PRESIDENT’S LETTER 2016 was not a year for the faint of heart. The California State Legislature sent Governor Jerry Brown 1,059 bills, and he signed 900 of them. This equates to a 15 percent veto rate, which is a slightly higher veto rate than previous years. The sheer volume of measures that had to be analyzed and addressed in 2016 made it a challenging year. Passage of a $15 minimum wage bill and the agricultural overtime wage measure were unfortunately among the 900 bills signed into state law. With regard to climate change, Ag Council is involved in the regulatory implementation of the Short-Lived Climate Pollutants law, SB 1383, to ensure CARB adheres to the intent of the law. Ag Council is also engaging with CARB as it considers a post-2020 cap-and-trade program. We remain steadfast in our mission to give you, our members, a strong voice in the legislative and regulatory arenas, and we look forward to serving as your state policy advocates throughout 2017. Due to passage of those two bills alone, labor costs will skyrocket and many in our membership are now analyzing the full implications of the labor bills to determine a path forward. Ultimately, the unintended consequences will negatively impact not only the families farming in California, but also the farm workers – the very same individuals the champions of the labor bills were supposedly trying to protect. In spite of these significant changes, there were also some positive outcomes for our industry this past year. Ag Council and the dairy community were dealt another blow when the California Air Resources Board (CARB) proposed a 75 percent reduction in methane through a proposed Short-Lived Climate Pollutants strategy. A compromise was pursued, along with a broad coalition, leading to amendments in SB 1383 by Senator Lara (D-Bell Gardens). The methane portion of the final bill creates limits around CARB’s efforts to regulate manure methane emissions from dairies and livestock and gives more certainty to dairy farming families in the state. In the final hours of legislative session, Ag Council supported this bill. It passed the Legislature, and Governor Brown signed it in September. In another proactive effort, the Joint Legislative Audit Committee approved Ag Council’s audit request to ensure compliance and enforcement of the Buy American requirement in school lunch and breakfast programs. 2016 also included defensive wins to halt legislation harmful to agriculture. Ag Council worked to help stop legislation to further restrict pesticides, actively lobbied to prevent a ban on new groundwater wells in certain areas and successfully advocated against a food labeling measure requiring a food quality date. These were critical defensive victories during the course of the year on behalf of our members. On regulatory issues, Ag Council worked to achieve a crucial solution to an unreasonable timeline proposed by CalEPA regarding Prop. 65 Bisphenol-A (BPA) warning labels for food and beverage products. The final outcome results in the first-ever sign at the cash register. The signage program prevents the need for food companies to provide on-product warnings and is available throughout 2017, giving food companies time to find alternative solutions to the use of BPA in their products or create warnings. PG 1 | AGCOUNCIL.ORG Emily Rooney, President TABLE OF CONTENTS Letter from the President 1 Advocacy In Action 2 Building Bridges 7 2016 Annual Meeting 9 Looking Ahead to 2017 10 Membership 10 ADVOCACY IN ACTION LEGISLATIVE ACTIVITY IN FOCUS NEW LAW LIMITS CARB’S AUTHORITY TO REGULATE DAIRY & LIVESTOCK MANURE METHANE EMISSIONS AUDIT OF THE BUY AMERICAN REQUIREMENT APPROVED BY THE JOINT LEGISLATIVE AUDIT COMMITTEE In August, the Joint Legislative Audit Committee (JLAC) unanimously approved an audit initiated by Ag Council and championed by Senator Cathleen Galgiani (D-Stockton) to review enforcement of the Buy American requirement. Under the requirement, schools and institutions participating in federal school lunch and breakfast programs must purchase domestically grown and processed foods to the maximum extent feasible. The audit will determine whether schools under the jurisdiction of the California Department of Education (CDE) are in compliance with the Buy American requirement. If not in compliance, the audit will outline the steps CDE will take to provide oversight and compliance of the requirement. Gov. Brown signs SB 1383 into law in Long Beach joined by (back row) Asm. Burke, Sen. Lara, Asm. Eggman, Sen. Hall and others (Photo by: Luis Sinco/Los Angeles Times). Ag Council was engaged in and helped seek