32 California Food Producer EDITION 2, 2017 Regulatory After months of negotiations, California extended its Cap-and-Trade program in July but with several significant changes. The food processing industry’s focus was cost containment and those issues were addressed in the legislation. Following passage of this legislation, California Governor Jerry Brown announced the formation a Food Processing Industry Task Force to find ways to assist the industry in coping with compliance costs associated with the Cap-and-Trade program. CLFP staff were asked to serve on the Task Force along with several CLFP members. More information can be found under Energy. CAP-AND-TRADE CLFP is working with the California Air Resources Board (CARB) on climate change policy. In 2016, the California Legislature passed SB 32, which codifies a 2030 GHG emissions reduction target of 40 percent below 1990 levels. This year the Legislature passed AB 398 and AB 617, which provides additional direction for developing CARB’s Scoping Plan. The plan describes the approach it will take toward reducing emissions, as well as a requirement that a Scoping Plan Update be completed by December 2017. ENERGY In August, Governor Brown’s office formed a Food Processing Task Force to help the industry reduce energy costs and GHG emissions to decrease their long-term greenhouse gas Cap-and-Trade compliance costs. CLFP is part of the Task Force, along with several other industry associations and representatives from five state agencies. Assembly Bill 109, which passed in 2017, directed $60 million in Cap-and-Trade funds specifically for food processors for energy efficiency projects and research and development activities. The funds will be administered by the California Energy Commission. The Task Force will identify issues, establish funding priorities and recommend an imple- mentation plan. CLFP is advocating that all of the food processing Cap-and-Trade program participants be able to apply directly for grant funds to pay for a range of energy efficiency and self-generation projects. Options for reforming existing utility energy efficiency incentive programs will also be considered by the Task Force, but that will be a complex and likely contentious subject with the Public Utilities Commission. PROPOSITION 65 CLFP continues to be actively engaged on Proposition 65 issues including new listings and warning requirements. In August, Governor Brown’s office formed a Food Processing Task Force to help the industry reduce energy costs and GHG emissions to decrease their long-term greenhouse gas Cap-and-Trade compliance costs. CLFP is part of the Task Force, along with several other industry associations and representa- tives from five state agencies. Report By TRUDI HUGHES - CLFP Government Affairs Director