March 21, 2024

$1.2 Trillion Spending Package Unveiled, Likely Set for Passage

Thursday morning, lawmakers finally released text on a packaged funding deal that aims to avert a government shutdown by tomorrow evening. The $1.2 trillion package covers the remaining agencies still in need of funding for the remainder of the fiscal year (DHS, DOD, DOL, and others). Conservative lawmakers were quick to pan the deal, leading to renewed questions over the stability of Speaker Mike Johnson’s (R-LA) role as top Republican in the House. Despite those criticisms, the bill (for now) appears on track to be passed and signed by the President sometime by Friday evening.

If so, it will represent the culmination of over nine months’ worth of work on a longer-term spending deal. The previous negotiations on a spending deal led in large part to the ouster of former Speaker Kevin McCarthy. The support of House Democrats for the deal though will likely ensure its passage in the House, which will require the rules to be suspended in order to pass it prior to the funding deadline. Completing the deal would also mean that Congress could now refocus their attention on passing a 5-year reauthorization of the Farm Bill, but several hurdles still remain there. 

EPA’s Controversial “Clean Cars” Rule Finalized

On Wednesday, the Environmental Protection Agency (EPA) issued their final “Clean Cars” rule, which will ultimately require auto manufacturers to shift towards larger degrees of electric and plug-in hybrid car production in the coming years. While the rule is somewhat relaxed from its original proposal, significant changes will be required for most automakers. The Biden Administration has aimed to reduce the country’s greenhouse gas pollution by at least 50% by 2030, and this rule is a major part of his plans to meet that goal. If the rule goes into effect, automakers will be required to comply with new standards beginning with production year 2027 models.

The rule has already faced significant criticism from Republican counterparts, who argue that it would effectively lead to the ban of cars relying on traditional fuels. Even organized labor groups for the auto industry have been critical of this shift. EV sales have slowed as of late, with many citing costs and inadequate charging infrastructure as key reasons for this decline. This rule does permit more “conventionally powered” vehicles to be permissible, but it would require significant improvements to the efficiency of such engines. There are serious questions though as to whether the ongoing expansion of charging stations can adequately meet the demands of both federal and state governments—which is only one hurdle out of several for the practically of making such a drastic shift over the next decade.

EPA Creates New Office Dedicated to Agriculture

Earlier this month, the EPA announced the creation of the Office of Agriculture and Rural Affairs (OARA), set to be led by Rod Snyder, who previously served as the primary agricultural advisor to Administrator Michael Regan. The new department is expected to increase the coordination between the various regional offices as well as other federal agencies when it comes to policies that impact the agricultural industry. Part of this will be done through both new and existing advisory committees. More information on OARA can be found here. While the EPA has certainly been home to several challenges to our industry for some time, the move should hopefully be a productive one for our industry.

Sites Reservoir Awarded Additional $205 Million in Federal Funding

Congress recently approved the Bureau of Reclamation’s recommendation to allocate $205.6 million in federal funding from the Water Infrastructure Improvements for the Nation Act (WIIN Act) to the Sites Reservoir Project (Project). This funding marks the largest single WIIN Act award for a storage project in history. Sites Reservoir is designed to enhance water supply throughout California while providing environmental benefits by storing water to support native wildlife and habitat during droughts. The Project will add 1.5 million acre-feet of storage capacity, significantly improving the state’s water flexibility and resiliency in drier years.

Last summer, the project received $30 million in funding from Reclamation through the Infrastructure Investment and Jobs Act. With this recent $205.6 million allocation from the WIIN Act, Sites Reservoir has secured a total of $439.3 million in federal contributions to date. This funding covers the estimated capital cost for Reclamation’s 9% participation and sets the groundwork for achieving the 16% participation goal as more space becomes available in the reservoir and additional funds are appropriated.

New RMA Program Directory

USDA’s Risk Management Agency (RMA) introduced a new searchable directory of crop insurance agents specializing in Whole-Farm Revenue Protection (WFRP) and Micro Farm policies which is intended to eliminate of confusion for producers with these seldom-used programs. Currently, there are 1,135 crop insurance agents listed, covering all 50 states. Whole Farm Revenue Protection and Micro farm are two risk management plans intended to help specialty crop, organic, urban, and direct-market producers. WFRP allows producers to insure their entire operation, including crops, livestock, and nursery production, under one policy. It also addresses the insurance gap for several specialty crops that lack individual policies. Micro Farm offers insurance options for smaller operations. It provides a risk management safety net for all commodities on farms with up to $350,000 in approved revenue. This plan caters to farms with specialty or organic commodities, marketing to local or direct markets.

USDA Opens Grant Application for Urban Ag

The USDA is now accepting applications for their Urban Agriculture and Innovative Production (UAIP) grants, which are due April 9^th. Since 2020, UAIP grants have contributed over $46.8 million to 186 projects nationwide. Planning Projects are categorized as expanding urban agriculture efforts, specifically in food access, education, and zoning. Implementation Projects support existing and emerging urban agricultural practices. Given the rise in “urban ag” in recent years, especially in California, counties are encouraged to take a closer look to see what past or ongoing projects are currently funded (in part) by these grants.

Matthew Viohl

Federal Policy, Director

Erin Huston

Federal Policy, Consultant

Isabella Quinonez

Public Policy Coordinator