BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1354| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1354 Author: Galgiani (D) Amended: 5/19/16 Vote: 27 - Urgency SENATE AGRICULTURE COMMITTEE: 5-0, 5/24/16 AYES: Galgiani, Cannella, Berryhill, Pan, Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/27/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen SUBJECT: Agricultural pest control: Asian citrus psyllid: Huanglongbing SOURCE: Author DIGEST: This bill requires the California Department of Food and Agriculture (CDFA), upon appropriation specific for this purpose, to support research activities relating to Asian citrus psyllid (ACP) and Huanglongbing (HLB) and to work with specified stakeholders to establish a process for voluntary tracking of best practices to manage ACP-infested and HLB-infected groves. The information collected shall be used to establish recommended management protocols based on best available science and treatment outcomes. This bill contains an urgency clause. ANALYSIS: Existing law establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within the CDFA to advise the Secretary of CDFA on efforts to prevent and manage citrus pests and diseases. An assessment is levied on citrus producers and deposited into the Citrus Disease Management Account for the sole purpose of combating citrus-specific pests and diseases. This account may also contain funds from federal SB 1354 Page 2 and other non-General Fund sources. (AB 281, De Leon, Chapter 426, Statutes of 2009; Food and Agricultural Code §5911 et seq.). This bill: 1)Requires CDFA, upon appropriation of funds for that purpose, to support research activities relating to the ACP and HLB. These activities shall include, but not be limited to, all of the following: a) Finding a cure and/or suppression tactic for HLB. b) Development of early detection techniques to identify diseased trees. c) Development of resistant rootstocks, scions, or psyllids. d) Improved psyllid trapping and control methods. e) Expanded biological control availability for the ACP in priority areas where there is a reasonable expectation of success. f) New horticultural methods to maximize crop production in the presence of HLB. g) Support for new and existing containment research facilities for projects investigating HLB. 2)Requires CDFA to, upon appropriation of funds for that purpose, work with county agricultural commissioners, pest control advisors, researchers, and/or the Citrus Research Board to establish a process for voluntary tracking of best practices to manage ACP-infested and HLB-infected groves. The information collected shall be used to establish recommended management protocols based on best available science and treatment outcomes. Background SB 1354 Page 3 California is the top-producing agricultural state in the nation with $54 billion in agricultural commodity value in 2014. California is also a top producer of citrus fruits and is ranked second only to Florida in citrus production but first in citrus product sold fresh to market. According to the most recent census, in 2012, the $2.1 billion California citrus industry grew nearly four million tons of citrus on 270,000 acres and provided more than 14,000 jobs. ACP is an invasive pest that feeds on citrus plants' leaves and stems and causes shoot deformation and plant stunting. More importantly, ACP may transmit HLB, a bacterial disease that causes the plant to produce unpalatable fruit before ultimately killing the tree. According to CDFA, HLB is the most devastating disease of citrus in the world. There is no cure and infected plants must be destroyed. The first discovery of ACP and HLB in the United States was in Florida in 1998 and early September 2005, respectively. Within two years, the disease HLB spread to all citrus-producing counties and infected over half of all citrus trees in the state. Studies have shown that the economic damage due to HLB in Florida alone has resulted in a loss of $7.8 billion and 7,513 jobs since 2007, reducing the industry to nearly a quarter of the size it once was. The disease HLB has also been detected in Georgia, Louisiana, South Carolina, Texas, and most recently, California. In 2008, the pest ACP was first identified in Southern California. In in the last two years, ACP has rapidly spread north into commercial citrus groves and residential trees, and quarantine boundaries have expanded to encompass one-third of the state. Meanwhile, in March 2012, HLB was detected in a residential, multi-grafted citrus tree in Los Angeles County. The tree was destroyed, however the disease was detected again in 2015 and now 22 trees located in the surrounding areas have tested positive for HLB. The new finds and the rapid northern migration is a cause of great concern. The citrus industry, the University of California, and both the state and federal governments are working to eliminate and prevent the establishment of ACP and HLB in California. Much of SB 1354 Page 4 the research is conducted with funding from the citrus industry, CDFA Specialty Crops Block Grants, and the United States Department of Agriculture - National Institute of Food and Agriculture (USDA-NIFA). The Agricultural Act