) this week urged its members to let FDA know animal food already enjoys a definition of the term "natural" and has for over 10 years. 
 
AFIA said it will file formal comments with FDA as part of a broad industry coalition, asking FDA to protect the animal food definition of "natural," and urged its members to comment as well.  Comments are due by May 10, and FDA's request for public input can be found by going to www.fda.gov.
 
"Unlike human food, animal food has had a clear definition of 'natural' for more than a decade. The Association of American Feed Control Officials (AAFCO)...developed the definition" with industry cooperation, AFIA said.
Lawmaker Seeks to Kill Advanced Biofuels Blenders' Tax Credit
Rep. Randy Weber (R, TX) introduced a bill to repeal the federal $1-per-gallon blenders' tax credit for biodiesel/renewable diesel refined from animal products, claiming the credit "is harming domestic manufacturers of cleaning products." 
 
Weber said, "Animal fats are the traditional feedstock used to manufacture cleaning and personal care products, such as laundry detergent, toothpaste, soap and shampoo, here in the U.S.  This tax credit has distorted the domestic market for animal fats by diverting this important raw material away from use in the domestic manufacturing of cleaning products and towards the production of biodiesel. As a result, animal fats have seen a 116% increase in cost since 2006." 
 
Biodiesel, which can be refined from oilseeds or animals fats, greases and oils, has enjoyed the $1-per-gallon credit since 2005, and Congress has regularly extended the credit over the years. The National Biodiesel Board (NBB) and the National Renderers Assn. (NRA) support shifting that credit from a blenders' credit paid to fuel companies as an incentive to use biodiesel to meet their Renewable Fuel Standard (RFS) obligations, to a producers' credit paid to the farmer, rancher or biodiesel company refining the biobased fuel.

Obama Warns on TPP:  China will Replace U.S. as Lead in Asia Trade without Treaty Approval

President Obama this week warned Congress that it must act soon to ratify the Trans-Pacific Partnership (TPP) or cede leadership on Asian trade to China, an outcome, he told lawmakers, they will not like. 
 
TPP has not formally been submitted to Congress for review and ratification because the votes are not there to approve the controversial treaty, sources say.  The White House is awaiting signals from congressional leaders they're willing to bring the treaty to the floor for a straight up or down vote.
 
Complicating the pre-election scenario is that both presumptive presidential nominees - Hillary Clinton and Donald Trump - have publicly said they have problems with the deal signed by 12 Pacific Rim countries, leading most to speculate Congress won't tackle TPP until the post-election lame duck session.
 
Obama wrote an opinion piece for the Washington Post this week in which he reports China met with 15 countries in Australia this week, actively trying to forge a multi-nation trade deal with TPP participants, many of which have traditionally sold to China.  The deal China seeks is called the Regional Comprehensive Economic Partnership (RCEP).
 
"As we speak, China is negotiating a trade deal that would carve up some of the fastest-growing markets in the world at our expense, putting American jobs, businesses and goods at risk," the president said.



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