Bill Huffman
Director - Government Relations

The Friday Report

November 6, 2009

The House of Representatives has scheduled a vote tomorrow, Saturday, November 7th on its version of health care reform legislation. The Senate, meanwhile, is in the process of melding two or three versions of health care reform legislation into one bill for floor consideration with no firm date set yet for that debate. With Congress focused almost entirely on health care reform, not much other business of interest to agriculture has been on the agenda with the exception of climate change legislation.

Climate Change Legislation

The Senate Environment and Public Works Committee Thursday passed its 959 page Clean Energy Jobs and American Power Act (S. 1733) on a partisan 11-1 vote. None of the seven Republicans serving on the Committee participated in the final markup nor did they vote on the bill. Senator Max Baucus, D-Montana, voted no.  This is the climate change bill authored by Senators John Kerry and Barbara Boxer, both Democrats.

Among other things, the bill would mandate that by 2020, U.S. greenhouse gas emissions be 20 percent less than they were in 2005. The legislation would mandate new emissions requirements for almost every industry in the U.S., especially coal, petro-chemical and electric power generation facilities. The legislation would also mandate more energy efficient building codes and promote the use of more renewable energy.

This bill is considered a place-holder bill. That means that it will likely be the vehicle for the final Senate version of a climate control bill.  Five other Senate Committees are working on language that will eventually be incorporated in the final product to be sent to the Senate floor.

As an example, Senator Debbie Stabenow and six other Democratic Senators introduced legislation this week that, if amended into the Kerry-Boxer Bill, would add agricultural offsets and protections to the comprehensive climate and energy bill. This legislation would ensure that a carbon offset program for farmers and forestry would be run by the U.S. Department of Agriculture. Besides certifying practices under a cap-and-trade program, the Stabenow bill would create a USDA-run conservation easement and a carbon offset fund for projects that reduce greenhouse gas emissions or sequester carbon.  Sequestration contracts would run for a period of 10 years for farmers, ranchers, and forestry owners who perform projects or activities to reduce emissions or capture carbon.

The agricultural provisions in the Stabenow bill would also add more grants and loan guarantees for bio-refineries and other rural energy programs.

Even though the Kerry-Boxer bill cleared the committee this week, it appears to us that climate control legislation likely will not be acted on this calendar year and there is beginning to be talk that it might be postponed until after the 2010 elections. 

This is controversial legislation and the votes simply are not there in the Senate at this time to invoke such stringent new emissions and energy rules in this country.

Proposed New Pesticide Rules

The U.S. Environmental Protection Agency (EPA) has issued proposed guidance (potential new rules) for new pesticide labeling to reduce off-target spray and dust drift. The proposed new labeling requirements are intended to prohibit drift that could cause adverse health or environmental effects. The agency will also determine whether no-spray buffer zones or other measures such as restrictions on droplet or particle size, nozzle height or weather conditions are required.

EPA is now seeking comment on its draft pesticide drift-label document.

Water Leaders Take a Wait and See Attitude

With the passage of the California legislative package to solve California water problem and fix the bay-delta estuary, it appears that North State water leaders appear to be taking a cautious wait and see attitude about the plan.

The final package approved by the California Legislature and sent to the Governor includes an $11.1 billion bond to pay for a wide range of programs including a possible new reservoir as well as several environmental programs designed to fix deficiencies in the bay-delta and invoke new conservation requirements statewide.

North State water leaders and their governmental affairs representatives spent many days and long hours in Sacramento the past week trying to insure that whatever final legislative product minimized the risks for Northern California and the Sacramento Valley. From all indications, water leaders were successful in protecting area of origin provisions in current law and importantly existing water rights.

With $3 billion of the proposed $11.1 billion bond earmarked for water storage, that money could be used for a joint powers authority that might be organized to develop a storage package such as the proposed Sites Reservoir in Colusa County.

Thad Bettner, manager of the Glenn-Colusa Irrigation District was quoted in the Chico Enterprise Record saying “Our big concern will be focused on in-stream flow determinations that Fish and Game and the State Water Board must make to determine how much water is required for the Sacramento River and the Delta.”  Those decisions, under this legislation, will be done in the next nine months.

Bettner also said that North State water interests need to be engaged with the newly created Delta Council, the group that will assume new authority for managing the Bay and the Delta.

It should also be noted the legislation requires ground water monitoring and water districts larger than 10,000 acres will need to provide water management plans.

Will this legislative program solve all of California’s water problems?  Don’t bet on it!

Will California voters approve the proposed $11.1 billion bond?  Governor Schwarzenegger and legislative leaders say their $11.1 billion water bond is an essential investment for California’s future, but it may be a hard sell to voters given the fact that California is already saddled with debt and the economy is not strong.

It is going to take a masterful sales job to get the voters to approve this proposed financing package!