of 2014 (H.R. 2642) was signed into law on February 7, 2014, and directs $125 million of the USDA Specialty Crop Research Initiative funding toward citrus disease research over the next five years. In Fiscal Year (FY) 2015, the federal government awarded $20 million in grants nationwide to university researchers and extension projects to aid in the fight against HLB. Comments Residential citrus. Over half of all citrus trees in California are located in residential backyards. Currently, $12 million of the industry-assessed fees are being used to detect and trap ACP and remove HLB-infected citrus trees in the Los Angeles Basin, the area of greatest infestation. Funding sources. The CCPDPC is funded by the California citrus industry and federal grants. Of the $25 million annual budget, roughly $15 million is funded through the $0.09 per carton assessment fee and $10 million through the USDA. However, this year, the federal government approved an additional $2 million in funding that will be used to increase psyllid detection and trapping in the San Joaquin Valley. The CCPDPC received a one-time $1 million appropriation from the General Fund in FY 2013-14 (AB 110, Blumenfield, Chapter 20, Statutes of 2013), however no other monies from California's General Fund have been appropriated. Budget request. The Senate Budget Subcommittee No. 2 approved a General Fund allocation of $5 million to CDFA for ACP control, where $4.25 million is dedicated for residential application and $750,000 for an interagency agreement with the Department of Pesticide Regulation to provide a consumer product database for a residential level study of the impacts of neonicotinoid-treated seed and plants sold at the retail level. None of these funds are directed for use towards advancing research to find new tools for ACP or HLB control. SB 1354 Page 5 Informational Hearing. The Senate Committee on Agriculture held an informational hearing on May 17, 2016, titled "Crisis in the Golden State: Asian Citrus Psyllid's Threat to Destroy California Citrus." The hearing highlighted the urgent need for additional support to not only mitigate the spread of ACP but to find a cure for HLB, develop critical research and technology, and improve enforcement and compliance with citrus treatment and transportation regulations. Research and Technology. According to expert witnesses at the informational hearing, additional funding is needed to support critical research projects. For example, California would benefit from the development of early detection techniques of infected trees. Florida and Texas did not have this technology available, and unidentified HLB-infected trees remained in groves and spread the disease to neighboring trees. Current technology requires sufficient time (roughly one year) for the disease to build up in the tree to a detectable concentration. However, California is in a position where, if early detection techniques are developed, infected trees (both commercial and residential) could be identified and removed, or treated, immediately. Other critical research needs include finding a cure for HLB, increasing the availability of biological control (release of non-stinging parasitic wasps), developing resistant trees and psyllids, and improving psyllid trapping and control, among others. Current research projects are funded through USDA and citrus industry grants; however, no General Fund monies are appropriated for this purpose. Urgency. This bill contains an urgency clause given that, due to the rapid infestation of ACP and increasing HLB detections, this bill is needed to provide immediate help to prevent this invasive pest and disease from destroying residential and commercial California citrus trees. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SB 1354 Page 6 According to the Senate Appropriations Committee, as currently written, this bill requires CDFA to support specified research if funding is appropriated, but does not make an appropriation. Consequently, this bill will result in cost pressures of unknown magnitude, minimally in the hundreds of thousands of dollars annually (General Fund). SUPPORT: (Verified5/27/16) None received OPPOSITION: (Verified5/27/16) None received ARGUMENTS IN SUPPORT: According to the author, "California is facing a serious infestation of Asian citrus psyllid, an invasive pest that threatens to kill every California citrus tree. As already seen in Florida, this tiny pest and the disease it carries, Huanglongbing, has the ability to destroy both the citrus industry as well as residential citrus trees. SB 1354 seeks to provide solutions to manage ACP and HLB in California by increasing the tools available to combat ACP-infested and HLB-infected trees and groves. In doing so, California might be able to avoid massive devastation and stop ACP and HLB from killing California's valuable crops and cherished residential citrus trees. The reality of HLB taking hold in California is chilling, and the state must do what it can to support critical activities that aim to not only mitigate the spread of ACP but to find a cure for HLB." Prepared by: Anne Megaro / AGRI. / (916) 651-1508 5/28/16 16:46:08 SB 1354 Page 7 **** END ****