passage of SB 1383 in order to set parameters around the Short-Lived Climate Pollutants (SLCP) strategy at the California Air Resources Board (CARB) regarding the regulation of manure methane emissions from dairies and livestock. The measure by Senator Ricardo Lara (D-Bell Gardens) gives more certainty to dairy farming families in the state. Governor Jerry Brown signed the bill into law in September. Without passage of SB 1383, CARB was moving forward with extreme and unachievable regulations to restrict manure methane emissions from dairies and livestock. Instead of that untenable path, SB 1383 gives direction to CARB, creates conditions that must be met before dairy and livestock methane emissions will be regulated in California, and requires consultation with the California Department of Food and Agriculture (CDFA). SB 1383 also requires CARB to limit methane emissions from dairy and livestock manure management operations up to 40 percent below 2013 levels by 2030, rather than the unattainable 75 percent proposed by CARB, which would have set dairies up to fail. It is unprecedented to have such provisions placed into statute for the dairy sector in order to provide more certainty to dairy farming families going forward. Funding from the greenhouse gas reduction fund for dairy and livestock manure management was contingent upon passage of SB 1383. With SB 1383 now law, $50 million in funding becomes available via a competitive grant process at CDFA for projects to reduce methane emissions on dairy and livestock operations. An audit is warranted due to recent actions taken by some public school districts. For example, Sacramento City Unified School District purchased Chinese canned peaches and mixed fruit in 2015 even though nearly all U.S. canned peaches and plastic packaged peaches are grown here in California. Once the California Canning Peach Association raised the issue publicly, the school district stated it made a mistake and ended future deliveries. A similar situation took place within the Elk Grove Unified School District. Ag Council thanks Senator Galgiani, JLAC Chair Freddie Rodriguez (D-Pomona) and the JLAC members for approving the audit request without any opposition. We will keep our members apprised of the audit outcome anticipated by June 2017. The advocacy efforts of Ag Council resulted in an ongoing audit of public schools by the California State Auditor to determine compliance with the Buy American requirement after some school districts purchased Chinese canned fruit and other food products available domestically. Ag Council’s engagement will help ensure that U.S. taxpayer dollars spent by schools on food purchases support U.S. jobs and American agriculture. - RICH HUDGINS President & CEO, California Canning Peach Association 2016 IMPACT REPORT | PG 2 ASSEMBLYMAN JIM COOPER HONORED WITH INFLUENTIAL LEGISLATOR OF THE YEAR AWARD Ag Council honored Assemblyman Jim Cooper (D-Elk Grove) with the 2016 Influential Legislator of the Year Award during the Legislative Conference in May. Ag Council Chair Brendon Flynn, a farmer with Sunsweet Growers, presented the award. Cooper is not afraid to address complex and controversial issues, including labor, invasive pests and disease, as well as climate change, on behalf of agriculture. He is also engaged in outreach to help his colleagues better understand agriculture, such as a tour he organized of a dairy digester. A group of Legislative Conference attendees at the State Capitol. AG COUNCIL HOSTS ROBUST LEGISLATIVE CONFERENCE In the most robust Legislative Conference to date, Ag Council members met with nearly 50 legislators and staff members in the State Capitol to advocate on critical policy issues such as labor, climate change, nutrient stewardship and water. During this annual event, our members foster stronger relationships with legislators, as well as regulatory officials and other decisionmakers. Upon receiving the award Cooper said, “California farmers feed and clothe the world and we must do everything we can to support them to ensure that California remains the country’s leader in agriculture.” Cooper is co-chair of the Moderate Democrats, a coalition of business-friendly legislators. Ag Council thanks him for being a strong voice for our members. As background, this award is given on an annual basis to legislators who embody a collaborative approach to finding positive outcomes for agriculture and all of California. Speakers addressed many high profile issues facing agriculture, and the event provided a meaningful platform for interaction. The dynamic 2016 Legislative Conference featured the following speakers: • Senator Tony Mendoza (D-Artesia) • California Environmental Protection Agency Undersecretary Gordon Burns • Department of Pesticide Regulation (DPR) Director Brian Leahy Sen. Mendoza (D-Artesia) kicking-off the Legislative Conference. CalEPA Undersecretary for Environmental Protection, Gordon Burns, addressing attendees. PG 3 | AGCOUNCIL.ORG • Deputy Cabinet Secretary & Senior Advisor to Governor Brown Wade Crowfoot During outreach with legislators in the State Capitol, Ag Council members lobbied on numerous policy issues important to their business. Members concluded a busy day of meetings with the annual Legislative Reception attended by over 70 guests, including 15 bipartisan legislators, as well as other officials. Thank you to all who joined Ag Council for this important outreach event. 2016 Influential Legislator of the Year award recipient, Asm. Cooper (D-Elk Grove). LEGISLATIVE ACHIEVEMENTS Though 2016 had its challenges on the legislative front, it is important to take stock of the positive outcomes Ag Council worked to achieve. The year included both proactive efforts and defensive wins to halt legislation harmful to agriculture. Several of those victories are highlighted below. BUY AMERICAN REQUIREMENT Buy American Audit (Galgiani) – Win Ag Council’s position: Support | Status: Approved The Joint Legislative Audit Committee approved Ag Council’s state audit request to review enforcement of the Buy American requirement to determine whether schools under the jurisdiction of the California Department of Education, and participating in the national school lunch and breakfast programs, are in compliance with the requirement. CLIMATE CHANGE SB 1383 (Lara) - Win Ag Council’s position: Support | Status: Signed into law SB 1383 requires the California Air Resources Board (CARB) to limit manure methane emissions from dairy and livestock operations up to 40 percent below 2013 levels by 2030, rather than the unattainable 75 percent proposed by CARB. SB 1383 became necessary in order to reign-in the blanket authority provided to CARB under SB 32. FOOD WASTE/FOOD LABELS AB 2725 (Chiu) – Win Ag Council’s position: Opposed | Status: Stalled in committee The bill would have mandated food manufacturers that use a quality date to use the phrase “best if used by” on the product by July 2017, which imposes a California-only standard not required by other states. LABOR SB 654 (Jackson) - Win Ag Council’s position: Opposed | Status: Vetoed SB 654 would have required six weeks of protected employee leave, in addition to existing leave, to bond with a new child within one year of birth, adoption or foster placement. The measure would have increased costs on employers, as well as expose them to litigation. SB 878 (Leyva) - Win Ag Council’s position: Opposed | Status: Stalled in committee SB 878 would have mandated a seven-day notice of an employee’s schedule. The bill would have subjected employers to investigations, penalties and litigation, if it had passed. PESTICIDES SB 1282 (Leno) - Win Ag Council’s position: Opposed | Status: Failed Senate passage SB 1282 would have mandated that the Department of Pesticide Regulation label seeds and plants for retail sale that have been treated with a neonicotinoid pesticide. The bill was not based in science, and agriculture needs neonicotinoids to fight pests that transmit serious diseases. WATER SB 1317 (Wolk) - Win Ag Council’s position: Opposed | Bill Status: Stalled in committee SB 1317 would have banned any new groundwater extractions from probationary basins and those in critical overdraft. SB 1317 undermined the local control element critical of the Sustainable Groundwater Management Act (SGMA) by dictating additional requirements. LEGISLATIVE CHALLENGES IN 2016 Though a strong opposition effort was undertaken, the bills below were signed into law. AB 1066 (Gonzalez) Ag Council’s position: Opposed | Bill Status: Signed into law AB 1066 phases in a new overtime wage law for agricultural workers requiring overtime in California after eight hours in one day or 40 hours in a week instead of the current payment of overtime after 10 hours in a day and 60 hours in a week. SB 3 (Leno) Ag Council’s position: Opposed | Bill Status: Signed into law SB 3 raises the minimum wage in California to $15 by 2022 for businesses with 26 or more employees. Businesses with 25 or fewer employees must comply with the $15 minimum wage by the year 2023. SB 32 (Pavley) Ag Council’s position: Opposed | Bill Status: Signed into law SB 32 requires CARB to further reduce statewide emissions of greenhouse gases to 40 percent below 1990 levels by 2030. SB 32 does not extend the existing cap and trade program and therefore gives unfettered regulatory authority to CARB to meet the new mandate. AB 197 (E. Garcia) Ag Council’s position: Opposed | Bill Status: Signed into law AB 197 adds two non-voting lawmakers to the board at CARB, creates six-year term limits, and directs CARB to consider the social costs of greenhouse gas emissions. It also establishes a new legislative oversight committee, however, the committee does not provide meaningful oversight. 