Association Part of Two Panels at the 2023 SJVAPCD Governing Board Study Session

Association President/CEO Roger A. Isom represented agricultural interests on two important panels at the 2023 San Joaquin Valley Air Pollution Control District Governing Board Study Session.  The two-day Study Session is held every year to allow the Governing Board to take a deeper dive into major issues facing the District.  The issue for the first panel was the topic of “Continued Efforts to Partner with Valley Agriculture to Reduce Nut Harvest Emissions”.  Isom kicked off the panel and focused on highlighting the existing incentive programs for “low dust harvesters”, as well as a need to expand the programs to include conditioners and “low dust conditioners”.  Isom further highlighted the need for research to support these efforts, while emphasizing the importance of incentives as the key to any successful and meaningful replacement  of this equipment, especially given current commodity pricing.  Joining Isom on the Panel were representatives from the Almond Board of California and the USDA NRCS.  On the second day, Association President/CEO Isom opened up the panel on the issue of “Zero-Emission Heavy Duty Vehicle and Equipment Infrastructure Challenges and Opportunities.”  Isom focused on major issues with the lack of infrastructure for both electric and hydrogen fuel sources, as well as major cost implications.  Isom commented that compliance dates need to be adjusted once we truly understand our infrastructure needs including how much, when and where the demand will be for either electricity or hydrogen.  He also stated that two rules are impacting agriculture in this matter, including the new truck rules and the proposed forklift rule, and stated incentives were needed to assist agriculture on both of these regulations.  Joining Isom on the panel were representatives from the California Air Resources Board, California Energy Commission, California Public Utilities Commission, Go-BIZ and the California Transportation Commission.

Ag Meets Tractor Replacement Goal for Clean Air!

Last week, representatives from the San Joaquin Valley Air Pollution Control District (District), the California Air Resources Board (CARB), the Natural Resources Conservation Service (NRCS), and the United States Environmental Protection Agency Region 9 (US EPA) came together in Modesto to sign a historic proclamation lauding the successful efforts to reduce agricultural-related air quality emissions in the San Joaquin Valley. The proclamation stated, “that through the emissions reductions achieved by the District, CARB, and NRCS grant program partnerships, the agricultural industry has met their commitment to accelerate turnover of agricultural equipment in the San Joaquin Valley to cleaner equipment and achieved over 11 tons per day of NOx emission reductions in 2024”.  According to the District, in order to meet the emission reduction commitment, through the Carl Moyer, FARMER, DERA, TAG, and EQIP incentive programs, the agricultural industry turned over and destroyed over 12,800 pieces of older agricultural equipment in the San Joaquin Valley, of which over 7,300 were the oldest Tier 0 agricultural equipment with no emissions controls.

“The agricultural sector in the San Joaquin Valley is an economic powerhouse for the state. Moving towards the cleanest available technology in this sector continues to be critical to improving the air in the Valley,” said Liane Randolph, Chair of the California Air Resources Board. “We all have a role to play in building a healthier, more sustainable California, and today's event shows what we can achieve when we work together.”

“NRCS California is proud to have helped our farmers replace more than 6,000 old, polluting tractors since 2008, with an emission’s reduction equivalent of removing 1.5 million cars off California’s roads,” said NRCS California State Conservationist Carlos Suarez. “But we didn’t do this alone – a robust partnership of agriculture and governmental partners have teamed with us for more than a decade working together to make our air cleaner and healthier for Central Valley communities.”   

“The District applauds the leadership of local and state legislators, as well as Valley farmers in recognizing the public health and climate benefits provided throughout California from clean air investments,” stated Samir Sheikh, Executive Director/Air Pollution Control Officer for the Valley Air District. “The San Joaquin Valley agricultural sector feeds the world and coordinated multi-agency efforts like this must continue to support farmers’ ongoing transition to sustainable and air-friendly practices.”

In a District press release, they commented “While the San Joaquin Valley has some of the most challenging fine particulate matter and ozone air quality issues in the nation, the Valley has a long history of collaboration with Valley agricultural stakeholders, partner agencies, state and federal legislators, and the California Governor.  This collaboration has led to the accelerated turnover of older agricultural equipment to lower-emitting equipment through significant funding under the federal Diesel Emission Reduction Act (DERA), Targeted Airshed Grant (TAG) funding programs, and the state Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program. CARB, the District, and NRCS also partnered with the Valley agricultural industry for decades through the Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program), and the NRCS Environmental Quality Incentives Program (EQIP). The total public (District, CARB, NRCS, and U.S. EPA) and private investment in agricultural equipment in the San Joaquin Valley since 2015 has equated to over $1.6 billion, more than half of which was spent by farmers and others in the agricultural industry.”

