BILL ANALYSIS                                                                                                                                                                                                    �



                            SENATE AGRICULTURE COMMITTEE
                         Senator Anthony Cannella, Chairman

          BILL NO:    AB 2174                   HEARING:  06/19/12
          AUTHOR:   Alejo                       FISCAL:  No
          VERSION:  06/14/12                    CONSULTANT:  Anne Megaro
          
                            Fertilizer: reduction of use.

           SUMMARY:

          Existing law pursuant to the Food and Agriculture Code:
           
             1.   Provides fertilizer materials definitions, an advisory 
               board, requires licensing, registration, inspection 
               requirements and fees, tonnage reports, label requirements, 
               sampling and analysis, establishes violations, procedures 
               for prosecution, and describes what is misbranding and 
               adulteration.

             2.   Establishes an assessment level not to exceed two mills 
               ($0.002) per dollar of sales of fertilizer materials to 
               fund the program and it permits an assessment not to exceed 
               one mill ($0.001) per dollar of sales of fertilizer 
               materials, to provide funding for research and education 
               regarding the use and handling of fertilizing material, 
               including, but not limited to, any environmental effects.  
               The secretary may, based on the findings and 
               recommendations of the board, reduce the assessment to a 
               lower rate.

           This bill:
           
             1.   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 
               following areas:

               a)     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;

               b)     Research to improve nutrient management practices 




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                 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,

               c)     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.


           COMMENTS:

          1.Purpose of Bill:   According to the author, state funding for 
            technical assistance programs has been significantly curtailed 
            in recent years.  This bill would provide access to 
            approximately $1 million of existing, underutilized funds 
            collected under the Fertilizer Research and Education Program 
            (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.

           2.Background:   According to a 2012 report to the Legislature by 
            the University of California, Davis Center for Watershed 
            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 





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            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 one million dollars 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 website, 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.

            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 





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            management practices and ensure the safety of drinking water.

           1.Committee Referrals:  The Senate Rules Committee has double 
            referred this bill to the Senate Environmental Quality 
            Committee as the second committee of referral.  Therefore, if 
            this measure is approved by this committee, the motion should 
            include an action to re-refer the bill to the Senate Committee 
            on Environmental Quality.


           RELATED LEGISLATION:  

          AB 856 (Caballero), Chapter 257, Statutes of 2009.  This bill 
          expanded the definitions pertaining to organic fertilizer 
          materials, added new requirements, fees and penalties.  


           PRIOR ACTIONS:
           
          Assembly Floor 77-0
          Assembly Appropriations17-0
          Assembly Agriculture  7-0


           SUPPORT:
           
          California Rural Legal Assistance Foundation (Sponsor)
          California Association of Nurseries and Garden Centers
          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
          Clean Water Action
          Community Alliance with Family Farmers
          Community Water Center
          Dixon Ridge Farms
          The Ecological Farming Association
          Full Belly Farm
          Hedgerow Farms
          Lundberg Family Farms
          Swanton Berry Farm
          Western Growers Association
          Wm. Bolthouse Farms, Inc.





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           OPPOSITION:
           
          None received