2016 IMPACT REPORT | PG 4 REGULATORY ACTIVITY PROP. 65 Ag Council Works Toward a Solution on BPA Warnings Ag Council worked to achieve a crucial solution in 2016 on Bisphenol-A (BPA) through our advocacy work in 2016. CalEPA was initially looking at requiring a Prop. 65 warning label on food and beverage products containing BPA, along with a timeline that industry was unable to attain. Ag Council worked with CalEPA to find a resolution, and the final outcome results in the first-ever sign at the cash register. Signage at the register prevents the need for food companies to provide on-product warnings while giving consumers a warning as intended by CalEPA, which is consistent with Prop. 65. The signage program is available throughout 2017, providing food companies time to create warnings or find alternative solutions to the use of BPA in their products. WATER No Fee Increases on Certain Water Quality Permits The State Water Resources Control Board (Board) did not adopt fee increases for 2016-17 in the following programs: Confined Animal Facilities (CAF), which includes dairies, Waste Discharge Requirements (food processors and future wine program), and the Ag Land program (includes the Irrigated Land Regulatory Program). With regard to the Water Quality Certification (WQC) program (formerly the 401 Certification program), the Board adopted an average of a 20 percent increase to all WQC categories in 2016-17 to close a budget gap, instead of a previously proposed 32.4 percent fee increase. The Board will revisit the possibility of another fee increase in 2017-18 after reviewing budget projections. Ag Council has worked on a more collaborative working relationship between the Board and the agricultural community to provide more opportunities for engagement as the Board develops its budget and proposes fees. CLIMATE CHANGE Ag Council Weighs in on Cap-and-Trade Proposal Ag Council is weighing in to express concern about the California Air Resources Board’s (CARB) planned changes to the post2020 cap-and-trade program, as well as the proposed post-2020 allowance allocation. CARB currently provides assistance to businesses to minimize the cost of regulation. Free allowances are allocated to help cover the cost of complying with the climate program and reduce an emissions shift to other states. CARB’s new proposal would significantly reduce the amount of free emissions allowances provided, which increases costs for our members in the cap-andtrade program and makes them less competitive in domestic and international markets. Ag Council continues to engage with CARB staff on this issue given the serious implications for our members. Short-Lived Climate Pollutants Regulatory Efforts In November 2016, the California Air Resources Board (CARB) released a Short-Lived Climate Pollutant (SLCP) Reduction Strategy. CARB’s goal is to significantly reduce SLCP emissions by 2030 to meet future greenhouse gas emissions targets and air quality goals pursuant to the new law, SB 1383 by Senator Lara. Ag Council’s objective is to safeguard the intent of the law by urging CARB to work with its sister agencies and the agricultural community to achieve emissions reductions voluntarily, along with incentives, while reducing the barriers to potential projects. Challenges in the Sustainable Freight Action Plan In July 2016, the state released its Sustainable Freight Action Plan, which outlines an integrated approach to improve freight efficiency and transition California’s freight system to zero-emission technologies. Ag Council actively worked to urge consideration of the economic impact to the agricultural industry, as costly new emissions targets will impact every operation. Some progress was made when the final Action Plan included a pilot project to convert dairy biogas into transportation fuel in the San Joaquin Valley. Given that Ag Council is concerned about costs for business owners, our team continues to work toward obtaining incentives and encouraging voluntary approaches for agriculture. “In an often-challenging environment in Sacramento, Ag Council works to find solutions to some of the most complex issues we face in agriculture. The team’s advocacy work is more important than ever to ensure agriculture’s viewpoint is heard as we face a multitude of legislative and regulatory issues, particularly in dairy. Their efforts to build key partnerships with elected officials and decision-makers have helped to achieve critical outcomes to benefit farming families in California.” -CASE VAN STEYN Dairyman and Chairman of Dairy Farmers of America Western Area Council, Chairman of Ag Council’s Dairy Committee and Chairman of CALAMCO PG 5 | AGCOUNCIL.ORG AG COUNCIL REPRESENTS AN IMPRESSIVE ARRAY OF AGRICULTURAL PRODUCTS INCLUDING: 2016 IMPACT REPORT | PG 6 BUILDING BRIDGES FARM & FACILITY TOURS Legislative and regulatory tours ensure state officials hear firsthand from our members about the critical issues facing agriculture. We thank our members for assisting with our outreach efforts to help educate decision makers. The positive relationships fostered during such tours are invaluable and result in lasting connections for years to come. Leo Van Warmerdam, Asm. Mike Gipson (D-Carson), Peter Van Warmerdam, Asm. Jim Cooper (D-Elk Grove), Asm. Jim Frazier (D-Oakley) & Asm. Ken Cooley (D-Rancho Cordova) at Van Warmerdam Dairy. visit and legislators joining the tour included: Assemblyman Frank Bigelow (R-O’Neals), Ken Cooley (D-Rancho Cordova), Assemblyman Jim Frazier (D-Oakley), and Assemblyman Mike Gipson (D-Carson). California Air Resources Board staff during a tour with Ag Council and others at the Kern Dairy Cluster on March 16, 2016. AIR RESOURCES BOARD STAFF TOUR DAIRY & LEARN ABOUT OPPORTUNITIES FOR EMISSIONS REDUCTIONS Staff members from the California Air Resources Board (CARB) visited Bidart Dairy near Bakersfield in 2016. Ag Council organized the tour, along with Dairy Cares, to educate regulatory staff and decision makers on the day-to-day operations of a dairy and to demonstrate how dairies are innovative leaders in manure management. John Bidart, owner and operator of Bidart Dairy and co-founder of CalBio, provided a tour of his dairy, including a visit to his covered lagoon digester. The group discussed air quality issues and talked about a renewable compressed natural gas pilot project fueled with dairy biogas. The group also toured the proposed pilot project for the Kern Dairy Cluster, which is an effort to build digesters with duel electricity and fuel generation on neighboring dairies to reduce manure methane and move toward more sustainable transportation. In addition to explaining the day-to-day operations of the dairy, the tour focused on educating attendees about the digester at the dairy. Given the cost of digester projects, the tour encouraged a long-term state funding commitment to assist in moving such projects forward. At the end of the 2016 legislative session, $50 million dollars in state funding was approved for methane emissions reduction projects on dairy and livestock operations. WATER IS THE FOCUS AT FIFTH ANNUAL WORLD AG EXPO BREAKFAST Sen. Cannella speaks to Ag Council’s breakfast attendees in Tulare. LEGISLATORS & REGULATORY OFFICIALS TOUR DAIRY & VISIT DAIRY DIGESTER In April, five legislators and over 20 legislative staff, in addition to key regulatory staff from the California Air Resources Board (CARB), toured Van Warmerdam Dairy in Galt. The tour was coordinated in part by Ag Council, Western United Dairymen (WUD) and Sacramento County Farm Bureau. Van Warmerdam Dairy is a member of Dairy Farmers of America and also WUD. Assemblyman Jim Cooper (D-Elk Grove) helped organize the site PG 7 | AGCOUNCIL.ORG David Gutierrez with the California Department of Water Resources answers questions about the Sustainable Groundwater Management Act at the World Ag Expo breakfast. Members and friends joined Ag Council at the Fifth Annual World Ag E xpo Break fast in Tulare in February. The attendees heard from keynote speakers David Gutierrez, program manager for the sustainable groundwater program at the Department of Water Resources (DWR) and State Senator Anthony Cannella (R-Ceres). Gutierrez spoke about the strategic plan that DWR developed to implement the Sustainable Groundwater Management Act (SGMA). Local control remains the focus of SGMA. Gutierrez said, “Groundwater is best managed at the local level. The locals should be in the driver’s seat and will make the new law successful.” This aspect of the law is a critical element, and Ag Council and many others support local control. Senator Cannella is the Vice Chair of the Senate Committee on Transportation and Housing, among other committees. He