BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2174|
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                                 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  :    
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          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 

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          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.

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          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)


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          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 

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            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

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