BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2174
                                                                  Page  1

          Date of Hearing:   May 25, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 2174 (Alejo) - As Amended:  May 14, 2012 

          Policy Committee:                              AgricultureVote:7 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires the secretary of the California Department of 
          Food and Agriculture (CDFA) to use funding from the Fertilizer 
          Research and Education Program (FREP) to develop programs in the 
          following areas: 

          1)Education focused on a more efficient and sound use of 
            fertilizer, in order to minimize the environmental impact of 
            fertilizer.

          2)Research to improve nutrient management practices, which would 
            result in minimizing the environmental aspects of fertilizer.

          3)Technical assistance focused on a more efficient and sound use 
            of fertilizer. 

           FISCAL EFFECT  

          1)Providing the education, research and technical assistance 
            specified in this legislation would require about $350,000 of 
            the $1 million spent annually by CDFA for current FREP 
            projects, if the funding is not already allocated to 
            multi-year projects. 

          2)Alternatively, the secretary may determine that rather than 
            shifting existing funding to this new activity, this bill may 
            require an increase in the assessment on fertilizer licensees. 
             Currently, the mil assessment is at  mil ($0.0005) per every 
            dollar of sales, resulting in $1 million in funding for FREP.  
            Current law gives the secretary the authority to increase the 
            assessment to 1 mil ($0.001) per dollar of sales. 








                                                                  AB 2174
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           COMMENTS  

           1)Purpose  . This bill is in response to a March 2012 report from 
            the University of California at Davis' Center for Watershed 
            Sciences that detailed nitrate contamination in groundwater in 
            the state's two leading agricultural regions (Tulare Lake 
            Basin and the Salinas Valley).  The report found for a quarter 
            million people that contamination is currently threatening 
            drinking water safety, with millions more Californians to be 
            affected in the future.  The report found that agricultural 
            activities are responsible for 96% of the pollution, with 
            chemical fertilizer making up 54% of the sources.  

            This bill would use FREP funding for implementation projects 
            to assist farmers and ranchers with best management practices 
            for fertilizer use.  The author notes that giving technical 
            assistance to agricultural producers would lead to more 
            efficient application of fertilizers, resulting in savings to 
            farmers, who would use less fertilizer, resulting in less 
            contamination of the state's water shed.

           2)Support  . The Ecological Farming Association contends this bill 
            is necessary because it focuses declining technical assistance 
            resources on the critical area of nutrient management planning 
            and related fertilizer use efficiency practices, which may 
            help reduce the amount of nitrate run-off in the state's 
            groundwater. 

            This support is echoed by various California farmers, 
            including Full Belly Farms, Bolthouse Farms, and Dixon Ridge 
            Farms. 

           3)Background  . FREP was established in 1990 when California Food 
            and Agricultural Code Section 14611(b) authorized a mil 
            assessment on the sale of fertilizing materials, "to provide 
            funding for research and education regarding the use and 
            handling of commercial and organic fertilizers, including, but 
            not limited to, any environmental effects."  The mil 
            assessment currently generates close to $1 million per year 
            for fertilizer research. 

            Since 1990, FREP's focus has expanded to include research on 
            many of California's important and environmentally sensitive 
            cropping systems, including almonds, tomatoes, cotton, citrus, 








                                                                  AB 2174
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            wine grapes, horticulture, lettuce, and other cool-season 
            vegetables.  To date, 40% of FREP's projects have been related 
            to developing, testing, and demonstrating various nutrient 
            tissue and/or soil testing procedures.

            According to CDFA's FREP facts sheet posted to their web site, 
            over 20 years of FREP research projects have focused on 
            agronomic efficiency in the management of nutrients, precision 
            irrigation and fertilization trough irrigation practices, and 
            soil and fertilizer interaction.  2012 priorities include:

                 Comparisons of economically viable and commercially 
               ready, integrated fertility-water-soil management 
               approaches that preserve soil and water quality.

                 Nutrient requirements for high-value specialty crops or 
               emerging new crops in highly environmentally sensitive 
               areas.

                 Devising innovative techniques to improve fertilizer use 
               efficiency.

            Over this period of time, FREP has provided $12 million in 
            funding for 160 technical, research, and education projects.  

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081