Friday, January 18, 2008

Update-Truck Cargo Securement

When I last reported on this issue in mid November, federal officials had just concluded their safety testing of agricultural containers and securement methods at the California Highway Patrol Academy. The testing process was very complex and included wooden and plastic boxes, bins, tubs and containers (both loaded and unloaded) secured with various combinations of cables, straps and corner irons.

Since then the data has been in the process of being analyzed. Also, a special CHP enforcement exemption (due to expire on April 30) has been in place. On Tuesday, several representatives from federal and state agencies, the CHP, trucking interests and agricultural groups held a conference call to receive a status report the testing results. Unfortunately, no specifics were provided because the analysis is not yet completed. However, we were told that the results and recommendations are expected to be made public by March 1. Since nothing has been finalized, the federal officials were reluctant to discuss specifics or possible conclusions. However, in a very general way, they did indicate that traditional methods of securing with corner irons and cables will continue to be allowed. But in doing so, additional strapping, on a limited basis, may also be necessary.

From my perspective, even under the best of circumstances (meaning all recommendations are accepted by industry), there’s little likelihood that the process of developing new securement regulations, enforcement guidelines and field training for enforcement officers can be completed by April 30. Therefore, it’s entirely possible that an extension of the existing exemption will be needed to get us through the 2008 harvest.

AB 32 Compliance

On Tuesday, over fifty attendees representing California food processors and wineries participated in a special workshop co-sponsored by the Ag Council, the California League of Food Processors, the Wine Institute and others to learn about greenhouse gas emission (GHG) reporting requirements.

Currently, any facility that emits 25,000 metric tons of CO-2/yr from stationary combustion sources must begin to report emissions starting in 2009. Although facilities that emit less than 25,000 MT will not have comply with the extensive reporting requirements, they still have to submit a verified, inventory analysis substantiating their emissions level.

The attendees heard presentations from several representatives with the California Air Resources Board, who explained issues relating to emission sources, gases, calculation methodology and verification. Other speakers covered special accounting tools, compliance strategies and energy savings programs. Since this is a new regulatory program that has yet to be finalized, the sponsoring organizations are committed to following this evolving issue and keeping their respective memberships informed on developments.

Legislative Update

The Assembly Agriculture Committee acted upon the following bills during its hearing on Wednesday:

• AB 541 (Huffman) – Applies a de minimis legal standard for reasonable care relative to lawsuits stemming from inadvertent cross-contamination of organic fields from genetically modified seed products.
• AB 1352 (Berryhill) – Requires the Department of Food and Agriculture, if sufficient funds are made available from public and private sources, to conduct a study of the current status of animal mortality disposal and recycling alternatives.
• AB 1604 (Parra) – Places a moratorium on the enforcement of existing law that prohibits raw milk to contain more than 10 coliform bacteria per milliliter, if it is to be sold to the consumer. The moratorium is effective until June 30, at which time the coliform count will be increased to 50 per liter at the tank.

More Budget Tidbits

Given the State’s $14 billion budget deficit, one doesn’t expect to find very much good news as more details begin to surface on the Governor’s proposed 2008-2009 budget. The following is taken from the analysis written by the Senate Democratic Budget Committee staff:

• Williamson Act – Proposes a $3.9 million reduction in subvention payments to the counties for lost property tax revenues on land under Williamson Act contract.
• Global Warming – Adds $5.6 million from the Air pollution Control Account and 25.8 new positions for the Air Resources Board to reduce greenhouse gas emissions and develop a fee revenue mechanism. “It should be noted that $32 million has been borrowed from the California Beverage Container Recycling Fund in order to continue to fund ongoing and new greenhouse gas emission programs. These funds will ultimately be repaid by a fee on businesses.”
• Workers Comp – Increases the assessment on premiums by 7% (based on the total average annual assessments for 2008-2009) to provide a separate funding source for the Division of Occupational Safety and Health.

Property Rights Initiative Qualifies

The secretary of state's office announced on Wednesday that the California Property Owners and Farmland Protection Act qualified for the June ballot. The measure is sponsored by the California Farm Bureau and taxpayer groups. The proposed Constitutional amendment would reform government power to seize private property while allowing use of eminent domain for legitimate public purposes. The Ag Council’s board will decide whether or not to support the measure at its March 3 meeting.

Co-op Award Nominations

The deadline for submitting nominations for the 2008 Cooperative Leader Award is January 31. Time is running short, so please submit your nomination information as soon as possible. Call us at 916-443-4887 if you need the nomination material.

Next Publication

I’m traveling to Florida next week for the National Council of Farmer Cooperatives’ Annual Meeting. Therefore, the next issue of our eUpdate will be February 1.