BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2174| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2174 Author: Alejo (D) Amended: 6/14/12 in Senate Vote: 21 SENATE AGRICULTURE COMMITTEE : 7-0, 6/19/12 AYES: Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas, Wolk SENATE ENVIRONMENTAL QUALITY COMMITTEE : 7-0, 7/2/12 AYES: Simitian, Strickland, Blakeslee, Hancock, Kehoe, Lowenthal, Pavley ASSEMBLY FLOOR : 77-0, 5/29/12 - See last page for vote SUBJECT : Fertilizer: reduction of use SOURCE : California Rural Legal Assistance Foundation Clean Water Action Community Water Center DIGEST : This bill identifies the University of California Cooperative Extension (UCCE), the California resource conservation districts (CRCD), other institutions of higher education or other qualified entities to develop programs in the areas of technical education and research for more agronomically sound uses of fertilizer materials and to minimize environmental impacts of fertilizer use. ANALYSIS : CONTINUED AB 2174 Page 2 Existing law: 1. Requires that every person who manufactures or distributes fertilizing materials obtain a license from the Department of Food and Agriculture (CDFA) (Food and Agricultural Code (FAC) Section 14591). 2. Authorizes CDFA to impose a fee on a licensee who sells and distributes bulk fertilizers of up to one mill ($0.001) per dollar of sales of fertilizing materials for the purpose of funding research and education regarding the use and handling of fertilizing materials, including, but not limited to, any environmental effects (FAC Section14611). This bill identifies the UCCE, the CRCD, other institutions of higher education, or other qualified entities to develop programs in the following areas: 1. Technical education for users of fertilizer materials in the development and implementation of nutrient management projects that result in more agronomically sound uses of fertilizer materials and minimize environmental impacts of fertilizer use, including, but not limited to, nitrates in groundwater and emissions of greenhouse gases resulting from fertilizer use; 2. Research to improve nutrient management practices resulting in more agronomically sound use of fertilizer materials and to minimize environmental impacts of fertilizer use, including, but not limited to, nitrates in groundwater and emissions of greenhouse gases resulting from fertilizer use; and 3. Education to increase awareness of more agronomically sound use of fertilizer products to reduce the environmental impacts resulting from the overuse or inefficient use of fertilizing materials. Background According to a 2012 report to the Legislature by the University of California, Davis Center for Watershed CONTINUED AB 2174 Page 3 Sciences, the primary (96%) man-made source of nitrate contamination is cropland treated with synthetic fertilizer or animal manure, where nitrogen not removed by harvest, air emission, or runoff, may leach from the root zone into groundwater below. This information is not new. In 1988, the Director of CDFA appointed a Nitrate Working Group comprised of scientists from the University of California, state agencies and industry with the goal of studying the nitrate problem relating to agriculture in California. Their 1989 report, "Nitrate and Agriculture in California," identified locations where nitrate groundwater levels were elevated, analyzed the mechanisms of nitrate movement through the soil, reviewed the potential of fertilizer best management practices, and examined the problem of animal production in relation to nitrate pollution. The CDFA Nitrate Working Group report concluded with five recommendations; the fifth recommendation was to "establish a research and demonstration project on nitrate control through irrigation, fertilizer and manure management." In response to these findings, the Fertilizer Research and Education Program (FREP) was established in 1990 to provide funding for research and education regarding the use and handling of fertilizing material, including but not limited to, any environmental effects. FREP is funded through a mill fee on the sale of fertilizer materials, currently set at mill ($0.0005), which equates to approximately $1 million annually. The mill fee can be adjusted at the discretion of the Secretary of CDFA not to exceed 1 mill ($0.001) per dollar of sales. According to CDFA's FREP Web site, in the past 20 years, the $12 million assessment has funded 160 technical, research, and education projects focused on agronomic efficiency in the management of nutrients, precision irrigation and fertilization through irrigation practices, and soil and fertilization interaction. During this time, FREP's focus has expanded to include research on many of California's important and environmentally sensitive cropping systems including almonds, tomatoes, cotton, citrus, wine grapes, horticulture, lettuce, and other cool-season vegetables. CONTINUED AB 2174 Page 4 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. According to the CDFA Nitrate Working Group's 1989 report, due to the complexity and diversity of the factors that affect nitrate contamination from agriculture, there is no simple solution that can be applied throughout the state. Continued research and technical education is needed to advance the knowledge and understanding of agronomically sound use of fertilizer materials in order to establish local nitrate best management practices and ensure the safety of drinking water. Comments According to the author's office, state funding for technical assistance programs has been significantly curtailed in recent years. This bill provides access to approximately $1 million of existing, underutilized funds collected under FREP to specifically support research and technical education programs developed at California research institutions, or other qualified entities, that result in more agronomically sound use of fertilizer products. These programs could result in cost savings through a likely reduction of fertilizer use, and reduce contamination of the state's watersheds that threaten the safety of drinking water. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 7/5/12) CONTINUED AB 2174 Page 5 California Rural Legal Assistance Foundation (co-source) Clean Water Action (co-source) Community Water Center (co-source) California Association of Nurseries and Garden Centers California Chamber of Commerce California Climate and Agricultural Network California Farm Bureau Federation California FarmLink California Grain and Feed Association California Grape and Tree Fruit League California Pear Growers Association California Rice Industry Association California Seed Association Community Alliance with Family Farmers Dixon Ridge Farms (Winters) Ecological Farming Association Full Belly Farm (Guinda) Hedgerow Farms (Winters) Lundberg Family Farms (Richvale) Swanton Berry Farm (Davenport) Western Growers Association Wm. Bolthouse Farms, Inc. (Bakersfield) ARGUMENTS IN SUPPORT : Proponents state, "Declining technical assistance resources for the California growers undermines the needed information exchange between our best science advisors and our agricultural industry. Reinvesting in technical assistance for California growers is needed now more than ever as the natural resource and stewardship issues facing growers have grown more complex while funding for Cooperative Extension, the Resource Conservation Districts and ag colleges has declined. Programs like FREP are most effective when they can provide meaningful assistance in our communities. AB 2174 will help move the program to address some of the 21st century challenges agriculture and our communities confront." ASSEMBLY FLOOR : 77-0, 5/29/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth CONTINUED AB 2174 Page 6 Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Cedillo, Fletcher, Hall MEL:m 7/5/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED