Legislative Update: As reported last week, a number bills of interest to agriculture are among the 700 plus bills currently awaiting action by the Governor Schwarzenegger, who has until October 11 to sign or veto legislation. To date, he’s only signed two measures (on child healthcare and Vietnam veterans issues). Otherwise, the rest remain in limbo because of his earlier pledge not to sign any bills unless the legislature resolved major policy issues relating to water, renewable energy and prison reform prior to adjournment on September 11. Unfortunately, when legislators departed Sacramento on September 12, no satisfactory solutions had been reached. Absent the governor exercising his veto authority; bills can become law without his signature once the October 11 deadline has expired. The legislature will return to Sacramento in mid-October.
USTR Ag Negotiator Named:
Former Californian, Dr. Isi Siddiqui, has been nominated by President Obama to the position of chief agricultural negotiator in the Office of the U.S. Trade Representative. Siddiqui is currently the vice president, Science and Regulatory Affairs, at the Washington, DC-based CropLife America, where he is responsible for regulatory and international trade issues related to crop protection chemicals. From 1997 to 2001, Siddiqui held senior positions in the Clinton Administration, including Under Secretary for Marketing and Regulatory Programs in the Department of Agriculture. He also served as Senior Trade Advisor to then Agriculture Secretary Dan Glickman and Deputy Under-Secretary for Marketing and Regulatory Programs, where he worked closely with the USTR and represented United States Department of Agriculture in bilateral, regional and multi-lateral agricultural trade negotiations.
Before joining the Clinton Administration, he had spent nearly three decades with the California Department of Food and Agriculture in Sacramento, beginning in 1969 as a nematologist in the Department's Division on Plant Industry and rising to director of the Division, in which position he served from 1984 to 1997. Isi is a good friend and we wish him the best in his new position.
Prop 65 Warning Labels for Food:
The Office of Environmental Health Hazard Assessment (OEHHA) is the lead agency for implementation of Prop 65. OEHHA has released its initial draft regulation to address labeling for listed chemicals in food. OEHHA has been working with a stakeholder group to draft the new regulations, however, the initial draft is not workable as it currently stands. Questions remain on how Prop 65 listed chemicals will have to be provided to consumers at the retail level and the best means for providing the list. Furthermore, while there is an exemption for “naturally occurring” chemicals, there is a labeling requirement for “manmade or natural substances” that come in contact with food, such as fertilizers or listed items that are created as the result of cooking the food. Comments on the draft regulation are due on October 19, 2009. Information on Prop 65 and the draft
regulation can be accessed at: http://www.oehha.ca.gov/prop65/CRNR_notices/foodlang082809.html.
EPA’s GHG Reporting Rule: Federal EPA has sent the final Greenhouse Gas (GHG) Reporting Rule to the Federal Register. Once adopted, it will be the first time large emitters of GHG will be required to collect and report emissions data. EPA estimates the reporting requirements will cover approximately 85 percent of the nation’s GHG emissions and apply to approximately 10,000 facilities. Facilities emitting 25,000 metric tons or more of carbon dioxide equivalent are subject to the new requirements. The only production agriculture sources that are required to report their emissions are manure management systems at livestock operations where GHG emissions meet or exceed the 25,000-ton limit. EPA estimates this applies to approximately 100 livestock operations.
The rule does release facilities and suppliers from reporting if they are able to limit their GHG emissions by cutting emissions below 25,000 metric tons of CO2 annually for five consecutive years, emitting less than 15,000 metric tons annually for three consecutive years or ceasing operations. Since the rule is 1,300 pages, a complete analysis is not yet available. However, according to the National Council of Farmer Cooperatives it appears that:
- Dairy farms with more than 3,200 head of milking animals will need to conduct a more thorough analysis to determine whether or not they emit more than 25,000 metric tons of GHG on a CO2 equivalent basis, and if they are emitting above this threshold, submit an annual report that estimates their emissions;
- EPA has simplified somewhat the methods used to estimate an operation’s emissions by using standard look-up chart values for the key variables, rather than requiring monitoring and sampling on the farm; and
- Dairies with manure digesters must report net emissions (if above the 25 k MT threshold) utilizing data generated on site from flow meter measurements.
California is already in the process of requiring 25,000 metric ton emitters of GHG’s to inventory their emissions, so it’s unclear at this time how state and potential federal requirements will mesh.
New Energy Efficiency Program: The California Public Utilities Commission approved $3.1 billion of ratepayer-supported energy efficiency programs for 2010-2012 to be administered by California’s investor owned utilities. This package:
- Launches the nation’s largest home retrofit program under the Statewide Program for Residential Energy Efficiency targeting 20 percent savings for up to 130,000 homes over 2010-2012. This tiered incentive program will be designed to leverage municipal funding programs, federal stimulus dollars, and related programs of the California Energy Commission.
- Provides $175 million to launch California’s Big Bold Energy Strategies for zero net energy homes and commercial buildings, including design assistance, incentives for “above code” construction, and research and demonstration of new technologies and materials.
- Phases down subsidies for basic Compact Fluorescent Lamps (CFLs) and shifts emphasis to advanced lighting programs, including specialty CFLs, solid state lighting, and other technologies.
- Requires benchmarking of all commercial buildings in California receiving energy efficiency monies.
- Provides over $260 million in funding for 64 cities, counties, and regional agencies for local efforts targeting public sector building retrofits and leading edge energy efficiency opportunities.
- Requires the development of performance metrics to measure the progress of each program towards market transformation and achievement of the short, medium, and long-term goals and strategies set forth in the California Long-Term Energy Efficiency Strategic Plan (www.californiaenergyefficiency.com).
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