spoke about the neglect of transportation infrastructure and the funding shortfall within the state highway system. He said existing fees must go toward transportation purposes and not to pay for state debt, as is currently the case with weight fees. Regarding water allocations, environmental regulations have proven to be very challenging and impact water allocations, and Cannella said he is committed to pursuing more commonsense policies at the state level. THIRD ANNUAL DAIRYFEST DRAWS HUNDREDS Dairyman Ben Curti, Sen. Galgiani & Dairyman Case Van Steyn connect at Dairyfest. Over 270 guests joined Ag Council’s dairy members for the Third Annual Dairyfest celebrating California dairy producers and recognizing June as Dairy Month. The ice cream social is a festive way for Ag Council’s dairy members to connect with legislators and staff during Dairy Month. The outreach event at the State Capitol emphasizes the importance of the dairy industry in California and highlights the positive economic impact of dairy in our state. California Dairies Inc., Dairy Farmers of America and Land O’Lakes sponsored the successful event. Western United Dairymen, an allied member, also attended. Sen. Wilk enjoys ice cream at the Third Annual Dairyfest. SPECIAL THANK YOU A sincere thank you to all Ag Council members who contributed to the Political Ac tion Committee (PAC) and who participated in the small group fundraising events listed below. Moderate Democrats (Mod Dems) Spring 2016 reception Speaker Anthony Rendon (D-Lakewood) “The regulatory and legislative advocacy work that Ag Council conducts throughout the year on behalf of growers and cooperatives is beneficial for us, and the staff works to get in front of the issues before they become a problem, which is crucial. When regulatory and legislative issues surface, Ag Council voices our concerns and seeks out a positive outcome or works to minimize the impact.” Summer 2016 breakfast - NAT DIBUDUO President, Allied Grape Growers 2016 IMPACT REPORT | PG 8 2016 ANNUAL MEETING LEVERAGING OUR STRENGTH – 97TH ANNUAL MEETING Record attendance marked Ag Council’s 97th Annual Meeting in Napa in March 2016. Given the strong turnout, it is appropriate the meeting theme was “Leveraging our Strength.” It is also a fitting motto as Ag Council finds effective ways to work cooperatively with members of both parties on behalf of agricultural businesses in California. Ag Council invests significant efforts in reaching out to moderates to help them understand the importance of agriculture to job growth and California’s economic health. Sen. Dodd (D-Napa) speaking at the Annual Dinner. Three members of the Moderate Democrats Caucus, or “Mod Dems,” were keynote speakers during the Annual Dinner and discussed the pragmatic approach of the Caucus. T he legislators speaking at the dinner were Assemblyman (now Senator) Bill Dodd (D-Napa), and the 2016 co-chairs of the Mod Dems, Assemblyman Rudy Salas (D -Bakersfield) and Assemblyman Jim Cooper (D-Elk Grove). During his remarks, Dodd said, “We have to steer policies forward in a way that makes sense for farmers. The Legislature has not treated you like the breadbasket of the world that you are—that needs to change. The economic impact of California agriculture is undeniable, and we need to make sure your industry stays robust and sustainable.” Paul Martin, Ag Council’s 2016 California Cultivator Award recipient. “Paul built his reputation as someone who creates collaboration among stakeholders. He helped guide the California dairy industry through several challenges related to environmental regulation to create workable solutions for producers and regulators.” Martin was an owner-operator of Paul and Jill Martin Dairy for 30 years before he became director of environmental services for Western United Dairymen (WUD) in 1999. He held that position for 13 years before being appointed to Governor Brown’s Office of Business and Economic Development from 2012 to 2014. Martin’s leadership skills were again called upon by WUD to serve as interim CEO in 2015, and he retired in late 2015. “Paul Martin is the true embodiment of agricultural leadership, so much so that he has had to ‘retire’ three times, since his capabilities are so in demand,” Secretary of Agriculture Karen Ross said in her letter of support. “At times of crisis or extreme challenges, Mr. Martin is a level-headed leader, always thoughtful and proactive.” The General Session featured Secretary of the California Department of Food and Agriculture (CDFA) Karen Ross and Armando Quintero, a member of the California Water Commission. The General Session