On hand for the event was Association President/CEO Roger A. Isom. Isom commented “The Association spent a lot of time, effort and political capital over the past several years to make sure this day happened, and to stave off any type of mandatory replacement rule like the CARB Truck Rule that would have ultimately put farmers out of business.”

CPUC Eliminates Net-Energy Metering Aggregation Program

In a highly controversial move, the CPUC voted recently to end the NEM-A program for farms, food processors and other customers. If you are planning to implement a new solar system you have less than 90 days to get your application submitted to avail your project to the existing NEM-A rules. 

As regularly reported on by AECA, after the main Net Billing Tariff (the new Net-Energy Metering program) program was finalized at the CPUC, they moved onto NEM Aggregation. AECA helped to create the NEM Aggregation program in the Legislature in 2012 with SB 594 (2021, Wolk) and has been working for months to keep the program available.

As noted in AECA comments, the Adopted Decision will now drastically limit, if not eliminate agricultural customers’ ability to install on-farm solar net-metering projects.

AECA aggressively advocated for the aggregation program to remain an effective tool for agricultural and food processing operations to produce onsite renewable energy.

AECA submitted comments, had meetings with the CPUC commissioners, the CA Dept of Food and Agriculture, Governor Newsom’s Cabinet staff and encouraged legislators to call on the CPUC to revise the decision. ACEA recently led efforts resulting in 19 legislators signing a letter to the CPUC and Governor. This followed a joint ag letter signed by major agricultural organizations in the state.

Despite these efforts the CPUC sided with PG&E, SCE and other utilities who have long sought to end the NEM-A program

ACT NOW BEFORE THE PROGRAM CHANGES! Reach out to your local farm solar providers and get your utility applications in by mid-February. 

Farmers might stop adopting solar if California changes rate system

Late last year, the California Public Utilities Commission adopted a new distributed rooftop solar pricing system, greatly reducing customer financial incentives. The new Net Billing Tariff (formerly Net Energy Metering) addressed the inequalities that benefited customers with solar at the expense of those who didn’t have it.

Now the regulator is considering other changes to NEM programs. Unfortunately, those changes are designed by self-serving utilities to make it impossible for apartment buildings, renters, schools, and farmers to continue adopting solar energy.

Customers are currently allowed to install one solar project which serves multiple tenants, buildings, or irrigation pumps on the same property. All of these customers have one thing in common — multiple loads and meters at the same location. The proposed changes pushed by Pacific Gas and Electric Co. and their Southern California monopoly brethren will eviscerate the ability of these customers to continue adopting on-site renewable energy. 

Renewable energy systems being installed on the state’s farms are the cornerstone of the state’s climate smart agricultural practices championed by the California Department of Food and Agriculture. The systems not only help California achieve renewable energy goals, but also enable important farm water conservation efforts, such as the state’s highly successful State Water Efficiency Enhancement Program program.

Climate smart farming and more sustainable food systems can’t happen if farms are precluded from installing distributed renewable energy systems, especially as they seek to electrify more operations and equipment on their farms.

PG&E’s rates have already risen by 11.2% so far this year and will go far higher in the coming months as the CPUC ponders another multibillion-dollar rate increase over the next four years. Rates are also rising far faster than inflation in Southern California Edison and San Diego Gas and Electric territories. As utility rates increase, the investor-owned utilities are especially desperate to limit less expensive renewable options for their customers.

Both virtual net energy metering and net energy metering aggregation programs were legislatively created (SB 594, Wolk 2012) to provide multimetered customers with the same opportunities to install efficient renewable energy systems on their farms, schools, and other property. Until the NEM-A program was enacted, farms were largely unable to install solar systems. It simply made no sense to install and interconnect multiple small and inefficient systems behind every separately metered irrigation pump on the farm. Since NEM-A was created, rural agricultural renewable energy projects have flourished.

The CPUC addressed a major inequity issue when it cut payments for distributed net energy metering customers last December. Under the proposed decision, the agency would now create an even larger inequity, leaving millions of renters and thousands of farms out in the cold by precluding their ability to install renewable energy and fully utilize it on-site. That is why several dozen bipartisan legislators have weighed in with the CPUC in support of continuing the programs.

It makes zero sense. Maybe for once the CPUC can come down on the side of customers and the planet, not greedy self-serving monopoly utilities.

Roger Isom is the CEO of the Western Agricultural Processors Association, California Cotton Ginners and Growers Association, and president of the Agricultural Energy Consumers Association.

Read more at: https://www.fresnobee.com/opinion/article281901538.html#storylink=cpy