was rounded out with a lively panel discussion between Democratic Communications Specialist Tracy Sefl and Republican Communications Specialist Douglas Heye about the 2016 presidential election. PAUL MARTIN HONORED WITH CALIFORNIA CULTIVATOR AWARD Ag Council honored Paul Martin, a lifelong dairy producer and champion of agriculture, with the 2016 California Cultivator Award during Ag Council’s Annual Meeting in March. “Paul received enthusiastic nominations because of his reputation for stepping up to the plate,” said Ag Council President Emily Rooney. CDFA Sec. Ross addressing general session attendees at the Annual Meeting. PG 9 | AGCOUNCIL.ORG LOOKING AHEAD TO 2017 CALIFORNIA STATE LEGISLATURE PROP. 65 Out of 120 legislators, about 18 percent are incoming freshman. With 12-year term limits, new legislators could be in office through 2028 if they prevail in subsequent elections. Given this, Ag Council prioritizes outreach and communication on our key issues, particularly given that the majority of new legislators represent urban and suburban districts. The Office of Environmental Health Hazard Assessment (OEHHA) has several pending regulations impacting chemicals used in production agriculture and/or naturally-occurring in the environment. From bisphenol-A (BPA) to lead, many of these compounds are prevalent throughout agriculture. Additional developments are anticipated in 2017, and Ag Council remains very involved in Prop. 65. Though Democrats hold a two-thirds supermajority in both the Assembly and Senate, it is yet to be determined whether the supermajority will considerably impact policy issues since a twothirds vote requires support from moderate Democrats, as well as progressives. In any case, Ag Council’s role is more important than ever as we work to build bridges with legislators and advocate our members’ viewpoint. We continue to work on pragmatic solutions with a politically balanced approach and remain determined in our engagement on the policy issues impacting members. As the year progresses, policy issues continue to evolve and change, and our team will apprise members of developments and our advocacy efforts along the way. CLIMATE CHANGE Ag Council is highly engaged as the California Air Resources Board (CARB) plans changes to the post-2020 cap-and-trade program. We are working to build support for ag-friendly emission reduction projects. Our team is also advocating for our members as CARB implements SB 1383 by Senator Lara (D-Bell Gardens), which places needed parameters around CARB’s efforts to regulate manure methane emissions from dairies. BUY AMERICAN REQUIREMENT Ag Council’s state audit request to determine compliance and enforcement of the Buy American requirement in California’s school lunch and breakfast programs is scheduled for completion in June 2017. The audit’s purpose is to help ensure school children consume food of the highest quality and safety and to support local farms, as well as our economy. Ag Council is working with legislators on potential mechanisms to ensure the state complies with the law. WATER A solution to nitrate in drinking water is crucial, as those in affected disadvantaged communities need help to ensure their families have safe, clean drinking water. And, as many farmers already know, the legal implications are serious. Ag Council is actively engaging with state officials and others to pursue a solution for agriculture and the communities in need of drinking water improvements. Membership AG COUNCIL OF CALIFORNIA 2016 BOARD OF DIRECTORS Bob Brown Jeannine Grech Francis Pacheco Kelly Covello Carl Hoff Melissa Poole Nat DiBuduo Darren Hoff Alicia Rockwell John Engelen Rich Hudgins Kirk Squire Bill Ferriera Jeana Hultquist Mike Stoker Brendon Flynn Michael Kelley Rayne Thompson Pete Garbani Mark Lindgren Dan Vincent Leili Ghazi Paul Mesple Glen Goto Darrin Monteiro Ag Council is opposing the State Water Resources Control Board’s effort to force 40 percent unimpaired flows from three San Joaquin River tributaries for the beneficial use of fish and wildlife, in addition to salinity control. By drastically slashing surface water allocations, this plan will harm a key agricultural region and result in job and economic losses. Ag Council is participating in the Board’s stakeholder process and supports the request by locals for the Board to focus on other measures, such as river and habitat improvements and predation suppression. 2016 IMPACT REPORT | PG 10 AGC O U N CIL .ORG 1121 L S T R E E T S U I T E 3 0 4 , S AC R A M E N T O, C A 95 814 / 916 .4 4 3.4 8 8 7
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